Invest in Dublin’s No.1 Office and Multi-Family Opportunity
LEOPARDSTOWN, DUBLIN 18
For Sale by Private Treaty in its Entirety
THE OPPORTUNITY Central Park is a high quality office and multi-family development in the heart of one of Dublin’s most affluent locations. The immediate area, which includes Leopardstown, Sandyford and South County Business Park, is one of the largest, longest established and successful suburban office locations in Dublin. Central Park provides a unique opportunity for investors to acquire a mix of high quality offices, multi-family units and ancillary retail units, with further development potential in a single location. The quality of buildings, host of amenities and ease of accessibility makes Central Park one of Dublin’s premier suburban office locations which is underpinned by the calibre of occupiers choosing to locate here. Central Park’s proximity to the amenities of the south suburbs, ease of accessibility to the City Centre and the high quality occupiers in the vicinity make it an attractive living and rental location. Central Park provides the opportunity to implement a number of Asset Management and Value-Add opportunities, including leasing, lease restructurings and development, at a time when the rental markets for Offices and Residential are widely forecast to experience significant growth over the short to medium term.
5
7
CONTENTS EXECUTIVE SUMMARY
8-9
DUBLIN AS A DESTINATION
10-11
CENTRAL PARK - THE LOCATION
12-15
ACCESS - TRANSPORT LINKS
16-17
PRESENT AND THE FUTURE
18-19
INCOME SUMMARY
20-21
COVENANT INFORMATION
22-23
CENTRAL PARK - THE BUILDINGS
24-25
BLOCK G - NUMBER ONE CENTRAL PARK
26-28
BLOCK E - MOUNTAINVIEW
29-31
BLOCK B - FIRST ACTIVE HOUSE
32-34
BLOCK C - LEASEPLAN HOUSE
35-37
BLOCK D
38-40
BLOCK P - RETAIL
41-42
VANTAGE - MULTI-FAMILY
43-45
VANTAGE - COMMERCIAL
46-47
CENTRAL PARK - THE FUTURE
48-49
PLANNING & DEVELOPMENT
50-51
MARKET INFORMATION
52-54
ASSET MANAGEMENT & VALUE-ADD OPPORTUNITIES
55
PROPOSAL 55 CONTACTS & FURTHER INFORMATION
56
9
EXECUTIVE SUMMARY • Central Park provides a mix of quality offices, multi-family units, ancillary retail and further residential and commercial development opportunities. • Situated in the heart of one of South Dublin’s most affluent locations and highly accessible to Dublin City Centre. • Unique transport connections including a dedicated Luas stop, shuttle bus to Blackrock DART Station and Dublin City Centre, numerous bus routes, Aircoach terminal and easy access to the M50 motorway. • Superb amenities in the vicinity including hotels, leisure facilities, parks, restaurants and shopping centres. • Approximately 67,434 sq m (725,879 sq ft) of commercial space and 272 multi-family units. • Currently produces an overall income of €17.98m per annum (increasing to €19.33m per annum on expiry of rent free periods). • The diversity and scale of Central Park allows for proactive asset management to drive and enhance returns. • Office element provides a total current rent of €13.87m per annum (increasing to €15.22m on expiry of rent free periods) with a WAULT of 5.46 years to break / expiry. • Multi-family element provides a gross rental income of €3.81m per annum with potential to increase to €4.7m per annum allowing for rents to be brought up to current market levels. • The Park is home to high calibre commercial tenants with 77% of the total income attributable to commercial tenants including Merrill Lynch Financial Services, Vodafone, Tullow Oil, First Active and Salesforce. • Approximately 3.0 ha (7.41 acres) of commercial development land with planning to develop over 65,675 sq m (706,943 sq ft) of additional office space. • Part completed multi-family block (Block K) with planning for 166 units and potential to increase to 180 units (subject to planning permission). • Low vacancy of 12.80% for commercial space with virtually no vacancy in the multi-family element. The entire is For Sale by Private Treaty on the Joint Instructions of William O’Riordan and Declan McDonald (Joint Receivers) and Devano Developments Limited (“The Joint Vendors”) as a single lot. No warranties or guarantees in any respect, including but not limited to VAT, can be given. The Joint Vendors are not bound to accept the highest or any offer and are acting without personal liability. For the avoidance of doubt, please note that this is an investment sale, therefore all tenants are unaffected.
Malahide
Swords
2
2
DUBLIN AIRPORT
N2
Portmarnock 1 3
4
M50
N32
5
N3
Blanchardstown
Coolock
Santry
Finglas
2
Sutton
Beaumont
2
Howth
6
N2
M50 Drumcondra
M50 Castleknock
Clontarf
Port Tunnel
N1
N3 N2
N4 2
1
DUBLIN CITY CENTRE
7
Lucan
N4
Chapelizod N4
N1
Ballyfermot
N81
Ballsbridge Ranelagh
Crumlin
Clondalkin 1
Donnybrook 9
N7
N11
10
Milltown
Walkinstown
Terenure
Clonskeagh
N81
N31
Churchtown Tallaght
11
Templeogue
N11
Dundrum
Sandyford
12
Dun Laoghaire
Stillorgan
Ratfarnham
N81
Blackrock
13
M50
Glenageary
N31
Foxrock
14
Leopardstown
N11
Carrickmines 15
Stepaside 16
Cherrywood M11 17
5
DUBLIN AS A DESTINATION
M50
Dublin is Ireland’s capital and most populous city with a metropolitan population of approximately 1.8 million persons. The city has benefitted from significant infrastructural improvements over the past decade transforming it into a vibrant and modern European capital.
Dublin Airport carried 19.9 million passengers in 2012. It serves 169 routes including 24 routes in the UK and over 100 in mainland Europe. 55 airlines currently operate out of Dublin Airport. The principal carriers are BMI, Aer Lingus, Etihad Airways, Emirates and American Airlines.
Dublin has established itself as a centre for many of the world’s leading information, communication and technology companies. Microsoft, Google, LinkedIn, Twitter, Ebay, Vodafone, PayPal, Yahoo and Facebook all have European Headquarters and / or operational bases in the City.
Dublin’s cultural offering and global reputation makes it a popular tourist destination. Attractions such as Trinity College and the Book of Kells, Christchurch Cathedral, Temple Bar, Dublin Castle and the Guinness Storehouse are popular with visitors.
11
Luas Green Line to Cherrywood, Carrickmines & St. Stephen’s Green
Leopardstown Park Hospital
Legionaries of Christ
M50
Jct 14
CENTRAL PARK LUAS STOP
M50
Microsoft
S3 Group
Microsoft
Airtricity
Merck Sharp & Dohme
13
Bewley’s Hotel
Tullow Oil, Salesforce
First Active, Merrill Lynch, Leaseplan, Volkswagen Bank, RGA Reinsurance
Beacon Hotel & Hospital Dundrum Town Centre
Beacon South Quarter
SANDYFORD
SOUTH COUNTY BUSINESS PARK
Icon
Vantage Multi-Family
Soft Co
Vodafone, Mastercard, 123.ie, P.J. Carroll, Allfinanz, Luxottica
Trintech
Delta Partners
Dun & Bradstreet
Microsoft, Salesforce
15
CENTRAL PARK - THE LOCATION Central Park is a highly successful and established business environment in the heart of South County Dublin. Overlooking the M50 motorway at Junction 14, the Park benefits from ease of access to all main arterial routes to and from Dublin City Centre. This acclaimed mixed use development, in a fully masterplanned site, is strategically situated in a pivotal location at one of the main gateways to the City Centre. Central Park benefits from prime public transport links with its own Luas stop that takes passengers direct to St. Stephen’s Green within 25 minutes, as well as an Aircoach link direct to Dublin Airport. It is also easily accessible by car, with an M50 interchange in close proximity that places Central Park within 20 minutes of Dublin City Centre and 25 minutes of the airport. In addition there are numerous Dublin Bus routes that serve Central Park which connect to the city centre, Tallaght, Dun Laoghaire, Bray, Shankill and other important destinations in the surrounding area.
