42-43 HENRY STREET

PRIME RETAIL INVESTMENT OPPORTUNITY

Investment Considerations

Flagship investment opportunity in a commanding Henry Street location which attracts the best national and international retailers.

• High-profile four storey over basement end terraced corner building extending to approximately 958.2 sq m (10,313 sq ft) NIA

• Includes approximately 685.4 sq m (7,377 sq ft) of retail accommodation at basement, ground and first floor levels

• Prime retail unit benefiting from approximately 15 m frontage onto Henry Street and return frontage of approximately 12 m onto Moore Street

• Located on the north eastern side of Henry Street which connects to O’Connell Street and in close proximity to Arnotts Department Store and the Ilac Centre

• Landmark retail store fully let to Arcadia Group Limited (trading as Evans), a blue-chip fashion retailer, on a 35 year lease from October 1985, expiring in October 2020

• Currently producing a rent roll of €865,000 per annum

• Unexpired term of approximately 3.6 years offering a number of exciting short-term asset management opportunities

• Property is held under part Freehold and part Long Leasehold titles

• Tenant not affected

42-43 HENRY STREET

Location

42-43 Henry Street is situated on the north eastern side of the street on the prime retail stretch between the Ilac Centre and O’Connell Street.

Henry Street is the primary retail thoroughfare on the north side of Dublin City Centre. It is one of the two main pedestrianised high street retail locations in Dublin, the other being Grafton Street on the south side of the city.

The significant Ilac and Jervis Shopping Centres are located on Henry Street which is home to numerous national and internationally recognised brands such as Zara, H&M, River Island and Boots, together with department stores including Arnotts, Debenhams, Dunnes and Marks & Spencer. Neighbouring occupiers include Carrolls, Mango, Clarks, Pull & Bear, Vision Express, JD Sports and Holland & Barrett.

The creation of the proposed 40,000 sq ft unit fronting onto Henry Street from the Arnotts premises, coupled with the planned addition of the Topshop flagship store in the Jervis Centre will further enhance footfall levels on the street. In addition, the owners of the Ilac Centre have commenced their refurbishment plans which will be completed by summer 2017 which are also seen as a very positive development for the area.

Weekly footfall figures on the street for 2016 averaged almost 335,000, resulting in total footfall for the year of over 17.4 million. This was an increase compared to 17.3 million recorded in 2015. As well as a retail attraction, Henry Street and the immediate area is a significant tourist destination. Footfall is boosted by excellent transport links including the LUAS Red Line stops on the nearby Abbey Street and Jervis Street. The new LUAS Cross City Line is due for completion by year end and will have a station on O’Connell Street. There are multiple Dublin Bus stops on O’Connell Street while the immediate area is also well served by taxi ranks and Dublinbikes with stations at Princes Street and Cathal Brugha Street. Multi-storey car parks are located in nearby shopping centres at the Jervis Centre, Ilac Centre and Parnell Centre.

