Global real estate investment company Kennedy Wilson has acquired a mixed-use asset in the Irish city of Cork for €36.3 mln, reflecting a net initial yield of 6.7%.
Half Moon Street, which was completed in 2009, is a city centre asset comprising 120,000 ft2 (11,100 m2) of space on the Cork waterfront, overlooking the River Lee.
The building includes 56,000 ft2 of offices and 63,000 ft2 of retail, let to two blue-chip tenants, representing 96% of the income security, according to the firm.
'This attractive acquisition adds a high-quality, well-located mixed-use asset to our Cork portfolio at a significant discount to replacement cost and represents a renewed commercial presence for Kennedy Wilson in the city,' said Peter Collins, president of Kennedy Wilson Europe.
'We are excited by the potential for value-enhancing asset management angles and are confident in Cork’s fundamentals as a top European city, underpinned by its lower occupancy costs relative to Dublin, strong connectivity both for travel and telecoms and future growth prospects,' Collins added.
The building stands at the corner of Half Moon Street and Lavitt’s Quay and is within walking distance of Cork’s principal shopping streets.
According to Kennedy Wilson data, Cork is projected to grow some 50% by 2040, due to government investment incentives which have already attracted over 150 multinational companies to the city with a focus on technology, pharmaceutical, life-sciences and cyber security.