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F O R S A L EB A L L I N C O L L I G | C O R K
S Q U A R E
01
INVESTMENT OVERVIEW
Cushman & Wakefield are excited to offer the Barrack Square investment portfolio for sale. This highly attractive sale includes 6 modern office buildings with 100% occupancy; Kavanagh House, Pearse House, Yeats House, Behan House, Unit 3 Emmet House, Parnell House. It also includes the adjoining Sliced Restaurant and 375 spaces in the multi-storey car park. This highly anticipated investment is offered for sale in 1 Lot.
The investment is anchored by VM Ware International, a leading international IT software company owned by Dell EMC. VM Ware accounts for 94% of total rental income and the total passing rent for the investment is €2.1M per annum. The offices also have the benefit of a multi-storey car park, serving all the buildings within the campus.
An exclusive office campus and restaurant investment with strong tenant covenants and an unrivalled rent roll
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THE INVESTMENT TODAYThe campus originally consisted of four barracks buildings and a central courtyard. Today, the office campus, which was rebuilt and extended in 2004, provides modern office accommodation to VM Ware, eSentire and other occupants including Foley Turnbull solicitors and McCutcheon Halley surveyors. The central courtyard has been maintained and modernized including a feature fountain and historic artillery.
The sale includes 5 of the 8 office blocks, Unit 3 of the sixth block in the scheme and also Sliced Restaurant which is located directly between Barracks Square and Ballincollig Main Street. Office accommodation includes modern, open plan office space, board rooms, reception areas, numerous large canteens, break out space, external balcony areas and a gym. The development also provides 652 multi-storey parking spaces in addition to surface car parking to occupants and visitors, 375 of which are included in the sale.
THE LEGACY Barracks Square was originally a military barracks established in approximately 1800. Soldiers working at the barracks provided protection for the gunpowder mills located to the rear of what is now the Barracks Square Office Campus.
03 02
KAVANAGH HOUSE
YEATS HOUSE
UNIT 3, EMMET HOUSE
PARNELL HOUSE
CAFE/RESTAURANT
BEHAN HOUSE
Aerial
Office Space
CanteenYeats HousePearse House
PEARSE HOUSE
375 MULTI-STOREY CAR PARKING SPACES
126,297 GIA SQ FT OF OFFICE SPACE, 100% OCCUPIED
SEEKING OFFERS IN EXCESS OF €24M
€2.1M OF RENTAL INCOME PER YEAR WITH A LONG 6.3
YEAR WAULT
6 MODERN OFFICE BUILDINGS LOCATED IN BALLINCOLLIG, CORK (IRELAND’S SECOND LARGEST CITY)
94% OF RENTAL INCOME SECURED AGAINST LONG LEASES TO VM WARE, A LEADING INTERNATIONAL IT FIRM
OWNED BY DELL COMPUTERS
TENANTS ARE NOT AFFECTED
INVESTMENT HIGHLIGHTS
S O U T H M A L L
N 20
CORK CITY
U N I V E R S I T Y C O L L E G E C O R K
T H E K I N G S L E Y H O T E L
N 2 2
C O R K I N S T I T U T E O F T E C H O L O G Y
C O R K U N I V E R S I T Y H O S P I TA L
W I LT O N S H O P P I N G C E N T R E
O R I E L H O U S E H O T E L
BALLINCOLLIG
C O R K A I R P O R T ( 2 0 M I N U T E S )
PAT R I C K ST
N 2 2
N 40
N 40
N 2 7
N 7 1
(10 MINUTES)
LOCATION Ballincollig is Cork’s largest town located 5 miles west of Cork City Centre. Cork is Ireland’s second largest city with a population of 417,211 in the county and 125,657 persons in the City. It is also a university city and is home to approximately 25,000 students.
The satellite town is recognised as one of Cork’s most attractive suburbs due to its proximity to both the local employment hubs at Barracks Square and Castle West Shopping Centre in addition to the city centre, Mahon Point and Little Island.
Local connections include the South Link Ring Road, N22 Cork to Kerry road network, the M8 Cork to Dublin motorway, the Jack Lynch Tunnel, N25 Cork to Waterford Road and a number of public bus routes.
There are a number of large scale local housing developments and there are 278 apartments in the Castle West Quadrant apartments that neighbour Barracks Square.
The town is well serviced by a large variety of local amenities, retailers and service providers including Dunnes Stores, Tesco, Aldi, Lidl, SuperValu, Heatons, McDonalds, Topaz, AIB, multi storey car parks, a medical centre, New Look, Boots and a number of pharmacies. Ballincollig is a strategically located town providing an attractive range of residential, retail and employment options.
