A mixed-use investment near Cavan town and anchored by a HSE primary care centre is being offered for sale with a €5.5m guide price.
oughtee Business Park in Drumalee, about one kilometre north of the town’s main street, currently generates €565,097 with contracted rent of €636,623 and selling agent Patricia Ward of TWM says this would equate to a net initial yield (NIY) of 9.34pc. When abatements on some current rents expire the NIY will increase to 10.53pc assuming standard purchaser’s costs of 9.96pc.
Located on a 3.75-acre site, the premises extend to 70,575 sqft over three blocks and comes with extensive car-parking.
Cavan Primary Care Centre accounts for approximately 57pc of its total revenue.
Block 1 comprises a three-storey building occupied by a Centra supermarket at ground level incorporating Haven pharmacy. This block’s first and second floors are occupied by the HSE. In addition, a 3,961 sqft first-floor office suite is vacant.
Block 1 is glazed linked to Block 2 which is also partly occupied by HSE Primary Care Team as well as by general practitioner surgeries. At Block 2’s ground level a hairdresser, diner and vacant retail unit face onto the surface car park. This block also incorporates under-croft car parking.
The third block, known as The Orchard Centre, has an independent entrance from Cootehill Road with generous surface car-parking. Occupiers of The Orchard Centre include The Orchard Bar, two retail units, offices occupied by an accountancy practice and a vacant fully-fitted restaurant.
In terms of overall space about 13pc is vacant of which 5.61pc is offices comprising one unit as well as a 3,062 sqft retail unit and a 2,235 sqft restaurant.
The agents are acting on behalf of receiver Aiden Murphy of Crowe consultancy.
The strength of anchor tenants HSE and Centra covenants are underpinned by the average length of their leases with as many as 13.85 years to run to break option and 15.5 years to run to expiry.
TWM say they expect good interest in the business park as it offers “secure state income and asset management opportunities”.
In the 2016 census county Cavan’s population was 76,176 and Cavan town’s was 10,914.