Quintas complete the purchase of AIB Patrick St, Cork for €9.36m

10 September 2010

In one of the largest Irish property transactions this year Quintas has completed the purchase of AIB Patrick St, Cork for €9.36m, on behalf of its pension's clients. The building will continue to be occupied by AIB under a twenty year lease. The purchase price equates to approximately 40% of the peak value in 2006.  The property was purchased using investor equity and bank finance, at a yield of nearly 7%.

Kenny Kane at Quintas said, "This transaction focused on the key fundamentals of property investment, quality location on one of the best retailing streets in Ireland, robust tenant with a long lease and excellent cashflow. The effect of the high yield on the property combined with low fixed interest rates, means that 50% of the rent covers the interest on the loan with the other 50% going to reduce the principal amount of the loan. Based on reasonable assumptions the 70% loan on this property will be repaid from the rent role, within 15 years. Hence investors will earn a return from the increased equity owing to debt reductions with hopefully capital appreciation over the medium to long term. We are presently considering a number of other property proposals with similar fundamentals".

Noel Creedon Director of Quintas commented, "the successful completion of the AIB deal comes on the back of four successful Quintas Bonds in the first half of the year, further evidence of the improving sentiment in the business community". 

Quintas, based in Blackpool, is one of the leading accountancy and financial services firms in Munster. The firm, employs sixty staff between its accountancy, wealth management and energy divisions. The company continues to be one of Ireland's leading success stories in the industry with turnover growing from €1.5 million in 2005 to a record level of over €6 million in 2009. For further information on Quintas please see www.quintas.ie