Central Park offers a new neighbourhood, combining energy, style and beauty in a privileged position in Leopardstown. Affluent suburbs such as Sandyford, Dundrum, Foxrock and Stillorgan are all within a few kilometres of Central Park. The Park is home to a number of well-established international corporate tenants such as Vodafone, Tullow Oil, First Active, Merrill Lynch Financial Services, Salesforce and Mastercard. The multi-family units known as Vantage provide an alluring new perspective on residential lifestyle living in South Dublin with ancillary retail facilities and amenities all within a well-designed environment. These multi-family units offer impressive views over Dublin, Dublin Bay and its surrounding hinterland. Central Park provides city centre quality space in Dublin’s premier office and multi-family location.
SUPERB AMENITIES A major attraction of Central Park both for corporate occupiers and residents, apart from the location, communications links and accessibility to Dublin City Centre, is the host of amenities on site and in the vicinity. Bewley’s Hotel Located at the entrance to Central Park, this modern 352 bedroom hotel provides excellent conference and event facilities as well as restaurant and bar offerings for corporate occupiers and residents of Central Park.
Dundrum Town Centre Located just three stops away on the Luas is Ireland’s largest shopping centre with over 160 tenants and one of the largest cinemas in Ireland, within more than 800,000 sq ft of floor space.
Central Park Retail / Restaurants A variety of retail uses are readily on offer including a convenience store, Baan Thai restaurant and Munchies sandwich bar.
High profile retailers include House of Fraser, Hamleys Toys, Harvey Nichols, Hugo Boss, Tommy Hilfiger and Michael Kors.
Nursery / Childcare On-site crèche owned and operated by Giraffe Childcare. Westwood Club The Westwood Club at nearby Leopardstown offers first class gym and swimming pool facilities. In addition it also provides indoor / outdoor tennis and squash courts as well as spa services. Leopardstown Racecourse and Golf Club Leopardstown Racecourse, immediately south of Central Park, hosts 22 race meetings a year and offers corporate entertainment solutions. Situated within the grounds of the racecourse is Leopardstown Golf Club, providing an 18 hole course, 72 bay floodlit driving range, golf academy and a 22,000 sq ft club house.
Beacon / Rockbrook Sandyford Industrial Estate has been transformed into a commercial hub with the construction of numerous office and apartment blocks, as well as a variety of convenience, retail and leisure facilities. The Beacon Court and South Quarter development includes the Beacon Hotel, UPMC Beacon Hospital and a shopping centre where Dunnes Stores and Ben Dunne Gym are anchors. The area also benefits from an Aldi foodstore within the Rockbrook retail and residential development. The Park Carrickmines The Park Carrickmines is Dublin’s leading out of town retail park with tenants including TK Maxx, Woodies, Smyths and Next Home.
All of the above contribute to make Central Park the ideal live and work environment.
TO DUBLIN CITY CENTRE
MOUNT MERRION
STILLORGAN LUAS STOP
BLACKTHORN DRIVE
BLACKTHORN AVENUE
SANDYFORD
ACCESS - ALL KEY TRANSPORT LINKS ARE ON SITE
LEOPARDSTOWN ROAD
BY CAR Central Park is just 0.5 km from the M50 motorway. It is on a National Primary Route (N31) which links the Leopardstown Interchange on the M50 motorway to the N11 Stillorgan Road via the Leopardstown Road. Dublin City Centre can be accessed within a 20 minute drive time.
BY LUAS The Luas stops at your doorstep, providing ease of access to the City Centre and suburbs. Peak time services run every 4-10 minutes to Dublin City Centre.
BY AIRCOACH The Aircoach offers direct access to Dublin Airport every 10 minutes from Bewley’s Hotel.
BY BUS Numerous Dublin Bus routes provide links to all parts of the City Centre and surrounding suburbs.
BY SHUTTLE BUS The Dublin Bus and Aircoach services are supplemented by the Central Park Shuttle Service which links Central Park to Blackrock DART Station and the City Centre. This service operates to facilitate the requirements of staff.
M50 South Bray, Wicklow & Wexford JUNCTION 14
M50 North Cork, Galway, Belfast & Dublin Airport
TO CHERRYWOOD & CARRICKMINES
17
N11 STILLORGAN ROAD
BLACKROCK
QUALITY BUS CORRIDOR
STILLORGAN
N11 STILLORGAN ROAD
SANDYFORD LUAS STOP
BREWERY ROAD
LEOPARDSTOWN ROUNDABOUT LEOPARDSTOWN ROAD
SOUTH COUNTY BUSINESS PARK
AIRCOACH TERMINAL
CENTRAL PARK LUAS STOP
LUAS TRAVEL TIMES Central Central Central Central Central
Park Park Park Park Park
to to to to to
Sandyford Dundrum Town Centre Carrickmines Cherrywood St. Stephen’s Green
3 mins 8 mins 10 mins 14 mins 25 mins
CENTRAL PARK – PRESENT AND THE FUTURE Central Park is a mixed use development on a site area of approximately 8.1 ha (20 acres) providing completed offices, retail, multi-family units, and a double level basement car park running beneath all of the blocks. In addition there is a partially completed multi-family block and approximately 3.0 ha (7.41 acres) with planning for further office development. Central Park provides a safe and secure environment with the benefit of a centrally controlled security office that provides 24 hour cover to the entire development.
VANTAGE MULTI-FAMILY AND COMMERCIAL (Blocks F & L)
All of the above is being offered for sale, apart from the hotel at the entrance to the Park, the crèche which forms part of Vantage and 9 of the 281 multi-family units.
Vantage (Blocks F & L) has 362 car spaces.
There is also additional office and retail space at ground floor and mezzanine level providing approximately 2,853.20 sq m (30,711 sq ft).
CAR PARKING
COMPLETED DEVELOPMENT COMMERCIAL BUILDINGS (Blocks B, C, D, E, G & P) The commercial buildings provide five detached office buildings and one detached retail building extending to a total floor area of approximately 64,581 sq m (695,168 sq ft) ranging in height from two to eight storeys, as follows: Property
Type
Storeys
Size Sq Ft
Block B
Office
Six
76,184
Block C
Office
Six
76,184
Block D
Office
Six
75,282
Block E
Office
Seven
263,081
Block G
Office
Eight
197,120
Block P
Retail
Two
7,317
Total
Vantage is an exclusive multi-family development comprising 281 residential units, 272 of which make up the subject multi-family investment opportunity.
