Trinity Biotech site sale

A high-quality office building rented on a long-term lease by Trinity Biotech Manufacturing at the IDA Business Park at Southern Cross in Bray, Co Wicklow, is to be offered for sale by private treaty on the instructions of property asset managers Cleary McCabe.

Though selling agent JLL has not issued a guide price, one experienced valuer suggested that it was likely to make about €9 million. If that figure proves accurate, then an investor would expect to get an initial yield of 8.36 per cent.

The building, with modern glass façade and high spec laboratories, canteen and offices, dates from 2000 and is let to Trinity on a long-term lease from July 2007. There are 17 years remaining on the lease which provides for upwards-only rent reviews. The current rent is €785,605.

Trinity has three buildings in the park, one on each side of the block going for sale.

Trinity Biotech is quoted on the Nasdaq Stock Exchange and, according to Max Reilly of JLL, "an asset of this quality on a long lease let to a quality tenant will be of interest to the general investment market but particularly those seeking pension-type returns."

Trinity Biotech was founded in 1992 and specialises in the development, manufacture and marketing of diagnostic test kits. A combination of organic growth and an acquisition-led strategy has seen the company assemble a portfolio of over 400 products. It employs 496 people, had a turnover last year of over €80 million and a profit of €9 million.