THOSE interested in acquiring what commercial property specialists Savill’s describe as “a prime office investment” opportunity in the heart of Limerick had better make sure their tax affairs are in order.
Home to the Revenue Commissioners regional offices, River House on Charlotte Quay has been put on the market for €3.3 million.
Built in the 1980s, the five-storey office block is an attractive long-term proposition thanks to its proximity to the Opera Centre site and the 10-year lease on the property which Revenue has recently renewed, according to the auctioneers.
The current rental income on the property is €345,320, rising incrementally each year up to 2016 to €370,952. The tenant has an option to break in 2018 and 2020.
“In an asset class where there is strong demand at present, the agents are guiding €3,300,000 exclusive which reflects an initial yield of 9.8% on a recently renewed lease providing a very competitively priced office investment in the heart of Limerick city centre,” stated Isobel O’Regan of Savill’s offices on the South Mall in Cork.
The total floor area of River House is over 3,300 square metres (approximately 35,600 square feet).
Potential investors are also being advised of Limerick City Council’s plans for a major redevelopment of the Patrick Street, Bank Place, Arthur’s Quay area.
Limerick City Council itself - with the assistance of central government - was behind a major commercial property transaction down the street when it recently purchased The Granary for a sum as yet undisclosed.