N22 & N40 ROADS
MULTI STOREY, ON-STREET & SURFACE PARKING
MULTIPLE PUBLIC BUS ROUTES
ON-SITE BIKE DEPOTS
15KM TO CORK INTERNATIONAL AIRPORT
ORIEL HOUSE & THE KINGSLEY HOTELS
04
BALLINCOLLIG TOWN CENTRE & APARTMENTS
07 06
MULTI STOREY & SURFACE CAR
PARKING
LOCAL SERVICES INCLUDE RETAIL,
BANKING, EDUCATION, FOOD & LEISURE
DUNNES STORES
TESCO
MCDONALDS
ALDI
AIB
A WIDE RANGE OF LOCAL
TRANSPORT LINKS
NEIGHBOURING APARTMENTS & HOUSING
DEVELOPMENTS
MULTI-STOREY CAR PARK
MEDICAL CENTRE
CASTLEWEST SHOPPING CENTRE
EXCELLENT BUILD QUALITY & WELL
PRESENTED
TENANCY & ACCOMODATION SCHEDULE
BUILDING USE TENANTRENT PER
ANNUM
LEASE COMMENCEMENT
DATE
TENANT BREAK
OPTION
LEASE EXPIRY
UNEXPIRED LEASE TERM (YEARS) AS OF
SEPTEMBER 2017
SQ M GIA SQ FT GIA
BEHAN HOUSE
OFFICEVM WARE
INTERNATIONAL LIMITED
€659,505 17.07.2011 17.07.2021 18.07.2031 3.83 3,501 37,686
KAVANAGH HOUSE
OFFICEVM WARE
INTERNATIONAL LIMITED
€450,795 19.12.200719.12.2017
NOT EXCERCISED
20.12.2027 10.25 2,274 24,474
PARNELL HOUSE
OFFICEVM WARE
INTERNATIONAL LIMITED
€429,940 13.11.2006 NA 14.11.2026 9.15 3,021 32,518
YEATS HOUSE
OFFICEVM WARE
INTERNATIONAL LIMITED
€376,250 01.05.2015 30.04.2022 01.05.2028 4.61 1,997 21,500
UNIT 3 EMMET HOUSE
OFFICEVM WARE
INTERNATIONAL LIMITED
€62,825 13.02.2015 NA 13.02.2018 0.40 316 3,398
VM WARE SUBTOTAL RENT
€1,979,315
PEARSE HOUSE OFFICEESENTIRE
EU LTD€92,430 17.09.2015 18.11.2020 17.09.2025 2.99 478 5,150
CAFE POD
RESTAURANTSTAR
INNOVATION LTD
€23,500 29.05.2015 29.05.2020 29.05.2025 2.69 146 1,571
TOTAL €2,095,245 6.3 YEAR WAULT 11,733 126,297
TOTAL:
€2,095,245 TOTAL:
126,297 SQ. FT. GIA
OCCUPANCY
MULTI-STOREY CAR PARKA four storey car park is located immediately next to Barrack Square and offers secure parking to tenants and visitors. The car park offers an electric charging point for cars and access is via controlled swipe cards. 375 car parking spaces are included in the sale and are held by way of a 999 year lease. The car parking spaces included are as follows:
LEVEL OCCUPANT NO. OF SPACES
LEASED LICENCED
1
ESENTIRE 15 15 0
VM WARE 12 12 0
VISITOR 3 NA NA
2VM WARE 49 49 0
UNASSIGNED 2 NA NA
3 VM WARE 147 147 0
4 VM WARE 147 122 25
TOTAL 375
09 08
INCOMEKEY
94.5% VM WARE
4.4% ESENTIRE
1.1% SLICED
INCOME
OCCUPANCY
93.7% VM WARE
4.7% ESENTIRE
1.6% SLICED
TENANTS OVERVIEW 1. VM WARE INTERNATIONAL
LIMITED – Generate 94.5% of Rental Income & Occupy 93.7% of the investmentVM Ware (NYSE: VMW) is a global leader in virtualization solutions. Dell EMC Corporation acquired VM Ware in 2004 and as such is now a subsidiary company providing customers of all sizes strategic solutions to reduce capital and operating expenses, ensure business continuity, strengthen security and go green.
VM Ware is one of the fastest-growing public software companies. Internationally, the company boasts revenues in excess of $1.9 billion, more than 130,000 customers worldwide and more than 22,000 partners. VM Ware is recognised for their award-winning technology and employ more than 6,600 people in 40 locations worldwide.
VM Ware employs over 1,000 people in Ballincollig, a number which is constantly expanding. The availability of a skilled local workforce attracted the company to Cork. Services provided from the Cork headquarters include; sales, marketing and software support for VW Ware products and related services.
