Irish Life seeks buyer for Cork city centre retail investments

St Patrick’s St properties guiding at €900k and €1.2m among four assets in BidX1 sale

 

Online property specialists BidX1 has brought four commercial investment opportunities in Cork to the market ranging in price between €900,000 and just under € 2 million. The properties will be sold by private treaty via the BidX1 digital platform.

In the first instance Irish Life is seeking a purchaser for two retail investment properties on St Patrick’s Street in Cork city centre. 11 St Patrick’s Street extends to 2,224sq ft over two floors. Let to Mestonway Ltd but sub-let to Herlihy’s Patrick Street Ltd, trading as a Centra, the property generates an annual rent of €120,000.

The lease provides for 14 years term certain, with five-yearly open-market rent reviews – CPI linked and collared at 99 per cent of the passing rent. BidX1 is guiding €1.2 million, which equates to a net initial yield of 9.1 per cent.

Meanwhile, 78 St Patrick’s Street comprises 1,875sq ft across four floors, and is currently let to Eircom Ltd, trading as Eir. The annual rent is € 95,000, with a lease of more than 3.5 years term-certain. The guide price is €900,000, reflecting a net initial yield of 9.6 per cent.

Another retail investment, numbers 10, 11, 12 and 13 Castle Street and numbers 2, 3 and 7 Paradise Place, offer an existing income stream as well as development potential. The property extends to more than 10,000sq ft across three floors, with tenants including Boyle Sports, Fast Al’s and a jewellers, at a total contractual rent of €109,500 per annum.

The upper floors are currently vacant with potential for residential or office use, subject to obtaining the necessary consents. Guiding at € 1.2 million and reflecting a net initial yield of 8.3 per cent, there is potential for a double-digit reversionary return with repurposing of the upper floors.

Office block

BidX1 and joint agents Lisney have been appointed to sell a two-storey office block in Cork Business & Technology Park, which is guiding € 1.9 million. Block A is a standalone office block with 55 surface parking spaces, with neighbouring occupiers including Boston Scientific, Stryker, Alcon, Abtran and Pilz Ireland.

The ground floor is let to S3 ASIC Semiconductors Ltd for € 116,480 per annum, on a 10-year lease from December 2020, with five years term-certain. Investors will be drawn by the strength of the covenant; the firm is a subsidiary of international semiconductor manufacturer Dialog Semiconductor, whose revenue was almost $1.6 billion in 2019.

Currently vacant, the first floor is in walk-in condition and ready for occupation, and has independent access via both stairs and lift. The € 1.9 million guide price reflects a net initial yield of 5.6 per cent, with potential for a reversionary yield of 11.1 per cent once an occupier for the first floor is secured.