THE PARK COLLECTION
CARRICKMINES, DUBLIN 18
Prime Suburban Investment Opportunity
Executive Summary • The Park Collection is brought to the market and was developed by Park Developments Group, Ireland’s most respected and long established development company • The Park Collection presents an opportunity to acquire a significant interest in the country’s leading suburban commercial park • All four buildings are constructed to the highest standards with top quality finishes throughout • This popular Southside location has attracted excellent tenants including State Street, Getty Images, Siro and AIB Bank • Highly accessible location at Junction 15 of the M50 orbital motorway and direct access to the Luas Green line • This location continues to thrive with a new social and cultural district planned for Quadrant 3, which will further enhance the park, making it the premier suburban destination to shop and work
4 BUILDINGS
located in The Park, Carrickmines
APPROX. 11,260 SQ. M. of superb quality office accommodation
APPROX. 1,275 SQ. M. of retail space
€2.75m approximate income per annum 95% let ...an opportunity to acquire a significant interest in the country’s leading suburban commercial park 02
Leopardstown Racecourse
THE PARK C O L L E C T I O N
Leopardstown Golf Course
Ballyogan Wood
The Herbert Building The Hyde Building
M50
Quadrant 3 For Further Development
The Holborne Building The Pavilion
Quadrant 4
Main Entrance to The Park Carrickmines
03
3
Donabate 4
M2
M1 Malahide
Swords
2
2
DUBLIN AIRPORT
N2
Portmarnock 1
4
M50
4
3 N32
5 N3
Blanchardstown
Coolock
Santry
Finglas
2
Howth
6
M50
Sutton
Beaumont
2
N2
M50 Drumcondra
Castleknock
Clontarf
Port Tunnel
N1
N3 N2 3
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
2
N31
Churchtown
3
Tallaght
11
Templeogue
N11
Dundrum
Dun Laoghaire
Stillorgan
Ratfarnham
N81 N82
Blackrock
Sandyford
12
Glenageary
N31
13
M50
Foxrock
14
Leopardstown
N11
Carrickmines 15
Stepaside 16
Cherrywood M11 17
5
M50
04
THE PARK C O L L E C T I O N
Location Carrickmines is an affluent suburb on Dublin’s Southside benefitting from excellent transport links to the city. The Park has become a major retail and commercial centre since its construction over 10 years ago. Located off exit 15 on the M50 motorway and close to M11/ N11 interchange, it is a highly accessible location. The Park benefits from excellent public transport links with the Luas Green line stop at Ballyogan Wood just 800m away. In addition there are numerous Dublin Bus routes that serve The Park which connect to the city centre and other important destinations in the surrounding area.
Off M50 orbital motorway
Adjacent to N11
DUNDRUM TOWN CENTRE
R826
Numerous Dublin Bus Routes
Accessible to Luas Green Line
R826
DEANSGRANGE
R826
R118
R826
R828
R113
R827
R830
R119
N11
SALLYNOGGIN
DALK
R117
BALLINTEER
R830
R826
R118
R113
M50
N31
R828
CORNELSCOURT
14
SANDYFORD R113
R113
R1
FOXROCK R113
Ba
M50
llo R117 an Ro ad g
Quadrant 3 For Further Development
BA
15
R118 LLY OG
AN
ROA
R119
D
15
STEPASIDE
M50
LOUGHLINSTOWN BALLYBRACK
UC
K
RD
CARRICKMINES
Gl en am uc kR oa d
Ballyogan Wood
KILLINEY
CABINTEELY
M50
GL EN AM
R133
R827
GOLDENBALL
R116
R119
R116
M50
M11
KILTERNAN R116
SHANKHILL
05
Woodies
Next Home
Hickeys
53Ëš North
Halfords
Smyths Toys
IKEA
DFS
Costa
McDonalds
KFC
Currys PC World
The Hyde Building
The Herbert Building
The Pavilion The Holborne Building
Power City
The Development The Park, Carrickmines is home to Ireland’s busiest retail park. The Park comprises four quadrants with retail, office and leisure uses. The subject properties are located in Quadrant 4, the business quarter of the Park. Current occupiers include Park Developments Group, AIB, Siro, Getty Images and Bimeda. There is further office development proposed for Quadrant 4, which will complete this business campus with attractive open spaces and state of the art buildings. Quadrants 1 & 2 comprise predominately of retail warehouse units with associated car parking. Occupiers include TK Maxx, Harvey Norman, PC World, Woodies, Next Home, Halfords, McDonalds, Costa Coffee and IKEA. Quadrant 3 currently comprises 18 acres of prime, undeveloped lands. Currently at design stage Q3 will provide a social and cultural quarter with a mix of retail, food and leisure uses. This development will further enhance the scheme, introducing evening trade to the area. This will no doubt further attract office occupiers to the scheme.