There are 1,616 car parking spaces provided within the double level basement car park. 1,254 of these are for the six detached commercial buildings providing a ratio in the basement for the commercial space of approximately 1:554 sq ft. In addition there is temporary car parking on the undeveloped sites providing 524 car parking spaces.
695,168 ESB SUBSTATION
BLOCK N
19
FUTURE DEVELOPMENT (Blocks H, I, N & K) Central Park offers significant future development potential. There are numerous existing planning permissions for an additional 65,675 sq m (706,943 sq ft) of commercial space spread over 3 blocks (H, I, N). Block K, which is constructed to first floor level, has planning permission for a future residential development of 166 units, with potential to increase to 180 units, and 1,375 sq m of commercial space. An additional 200 car spaces have already been constructed at basement level and are not occupied.
BEWLEY’S HOTEL
LE
O
PA
COMPLETED DEVELOPMENT
RD
ST
BLOCK B
FUTURE DEVELOPMENT
O
W
N
EXCLUDED FROM SALE
RO
AD
BLOCK C
BLOCK H BLOCK D BLOCK G BLOCK I BLOCK P BLOCK E BLOCK F
BLOCK K
BLOCK L LUAS STOP
LUAS GREEN LINE
CRECHE
INCOME SUMMARY Central Park currently produces an overall income of €17.98 million per annum rising to €19.33 million per annum on expiry of rent free periods. The various income streams can be analysed as follows: Element
Income
% Total
€13.87 million per annum*
77%
Vantage Multi-Family and Commercial units
€3.83 million per annum
21%
Income from car park and advertising
€0.28 million per annum
2%
€17.98 million per annum
100%
Commercial Buildings (Blocks B, C, D, E, G & P)
Total
* Following expiry of rent free periods this rent will increase to €15.22 million per annum.
21
COMMERCIAL BUILDINGS (Blocks B, C, D, E, G & P) 77% of the total income from the Park is generated from these five office buildings and one retail building with a range of strong tenants accounting for the majority of this income. Property
Type
Current Passing Rent Per Annum
Passing Rent p.a. on expiry of Rent Free
Block B
Office
€2,165,000
€2,165,000
5.54
Block C
Office
€1,638,073
€1,638,073
3.19
Block D
Office
€1,750,513
€1,750,513
4.34
Block E
Office
€7,298,250
€7,298,250
4.90
Block G
Office
€863,562
€2,217,697
8.51
Block P
Retail
€151,000
€151,000
16.29
€13,866,398
€15,220,533
5.46
Total
WAULT
The top five tenants in these buildings on expiry of rent free account for 88% of the €15.22 million income per annum.
Tenant
Income Per Annum
% of Income
Vodafone
€7,298,250
47.95%
First Active
€2,165,000
14.22%
Merrill Lynch
€1,730,513
11.37%
Tullow Oil plc
€1,314,989
8.64%
€902,708
5.93%
Other
€1,809,073
11.89%
Total
€15,220,533
100%
Salesforce
WAULT is to break / expiry which does not include break penalties.
YEARS TO EXPIRY / BREAK 0.99%
BREAKDOWN BY TENANT (EXPIRY OF RENT FREE)
2.62%
65.57%
First Active
5.93%
3 - 5 Years
30.82%
Vodafone
11.89%
0 - 3 Years
8.64%
5 - 10 Years 10+ Years
47.95%
11.37%
Merrill Lynch Tullow Oil plc Salesforce
14.22%
Other
VANTAGE MULTI-FAMILY AND COMMERCIAL UNITS The total gross income from the multi-family units currently stands at approximately €3.81 million with typical residential occupiers on 12 month tenancy agreements. The occupancy level in Vantage currently runs at 97%. One commercial unit is currently let to Munchies Sandwich Bar on an informal lease at €23,000 per annum. The remaining units are currently available to let providing retail, office and leisure space.
INCOME FROM CAR PARK AND ADVERTISING The income can be analysed as follows: Car Park income Advertising hoarding Total
€265,800 €16,000 €281,800
23
COVENANT INFORMATION 88% of the total income from the offices on rent free expiry is attributable to 5 tenants.
VODAFONE IRELAND LIMITED
TULLOW OIL PLC
(47.95% of total income)
(8.64% of total income)
Vodafone Ireland Limited, a wholly owned subsidiary of the Vodafone Group, is the largest mobile phone operator in Ireland in terms of active subscribers. As part of the Vodafone Group, they are the world’s leading international mobile communications group.
Tullow Oil plc is an independent multinational oil and gas exploration and production group founded in Tullow, Ireland. They focus in four core areas; South Asia, Europe, Africa and South America.
According to Dun & Bradstreet, Vodafone Ireland Limited have a rating of “5A 1” with a net worth of €571m and turnover of over €1bn.
FIRST ACTIVE INVESTMENTS NO.4 LIMITED “FIRST ACTIVE” / FIRST ACTIVE PLC (GUARANTOR) (14.22% of total income) First Active are a wholly owned subsidiary of Ulster Bank Ireland Limited who is in turn a wholly owned subsidiary of The Royal Bank of Scotland Group plc. The Bank is a leading retail and commercial bank in Ireland providing a range of financial services through both its Retail and Corporate Divisions, providing services to personal, business, corporate and institutional markets. Following the UK Government’s review of the bank, RBS have recently announced Ulster Bank in Ireland is a core business for RBS Group going forward.
MERRILL LYNCH FINANCIAL SERVICES LIMITED (11.37% of total income) Bank of America Merrill Lynch is one of the world’s leading financial management and advisory companies, providing financial advice and investment banking services. Merrill Lynch Financial Services Limited is a subsidiary of Merrill Lynch International Bank Limited and their ultimate parent is ML UK Capital Holdings. According to Dun & Bradstreet, Merrill Lynch Financial Services Limited have a rating of “4A 1”.
Tullow Oil plc ordinary shares are listed on the London Stock Exchange and the Ghana Stock Exchange. As at 01 November 2013 Tullow Oil plc has a market cap of approximately £8.66bn.
SFDC IRELAND LIMITED / SALESFORCE.COM INC. (GUARANTOR) (5.93% of total income) SFDC Ireland Limited is the representative of Salesforce.com within Ireland, marketing Salesforce.com products and services throughout Europe. Salesforce.com provides CRM software applications as a pay-as-you-go service over the internet. Their applications allow companies to manage sales teams, track customer data, and deliver better service to help their customers grow their business. According to Dun & Bradstreet, SFDC Ireland Limited have a rating of “3A 2” providing a net worth of €9m with turnover of over €51m. Floated on the NYSE, Salesforce.com Inc. have a market cap of $31.8bn as at 01 November 2013.
CENTRAL PARK THE BUILDINGS
25
CENTRAL PARK PROVIDES CITY CENTRE QUALITY SPACE IN DUBLIN’S PREMIER OFFICE AND MULTI-FAMILY PARK
BLOCK G (NUMBER ONE)
DESCRIPTION Number One Central Park is a multi-let eight storey office building with a Gross Internal Floor area of approximately 18,312.45 sq m (197,120 sq ft). The office space is accessed via an impressive light filled ground floor reception with eight lifts serving all floors. The floors are arranged around a large atrium providing natural light to the centre of the building. The central atrium also allows for the building to not only be let on a floor by floor basis, but can also be subdivided to accommodate smaller requirements. Three of the eight floors are currently vacant and finished to shell and core condition which allows tenants to fit out the space to their own requirements and specification.
