FOR SALE BY PRIVATE TREATY – TENANTS NOT AFFECTED
MEST. 1989
MERCHANTS QUAY SHOPPING CENTRE
1-5 ST PATRICK’S ST. CORK
www.MQSCCORK.com CORK
CONTENTS
02 Welcome to Merchants Quay 06 At a Glance 08 Location 10 Getting Around 12 Amenities
16 Current Opportunity 20 Planning / Future Development 22 Investment Market 24 Floor Plans 36 Contacts Welcome to Merchants Quay CORK’S MOST Shopping Centre, RENOWNED RETAIL DESTINATION.
2 3 CBRE and Savills jointly present Merchants Quay Shopping Centre for Sale by Private Treaty.
Merchants Quay offers investors an excellent opportunity to acquire an established Shopping Centre in the heart of Cork City, the economic centre of the south west region.
Merchants Quay provides an excellent opportunity to secure a key retail asset located on Cork’s principal retailing street. The Shopping Centre extends to 4,040 sq m (43,488 sq ft) in total and benefits from four market leading anchor tenants which include Marks & Spencer, Dunnes Stores, Debenhams and SuperValu, although not part of the sale these key anchors significantly contribute to the annual footfall which is in excess of 8.2 million visitors per year.
The scheme has full planning permission to reconfigure and enhance the internal layout allowing for the provision of a number of larger and more modern retail units. The proposed redevelopment plans are designed to create a new retail focal point at the northern end of St. Patrick’s Street.
4 5 A T A GLAN C E
FOOTFALL IN EXCESS OF 43,488 sq ft 8.2 million OF RETAIL SPACE PER YEAR
OVER TWO 29 INTERNAL units FLOORS SHOPPERS SHOP THERE MORE THAN 36% ONCE A WEEK
ADJOINING 4 ANCHOR STORES
500,000 CORK COUNTY’S POPULATION Cork 10 min WALK TO CORK TRAIN STATION
APPROX. 30,000 Adjoining FULL-TIME AND PART-TIME CORK BUS STATION STUDENTS 6 7 Brown Thomas
Dunnes Debenhams Penneys English Stores Market
SuperValu
One M&S Albert Quay LOCATION
The Capitol Merchants Quay Shopping
City Hall Centre boasts the benefit of dual frontage along St. Patrick’s Street, Cork City’s premier retailing street and Merchants Quay.
Bus Station Opera Lane St. Patrick’s Street is located in the centre of Cork City and is home to a number of international and national retailers including Marks & Spencer, Brown Thomas, Penneys, Cork Superdry, H&M, Next, Topshop, Debenhams, Opera St. Patrick’s Street House TK Maxx and French Connection.
Cork City is Ireland’s second largest city and serves as the economic capital of Ireland’s Merchants Quay southern region; the city has a combined RIVER LEE metropolitan population of 200,000 rising to over 500,000 within a 60km radius. The city is home to Ireland’s second largest airport Bridge Street and port and is also home to a number of third level institutions including UCC and CIT (with a combined part time and full time student population estimated over 30,000).
The vibrant city and young skilled workforce has attracted a long list of international companies who provide rich employment to the area including Pfizer, Glaxosmithkline, Dell, Apple, Amazon and Johnson Controls.
8 9 This way to Limerick, GETTING M18, Galway
AROUND ST. MARY & GRIFFITH ST. ANNE’S COLLEGE Cork City is served by a number of transport CATHEDRAL CORK
links including Rail and Bus Services. SHANDON
BELLS D
A
Irish Rail runs daily services from Cork (Kent Station) to Dublin TOWER O R614
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(Heuston Station) and to a number of other key locations throughout E
S
R
the Country. Bus Eireann provides frequent bus services to Galway,
O Limerick, Dublin and many other regional counties. In addition Cork C R
SHANDON STREET E has an excellent road network which provides access between Cork T
A
W
and Dublin via the M8 / M7 in just less than three hours. S MMERHILL NORTH
C A
B KENT P O P E S Q A L O W E R G L A N M I R E R O A D TRAIN N20 N8 STATION
N O R T H M A L L S T. PA T R I C ’ S Q A To M8 / ilkenny / Dublin N8 P E N R O S E Q A BACHELORS Q A CORK T S NDA ’S WELL ROAD E OPERA E M E R C H A N T S Q A R846 R HOUSE T
S A N D E R S O N S Q A S
’ CRAWFORD C
I
GALLERY R TOCELRNS T AR F R I V E R L E E T SAINT PETER A CENTRAL P CORK PORT
. BUS AND PAUL’S T CHURCH S STATION
GREENVILLE PLACE ST. PATRICK’S ST. SHOPPING DISTRICT ENNED Q A
N22 ALBERT Q A V IC T O R IA R O A D T E E R T S T R E B L A SHEARES ST. ENGLISH MARKET OLIVER PL N ETT STREET
ARADEDA PAR DN A R G WASHINGTON STREET PA APL CE RN L E N22 A L B E R T R O A D CITY S O T H M A L L HALL N27 N I O N Q A
CORK COLLEGE OF COMMERCE
S LLIVAN’S Q A CRAWFORD COLLEGE OF ART AND DESIGN
SAINT FIN BARRE’S CATHEDRAL To N40, Jack Lynch Tunnel, UNIVERSITY Cork Airport COLLEGE CORK AMENITIES
12 13 14 15 CURRENT OPPORTUNITY
The development which was constructed in 1989 benefits from high profile frontage spanning both Merchants Quay and St. Patrick’s Street. The centre adjoins M&S, Debenhams, Dunnes Stores and SuperValu. Access to each of these anchor stores can be gained from within the centre acting as a catalyst for the 8.2 million a year footfall.
