Cavan investment with HSE lease offers a 9.34 percent return

A mixed use investment near the town of Cavan anchored by an HSE primary care center is offered for sale with a guide price of €5.5m.

The oughtee Business Park in Drumalee, about a kilometer north of the town’s Main Street, is currently generating €565,097 at a contract rent of €636,623, and sales agent Patricia Ward of TWM says this would give a net initial yield (NIY) of 9.34 percent correspond to. When discounts for some current rentals expire, the NIY will increase to 10.53 percent, assuming the standard buyer cost is 9.96 percent.

The site is set on a 3.75 acre site and extends over three blocks for 70,575 square feet with ample parking.

The Cavan Primary Care Center accounts for about 57 percent of its total income.

Block 1 consists of a three-storey building that has a Centra supermarket on the ground floor, which houses the Haven pharmacy. The first and second floors of this block are occupied by the HSE. In addition, a 3,961 sqm office suite on the first floor is vacant.

Block 1 is glass connected to Block 2, which is also partially occupied by the HSE Primary Care Team and general practitioners’ practices. On the ground floor of Block 2, a hairdresser, snack bar and vacant retail unit overlook the above-ground car park. This block also includes a parking lot under the croft.

The third block known as The Orchard Center has an independent entrance from Cootehill Road with ample parking. Orchard Center occupiers include The Orchard Bar, two retail units, offices of an accounting practice and a vacant fully stocked restaurant.

In terms of total space, approximately 13 percent is vacant, of which 5.61 percent is one-unit offices, plus a 3,062-square-foot retail unit and a 2,235-square-foot restaurant.

The agents act on behalf of bankruptcy trustee Aiden Murphy of Crowe Consulting.

The strength of the anchor tenants’ HSE and Centra arrangements is underscored by the average length of their leases, with up to 13.85 years to break option and 15.5 years to expiration.

TWM say they expect good interest in the business park as it offers “secure government revenue and wealth management opportunities.”

At the 2016 census, the county of Cavan had 76,176 residents and the town of Cavan 10,914.

https://www.independent.ie/business/commercial-property/cavan-investment-with-hse-tenancy-offers-934pc-yield-41990190.html Cavan investment with HSE lease offers a 9.34 percent return

Fry Electronics Team

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