BAM is selling Tesco investment in Cork city with 7.5pc initial return

The Tesco unit extends to 5,708 sqft

Donal Buckley

Building contractor and developer BAM is selling a new retail investment property let to Tesco Ireland Ltd in Cork city centre. Joint agents CBRE and Behan Irwin & Gosling are guiding €1,730,000 for it, which equates to a net initial yield of 7.5pc.

Located on the ground floor of Lee Point, the 420-bedroom student accommodation complex on South Main Street, it forms part of the overall Brewery Quarter Development which includes the Counting House mixed-use scheme and the proposed 6,000-capacity Cork Event Centre.

The Tesco unit extends to 5,708 sqft and is let on a 20-year lease from 2023 at an annual rent of €142,700 (€25 per square foot). There is provision for CPI-based rent reviews every five years.