Agent Harvey is guiding a price of €7.2 million for a prime industrial investment at Parkmore West Business & Technology Park in Galway.
Building 4 comes for sale fully let to Medtronic Vascular Galway Unlimited Company under two leases which are co-terminus in 2043 and is producing rental income of €495,193.96 per annum. Should a sale proceed at the asking price the purchaser stands to secure a net initial yield of 6.25 per cent.
The subject property comprises a modern, purpose-built detached industrial and office facility on a high-profile 2.73-acre site in Parkmore West Business & Technology Park. Parkmore was developed by and is actively managed by the IDA. Building 4 extends to a total gross external floor area of 5,032.12sq m (54,165sq ft) constructed in 2003. An extension was added to the property in 2006.
The current passing rent of €495,193.96 equates to €9.14 per sq ft, offering reversionary potential at the next rent review in September 2028. Medtronic occupy the building under two leases, which are co-terminus in September 2043. The leases are full repairing and insuring, with tenant-break options in September 2033, offering 9.5 years term-certain to a strong tenant covenant. Rent reviews are five-yearly and on an upwards-only basis.
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Medtronic Vascular Galway Unlimited Company is an Irish-registered company with section 357 (Southern Ireland) status and therefore its financials are not publicly recorded, but the most recently filed accounts for its ultimate holding company, Medtronic plc, records turnover of €30.5 billion, profit after tax of €4.8 billion and shareholders’ funds of €50.6 billion. Medtronic occupy five other buildings within Parkmore, making it the predominant occupier in the campus.
Industrial building allowances of approximately €3 million also attach to Building 4, making it an especially valuable investment proposition for certain categories of buyer. These allowances should be reclaimable over the building’s remaining tax life of 2027 (original building) and 2030 (extension).
Siobhan Convery, who is handling the sale on behalf of Harvey, says: “The fundamentals underpinning this investment opportunity are solid. Medtronic represent a top-class covenant and are committed to this building for a further 9.5 years, with an upwards-only rent review in 2028. The availability of €3 million of industrial building allowances over the next three to six years is a rare offering which delivers significant value for certain classes of buyers. At €133 per sq ft the asking price sits significantly below replacement cost, making this investment very attractive indeed”.