27
ACCOMMODATION The property has been measured on a Gross Internal Floor Area basis. The common reception area at ground floor level has been apportioned on a pro-rata basis to each of the floors. Floor
Sq M
Sq Ft
Ground
1,994.19
21,466
First
2,203.77
23,722
Second
2,385.58
25,679
Third
2,390.41
25,731
Fourth
2,390.50
25,732
Fifth
2,392.18
25,750
Sixth
2,392.18
25,750
SPECIFICATION
Seventh
2,163.64
23,290
• Modular recessed lighting
Total
18,312.45
197,120
• Chilled-beam air conditioning • Micro-lock lay-in ceiling tiles in high quality suspended ceilings • Raised access floors with voids of 150mm
The above areas are provided by Plowman Craven and an assignable measurement survey is provided in the data room. In addition to the above there are currently 174 car parking spaces designated to this building of which 30 are surface spaces.
• Typical floor to ceiling height of 2.7 metres • Floor boxes provided at a ratio of 1:10 sq m • Eight lifts serving all floors
TENANCY Number One Central Park is multi-let to Tullow Oil plc and Salesforce, with three vacant floors providing a total current rental income of €863,562 per annum increasing to €2,217,697 per annum on expiry of the rent free periods and a WAULT of 8.51 years to break / expiry. Demise
Tenant
Area Sq Ft
Area Sq M
Cars
Lease Start
Lease End
Break Date
Break Notice mths
Break Penalty mths
Review Pattern
Passing Rent Per Annum
Grd, 1st & 2nd Floors
Vacant [3]
70,867
6,583.54
49
N/A
N/A
N/A
N/A
N/A
N/A
€0
3rd & 4th Floors [6]
SFDC Ireland Ltd (Salesforce)
51,463
4,780.91
50
27-Jun-13
26-Jun-23
None
N/A
N/A
Market Rent
€902,708 [5]
5th Floor
Tullow Oil plc [2]
25,750
2,392.18
25
15-Mar-13
11-Aug-31
12-Aug-21
6
None
Market Rent
€451,427 [1]
6
None
Market Rent
€451,419
6
None
Market Rent
€412,143
[4]
6th Floor
Tullow Oil plc
25,750
2,392.18
25
12-Aug-11
11-Aug-31
12-Aug-21 [4]
7th Floor
Tullow Oil plc
23,290
2,163.64
25
12-Aug-11
11-Aug-31
12-Aug-21 [4]
Total
197,120
18,312.45
174
€2,217,697
[1] The full rent commencement date under this lease is 10 October 2018 with 6 months rent payable in 2014. [2] There is a building service charge cap of €3.50 psf for the first two years of the term subject to review in line with CPI. [3] Salesforce have a call option, expiring on 26 June 2014, on any two of the three vacant floors on the same terms and conditions of the lease on the 3rd & 4th floors. [4] There is a further tenant break option on 12 August 2026. [5] Salesforce have a rent free period of 30 months. [6] These floors are held on two separate leases at €451,354 per annum on each floor. All intending purchasers are specifically advised to verify information and undertake their own due diligence.
BER DETAILS BER Rating: G BER No: 800218968 Energy Performance Indicator: 1,721.68kWh/m2/yr
BLOCK G (NUMBER ONE)
TYPICAL FLOOR PLAN
MALE
ATRIUM VOID
FEMALE
29
BLOCK E (MOUNTAINVIEW)
DESCRIPTION Mountainview is a high profile landmark seven storey headquarters office building. The building which extends to a Gross Internal Floor Area of approximately 24,440.22 sq m (263,081 sq ft) provides the flexibility to be let on a floor by floor basis. The building is divided into three blocks internally. The building is let in its entirety to Vodafone who have sub-let approximately 35% of the space to a number of tenants following the implementation of a hot desk work place environment. In addition, we understand the floors have been separately metered for each of the tenants to facilitate recharging of utility costs for the individual occupiers. All occupiers in the building have the benefit of a range of facilities put in place by the tenant, including a restaurant on the fifth and sixth floors as well as a coffee shop and convenience shop at ground floor. There is also a fully integrated access control system throughout the building.
BLOCK E (MOUNTAINVIEW) ACCOMMODATION The property has been measured on a Gross Internal Floor Area basis. Floor
Sq M
Sq Ft
Ground
4,087.32
43,997
First
3,668.71
39,491
Second
3,794.78
40,848
Third
3,809.55
41,007
Fourth
3,830.92
41,237
Fifth
2,791.09
30,044
Sixth
2,457.86
26,457
Total
24,440.22
263,081
The above areas are provided by Plowman Craven and an assignable measurement survey is provided on the data room.
SPECIFICATION • Modular recessed lighting • Four-pipe fan coil air conditioning • High performance glazing providing protection from solar gain and glare • Suspended ceiling with approximately 675mm clear zone and micro-lock lay-in ceiling tiles
In addition to the above there are currently 789 car parking spaces designated to this building of which 185 are surface spaces.
• Raised access floors with 175mm void and floor grommets wired for power and data • Typical floor to ceiling height of approximately 2.8 metres • Eight no. 10 person lifts serving all floors
TENANCY Mountainview is let in its entirety to Vodafone under seven co-terminus leases at a current rent of €7,298,250 per annum with an unexpired term of approximately 4.9 years to their break. Demise
Tenant
Entire
Vodafone Ireland Ltd [2]
Total
Area Sq Ft
Area Sq M
Cars
Lease Start
Lease End
Break Date
Break Notice mths
Break Penalty mths
Review Pattern
Passing Rent Per Annum
263,081
24,440.22
789 [1]
30-Apr-03
07-Oct-26
08-Oct-18
12 to 24
12
Up Only
€7,298,250
263,081
24,440.22
789
[1] The landlord has an ability to decommission up to 263 car spaces. [2] Each of the seven floors are held under separate co-terminus leases. All intending purchasers are specifically advised to verify information and undertake their own due diligence.
BER DETAILS BER Rating: C3 - D1 BER No: 800035735 / 800035495 / 800035511 Energy Performance Indicator: 365.01kWh/m2/yr / 387.97kWh/m2/yr / 369.46kWh/m2/yr
€7,298,250
31
TYPICAL FLOOR PLAN
MALE
LIFT
LIFT
LIFT
ATRIUM VOID
LIFT
LIFT
ATRIUM VOID
LIFT
ATRIUM VOID LIFT
LIFT
FEMALE
LIFT
MALE
LIFT
FEMALE
LIFT
BLOCK B (FIRST ACTIVE HOUSE)
DESCRIPTION Block B which is also known as First Active House, is a high profile six storey office building extending to a Gross Internal Floor area of approximately 7,077.49 sq m (76,184 sq ft). The building is let under a single lease to First Active Investments and has been fitted out to a high standard to include a gym and cafĂŠ as well as a spiral staircase and bridges through the atrium linking either side of the floor plate. The building layout provides the flexibility to be multi-let on a floor by floor basis and floors can also be split to facilitate smaller requirements.