06
TK Maxx
Harvery Norman
Halpenny Golf
THE PARK
Lifestyle Sports
C O L L E C T I O N
Boots
Petstop
Mothercare & ELC
Heatons
The Iveagh Building
Quadrant 3 For Further Development
local amenities
To the M50
07
The Herbert Building Overview The Herbert Building is a high specification office building completed in 2008. Extending to approximately 7,949.2 sq. m. (85,564 sq. ft.) IPMS 2, the property is laid out over five floors with 125 car spaces. The block is fully let to 6 tenants with a WAULT of 2.25 years.
Specification Raised access floors Suspended ceilings with recessed lighting Four pipe fan coil air conditioning Two 10 person “Kone” passenger lifts serving all floors Concrete frame construction with toggle glazing system Flexible 15m deep L shaped floor plates Breeam “Very Good” rating
BER Details
08
THE PARK C O L L E C T I O N
Tenancy Schedule Demise
Tenant
GIA sq. m.
GIA sq. ft.
Cars
Lease Start
Lease End
Break Date
Passing Rent per annum
Ground Floor West PTC (SSI) Ltd
735.32
7,914
12
28/07/2016
27/07/2026
27/07/2021
€201,817
Ground Floor East
SIRO
705.64
7,595
12
19/08/2015
18/08/2025
18/08/2020
€165,840
First Floor West
Getty Images
735.13
7,912
12
24/09/2015
23/09/2025
23/09/2020
€185,486
First Floor East
Bimeda
797.97
8,589
15
26/09/2014
26/09/2034
26/09/2019 & 26/09/2024
€135,047
Second and Third Floor
International Fund Services
3,049.85
32,828
50
17/09/2007
16/09/2032
17/09/2017
€710,967
Fourth Floor
Park Developments (Dublin) Ltd
1,456.09
15,673
24
01/10/2007
30/09/2032
30/06/2018
€415,800*
7,480
80,514
125
Total
€1,814,957
* Rent effective from January 1st 2017. The above areas are stated in the leases for rent review purposes.
Floor Plans
Ground Floor Plan
Fourth Floor Plan
Floor plans are for indicative purposes only 09
The Hyde building Overview
Specification
The Hyde Building is an impressive block of 40 fully fitted office suites finished to a high standard. Included in the sale are 33 of the 40 units, extending to approximately 3,249.25 sq. m. (34,975 sq. ft.) IPMS 2.
Raised access floors
All units are currently let to 16 tenants. Occupancy rates are high and the current WAULT is 2.25 years.
Two 13 person “Kone� passenger lifts serving all floors
Suspended ceilings with recessed lighting VRV air conditioning
Each suite is fully fitted with kitchen and WC facilities Large impressive atrium with generous common areas Flexibility to amalgamate suites to suit occupier requirements
BER Details
10
THE PARK C O L L E C T I O N
Tenancy Schedule Unit
Tenant
Area sq. m.
Area sq. ft.
