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Thu, 20 Apr, 2023 - 08:00

Irish and overseas property investor interest has been sparked by the sale of a stylishly finished, pivotal property on Patrick Street, Cork.

No. 39 St. Patrick Street is guiding at in excess of €2.5m. Located between Eason’s and PTSB and next to Pandora and Dune, the property sits in the heart of the busiest retail zone in Cork city centre. The current tenant, Mizen Clothing Retail Ltd, trading as The North Face, is not affected by this sale.

Fully occupied, No.39 St. Patrick Street provides an attractive annual rental income of €200,000 plus a turn over top up of 9%.

This centrally located and well-appointed property is sure to appeal to the city’s experienced retail investors, who know that as the tenant’s trade grows, so too does the site owner’s profit margin. Passing rent comprises a base rent of €200,000 per annum, plus a 9% gross turnover rental top-up per annum. The tenant has a ten-year lease agreement from 1st September 2022, with a break option at the end of year five.

Fully occupied and available in one lot, and with no asset management required, No.39 Patrick Street sits right in the heart of Cork’s main street, while it is also plum centre on the rich retail vein from Opera Lane to Oliver Plunkett Street.

The investment comes to market at an exciting time for Patrick Street, with the imminent summer opening of British tycoon Mike Ashley’s fashion outlet Flannels, the recent arrival of US doughnut store Krispy Kreme, next to the property, and the return of Spanish fashion retail giant Mango.

The retail line-up on Patrick Street has made great advancements in the past year. The street’s other recent additions include Dune shoe shop, Dubray Books and JD Sports who join anchor Patrick Street retailers like Brown Thomas, Tommy Hilfiger, Superdry and Dunnes Stores.

Inside The North Face, the current tenant in No.39 Patrick Street. The entire property extends to 8,682.1 sq ft / 806.6 sq m over four floors and benefits from front and rear access off St Patrick’s Street and Marlboro Street.

“This revival is exactly what Cork city centre needed,” says Siobhan Young, Divisional Director of Cushman & Wakefield, Cork, selling agents for No.39 Patrick Street. “With Covid driving us all to buy online, we once again have the opportunity to mix shopping with meeting friends for lunch or coffee. Recent additions to the retail line up in the city centre has created more variety for shoppers and it is wonderful to see the city centre busy again.’’

One noteworthy change for the city has been the rise in shopper footfall along a line from Opera Lane – home to H&M, Next, River Island and Sketchers – and on towards Lifestyle Sports on Patrick Street and from there along Oliver Plunkett Street towards the Grand Parade.

No.39 Patrick Street sits right on that rich vein. Nearby Oliver Plunkett Street, of course, is also pedestrianised during business hours and provides shoppers with a broad selection of cafes, restaurants, boutiques and bars.

The sight of droves of shoppers heading northward from Brown Thomas towards Merchants Quay and MacCurtain Street may not revive fully until a new tenant replaces Debenhams, empty since April 2020 and on sale for €20m.

Fashion retailer The North Face occupies the entire and currently trades from the ground and first floor, while the 2nd and 3rd floors are used as the stock room, storage, office and staff areas.

Meanwhile, the most likely potential buyers for No.39 Patrick Street – namely current investors already enjoying the dividends of the retail revival, or perhaps Dublin-based or overseas investors keen to get a slice of ‘Cork on the rise’ – will be aware of these nuanced changes.

“The eventual buyer could well be someone who is already a local investor, an Irish investor living overseas, or someone who is aware this is a good opportunity to invest in what will always be Cork’s main street,” said Siobhan Young.

A brief history of No.39 Patrick Street

Formerly home to Woolworths department store and originally constructed in 1880, No.39 Patrick Street comprises part of a corner-sited, end-of-terrace four-storey property. The building is now split to provide for retail use with The North Face in No.39, and bank use with PTSB in No.40 and both properties are in separate ownership. The entire extends to 8,682.1 sq ft / 806.6 sq m over four floors and benefits from front and side access off St. Patrick’s Street and Marlboro Street. No.39 has been well maintained and upgrades have been completed to the timber sash windows and roof, a roller shutter door has been installed at the front access point and building façade repair works have been completed by the current landlord. The North Face currently trades from the ground and first floor and the 2nd and 3rd floors are used as the stock room, storage, office and staff areas.

Investment highlights

Prime retail location on Patrick Street between Opera Lane and Oliver Plunkett Street.
Located between Eason’s and PTSB and next to Pandora and Dune.
Well-maintained building benefitting from recent upgrades and a new retail fit-out.
Occupied by Mizen Clothing Retail Ltd, t/a The North Face. The tenant is not affected by this sale.
Passing rent comprising a base rent of €200,000 per annum plus 9% gross turnover rental top-up.
Ten-year lease agreement from 1st September 2022; Tenant break option at the end of year five of the lease.
Extensive retail area in excess of 4,400 sq ft at ground and 1st floor.
Extending to 8,682 sq ft GIA over four floors.
Fully occupied and available in one lot, no asset management required. The tenant is not affected by this sale.