Green REIT has given the Irish regional property market a boost by agreeing to acquire an office development in the southern city of Cork for around €55 mln.
Green REIT has given the Irish regional property market a boost by agreeing to acquire an office development in the southern city of Cork for around €55 mln.
The Dublin-based investor said the price for the property under construction at 1 Albert Quay in Cork could rise to as much as €58 mln, depending on the letting position at the final payment date.
The seven-storey office property is being developed by local developer John Cleary's JCD Group. Cork is Ireland’s second-largest city with a population of roughly half a million.
Pre-lets have been agreed for about half of the property's 15,400 m2 of space. The estimated total rent per annum is €3.6 mln to €4.1 mln, subject to achieving full occupancy. This generates a yield of 6.75% on let areas and 7% on unlet areas. Construction is due to be completed in the first quarter of 2016.
Green REIT is funding the acquisition through its revolving credit facility with Barclays Bank Ireland.
Pat Gunne, CEO of the REIT´s investment manager, said 1 Albert Quay was 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 1 Albert Quay'.
Savills acted as the agent for the transaction.