Cars
Lease Start
Lease End
Break Date
Passing Rent per annum
1, 3, 4, 5, 6 & 8
Wind Prospect Ireland Ltd
562.85
6,058.46
12
20/11/2012
19/11/2022
19/11/2017
€89,979
10
Globalstar Europe Satellite Services Ltd
119.5
1,286.29
2
12/06/2016
11/03/2021
11/06/2019
€33,475
11, 12 & 13
Conference Partners Ltd
277.15
2,983.21
6
28/08/2016
27/08/2026
27/08/2021
€72,530
14
Prime Active Capital (Services) Ltd
93.6
1,007.50
2
01/01/2016
30/09/2020
30/06/2017
€23,651
15
Hospira Ireland Sales Ltd
113.2
1,218.47
2
01/12/2011
31/08/2016
n/a
€18,000
16 & 23
i3PT
202.6
2,180.77
4
28/05/2015
28/02/2020
-
€50,904
17 & 18
Synergy Serviced Apartments Ltd
222.10
2,390,66
4
27/01/2014
26/01/2024
26/01/2017
€40,947
19
Ground Labs
83.4
897.71
2
29/08/2016
28/08/2021
28/08/2019
€21,950
20
Vacant
102
1,097.92
2
-
-
-
-
24
Triska Energy Ltd
89.5
963.37
2
03/12/2013
02/09/2018
02/12/2016
€17,000
25 & 26
Brosna Communications International Ltd
222.1
2,390.66
4
22/03/2013
21/12/2017
n/a
€36,988
27-29
JF Hillebrand Ltd
277.1
2,982.68
6
22/12/2008
21/12/2033
21/12/2018
€89,604
32
Unwired Planet International Ltd
89.5
963.37
2
01/12/2014
30/08/2019
30/08/2017
€18,191
33 & 34
WeLink
222.1
2,390.66
4
25/09/2015
25/06/2020
n/a
€62,975
35-40
Boehringer Ingleheim Ireland Ltd
459.5
4,946.01
10
17/08/2012
16/08/2022
16/08/2017
€83,078
39
Pentair Valves & Controls Ireland Ltd
113.1
1,217.40
2
23/01/2015
23/10/2019
22/01/2018
€22,445
3,249.30
34,975.14
66
Total
€681,717
Floor Plans Ground Floor Plan
Fourth Floor Plan
Floor plans are for indicative purposes only 11
The HOLBORNE Building Overview The Holborne Building is a two storey mixed use block, with two retail units on the ground floor and vacant commercial accommodation overhead. There are terms agreed with a medical use tenant on the vacant space. This deal is subject to Planning Permission. The block extends to approximately 1,162 sq. m. (12,507 sq. ft.) NIA overall. There are 18 car spaces included in the sale.
Specification Statement façade with extensive glazing Generous floor to ceiling on the first floor One 8 person “Kone” lift (installed 2016) Steel frame construction Tenant installed air conditioning on the ground floor Flexible first floor layout Double height atrium lobby
BER Details
12
THE PARK C O L L E C T I O N
Tenancy Schedule Demise
Tenant
NIA sq. m.
NIA sq. ft.
Lease Start
Lease End
Break Date
Passing Rent per annum
Ground Floor Unit 1 & 3
O'Briens Wines Off Licence
490
5,274.31
07/02/2011
06/02/2031
06/02/2019
€126,924
Ground Floor Unit 2
TC Matthews
116
1,248.60
15/03/2016
14/03/2026
14/03/2021
€55,000*
First Floor Restaurant
Venus Medical
556
5,984.73
n/a
1162
12,507.64
TOTAL
€181,924
* Rent abated to €50,000 per annum for years 1 & 2. The above areas are provided by McGovern Building Surveys and an assignable measurement survey is available in the data room.
Floor Plans
Ground Floor Plan
First Floor Plan
Floor plans are for indicative purposes only 13
The PAVILION Overview
Specification
The Pavilion comprises a single storey building occupying a high profile location at the entrance to The Park. The block is split in two units, a retail bank extending to 113 sq. m. (1,216 sq. ft.) NIA and an office suite extending to 64.55 sq. m. (695 sq. ft.) IPMS 2. The majority of the space is occupied by AIB, who operate a retail bank from the premises. The smaller suite is occupied by The Park Management Company. There are 5 car spaces included in the sale.
Extensive glazing with timber batten cladding Steel framed construction High level of tenant fit out Tenant installed air conditioning Comprises two self-contained units Each unit has a WC and Kitchenette
BER Details
14
THE PARK C O L L E C T I O N
Tenancy Schedule Demise
Tenant
Unit 1
AIB
Unit 2
The Park Management Company
Area sq. m.
Area sq. ft.
Lease Start
Lease End
Break Date
Passing Rent per annum
113
1,216
17/08/2015
16/08/2025
17/08/2020
€55,000
64.55
695
01/01/2016
31/12/2025
01/01/2021
€15,768
TOTAL 177.55 1,911 The above areas are provided by McGovern Building Surveys and an assignable measurement survey is available in the data room.
