Green REIT has entered into a conditional contract for the purchase of One Albert Quay, a grade A office building under construction in Cork city centre, for up to €58m.

The building is a single office block with a lettable area of 166,000 square feet over seven floors and is Cork's first major city centre development for over a decade.

Pre-letting deals have already been signed with two tenants - Tyco and PricewaterhouseCoopers.

Green REIT said that the estimated total rent a year from the building is between €3.6m and €4.1m, subject to it achieving full occupancy.

One Albert Quay is being developed by JCD Group, led by CEO John Cleary. Green REIT describes Mr Cleary as  local developer with a strong track record in attracting foreign direct investment tenancies to the Cork market.

The REIT said the deal is worth €55m to €58m, depending on the letting position at the final payment date. 

"The yield premium over Dublin is attractive, particularly with the Cork office rental market at an earlier stage in the recovery cycle," commented Pat Gunne, Green Property REIT Ventures, the company's investment manager.