33
ACCOMMODATION The property has been measured on a Gross Internal Floor Area basis. Floor
Sq M
Sq Ft
Ground
1,161.99
12,508
First
1,108.67
11,934
Second
1,295.86
13,949
Third
1,295.77
13,948
Fourth
1,295.96
13,950
Fifth
919.25
9,895
Total
7,077.49
76,184
The above areas are provided by Plowman Craven and an assignable measurement survey is provided in the data room.
SPECIFICATION • Category 2 recessed lighting
In addition to the above there are currently 224 car parking spaces designated to this building.
• Four-pipe fan coil air conditioning • Suspended ceiling with approximately 625mm ceiling zone and acoustic tiles • Raised access floors with voids of 150mm • Typical floor to ceiling height range of 2.65 - 2.7 metres • Three lifts serving all floors
TENANCY Block B is let in its entirety to First Active Investments at a passing rent of €2,165,000 per annum with a lease term of 5.54 years to break. Demise
Tenant
Area Sq Ft
Area Sq M
Cars
Lease Start
Lease End
Break Date
Break Notice mths
Break Penalty mths
Review Pattern
Passing Rent Per Annum
Entire
First Active Investments No.4 Ltd. [1]
76,184
7,077.49
224 [2]
28-May-01
27-May-26
28-May-19
12 to 24
12
Up Only
€2,165,000
76,184
7,077.49
224
Total
[1] The lease is guaranteed by First Active plc. [2] The landlord has an ability to decommission up to 75 car spaces. All intending purchasers are specifically advised to verify information and undertake their own due diligence.
BER DETAILS BER Rating: D1 BER No: 800217952 Energy Performance Indicator: 513.78kWh/m2/yr
€2,165,000
BLOCK B (FIRST ACTIVE HOUSE)
TYPICAL FLOOR PLAN
FEMALE
LIFT
LIFT MALE LIFT
35
BLOCK C (LEASEPLAN HOUSE)
DESCRIPTION Block C is a multi-let six storey office building extending to a Gross Internal Floor area of approximately 7,077.49 sq m (76,184 sq ft). The floors are arranged around a full height atrium providing natural light to the centre of the building. A number of the floors have been sub-divided providing a range of floor areas to accommodate various size requirements and each of the tenants have fitted their space to a high standard. The penthouse floor and part of the fourth floor are available to let and provide approximately 1,642.10 sq m (17,676 sq ft) of fully fitted office accommodation.
SPECIFICATION
ACCOMMODATION
• Category 2 recessed lighting
The property has been measured on a Gross Internal Floor Area basis. The common reception area at ground floor level has been apportioned on a pro-rata basis to each of the floors.
• Four-pipe fan coil air conditioning • Suspended ceiling with approximately 625mm ceiling zone and acoustic tiles
Floor
• Raised access floors with voids of 150mm
Sq M
Sq Ft
1,031.00
11,098
• Typical floor to ceiling height range of 2.65 - 2.7 metres
Ground
• Three lifts serving all floors
First
1,133.19
12,198
Second
1,324.57
14,258
Third
1,324.48
14,257
Fourth
1,324.66
14,259
Fifth
939.59
10,114
Total
7,077.49
76,184
The above areas are provided by Plowman Craven and an assignable measurement survey is provided in the data room. In addition to the above there are currently 119 car parking spaces designated to this building.
TENANCY Block C is let under eight tenancies providing a total rental income of €1,638,073 per annum with a WAULT of 3.95 years to break / expiry. Demise
Tenant
Area Sq Ft
Area Sq M
Cars
Lease Start
Lease End
Break Date
Break Notice mths
Break Penalty mths
Review Pattern
Passing Rent Per Annum
Grd Floor
Leaseplan Information Services Ltd
11,098
1,031.00
22 [2]
16-Jun-04
15-Jun-29
01-Jun-19
12 to 18
None
Up Only
€315,450
[1]
1st Floor
Leaseplan Fleet Management Services (Ire) Ltd
12,198
1,133.19
23 [3]
01-Jul-03
18-Feb-28
19-Feb-18
12 to 18
None
Up Only
€395,970
2nd Floor
Leaseplan Information Services Ltd
14,258
1,324.57
29 [3]
01-Jul-03
18-Feb-18
19-Feb-18
12 to 18
None
Up Only
€466,560
[4]
Part 3rd Floor
Volkswagen Bank GMBH
7,696
714.96
10
20-Feb-06
19-Dec-25
20-Feb-16
12 to 14
None
Up Only
€229,632
Part 3rd Floor
RGA International Reinsurance Co Ltd
6,561
609.52
10
28-Nov-11
27-Nov-21
28-Nov-16
9
None [5]
Market Rent
€103,736
Part 4th Floor
Leaseplan Information Services Ltd
6,697
622.15
5
13-Jul-12
12-Apr-16
13-Jul-15
9
None
N/A
€120,725
Part 4th Floor
Vacant
7,562
702.51
10
N/A
N/A
None
N/A
N/A
N/A
€0
5th Floor
Vacant
10,114
939.59
10
N/A
N/A
None
N/A
N/A
N/A
€0
Roof Mast
BT Communications Ireland Ltd
07-Sep-09
06-Sep-14
None
N/A
N/A
N/A
€2,000
9m Link Dish
BT Communications Ireland Ltd
04-Nov-09
03-Nov-14
None
N/A
N/A
N/A
€4,000
Total
76,184
7,077.49
119
[1] The ground floor is sublet to Euro Insurances Ltd. [2] The landlord has an ability to decommission up to three car spaces. [3] The landlord has an ability to decommission up to three car spaces. [4] The lease is guaranteed by Leaseplan Corporation N.V. The liability of the Guarantor is limited to two years rent and void costs. [5] The break option is subject to replacement of carpet or payment of €12,217. All intending purchasers are specifically advised to verify information and undertake their own due diligence.
BER DETAILS BER Rating: D1 BER No: 800217960 Energy Performance Indicator: 511.52kWh/m2/yr
€1,638,073
37
BLOCK C (LEASEPLAN HOUSE)
TYPICAL FLOOR PLAN
FEMALE
LIFT
LIFT MALE LIFT
BLOCK D
DESCRIPTION Block D is a high profile six storey office building extending to a Gross Internal Floor area of approximately 6,993.70 sq m (75,282 sq ft) enjoying natural light to all floors. The building is let in its entirety under two leases to Merrill Lynch Financial Services Limited and has been fitted out to a high standard to include a gym, fully fitted cafeteria and they have recently carried out upgrade works to the building to reconfigure the layout to accommodate more staff. The layout of the building provides the flexibility to be multi-let on a floor by floor basis and floors can also be split to facilitate smaller requirements.
39
ACCOMMODATION The property has been measured on a Gross Internal Floor Area basis. The common reception area at ground floor level has been apportioned on a pro-rata basis to each of the floors. Floor
SPECIFICATION
Sq M
Sq Ft
Ground
1,048.28
11,284
First
1,108.76
11,935
Second
1,301.81
14,013
Third
1,303.20
14,028
Fourth
1,300.32
13,997
Fifth
931.32
10,025
Total
6,993.70
75,282
The above areas are provided by Plowman Craven and an assignable measurement survey is provided in the data room.
• Category 2 recessed lighting • Four-pipe fan coil air conditioning • Suspended ceiling with approximately 625mm ceiling zone and acoustic tiles
In addition to the above there are currently 202 car parking spaces designated to this building of which 52 are surface car spaces.