€70,768
Floor Plans
Floor plans are for indicative purposes only
15
irish economic backdrop GDP
4.9%
in 2016*
EXPORT GROWTH
55.4%
The latest Quarterly National Accounts (QNA) indicate a quantum leap in the size of Ireland’s economy last year. While the reason behind the substantial revision is somewhat convoluted, it likely reflects more complete and up-to-date data relating to a small number of multinational corporations (MNCs), in particular pharma manufacturing firms, using Ireland as an operational hub in response to a global clampdown on tax avoidance. This restructuring looks to explain the step-change in goods exports which are now estimated to have grown by 55.4% last year (17.2% previously), elevating the contribution of net trade to GDP growth in the process. As a small open economy, Ireland is highly exposed to the activities of MNCs to such a degree that GDP growth can be heavily distorted from one period to the next. One implication stemming from the revisions to last year’s accounts is that they create an unfavourable base in which to compare the latest figures with. As a result, economists are increasingly turning to alternative measures. Jobs creation is one such measure. A simple approach assuming constant productivity, i.e. each additional person that enters into the work force is as productive as the last, would mean a 1 percentage point increase in employment yields the same growth in output. However, younger, more skilled labour, coupled with advancements in technology and a recent sectoral shift argues for output growth of more than 1 percentage point. As a result, this metric suggests that Ireland’s economy is currently expanding by 4.0-4.5% per annum.
in 2015
Total Employment Growth 4
DISPOSABLE INCOMES
6.2%
in past 12 months
% Change Year on Year
3 2 1 0 -1 -2 -3
NEW JOBS
EMPLOYMENT
2.1%
in 2016*
*Central Bank / IMF July Forecast
16
2016 Q1
2015 Q4
2015 Q3
2015 Q2
2015 Q1
2014 Q4
2014 Q3
2014 Q2
2014 Q1
2013 Q4
2013 Q3
2013 Q2
2013 Q1
2012 Q4
2012 Q3
2012 Q2
2012 Q1
2011 Q4
2011 Q3
2011 Q2
2011 Q1
2010 Q4
47,000
2010 Q3
-5
2010 Q2
-4
Source: CSO
One positive takeaway from the latest QNA, is the uplift in consumer spending. With 47,000 additional jobs created in the last 12 months, household disposable incomes are up by 6.2%. €210m of this extra income has been saved but the majority (€1.3bn) has been spent. In combination with a resurgence in consumer credit this has led to personal consumption expenditure (PCE) growth of 4.5% in 2015 and 5.0% in the year to Q1 2016. This is the fastest pace of PCE growth in over eight years. With consumer spending accounting for approximately 55% of domestic demand, and subject to far less distortion than headline GDP, this also provides clear evidence that underlying economic growth trends remain robust.
THE PARK C O L L E C T I O N
Real Consumer Spending Growth 8 6
% Change Year on Year
4 2 0
-2 -4 -6
2016 Q1
2015 Q3
2015 Q1
2014 Q3
2014 Q1
2013 Q3
2013 Q1
2012 Q3
2012 Q1
2011 Q3
2011 Q1
2010 Q3
2010 Q1
2009 Q3
2009 Q1
2008 Q3
2008 Q1
2007 Q3
2007 Q1
-8
Source: CSO
Although the fundamentals of the economy remain favourable, Brexit has added a new layer of uncertainty to the economic outlook. While the full effects of this will take time to materialise, it’s likely to weigh on Irish exports because of slower UK growth and weaker Sterling. In the longer run, obstacles such as quotas and tariffs may add further challenges to bilateral trade between Ireland and the UK. Despite the potential offsetting effect of prolonged low interest rates, Brexit is expected to have a negative impact on the Irish economy. However, two qualifying factors should be noted. Firstly, some slippage can be afforded as the Irish economy is clearly expanding quite robustly at present. Secondly, as shown in the table below, notwithstanding the expected impact of Brexit, Ireland is forecast to continue showing robust output and jobs growth.
2016
2017
Central Bank
IMF
Central Bank
IMF
GDP
4.9 (5.1)
4.9 (5.0)
3.6 (4.2)
3.2 (3.6)
Employment
2.1 (2.3)
2.0 (2.0)
1.3 (1.8)
1.7 (1.9)
July forecasts (April forecasts in parentheses)
17
Dublin office market Office Demand Vigorous economic growth is resulting in very strong jobs creation in Dublin (+4.6% y/y in Q1 2016). At the same time, the general trend has been for a gradually higher proportion of office based employment within this total (see graph below). In particular the office based sectors of ICT and professional services are growing strongly.
