Goodbody Stockbrokers has agreed to sell its interest in a Cork business park to its joint venture partner O'Flynn Group for €40.6 million. The transaction values the Eastgate complex in Little Island at €81.2 million.

The sale of the 50 per cent stake in the business park marks a strong return for a consortium of about 50 of the broker's private clients, who provided capital of €3.2 million for the joint venture in 1997. The deal is subject to their approval, but Goodbody expressed confidence that they will endorse it.

"We would expect the offer to be accepted. People would see it as being a fair price in the current Irish property market," said Eamonn Glancy, head of private clients at the broker.

The average investment in 1997 was €63,000, he said. Shareholders stand to receive a further €601,000 if they sign off on the O'Flynn transaction. They received an initial dividend of €57,000 in 2000.

The total payout equated with an internal rate of return of 33 per cent per annum, Mr Glancy said.

Some €2.6 million of the investors' money was used to acquire the 118 acres from the farmer who owned the property, which is four miles from central Cork.

The complex includes an office park, retail units and an "automall" for motor dealers. Should the "automall" be sold in the future, the terms of the O'Flynn deal allow for a further distribution to the consortium if more than €61 million is realised from such a sale.

In that case, both O'Flynn and the Goodbody group would each realise half of the excess over €61 million.