BidX1, who specialise in online property sales, have brought four commercial investment opportunities in Cork to the market this week, ranging in value between €900,000 and just under €2m. The properties will be sold by a private treaty process on the BidX1 digital platform.
Irish Life have appointed BidX1 to secure a purchaser for two retail investment properties on St Patrick’s Street in Cork City Centre. 11 St. Patrick’s Street extends to 2,224 sq. 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 5 yearly open market rent reviews – CPI linked and collared at 99% of the passing rent. BidX1 are guiding €1.2m, which equates to a net initial yield of 9.1%.
Meanwhile, 78 St. Patrick’s Street offers 1,875 sq ft across four floors and is currently let to Eircom Ltd, trading as Eir. The annual rent is €95,000, with more than 3.5 years term certain. The guide price is €900,000, reflecting a net initial yield of 9.6%.
Another retail investment, No’s 10, 11, 12 & 13 Castle Street and No’s 2, 3 & 7 Paradise Place, offers an existing income stream as well as development potential. The property extends to more than 10,000 sq ft across 3 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 €1.2m, reflecting a net initial yield of 8.3%, there is potential for double digit reversionary return with repurposing of the upper floors.
BidX1 and joint agents Lisney have been appointed to sell a two-storey office block in Cork Business & Technology Park, which is guiding €1.9m. Block A is a stand-alone office block with 55 surface parking spaces, boasting neighbouring occupiers like 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 5 years term certain. Investors will likely be drawn by the strength of the covenant; the firm is a subsidiary of international semiconductor manufacturer Dialog Semiconductor, whose revenue was almost $1.6bn in 2019.
Currently vacant, the first floor is in excellent condition and ready for occupation, and benefits from independent access via both stairs and lift. The €1.9m guide price reflects a net initial yield of 5.6%, with potential for reversionary yield of 11.1% once an occupier for the first floor is secured.
Johnny O’Connor, Head of Commercial Property at BidX1, commented: "The digital platform is proving attractive for vendors who are increasingly seeking to benefit from advances in property-technology to maximise return for their assets – within an efficient timeframe.”
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