01-05-2025
Little Island's EastGate Hall offices for sale for €1.6m
A fully let office investment that has a mix of tenants — in Cork's 1m sq ft mixed-use development EastGate — and promising a return of 8%, is up for sale to investors, likely to have an appeal to a party looking for strong pension income.
Offered with a €1.6 m AMV, via joint agents Cohalan Downing and Cushman & Wakefield, is the office element of EastGate Hall, a detached building near the main retail park in the early 2000s-developed scheme done by O'Flynn Group, on 120 acres just a mile east of the Jack Lynch Tunnel and the Dunkettle interchange by Little Island.
Offered for vendors the O'Flynn Group are EastGate Hall's office units 1B and 4 and 5 in the retail and business park, which has just over 1m sq ft of office and 250,000 sq ft of retail, with this detached building close to the retail occupiers anchored by Harvey Norman (who purchased the retail element/investment in its first Irish foray in 2022, paying a reported €24m): major tenants include The Range, Harvey Norman, EZ Living, and JYSK.
Harvey Norman paid €24 million in 2022 for the EastGate Retail Park at Little Island, Cork. Picture: Eddie O'Hare
The selling agents for EastGate Hall describe it as a mixed-use block with offices, as well as a creche, and café located at ground-floor level, all in separate ownership and not forming part of this investment sale, with income of €142,000 pa and having 32 parking spaces and further communal parking.
A major regional employment hub, EastGate Business Park is off the N25 Waterford Rd, easily accessed from the M8/Dublin Rd and the Cork South Ring Rd network and the business park is considered one of Cork's main hubs, with neighbouring occupiers including Eli Lilly, with 135,000 sq ft, Gilead, Laya Healthcare, ESB International, Pepsi, and PE Global. There's also a convenience store, bank, cafes, adjacent Radisson hotel, and commuter rail link to Little Island.
The office element at EastGate Hall has two access points leading to a recently refurbished reception hall, which is generous in size, with an 800 sq ft ground-floor suite occupied by McAdam Design, paying an annual rent of €15,000 pa on a five-year lease from 2024.
The two first-floor suites are let to Acorn Life group in unit 4, who have 2,725 sq ft on a 10-year lease from 2018, paying a rent of €48,000, and NeoDyne Ltd in unit 5, which is 4,650 sq ft held on a 10-year lease from 2021, at a rent of €79,000 pa, with a break option in August 2026..
CDA's Margaret Kelleher and C&W's Sean Healy say 'all three suites produce a combined rent of €142,000 pa exclusive, with potential for rental growth at rent review/lease renewal' and add that the tenants are responsible for service charge and rates.
At the price of €1.6m, the fully let investment reflects a net initial yield of 8% and at the lot size, and with a good tenant mix, the joint agents say they expect interest from parties for their pension/roperty portfolio.
Meanwhile, for separate vendors, also offered at East Gate on a sale and leaseback is Unit 4C on EastGate Avenue, with 4,800 sq ft occupied by DPS Engineering, with a rent of €86,300 pa via Cushman & Wakefield, on a new ten 10-year lease, with a break option in 2028.
Price guide here is €850,000.
Previous investment sales at EastGate (excluding the retail park at €24m to Harvey Norman) included 3 EastGate Road in Q1 2023, for €4.1m, producing €337,000 pa.
Details: mkelleher@ 021 427 7717 021 427 5454
