The sale of a manufacturing and warehouse facility at Parkmore West Business Park in Galway offers investors the opportunity to secure a net initial yield of 6.3 per cent.
Building 1 at Parkmore West, which comes to the market fully let to Canadian-headquartered electronics manufacturer, Celestica Inc, at a guide price of €7.5 million through agent Cushman & Wakefield, is generating a passing rent of €519,812 a year. The figure, which breaks back to just €8.40 per square foot based on the property’s gross external area of 5,751sq m (61,903sq ft) offers the prospective purchaser significant scope to increase the rental income upon the expiration of Celestica’s lease on July 31st, 2030. Celestica, which has occupied the property since the year 2000, provides the buyer with a blue-chip tenant covenant. There is a full parent company guarantee provided by Celestica Inc, a Nasdaq-listed company with a market capitalisation of $9.5 billion.
Building 1 briefly comprises a modern manufacturing and warehouse unit with a total gross external area of 5,751 sq m (61,903 sq ft). Loading access is provided by one dock leveller and one grade-level door. There are 70 car-parking spaces located to the side of the building, which sits on a 0.91-hectare (2.25-acre) site.
Parkmore West Business Park is in Ballybrit, about 6.5km east of Galway city centre. The scheme is well established as a manufacturing, life sciences and technology hub with occupiers that include Medtonic, TE Connectivity and Merit Medical.
Patricia Staunton and James Loughnane of Cushman & Wakefield say: “The core aspects of this investment are robust. Celestica are long-time occupiers of this property and are committed to this building to July 2030. At a capital value of €121 per sq ft, the asking price is significantly below replacement cost, making this investment a very attractive proposition.”