• Raised access floors with voids of 150mm • Typical floor to ceiling height range of 2.65 - 2.7 metres • Three lifts serving all floors
TENANCY Block D is let to Merrill Lynch under two co-terminus leases with additional income provided from BT in respect of a basement plant room. The total passing rent is €1,750,513 per annum with a WAULT of 4.34 years to break. Demise
Tenant
Area Sq Ft
Area Sq M
Cars
Lease Start
Lease End
Break Date
Break Notice mths
Break Penalty mths
Review Pattern
Passing Rent Per Annum
Grd, 1st & 2nd Floors
Merrill Lynch Financial Services Ltd
37,232
3,458.85
101
22-Nov-03
27-Mar-28
28-Mar-18
9 to 24
6
Up Only
€857,690
3rd, 4th and 5th Floors
Merrill Lynch Financial Services Ltd [2]
38,050
3,534.85
101
22-Nov-03
27-Mar-28
28-Mar-18
9 to 24
6
Up Only
€872,823
Basement Plant Room
BT Communications Ireland Ltd
01-Feb-11
31-Oct-15
None
N/A
N/A
N/A
€20,000
Total
75,282
6,993.70
202 [1]
[1] The landlord has an ability to decommission up to 29 car spaces. [2] Please note we are awaiting confirmation that the lease dates are fully co-terminus with the Ground - 2nd floor lease. All intending purchasers are specifically advised to verify information and undertake their own due diligence.
BER DETAILS BER Rating: D2 BER No: 800205502 Energy Performance Indicator: 632kWh/m2/yr
€1,750,513
BLOCK D
TYPICAL FLOOR PLAN
FEMALE
LIFT
LIFT MALE LIFT
41
BLOCK P (RETAIL)
DESCRIPTION Block P is a two storey over basement storage detached retail property in the centre of Central Park serving the offices and multi-family units. The ground floor is a fully fitted convenience store with deli, while the first floor is a fully fitted Thai restaurant. The basement area provides storage for the convenience store. Both floors have been fitted out to a high standard and the building is situated in a central location within Central Park, between the commercial and multi-family units.
BLOCK P (RETAIL) ACCOMMODATION The property has been measured on a Net Internal Floor Area basis. Floor
Sq M
Sq Ft
Ground
296.44
3,191
First
333.33
3,588
Basement
49.98
538
Total
679.75
7,317
The above have been obtained from on-site measurements and plans provided by Plowman Craven on a GIA basis. In addition to the above there are currently 13 car parking spaces designated to this building.
TENANCY The property is let under two leases with a passing rent of €151,000 per annum off a contracted rent of €289,000 per annum with a WAULT of 16.29 years to expiry. Demise
Tenant
Area Sq Ft
Area Sq M
Cars
Lease Start
Lease End
Break Date
Break Notice mths
Break Penalty mths
Review Pattern
Passing Rent Per Annum
1st Floor
Bann Siam Cuisine Ltd
3,588
333.33
13
31-Dec-03
15-May-28
None
N/A
None
Up Only
€95,000 [1]
Grd Floor
Hat Trick Ltd (Convenience Store)
3,191
296.44
0
10-Mar-08
09-Mar-33
None
N/A
N/A
Up Only
€56,000 [2]
Basement
Vacant
N/A
N/A
N/A
N/A
N/A
N/A
Total
538
49.98
0
7,317
679.75
13
€0 €151,000
[1] The tenant is paying an abated rent of €95,000 per annum from a contracted level of €126,250 per annum. Discussions are on-going to formalise this rental abatement. [2] Terms are agreed to abate the passing rent of €163,050 per annum to €56,000 per annum until 09 Mar 2018. All intending purchasers are specifically advised to verify floor areas / information and undertake their own due diligence.
BER DETAILS Ground Floor BER Rating: B3 BER No: 800218430 Energy Performance Indicator: 658.19kWh/m2/yr
First Floor BER Rating: D2 BER No: 800217978 Energy Performance Indicator: 1,265.79kWh/m2/yr
43
VANTAGE MULTI-FAMILY
DESCRIPTION Vantage is an exclusive multi-family development comprising 281 residential units, 272 of which make up the subject multi-family investment opportunity in addition to approximately 2,853.20 sq m (30,711 sq ft) of commercial accommodation. The residential blocks, which were constructed in 2006/2008, vary between 8 and 16 storeys in height. The residential units are a mix of impressive one, two, three bed and penthouse apartments. The commercial element comprises seven retail units (one of which is occupied by Munchies) and one restaurant at ground floor level, in addition to six office suites and one leisure unit at mezzanine level. Of the 272 apartments in total, 266 of the units are fully fitted out with 259 units let. Two penthouse units are completed to a shell standard and a further four units are not fitted out. Of the seven vacant units, four are used as show apartments, one as an office and two are available to rent. The development benefits from impressive courtyards and landscaped areas. Each apartment contains its own balcony and there is a basement car park which provides 362 car parking spaces.
VANTAGE MULTI-FAMILY RESIDENTIAL SCHEDULE OF ACCOMMODATION Block
1 Bed
2 Bed
3 Bed
2 Bed Penthouse
3 Bed Penthouse
Total
Block F
22
83
21
1
5
132
Block L
13
102
18
4
3
140
Total
35
185
39
5
8
272
52.1 sq m
73.87 sq m
97.84 sq m
115.76 sq m
130.9 sq m
Average Size
FEATURES AND SPECIFICATION • Fully furnished with quality finishes throughout • Bright and spacious living accommodation with fully fitted kitchens and bathrooms • Secure underground parking • Monitored CCTV security systems throughout the development • Video entry phone system • Public areas designed by international award winning landscape architects • Contemporary low level lighting throughout • Fitted wardrobes and walk-in closets to all bedrooms • Floor to ceiling glazing in living rooms and bedrooms • Large balconies / terraces with glazed balustrading and timber decking
TENANCY Vantage is close to full occupancy and let under standard residential tenancy agreements typically for a 12 month period. Recent rental levels in the scheme have achieved €1,050 per month for a one bedroom apartment, €1,400 per month for a two bedroom apartment and €1,600 per month for a three bedroom apartment. The total gross residential income is currently approximately €3.81 million.
BER DETAILS BER Rating: B3 - C1 BER No: Available on the data room Energy Performance Indicator: Available on the data room
45
TYPICAL FLOOR PLAN Block L
COMMON AREA 1 BED APARTMENT 2 BED APARTMENT
TYPICAL FLOOR PLAN
3 BED APARTMENT
Block F
PENTHOUSE EXTERNAL BALCONY
Detailed floor plans are available in the data room.
VANTAGE COMMERCIAL
COMMERCIAL DESCRIPTION Within the Vantage multi-family block approximately 2,853.20 sq m (30,711 sq ft) of commercial space is provided at ground and mezzanine level. A mix of restaurants and retail are available at ground floor level with offices and leisure facilities available at mezzanine level. These suites are in shell condition and provide an opportunity for tenants to establish a presence within what is considered one of South Dublin’s best locations. Unit FG01 is let to Nomconn Limited t/a Munchies at an annual rent of ₏23,000 per annum.
