Green REIT has purchased a grade-A office building in Cork, Ireland, for between €55m (£38m) and €58m.
One Albert Quay is currently under construction and is 50% prelet ahead of the expected first quarter 2016 completion.
The capitalisation yield on the building is 6.75% for the let areas, rising to 7% for unlet space.
The total lettable area of the building is expected to be 166,000 sq ft spread over seven floors, with an estimated rental of between €3.6m and €4.1m once fully let.
Green REIT has secured two tenants. Tyco will take 75,000 sq ft for its global headquarters on a 20-year lease with a tenant break in 12 years. PwC will take 14,000 sq ft on a 15-year lease with no break.
Total rental income from the two tenants is expected to be €2.1m pa.
The final amount Green REIT pays will depend on the final letting position of the building on completion, with phased payments expected until the end of the Q1 2017.
The acquisition will be financed out of existing financing facilities held with Barclays Bank Ireland.
Pat Gunne, chief executive of Green Property REIT, said: “We are delighted to announce the acquisition of what will be Cork’s best office building and the first major city centre office development in Cork for over a decade. The yield premium over Dublin is attractive, particularly with the Cork office rental market at an earlier stage in the recovery cycle. We look forward to working with JCD Group in the period ahead to secure further high quality tenants for the remaining space in One Albert Quay.”
Savills acted as the agent on the transaction.
