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 a 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 and other tenants in situ include Henry J Lyons – one of Ireland’s leading architectural practices – in addition to Matthews, the clothing and footwear retailer, and Kopper Hair Salon.
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.
The Half Moon development sits in the heart of the city adjacent to the Crawford Art Gallery and Cork Opera House and is within walking distance of Opera Lane and Patrick Street, Cork’s prime retail offering.
Domhnaill O’Sullivan of Savills, "We are expecting interest to be strong from the onset – not only is this a highly desirable investment opportunity in terms of location, unit potential, mix, and design, but there is a dearth of assets of this grade on the marketplace. What’s more it is surrounded by a myriad of local amenities with a waterfront setting and extensive views of the River Lee. Its close proximity to prime retail on Patrick Street and Opera Lane will also prove attractive to prospective investors."
Kyle Rothwell of CBRE added, "This is Boots flagship Store in Cork and the office space leased to Apple offers significant asset management and reversionary potential. We believe this will appeal to both domestic and international firms looking for strong value add potential."