SCHEDULE OF ACCOMMODATION Unit No
Type
Tenant
Area Sq M
Area Sq Ft
FG01
Retail - Ground Floor
Munchies
74.0
797
1
Retail - Ground Floor
Vacant
81.3
875
2
Retail - Ground Floor
Vacant
408.1
4,393
3
Restaurant - Ground Floor
Vacant
271.3
2,920
4
Retail - Ground Floor
Vacant
101.4
1,091
5
Retail - Ground Floor
Vacant
101.6
1,094
6
Retail - Ground Floor
Vacant
122.8
1,322
7
Retail - Ground Floor
Vacant
84.4
908
8
Office - Mezzanine Level
Vacant
91.0
980
9
Office - Mezzanine Level
Vacant
76.3
821
10
Office - Mezzanine Level
Vacant
93.4
1,005
11
Office - Mezzanine Level
Vacant
194.1
2,089
12
Office - Mezzanine Level
Vacant
212.6
2,288
13
Office - Mezzanine Level
Vacant
223.7
2,408
14
Leisure - Mezzanine Level
Vacant
609.5
6,561
N/A
Office Reception Area
n/a
107.7
1,159
2,853.2
30,711
Total
The above areas are provided by Plowman Craven and an assignable measurement survey is provided in the data room.
47
CENTRAL PARK THE FUTURE
49
PLANNING PERMISSION FOR 166 MULTI-FAMILY UNITS WITH 1,374.92 SQ M (14,800 SQ FT) OF ANCILLARY COMMERCIAL SPACE (BLOCK K). THERE IS ALSO PLANNING PERMISSION FOR THREE FURTHER OFFICE BUILDINGS (H, I & N) TOTALLING 65,675 SQ M (706,943 SQ FT).
BLOCK K
BLOCKS H, I & N
Site boundaries are for indicative purposes only.
CENTRAL PARK PLANNING & DEVELOPMENT The lands to date have been substantially developed and comprise primarily a mix of office and residential floor space. There is planning permission for a further three office blocks, namely H, I and N on the Central Park lands, all located to the south and south west of the overall site.
BEWLEY’S HOTEL
Planning permission exists for a further residential development of 166 units, namely Block K. All planning information is available in the data room.
L E DEVE FUTUR
OPMEN
T ESB SUBSTATION
BLOCK H
BLOCK I
BLOCK K BLOCK N
LUAS STOP
COMMERCIAL BLOCK H Block H is located adjacent to the entrance to the Park and has been designed to incorporate an office building arranged on ground floor and seven upper floors totalling 13,705 sq m (147,524 sq ft) and 276 car parking spaces.
51
RESIDENTIAL BLOCK K Upon completion Block K will comprise a residential building including commercial accommodation at ground floor level. The Block is currently built to concrete first floor slab level. The property benefits from full planning permission for 166 residential units (with potential to increase to 180 units subject to planning) together with approximately 1,375 sq m (14,800 sq ft) of commercial space with basement car parking.
LE
O
PA
RD
COMPLETED DEVELOPMENT
ST
O
W
FUTURE DEVELOPMENT
N
BLOCK B
RO
EXCLUDED FROM SALE
AD
BLOCK C
C
O
M
PL
BLOCK G
ET
ED
BLOCK D
D
EV
EL
BLOCK P
O
PM
EN
T BLOCK E
BLOCK F
BLOCK L
CRECHE
BLOCK I
BLOCK N
This Block adjoins Block H and borders with Block K at the rear. It also has excellent prominence to the main entrance to the Park. Planning permission exists for an office building arranged on ground floor and seven upper floors totalling 7,637 sq m (82,206 sq ft) with 174 car parking spaces.
Block N is the largest undeveloped site and benefits from excellent profile overlooking the M50 motorway. The site also borders with the Legionaries of Christ site on its western boundary. Planning permission exists for an office building on ground floor and six upper floors totalling 44,333 sq m (477,212 sq ft) with 1,007 car parking spaces.
MARKET INFORMATION
WHY IRELAND
DEMOGRAPHICS
A notable feature of the Irish economic recovery has been the country’s ability to attract significant foreign direct investment which has boosted the office sector in particular. Ireland has long been an open economy, with strong levels of FDI. It is a world-renowned successful business location to over 1,000 overseas companies. Businesses across all key sectors have established bases in Ireland, with particular strength in ICT, Financial Services and New Media (social networking and gaming). Occupier activity from the new media sector has picked up considerably in the last few years, with a number of global firms such as Facebook, Google, LinkedIn and Twitter basing their European headquarters in Dublin.
Ireland experienced population growth between the last two Census dates, increasing by 8.2% between 2006 and 2011. The total population of Ireland now stands at 4.6 million people. The greatest concentration of population is in Dublin, which is the core business and economic centre in the country. Population in the Dublin region increased by 7.0% in the same period. Within Dublin, the population of the Dun Laoghaire-Rathdown Local Authority area currently stands at 206,261 people following a 6.3% increase between 2006 and 2011. 19% of the population are aged 15 years and younger (40,012 people). Ireland Census Population Change 2006 - 2011
5,000,000
+8.2%
2006
2011
4,000,000 3,000,000 2,000,000
Businesses are attracted to Ireland for a number of reasons, including the low corporate tax rate of 12.5%, market transparency and attractive investment and financing platforms. The IMD World Competitiveness Yearbook (2012) ranks Ireland as number one in investment incentives, and attitudes to globalisation, and 2nd in the world for adaptability and efficiency of companies and large corporations. It is home to: • 9 of the top 10 ICT companies in the world (IDA) • 8 of the top 10 pharmaceutical companies in the world (IDA) • 15 of the top 20 companies in medical devices in the world (IDA) • 50% of the world’s leading financial services firms (IDA)
+7.0%
1,000,000 0
Ireland
Dublin
Source: CSO Censes
In terms of the current labour force, there were 98,561 persons aged 15 years and over in Dun Laoghaire-Rathdown, of which 89% were at work. The unemployment rate in this part of Dublin is therefore just 11%, which is comparable to an overall Dublin rate of 17% and a national rate of 19% at the time of the Census.
53
INVESTMENT MARKET OVERVIEW
MULTI-FAMILY INVESTMENT MARKET
Ireland’s investment market continues to perform strongly with high levels of investment activity, increasing supply and growing investor interest creating real depth to the market. Total investment volumes in the year-to-date now stand at €1.06bn which is 91% higher than total volumes for the whole of 2012 (€557m).
Multi-family investments offer a unique opportunity for investors to build residential platforms with income producing blocks of a scale that had historically not traded in the Irish market before the current cycle. It is a market sector driven by strong growth expectations on the capital and rental side.
Total Investment Volumes
Ireland’s population is at its highest level in 150 years (2011 Census). Completion levels for new residential stock are at a historical low. The multi-family sector offers potentially high returns, driven largely in the short-term by rental growth, to be followed by capital growth from a low base.
4000 3500
€million
3000 2500
Multi-family transaction turnover amounted to €225 million in 2012 and 2013 with 1,900 units in 12 schemes over €5 million lot size traded.
2000 1500 1000
The outlook for 2014 is also positive and at this point we forecast a further 750 units being traded.
