Investment with long-term lease in Cork for €5.4m

Investors looking for a high-quality property, with a substantial lease term, will likely be interested in an opportunity in Carrigtwohill’s IDA Business Park, which is coming to the market at a guide price of €5.4 million.
Selling agent Cushman & Wakefield expects the property will attract attention from “at home and further afield”, given the occupier’s primary business is to provide services for general aviation, commercial and military customers globally.
SA Component Service (Ireland), which is part of StandardAero, the US aerospace maintenance and repair group, occupies the premises on a long-term lease. This expires in June 2047, but with break options in June 2036 and 2042, which leaves about 11½ years certain on the current lease.
Unusually, the passing rent is paid in US dollars and currently stands at $413,000 a year (€375,000 in October 2024). The rent will be reviewed every five years on a CPI basis compounded annually, with a cap of 5 per cent and a collar of 1 per cent a year. The next rent review is due in June 2027.
Seán Healy of selling agent Cushman & Wakefield said: “This is an excellent opportunity to acquire a high-quality investment with a substantial lease term certain in a prime industrial location. In a market with short-term leases becoming the norm, to have in the order of 11½ years remaining on a lease with CPI rent reviews is extremely attractive. The tenant has been in occupation since 2007 and are firmly committed to the location and have recently agreed an extension to their original 20-year lease.’’