With the recent recovery in values on Cork city's main retail thoroughfare, Patrick Street, Savills agency is confident of finding a buyer for three fully let retail buildings which are for sale in one lot for €9.5 million. At that price the net initial yield will be 6.15 per cent.
The agency expects interest from local and overseas investors in numbers 73, 74-75 and 79 Patrick Street, which are producing an overall rent roll of €610,000 and have a weighted average unexpired lease term of 7.6 years.
The strong tenant line-up includes Carphone Warehouse, Abrakebabra and the less known Sostrene Grene, a Danish lifestyle and homeware retailer, which recently opened four Irish stores adding to its 105 other outlets throughout Europe.
The portfolio has an overall floor area of 1,300sq m (14,000sq ft) including 506sq m (5,450sq ft) of ground floor retail accommodation.
Number 73 extends to 385sq m (4,147sq ft) and is let to Abrakebabra until 2026 at a current rent of €190,000 per year.
New lease
Number 74-75 has a floor area of 700sq m (7,541sq ft) and is rented by Sostrene Grene on a new 15-year lease from August 2016 with a tenant break option in 2023. The current rent is €230,000 per year.
Number 79 extends to 210sq m (2,258sq ft) and is let to Carphone Warehouse until March 2024 at a rent of €190,000 per year.
The Patrick Street enclave has benefitted from a resurgence of activity with Sostrene Green and Carluccio's committing to new stores and H&M extending its Opera Lane outlet to 1,022sq m (11,000sq ft).
The 3,716sq m (40,000sq ft) Capital retail development fronting on to Patrick Street and Grand Parade is now fully reserved, again underlining renewed confidence in the city centre retail market.
Fergus O’Farrell of Savills said he was expecting strong interest from a range of investors because of the prominent city centre location of the portfolio as well as its attractive lot size and tenant line up.
Isobel O’Regan of Savills said the planned sale gave investors a rare opportunity to acquire a sizeable holding along Cork’s main retail thoroughfare at an attractive yield relative to those in Dublin city centre.
