Agent Cushman & Wakefield is guiding a price of €5.5 million for the Opera Lane Collection, a portfolio of three retail units at the high-profile Opera Lane scheme just off St Patrick’s Street in Cork city centre.
The collection is available for sale individually or in one lot, with two of the units on St Patrick’s Street and the third on Emmet Place.
Lot 1: Unit 16, Opera Lane comprises a retail unit fronting on to St Patrick’s Street. Occupied by the US fashion retailer Tommy Hilfiger, the unit extends to 591.2sq m (6,364sq ft) over ground, first and mezzanine level. The current net operating income (NOI) is the higher of €271,618 annually or 9 per cent of the store’s turnover.
Lot 2: 17a Opera Lane comprises a retail unit fronting on to St Patrick’s Street. Occupied by Select, the unit extends to 75.9sq m (817sq ft) all of which is located on the ground floor. The current net operating income is €100,000 annually.
Corkman leading €11bn development of Battersea Power Station in London: ‘We’ve created a place to live, work and play’
Sherry FitzGerald CEO Steven McKenna to leave firm to ‘explore new opportunities’
Industrials: Tough year but rebound on the way
Pubs: Devitt’s on Camden Street biggest sale of the year in resurgent market
Lot 3: Unit 19 Opera Lane comprises the historic Queen Anne building which is occupied by Starbucks on a long-term lease. The building extends to 331.9sq m (3,573sq ft) over ground, first and mezzanine levels. The current net operating income is €96,781 annually.
Lot 4: The Entire. Should the prospective purchaser decide to acquire all three properties at the €5.5 million guide price (exclusive of VAT), they stand to secure a net initial yield of 7.74 per cent, assuming standard purchaser costs of 9.96 per cent based on the portfolio’s overall net operating income of €468,399 annually.
St Patrick’s Street and Opera Lane have a strong representation of well-known national and international high-street brands. Nearby occupiers include Dunnes Stores, Penneys, Brown Thomas and H&M. The city meanwhile has seen a number of new store openings in the last 12 months, with Flannels, Carrolls, The North Face, Dune, Dubray Books and Eason all opening new outlets, while Mango is fitting out the Savoy Centre.
Karl Stewart of Cushman & Wakefield says: “This portfolio offers investors the opportunity to secure a strong rental return from a mix of international operators.”
Peter O’Flynn, head of Cushman & Wakefield’s Cork office, adds: “This is a good time for Cork city, with recent announcements around Bus Connects and the new rapid-transit rail connection to Kent Station, the city centre will become much more accessible to a wider audience. The St Patrick’s Street revival is very much happening with new retail entries and the imminent redevelopment of Penneys and the former Debenhams properties.”