2. ESENTIRE EU LIMITED – Generate 4.4% of Rental Income & Occupy 4.7% of the investmenteSentire is leading and internationally recognised cyber -security firm. The company provides the financial services sector protection against online hacking and cyber attacks. This Canadian company originated in Cambridge, Ontario however they have identified Barrack Square as their European headquarters.
The company currently employs approximately 20 people in Cork, however planned expansion over the next five years will see this figure increase to approximately 100 employees. Like VM Ware, eSentire identified Cork as a suitable location for the European Headquarters because of the access to technical talent.
3. INNOVATION STAR LIMITED – Generate 1.1% of Rental Income & Occupy 1.6% of the investmentInnovation Star Limited, trading as Sliced, is a modern restaurant offering wood fired pizzas, healthy salad options, coffee and cakes. The restaurant is operated by a local restaurant owner and has been trading in Ballincollig for over two years since taking occupation of the property. The company is currently expanding their successful offering and is opening a second, city centre location in late 2017.
10 11
The Office Investment MarketOffice investment absorbed 44% of the total investment spend in H1 2017 which was largely driven by the sale of 13-18 City Quay, Dublin for €126M.
The Capitol office and retail development at the Grand Parade, Cork City was recently sold to German property investment fund Real IS for €43.75M providing an initial yield of 5.5%.
IRISH INVESTMENT MARKET BY LOT SIZE, H1 2016 & H1 2017
H1 2016
€1-10m (72 deals) €10-20m (13 deals)
€20-50m (9 deals) €50 -100m (7 deals)
€100m+ (4 deals)
H1 2017
€1-10m (73 deals) €10-20m (13 deals)
€20-50m (9 deals) €100m+ (1 deal)
INVESTMENT MARKET The Office Rental Market• Availability in the Cork office market is now at its lowest point
since 2008.
• Q3 2017 supply levels stood at just under 60,000 sq m /645,000 sq ft.
• The shortage of available Grade A office space continues as the current net vacancy rate in Cork is 7.4%. Cork has now overtaken Galway as the region with the lowest vacancy rate.
• Office rents are anticipated to continue trending upwards, reaching €325 per sq m by the latter stage of the year. At the end of quarter two 2017, prime headline rents remained unchanged on the previous quarter at €315 per sq m per annum. This represents an annual uplift of 8.6%. Prime suburban accommodation, such as Ballincollig, saw a 2% rise on the previous quarter, while rent in Mahon remained stable at €255 per sq m per annum.
• Office space take up in the first half of 2017 recorded a threefold increase to just over 3,900 sq m / 42,000 sq ft, bringing total take up in the year to date 5,150 sq m/ 55,450 sq ft. Approximately 30% of the newly completed office development, The Capitol, was occupied in the second quarter of 2017.
CORK OFFICE NET AVAILABILITY BY GRADE A, Q2 2017
A STOCK NO. OF
OFFICES
SUM OF AVAILABILITY
SQ M%
CITY CENTRE
<1,000 SQ M 14 5,450 18%
>1,000 – 5,000 SQ M 3 4,800 16%
>5,000 – 10,000 SQ M 0 – –
SUB-TOTAL 17 10,250 34%
SUBURBS
<1,000 SQ. M 19 7,050 23%
>1,000 – 5,000 SQ M 7 12,900 43%
>5,000 – 10,000 SQ M 0 – –
SUB-TOTAL 26 19,950 66%
TOTAL 43 30,200 100%
Source for both graphs: Cushman & Wakefield Research
Disclaimer Conditions to be noted: A full copy of our general brochure conditions can be viewed on our website at http://www.sherryfitz.ie/terms or can be requested from your local Cushman & Wakefield office. We strongly recommend that you familiarise yourself with these general conditions. PSRA Registration Number: 002607.
CONTACT Sales Agent
SALES INFORMATION Data Roomwww.barracksquarecork.com
TitleWe have been advised the properties are held by way of a long leasehold title
ZoningTown Centre, Ballincollig Local Area Plan
TenureTenants not Affected
Guide PriceSeeking offers in excess of €24M exclusive
BER
BER Numbers available upon request
Cushman & Wakefield 6 Lapps Quay Cork
T: +353 (0)21 427 5454 E: [email protected]
cushmanwakefield.ie
PETER O’FLYNNT: 021 464 8502 E: [email protected] SIOBHÁN YOUNGT: 021 464 8524 E: [email protected]
Solicitor
Arthur Cox Solicitors Ten Earlsfort Terrace Dublin 2
T: +353 (0)1 920 1000 E: [email protected]
arthurcox.com
D U B L I N | B E L F A S T | L O N D O N | N E W Y O R K | S I L I C O N V A L L E Y
DEIRDRE BARRETTT: 01 920 1100 E: [email protected]
GILLIAN BEECHINORT: 01 920 1322 E: [email protected]
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BARRACKSQUARECORK.COM