500
2012
Y-t-d 2013
Source: Jones Lang LaSalle Research
2011
2010
2009
2008
2007
2006
2005
2004
0
In addition, there has been €178m in loan sales this quarter, which would push year-to-date totals to €1.24bn. Q3 investment volumes totalled €452m which is the highest quarterly total since Q3 2007. The largest transaction in Q3 2013 was the sale of the Opera Portfolio for €306m. The asset sale comprised a mixed-use portfolio of commercial properties and was purchased by Kennedy Wilson. With signs of stability in occupier markets, there has been an uplift in activity in the investment market in the last 12 months, with particular interest in prime Dublin office investment opportunities.
PRIME OFFICE INVESTMENT YIELDS Prime office city centre yields have compressed from 7.50% in September 2011 and now stand at 6.25%. At the peak of the market, they were at 3.75%. Prime Business Park yields have compressed from 9.00% to 7.75% over the same period. At the peak, they were at 4.50%.
Clancy Quay • Prime multi-family investment • Majority let on annual residential tenancies • Sold for approximately €82.5 million / NIY 5.50% • Q2 2013 Multi-Family Portfolio • Comprising Priorsgate; Kings Court; Camac Crescent; Grande Central • Four multi-family investments • Majority let on annual residential tenancies • Sold for approximately €42.5 million / NIY 7.25% • Q3 2013 Sandford Lodge • Prime multi-family investment • Fully let on annual residential tenancies • Sold for approximately €27 million / NIY 5.80% • Q4 2012 The Alliance • Prime multi-family investment • Fully let on annual residential tenancies • Sold for approximately €40 million / NIY 6.25% • Q2 2012
MARKET INFORMATION
OFFICE MARKET OVERVIEW
RESIDENTIAL RENTAL MARKET
Prime Dublin office rents have shown stability in the last 12 months, with evidence of growth in the last quarter. Prime rents now stand at €35 per sq ft which is an increase of 17% from €30 per sq ft last year. This increase in rents has been driven by strong demand and decreasing supply, with increased competition for some prime buildings.
There is a strong tradition of owner-occupation in Ireland. However, between the Census years of 2006 and 2011 there was a 47% increase in the number of households in rented accommodation.
Prime business park rents have also stabilised and now stand at €17 per sq ft. They remained at this level for the last two years. Prime City Centre vs Prime Business Park Rents Prime Business Park
Prime City Centre
€70 €60
Rent
€50
While rent levels fell during the economic crisis, the rate of decline was less than 25% in both Dublin and in locations outside Dublin. This reflects the fact that demand was, to a certain extent, underpinned by a substitution from owneroccupation to the private rented tenure. As shown below, rents in the Dublin market began to recover from mid2011, and they are now up around 6.4% on the levels seen 12 months ago. Again, this has been driven by a supply / demand imbalance. Property portal Daft.ie recently noted that the demand for rental properties in Dublin has been running at approximately 3,700 units per month, whereas only 2,400 units are currently available to rent. Rental Growth - Dublin and Outside Dublin
€40 €30
National
€20
Dublin
10
€10
2018
2017
2016
2014
2013
2012
2011
2010
2009
2008
2007
2006
Source: Jones Lang LaSalle Research
Rental forecasts for prime business parks are not available, however, it is likely that rents will start to show signs of increases in the short-to-medium term. Rental growth will be caused by decreasing supply across the city for prime space, with increased competition for prime buildings, particularly in certain size categories. In addition, as rents increase in the city centre, some occupiers will be priced out of the market and will have to consider more suburban locations.
% Change Y/Y
5
€0
0 -5 -10 -15 -20 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2009 Source: PRTB
2010
2011
2012
55
ASSET MANAGEMENT & VALUE-ADD OPPORTUNITIES Central Park provides a number of Asset Management and Value-Add opportunities to enhance, drive and increase returns in the short to medium term. · Leasing the 8,275.62 sq m (89,021 sq ft) of vacant space in the office element
· Further scope to enhance cashflows for the multi-family scheme through active leasing and asset management
· Fit-out and leasing of the ground, first and second floors of Number One Central Park
· Fit-out of the retail and restaurant units on the ground floor of Vantage multi-family blocks
· Lease regears with existing tenants
· Completion and fit-out of office suites on the mezzanine floor in Vantage multi-family blocks
PROPOSAL
TENURE
The entire is For Sale by Private Treaty on the Joint Instructions of William O’Riordan and Declan McDonald (Joint Receivers) and Devano Developments Limited (“The Joint Vendors”) as a single lot.
A Title Summary is available in the Central Park Portfolio data room.
VAT Information on VAT is provided for each property within the Central Park Portfolio data room.
CAPITAL ALLOWANCES Based on the information reviewed, it appears that capital allowances on the qualifying plant and machinery should be available. However, a detailed review of the qualifying allowances will have to be completed in order to determine the actual qualifying amount.
ESTATE MANAGEMENT Full details of the estate management services are available in the Central Park Portfolio data room.
PRICING On application.
VIEWINGS Viewings are strictly to be arranged through the joint selling agents.
RENT FREE & VACANCY GUARANTEES The Vendor is not proposing to top up any rent free periods or offer rent, rates or services charge guarantees on currently vacant space.
CONTACTS & FURTHER INFORMATION A bespoke website with data room containing legal documents and property information is available at www.centralparkportfolio.com. For further information please contact the Joint Selling Agents:
Savills Ireland 32 Molesworth Street Dublin 2 Ireland
Jones Lang LaSalle 10/11 Molesworth Street Dublin 2 Ireland
savills.ie
jll.ie
Fergus O’Farrell +353 (0) 1 618 1311 fergus.ofarrell@savills.ie
John Moran +353 (0) 1 673 1637 john.moran@eu.jll.com
Dessie Kilkenny +353 (0) 1 618 1401 dessie.kilkenny@savills.ie
Brian Shields +353 (0) 1 673 1678 brian.shields@eu.jll.com
Ciaran Lydon +353 (0) 1 618 1341 ciaran.lydon@savills.ie
Laura Torpey +353 (0) 1 673 0712 laura.torpey@eu.jll.com
SOLICITORS
A&L Goodbody IFSC North Wall Quay Dublin 1 Ireland Niamh O’Sullivan +353 (0) 1 649 2000 nmosullivan@algoodbody.com
PROPERTY MISREPRESENTATION ACT The joint agents and the Joint Vendor/Lessor give note that the particulars and information contained in this brochure do not form any part of any offer or contract and are for guidance only. The particulars, descriptions, dimensions, references to condition, permissions or licences for use or occupation, access and any other details, such as prices, rents or any other outgoings are for guidance only and are subject to change. Maps and plans are not to scale and measurements are approximate. Whilst care has been taken in the preparation of this brochure intending purchasers, Lessees or any third party should not rely on particulars and information contained in this brochure as statements of fact but must satisfy themselves as to the accuracy of details given to them. Neither Savills Ireland, Jones Lang LaSalle nor any of their employees have any authority to make or give any representation or warranty (express or implied) in relation to the property and neither Savills Ireland, Jones Lang LaSalle nor any of their employees nor the vendor or lessor shall be liable for any loss suffered by an intending purchaser/lessees or any third party arising from the particulars or information contained in this brochure. Prices quoted are exclusive of VAT (unless otherwise stated) and all negotiations are conducted on the basis that the purchasers/lessees shall be liable for any VAT arising on the transaction. All maps produced by permission of the Ordnance Survey Ireland Licence No AU 001799 © Government of Ireland. Designed and produced by Creativeworld. Tel +44 [0] 1282 858200
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