Agent Cushman & Wakefield is guiding a price of €26.75 million for the “Opera Lane Retail Investment”, a prime portfolio of retail properties in the heart of Cork city centre.
Developed originally in 2009 in response to the growing demand from occupiers for larger and more modern floorspace in Cork city, Opera Lane is home today to a strong tenant line-up that includes Tommy Hilfiger, H&M, Skechers, Select+, Next, New Look, Specsavers and Starbucks. Only recently, H&M committed to a lease re-gear underlining its commitment to Opera Lane, its only store in Munster.
The revival of Patrick Street is already under way with several new retail entrants
— Peter O'Flynn
Located just off St Patrick’s Street and within close proximity to Cork Opera House, Opera Lane extends across a total area of 9,964sq m (107,251 sq ft). The scheme’s units are set out over lower-ground, ground, first and mezzanine levels on either side of a spacious streetscape , providing an open-air feel with the walkway extending to 9m in width. Select+ and Tommy Hilfiger occupy the front two units which have dual frontage onto St Patrick’s Street and Opera Lane.
Overall, the development has 25m of frontage to St Patrick’s Street, which is Cork city’s premier shopping thoroughfare. Notable nearby occupiers include Dunnes Stores, Penneys, Brown Thomas and H&M. In the past 12 months, meanwhile, The North Face, Dune, Dubray Books and Eason have all opened for business in the area.
The investment’s €26.75 million guide price (exclusive of VAT) reflects a net initial yield of 9.22 per cent assuming standard purchaser’s costs of 9.96 per cent. In addition, the property is being offered for sale with the benefit of attractive debt terms to prospective purchasers.
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Karl Stewart, head of retail at Cushman & Wakefield, says: “This represents an excellent opportunity for investors to acquire a majority share of Cork’s premier retail destination.
“Opera Lane provides a strong rental return from a mix of international operators with scope for further rental return with turnover top-ups on a number of the stores which will benefit from the improving foot traffic in Cork city centre.”
Peter O’Flynn, head of Cushman & Wakefield Cork, adds: “This is a good time for Cork city. With recent announcements around Bus Connects and the new rapid transit rail connection to Kent Station, the city centre is set to become far more accessible to a wider audience.
“The city council’s investment in new pedestrian infrastructure has made Cork more retail and leisure-friendly. The revival of Patrick Street is already underway with several new retail entrants, while the redevelopment of Penneys and the former Debenhams premises is imminent.”