Office Based Share of Total Employment in Dublin 35
% of Total Employment
34
33
32
31
2016 Q1
2015 Q2
2014 Q3
2013 Q4
2013 Q1
2012 Q2
2011 Q3
2010 Q1
2010 Q4
2009 Q2
2008 Q3
2007 Q4
2007 Q1
2006 Q2
2005 Q3
2004 Q4
2004 Q1
2003 Q2
2001 Q4
2002 Q3
2001 Q1
2000 Q2
1999 Q3
1998 Q1
1998 Q4
30
Source: CSO
Occupier demand is rising in the suburbs but we believe that some of this can be explained by displacement of demand from the CBD where vacancy rates for Grade A space have now hit sub 1.5% (increasing execution risk for tenants) and secondly due to rising rents in the CBD and the relative value of the suburbs. Over the short term we foresee that these trends will likely continue. With rising suburban rents, planning application volumes have increased in the suburbs and hence, competition will emerge.
Gross Office Take Up - Dublin 120,000
100,000
Sq M
80,000
60,000
40,000
20,000
Take Up Sq M Source: Savills Research
18
5 Year Average Sq M
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
0
THE PARK C O L L E C T I O N
Office Availability Increasingly, gross take-up is feeding through to net absorption. This is because, compared with the crisis period, an increasing proportion of lettings are accounted for by expansions and new entrants. This, and the fact that significant space is now beginning to be withdrawn for redevelopment, means that the vacancy rate is falling quickly and now stands at 9.4%. However, this overall figure conceals the fact that there is currently very little availability of Grade A office space in prime locations within the CBD. The VR currently stands at 6.1% in Dublin 2 and 4.2% in the South Docks.
Vacancy Rate Dublin Offices: Q1 2016 21
19
%
17 15 13 11
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
9
Source: Savills Research
Office Supply On the supply-side, there have been no significant office completions since 2010 and this, combined with growing demand, has been driving explosive rental growth at this point in the cycle.
Net Dublin Office Completions – Actual and Forecast 2015 - 2021 +30%
450,000
1995 - 2003 +103%
350,000
Sq M
250,000
1989-1994 +29%
1977 - 1988 +101%
150,000
Prime headline office rents in Dublin grew by 100% between the start of 2013 and Q1 2016. This has drawn out new development. However, a scarcity of funding has slowed down this process and because of this and the construction lag, significant office completions will not begin to emerge until 2018. In addition, because the next development cycle requires significant demolition of existing office space, it will only result in net additional space of 30% by 2021. As illustrated in the graph above this is not high by historical standards.
2004 - 2011 +43%
50,000 -50,000
Delivered
2021 (f)
2019 (f)
2017 (f)
2013
2011
2009
2007
2015 (f)
Likely
2005
2003
2001
1997
1999
1995
1993
1991
1989
1987
1985
1983
1981
1979
1977
1975
-150,000
Source: Savills Research
Rental Growth The fall in vacancy rate and increased demand has led to strong rental growth in the Dublin office market. Headline rents for prime city centre space now stand at €645 per sq. m. (€60 per sq. ft.) headline (with one recent transaction over this), while rents in the South Suburbs are approximately €268 per sq. m. (€25 per sq. ft.) headline. Tenant inducements are also tightening as a result of competitive tension and the removal of upwards only rent reviews making inducements less beneficial to landlords.
19
THE PARK C O L L E C T I O N
contacts & further information A bespoke website with a link to a data room containing legal documents and property information is available at; www.theparkcollection.com For further information please contact:
Sole Selling Agent
Solicitors
Developer
Savills Ireland 32 Molesworth Street Dublin 2
Matheson 70 Sir John Rogersons Quay Dublin 2
www.savills.ie
www.matheson.com
Park Developments Group The Herbert Building The Park Carrickmines Dublin 18
Fergus O’Farrell +353 (0) 1 618 1311 fergus.ofarrell@savills.ie
Brian Doran +353 (0) 1 232 2125 brian.doran@matheson.com
Marguerite Boyle +353 (0) 1 618 1334 marguerite.boyle@savills.ie
Rachel Ward +353 (0) 1 232 2332 rachel.ward@matheson.com
www.parkdevelopments.ie
Leona Mullen +353 (0) 1 618 1762 leona.mullen@savills.ie
The agents and the 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 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 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 Š Government of Ireland. Designed and produced by Creativeworld. Tel +44 [0] 1282 858200