Cork office at €3.3m offers buyer 6.1% net initial yield

Building 4700 at Cork Airport Business Park has scope for enhanced return of 9.64%

The prospect of a 6.1 per cent net initial yield and potential reversionary yield of 9.64 per cent should see strong interest in the sale of an office investment at Cork Airport Business Park.

Building 4700, guiding at a price of €3.3 million with agent Lisney, comprises a detached two-storey, third-generation office building situated in a high-profile location at the main entrance to the established and popular suburban scheme.

The investment currently generates an income of €221,700 per annum with about 75 per cent occupancy. Tenants include Marriott International and Smarttech. One of the ground-floor office suites, with a net internal floor area of 5,000sq ft, is currently vacant.

The guide price of €3.3 million reflects a net initial yield of 6.1 per cent with a potential reversionary yield of 9.64 per cent based on full occupancy. Based on current construction costs, the sale price is attractive as it equates to €134 per square foot.

Building 4700 has a gross internal area of 2,288sq m (24,632sq ft) and a net internal area of 1,912sq m (20,585sq ft). The property is currently laid out with two office suites at ground-floor level and one office suite on the first floor.

There is a central core with a feature glazed entrance lobby, stairs, passenger lift and ladies and gents toilets and shower on each floor. The main ground floor entrance lobby has a tiled floor and the offices are finished internally with air conditioning, raised access floors with carpet floor coverings and suspended acoustic tiled ceilings incorporating lighting. There is surface car parking surrounding the building providing a parking ratio of 100 spaces for the subject property.

Cork Airport Business Park is one of the leading office locations in the Cork region. The scheme is 7km south of Cork city centre and is within walking distance of the airport's terminal buildings. The overall development comprises about 750,000sq ft of office accommodation laid out in a low-density campus-style landscaped environment. There is an excellent global business community within the scheme, and occupiers include Amazon, Intel, Bank of New York, IBM, Poppulo, Aviva and Alter Domus.

The park is easily accessible from all road networks. There are also excellent public transport links with a frequent bus service running through the park and serving Kent railway station and the city centre. The park has two onsite hotels, Cork International Hotel and Cork Airport Hotel.

David McCarthy of Lisney’s Cork office says: ‘We expect good interest in this investment. The property offers the combination of immediate rental income and an opportunity for asset management. The rents in Cork Airport Business Park have remained stable over the last few years and there are currently low levels of vacancy within the scheme.”

Ronald Quinlan

Ronald Quinlan

Ronald Quinlan is Acting Property Editor of The Irish Times