Merchants Quay is laid out over two floors and extends to a net internal area of 43,488 sq ft across 29 retail units. The centre comprises a typical configuration including a thoroughfare retail mall leading to the four anchors stores surrounding the development.
Merchants Quay Car Park providing 710 spaces also adjoins the scheme and pedestrian access to the car park can only be gained via the internal retail mall of the shopping centre.
There are currently 22 tenants in occupation in the property generating a gross contracted income of €1,470,000 per annum
16 17 TOP 10 TENANTS BY GROSS INCOME COVENANT INFORMATION
TENANT NAME GROSS RENT % OF INCOME BREAK DATE Laura Ashley is part of an international franchise that with Laura Ashley €292,000 19.86% 30-Jun-15 1. partners operate in 29 countries worldwide. Laura Ashley 2. Boots €193,986 13.20% 10-Dec-15 (Ireland) Limited was established in 1978 and currently 3. Poundland Ltd €155,000 10.54% 4-Sep-16 trades from 6 stores nationwide. According to Vision Net the company has a low credit risk with a score of 81/100. 4. MBCC Foods / Costa €130,000 8.84% 15-Sep-22 5. The Edinburgh Woolen Mill €99,900 6.80% 14-Nov-17 6. Naturesway (Dublin) Ltd €97,000 6.60% 31-Dec-13 7. Peter Mark €71,000 4.83% 10-Dec-15 Boots was established in Ireland in 1996 and today operates over 80 stores nationwide. According to Vision Net the 8. Doyle Retail Cork €70,000 4.76% 31-Dec-15 company has a low credit risk with a rating of 91/100, Charlie Buckley €60,000 4.08% 11-Aug-27 9. this score is based on accounts analysed in 2016. On an 10. Kellillie Ltd t/a D’Bag Shop Ltd €43,914 2.99% 17-Jan-17 international level Boots Alliance merged with Walgreens in 2014 to create the Walgreens Boots Alliance who operates 82.50% TOTAL over 4,500 retail stores worldwide.
€0 €50,000 €100,000 €150,000 €200,000 €250,000 €300,000 €350,000 Costa Coffee is a brand within the Whitbread Group PLC, €0 €50,000 €100,000 €150,000 €200,000 €250,000 €300,000 €350,000 Laura Ashley who trade in the Republic of Ireland & Northern Ireland as MBCC Foods (Ireland) Ltd. Costa Coffee currently operate Boots Laura Ashley Poundland Ltd Boots more than 110 stores nationwide including five in Cork. MBCC Foods / Costa Poundland Ltd According to Vision Net the company has a low fair trade The Edinburgh Woolen MillMBCC Foods / Costa score of 77/100’. Naturesway (Dublin)The LtdEdinburgh Woolen Mill Peter MarkNaturesway (Dublin) Ltd Doyle Retail Cork Peter Mark Charlie Buckley Doyle Retail Cork Poundland Limited trade as Dealz in Merchants Quay. The Kellillie Ltd t/a D’Bag Shop Ltd Charlie Buckley Dealz franchise entered the Irish market in 2011 and now Kellillie Ltd t/a D’Bag Shop Ltd operates a network of over 50 stores in the republic of Ireland, three of which are located in Cork City.