LUAS Red Line

LUAS Cross City

LUAS Cross City

LUAS Red Line

GRAND CANAL DOCK

RIVER LIFFEY

PEARSE STATION

TEMPLE BAR

O’CONNELL ST

THE CUSTOM HOUSE

O’CONNELL ST

GPO

CENTRAL BANKOF IRELAND

ST STEPHENSGREEN

BORD GÁISENERGY THEATRE

BANK OF IRELAND

TRINITY COLLEGE

MERRION SQUARE

HENRY ST

CLERYS

MARY ST

NORTH LOTTS

LIFFEY ST LOWER POOLBEG ST

LUKE

ST GLOUCESTER ST SOUTH

MOORE LN

MARLBOROUGH ST

HAWKINS ST

MIDDLE ABBEY ST

CHANCERY ST

CHARLES ST WEST

ABBEY ST LOWER

MARK’S LN

ANGL

ESEA

ST

EUST

ACE

ST

GREAT STRAND ST

TALB

OT P

LACE

JERVIS ST

KING’S INN’S ST

DOMINICK LN

HENRIETTA ST

HENRI

ETTA

PL

WOLFE TONE ST

GREE

N ST

MARY ST

HENRY ST

LINE

NHAL

L PA

RADE

FLEET ST

COPE ST

TEMPLE BAR

TEM

PLE

LANE

S

ESSEX ST EAST

ARRAN ST EAST

MARY’S ABBEY

MARY’S LANE

JAMES JOYCE ST

CUSTOM HOUSE HARBOUR

FOLEY ST

BEAVER ST

RAILWAY ST

UPPER ABBEY ST

MOORE ST

ORMOND SQ

CUCKOO LN

GEORGE’S DOCK

MOS

S ST

CITY QUAY

EDEN QUAY

BACHELORS WALK

ORMOND QUAY LOW ER

ORMOND QUAY UPPER

GARDINER STREET LOWER

PARNELL SQ WEST

DOMINICK STREET LOWER

SUMMERHILL

PARNELL STREET

BURGH QUAY

ASTON QUAY

WELLINGTON QUAY

ESSEX QUAY

WOOD QUAY

HILL STREET

SHERIFF ST LOWER

TALBOT ST

CUSTOM HOUSE QUAY

SEAN MAC DERMOTT ST UPPER

BOLT

ON ST

REET

NORTH KING ST

TARA

ST

CAPEL STREET

AMIE

NS S

TREE

T

PEARSE STREET HANOVER ST EAST

TOWNSEND ST

D’OLIER ST

O’CONNELL STREET LOWER

O’CONNELL STREET UPPER

NORTH FREDERICK ST

CUSTOM HOUSEQUAY

LUASSTOP

ILAC CENTRE

ARNOTTS

JERVISSHOPPING

CENTRE

LUAS Cross City

Description

42-43 Henry Street comprises a four storey over basement period end terraced corner building extending to approximately 958.2 sq m (10,313 sq ft) NIA. This prime retail unit benefits from approximately 15 m frontage onto Henry Street and return frontage of approximately 12 m onto Moore Street.

The property includes approximately 685.4 sq m (7,377 sq ft) of retail accommodation at basement, ground and first floor levels. The upper floors provide for a variety of uses including a manager’s office, staff kitchen area, stock rooms and toilets. There is lift access for customers, with swipe card access to non-sales areas for staff to basement, ground, first and second floors. There are concrete stairs within the sales areas to basement, ground and first floor levels and timber stairs serving staff areas to the upper floors.

An internal metal staircase which serves all floors provides a fire escape route to the rear.

The building is of masonry / brick construction and includes a ground floor glazed shop front.

The upper floors contain part masonry, part red brick and part granite façade to include traditional style sash windows under a pitched slate roof.

Tenancy

The entire building is let to Arcadia Group Limited trading as Evans on a 35 year full repairing and insuring lease from 1st October 1985. The current rent is €865,000 per annum.

Covenant Information

Evans is a well-known women’s fashion retailer of clothing, lingerie, shoes, swimwear and accessories. The brand forms part of Arcadia Group, a British multinational retailing company which also owns other notable fashion retailers including Burton, Dorothy Perkins, Miss Selfridge, Topshop and Wallis. The group, which is part of Taveta Investments owned by Sir Philip Green, has approximately 45,000 employees and operate more than 2,500 stores.

Arcadia Group Limited has a Dun & Bradstreet rating of ‘5A 1’. The D&B rating of ‘5A 1’ represents a financial strength of 5A based on a tangible net worth of over £2.62 billion and a risk indicator of 1 which represents a minimum risk of business failure.

Accommodation

Floor Use Sq M Sq Ft

Ground Retail 254.4 2,738

Basement Retail 295.1 3,176

First Retail 135.9 1,463

Second Ancillary 128.8 1,386

Third Ancillary 144.0 1,550

Total Area 958.2 10,313

ITZA 148.3 1,597

Areas provided are NIA and were measured by Malcolm Hollis. An assignable measured survey is available in the data site.

ITZA of approximately 148.3 sq m (1,597 sq ft)

42-43 HENRY STREET

50 metres

For more information on our products and services:

www.experian.co.uk/goad | goad.sales@uk.experian.com | 0845 601 6011

Dublin (IRL)

Copyright and con�dentiality Experian, 2017. © Crown copyright and database

rights 2017. OS 100019885

Experian Goad Plan Created: 10/02/2017Created By: Savills

DIY SHOP

MOBILE HUT

RESERVED

RESERVED

OCCUPIED

OCCUPIED

OCCUPIEDG

NC

CLERYS

WINDOW DISPLAY

COMMS

ENTRANCE

WINDOW DISPLAY

WINDOW DISPLAY

2.94 fc

CHANGING ROOMS

FireExit

Stairs

TenantStairs

LiftLobby

LiftStairs

HENRY STREET

MO

ORE

STR

EET

30.000

Fl-cl= 2.943

part

part

part

shop floor

part

part

stairs LiftLobby

Lift Stairs

Fire Exit

TenantStairs

HENRY STREET

MO

ORE

STR

EET

Floor Layout

Basement Ground Floor

Retail Storage

First Floor

20.000

30.000

40.000

50.000

UP

basement

FCH

2.41

store

Stairs

TenantStairs

LiftLobby

Lift Stairs

store

HENRY STREET

MO

ORE

STR

EET

Asset Management

The current lease is due to expire in October 2020 presenting an investor with a number of exciting short term asset management opportunities to include the following:

