O’Callaghan Properties have placed the Half Moon Street development in the heart of Cork City Centre on the market today with a guide price of €34m – reflecting an initial yield of 7.07%. Savills and CBRE are handling the sale.
The mixed-use asset which was developed in 2009 by O’Callaghan Properties, generates a current gross annual income of €2,606,500 and is one of the most significant prime investment opportunities to launch to the market in Cork in recent years.
Situated in an attractive waterfront setting on Lavitts Quay, the building was designed by Wilson Architects and is anchored by Apple Europe and Boots pharmacy’s flagship Cork store. The building extends to 119,589 sq ft of retail and Grade A office accommodation.
The Grade A office space is currently let to Apple Europe at €22 per sq ft which offers significant reversionary potential given recent lettings for newly built office space in Cork have reached €32.5 per sq ft. Other notable asset management opportunities include letting the currently vacant retail space at ground and lower ground floor level.
Cork City is currently undergoing €300m+ worth of investment in office, retail, hotels and residential developments. In another boost to the Cork market, The Ireland Strategic Investment Fund (ISIF) recently announced it is to invest €35m into a new Quadrant-managed fund that will provide financing of up to €120m for the development of high-quality office space in Cork city.
The region is the fastest growing in the country and as such, this investment opportunity is expected to drive strong demand from both overseas and domestic investors looking to either get a foothold in Cork marketplace, or to expand and strengthen their current property portfolio in the locality.
Speaking of the launch, Brian O’Callaghan of O’Callaghan Properties said they are bringing Half Moon Street development to the market as a direct response to the high levels of interest from both Irish and international investors in Cork in recent months. “We are currently developing the largest office complex in Cork at Navigation Square and the sale of Half Moon Street will further help to position Cork as a high-quality investment location for institutional investors”