The City Quarter investment consists of prime office space in an excellent and well-regarded part of Cork City, with high-quality tenants in place.
The City Quarter III Bond 2020 is an investment in the property and leases on 5,985 sq.ft. of office space on the ground floor of City Quarter, Lapp’s Quay, Cork, secured by an unencumbered first ranking legal charge over the leases and property. The floor is currently fully occupied by high-quality tenants.
City Quarter is a modern city-centre office building that was completed in early 2005. The building forms part of a broader complex that includes the Clayton Hotel, the redeveloped boardwalk area on Lapps Quay and an underground car park.
Lapps Quay is situated in between the North and South channels of the River Lee in Cork City centre and is strategically located in the docklands area of Cork City. This area is currently undergoing a period of significant urban renewal, and is set to grow in popularity among the business elite in the city.
The City Quarter building is highly accessible for both motorists and commuters, which makes it extremely attractive for businesses that want to attract the best talent. Cork Kent Railway Station, Cork City Bus Eireann terminal and Bus Eireann Park and Ride are all close by. The building is also close to the South Link road, which is the main artery in and out of Cork City, providing quick access to main routes to the east, west and north of Cork. The South Link road also provides a direct link to Cork Airport, situated approximately seven kilometres south of the city.
Investment Start Date: April 2019
Target Exit Date: November 2020
Bond Notional: €2.35 million
Investment Managers: BlackBee Investments Ltd.
City Quarter is a modern city-centre office building that was completed in early 2005. The office development forms part of a broader complex that includes the Clayton Hotel, the redeveloped boardwalk area on Lapp’s Quay and an underground car park. Lapp’s Quay is situated in between the North and South channels of the River Lee in Cork City centre and is strategically located in the docklands area of Cork City, which is currently undergoing a period of significant urban renewal.
The secured properties include two retail units (restaurant and café) and a ground floor office. Due to government restrictions arising from the spread of Covid 19, both retail units have temporarily closed. Asset manager (MC2) is currently engaged with both tenants regarding requests for rental concessions, which may impact on original forecast coupons depending on duration of government restrictions.
BlackBee continues to view existing tenants as good quality covenants, and ensuring the continued occupation is critical to protecting asset value. No abatements have been agreed at this point and BlackBee remains in continuous communication with MC2 on the matter. Further updates will issue over the next fortnight when increased clarity on extent of timing of government restrictions will be received, which will inform the financial impact on tenants and coupon payments.