Green REIT snaps up prime Cork office block for up to €58m
Property investment group agrees contract to buy One Albert Quay
One Albert Quay will be Cork’s largest office space when complete
Property investment group Green REIT is to acquire Cork City’s largest office block for up to €58 million.
The company said it had entered into a conditional contract to buy One Albert Quay, which is nine months from completion.
The building, which has pre-lets agreed for over half of the commercial space, is being constructed by local development company, JCD Group.
Green Reit said it expects total rent per annum from the building to range from €3.6 million -€4.1 million, subject to achieving full occupancy.
It has agreed to acquire the building for €55 million - €58 million, depending on letting position at the final payment.
The company said pre-letting agreements were recently signed with two tenants totalling 89,000 sq ft, which amounts to more than the building’s total letting space.
Fire protection and security firm Tyco has agreed to lease 75,000 sq ft for its global headquarters, on a 20-year lease, while PricewaterhouseCoopers has agreed to lease 14,000sq ft on a 15-year lease.
The total annual rent from these two pre-lettings is €2.1 million per annum.
Green REIT said the acquisition to be funded through the company’s revolving credit facility with Barclays Bank.
Chief executive Pat Gunne said: “We are delighted to announce the acquisition of what will be Cork’s best office building and the first major city centre office development in Cork for over a decade.
“The yield premium over Dublin is attractive, particularly with the Cork office rental market at an earlier stage in the recovery cycle. We look forward to working with JCD Group in the period ahead to secure further high quality tenants for the remaining space in One Albert Quay.”