Cork City’s ‘Half Moon’ development on the market for €34 million
Strong demand expected for modern mixed-use development anchored by Apple Europe and Boots
O’Callaghan Properties have placed their Half Moon Street development in the heart of Cork City Centre on the market today with Savills and CBRE with a guide price of €34m – reflecting an initial yield of 7.07%.
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 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 €32.50 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 in an unrivalled location 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.
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:
“We are delighted to bring our 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”.
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”.
- The office element is Grade A development quality and enjoys extensive natural light accentuated by the architectural excellence of the building
- It is anchored by Boots (flagship store) and Apple Europe
- It has a (WAULT) to break of 4.12 years and a WAULT to expiry of 9 years
- The property also offers excellent Asset Management opportunities;
- 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 new built office space in Cork are reaching €35 per sq ft.
- the letting of currently vacant retail space at ground and lower ground floor level.
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.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE U.C., (CBRE Ireland) registered in Ireland, no. 316570. PSRA Licence No. 001528 is the country’s largest commercial real estate services company with offices in Dublin and Cork. Currently employing over 150 employees, we work with occupiers, investors and developers of office, industrial and logistics, retail, hotel and healthcare property, providing strategic advice and execution for property sales and leasing; tenant representation, corporate services; property and project management; appraisal and valuation; development services; investment management and debt advisory; business rates and compulsory purchase and research and consulting. Please visit our website at www.cbre.ie