Drumalee business park put up for sale
A three block business park near the centre of Cavan Town, with the HSE and a local supermarket as anchor tenants, has been put up for sale with a guide price of a million less than it was reportedly sold for less than seven years ago.
Loughtee Business Park at Drumalee has been put on the market by Patricia Ward of TWM, acting on behalf of receiver Aiden Murphy of Dublin-based Crowe consultancy, for €5.5 million.
The 3.75-acre mixed-use development covers 70,575 sqft over three blocks, together with extensive car-parking. It last sold in 2015 for reportedly close to the initial €6.5 million asking price.
According to the sales blurb, the business park currently generates €565,097, with contracted rent of €636,623, equating to a net initial yield (NIY) of 9.34 per cent.
When abatements on some rents expire, the NIY is expected to rise even further, to 10.53 per cent.
Cavan Primary Care Centre is said to account for approximately 57% of the property’s total revenue.
Block 1 comprises a three-storey building occupied by a Centra supermarket at ground level, incorporating Haven pharmacy. The block’s first and second floors are occupied by the HSE.
In addition, a 3,961 sqft first-floor office suite is currently listed as vacant.
Block 2 is also partly occupied by HSE Primary Care Team, as well as by general practitioner surgeries. At ground level there is a hairdresser, diner and vacant retail unit.
The third block, known as The Orchard Centre, has an independent entrance from Cootehill Road and includes The Orchard Bar, two retail units, offices occupied by an accountancy practice and a vacant fully-fitted restaurant.
The tenancies of both the HSE and the Sean Tarpey owned Centra are underpinned by lengthy leases with as many as 13.85 years to run to break option, and 15.5 years to expiry.
TWM say they expect good interest in the business park as it offers "secure state income and asset management opportunities".