• The current unexpired lease term of approximately 3.6 years enables a timeline for an investor to capitalise on the continued improvement and growth in the retail sector and pent-up demand for prime High Street pitches coinciding with the lease expiry in October 2020.

• Potential to restructure the current lease with Arcadia Group (trading as Evans) to secure a longer lease term.

• If vacant possession is obtained, this property could be reconfigured / sub-divided and converted back to two separate buildings (i.e. No.42 and No.43). Although there is a notable shortage of large prime units on Henry Street, the creation of two reconfigured and refurbished units at this location could command premium rents.

Retail Market Outlook

Ireland’s economy continues to perform extremely well. Total employment is rising by 2.9% per annum and the number of people at work in Ireland has surpassed 2 million for the first time since 2008.

Average earnings have been rising for the last two years. Rising house prices and share values have increased households’ asset wealth and there has been a pronounced rebound in consumer credit. Taken together these continue to add to consumers’ spending power which remains particularly favourable for retail property.

With the consumer economy continuing to tell a positive story, retailers continue to expand, with new entrants such as & Other Stories and Victoria’s Secret further cementing Dublin’s status as a premier shopping location. On Henry Street, Topshop’s decision to consolidate its position as a key fashion driver from a reconfigured store of approximately 20,000 sq ft in the Jervis Centre will further enhance the scheme and benefit local retail occupiers.

Additionally, Arnotts continues its resurgence with growing sales and profitability, aided by an ongoing refinement of its concession mix, with Nespresso the latest brand to locate within the store.

With the jobs market continuing to improve, retailer demand for occupational space is to remain strong. Given the fact that large scale retail development is still some way off, rents will continue to rise further.

Savills Director of Research, Dr. John McCartney, has developed a framework for forecasting retail rents in conjunction with economists at the ESRI. The forecasting model uses the Grafton Street sub-index as a representative of what is happening in the prime Dublin High-Street market, due to the high correlation between ERV growth on Grafton Street and on Henry Street.

The latest analysis indicates that a 1% increase in total employment growth is associated with a 1.09% increase in rental growth on prime Dublin High-Streets two years later. It is forecasted that prime Dublin High-Street ERVs should rise by approximately 11.3% over the 8 quarters between Q3 2016 and Q2 2018 inclusive.

42-43 HENRY STREET

Prime Dublin High-Street Rents Forecast to Q2 2018

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RETAIL ECONOMY IMPROVING

Retail sales up 3.4%

UNEMPLOYMENT Unemployment continues

to fall and is currently just above 7%

EARNINGSReal average earnings have been

rising for two years

HOUSEHOLD NET WORTHThe net worth of Irish households has risen by 39.6% in the last four years

LOW VACANCY RATESAs of Q1 2017 the unit vacancy rate is 3% on Henry Street, highlighting

strong occupier demand

FORECAST FOR RENTAL GROWTH

Savills forecasts suggest Henry Street Rental Growth of 11.3% by Q2 2018

Source: Savills Research

Contacts & Further Information

GUIDE PRICE

In excess of €18,000,000.

DATA SITE

www.savills.com/42-43HenryStreet

VIEWINGS

All viewings are strictly by appointment through the sole selling agent.

BER

BER No: G Energy Performance: 2098.97 kWh/m²/yr 3.68

TENURE

We understand the property is held part Freehold and part Long Leasehold.

SELLING AGENT

Savills 33 Molesworth Street Dublin 2 PSRA: 002233 www.savills.ie

Fergus O’Farrell T +353 1 618 1300 fergus.ofarrell@savills.ie

Kevin McMahon T +353 1 618 1328 kevin.mcmahon@savills.ie

Roisin Rafferty T +353 1 618 1431 roisin.rafferty@savills.ie

SOLICITORS

Sheehan & Company Solicitors 1 Clare Street Dublin 2

Mel Ferguson T +353 1 634 4329 fergusonm@sheehanandco.ie

PROPERTY MISREPRESENTATION ACT

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 Ireland 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 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.

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42-43 HENRY STREET