4.08% 8.84% €60,000 4.08% €130,000 8.84% €60,000 €130,000
Income expiring in 0-5 years ZONING TOTAL: Income expiring in 0-5 years €1,470,000 TOTAL: Income expiring in 5-10 years INCOME BY The property is zoned ZO 1 City Centre Retail Area (CCRA) €1,470,000 Income expiring in 5-10 years TERM CERTAIN Income expiring in 10+ years ‘’To provide for the protection, upgrading and expansion of Income expiring in 10+ years retailing, in particular higher order comparison retailing, as 87.07% well as a range of other supporting uses in the City Centre €1,280,000 87.07% retail area.’’ Cork City Development Plan 2015 – 2021. €1,280,000
18 19 PLANNING / FUTURE DEVELOPMENT OPPORTUNITY
In July 2015 Planning Permission was granted to allow for the reconfiguration of the ground and first floor retail malls. The grant of planning allows for the repositioning of the current mall directly adjacent to Marks and Spencer, with the aim of accommodating a row of larger box units. All pedestrian connections between the existing anchor tenants will be maintained and ultimately enhanced. The plans also allow for the redevelopment of the front elevations providing contemporary new frontage overlooking St. Patrick’s Street.
Internally the enhanced mall will provide for a number of new units ranging from 2,260 sq ft to 3,648 sq ft. On the first floor adjacent to Marks & Spencer, the former Kylemore Café location will be reconfigured to provide one unit of 17,000 sq ft or two units of 6, 897 sq ft and 6,488 sq ft respectively.
(Subject to Planning Permission)
PLANNING REF: T.P. 14/36159
‘’Permission was granted on the 15th of July 2015 for change of use of part of the ground floor and first floor mall zones from circulation space to mall from St. Patrick’s Street, repositioning the entrance to abut the neighbouring building; change of use of the existing first floor café units in addition to Unit G21 on the ground floor to general retail. Material changes to the three storey corner of Merchants Quay and St. Patrick’s Street, replacing brick cladding and shop front glazing with new glazing, stone and white aluminium grillage, material change to the two storey Merchants Quay façade including replacement and enlargement of the first floor windows and replacement of ground floor shop fronts and entrance doors’’.
20 21 INVESTMENT COMSUMER MARKET SENTIMENT AND RENTAL GROWTH
THE SHOPPING CENTRE INVESTMENT MARKET On an annual basis the CSO Retail Sales Index indicates that the volume of retail sales have In the timeframe between 2005 and 2009 Approximately €1.6 billion of shopping centre increased by approximately the amount of retail park and shopping investments traded between 2006 and 2007 5.2%. These figures are mirrored centre accommodation in the country where at the peak of the market shopping in consumer sentiment which effectively doubled on the back of favourable centre yields dipped as low as 3%. Up has largely recovered from any demographics and strong economic until the past three years, very few centres post Brexit declines. The strong conditions. In 2009 the development of new changed hands. Following some very rapid volumes of retail sales combined accommodation effectively halted following yield contraction between 2012 and 2014, with strengthening consumer the very dramatic economic deterioration. prime yields for shopping centres stabilised sentiment indicate that consumers throughout 2015 and for the first half of 2016. remain positive on the general Today there is a total of 19 million square Yields for super prime shopping centres in economic outlook. feet of shopping centre accommodation Ireland are currently in the region of 4.00%. in Ireland, of which 68% extends to more Retail activity in Cork has shown than 5,000 square metres in size, Munster In 2014, 23% of the investment spend in Ireland continued signs of strength in the accommodates 25% of this space. Outside comprised retail assets. In total, there were 68 first half of 2016 following from FLOOR PLANS of Dublin the largest stock of shopping centre retail investment transactions, 75% comprising a robust 2015. There has been GROUND FLOOR accommodation is located in Cork, which shopping centre/retail parks and portfolio sales significant uptake on St. Patrick’s boasts 14 shopping centres extending to more which contained retail assets. This figure grew Street in recent months with a than 5,000 square metres. in 2015 with retail investment comprising number of new retailers gaining a 29% of the total €3.54 billion invested. This presence on the street including momentum has maintained through the first Superdry, Holland & Barrett, half of 2016 as retail investment spend made Pandora, Hairspray and Sostrene up 49% of the total investment in Irish income- Grene (who are due to open in producing assets. October 2016). Over the past year, rents on St. Patrick’s Street have experienced significant growth by approximately 15% as demand from retailers for representation on St. Patrick’s Street continues.
The growing rental levels coupled with the fall in vacancy rates bodes Retail activity in Cork has shown well for the redevelopment of Merchants Quay as the new units continued signs of strength in the will present key opportunities for first half of 2016 with a significant retailers in the City Centre. uptake on St. Patrick Street.
22 23 24 DEBENHAMS DEBENHAMS
CARROLLS CARROLLS
S S T R E E T
K PHELAN’S S S T R E E T
PHARMAC K
S PERVAL MAR S & SPENCER S PERVAL MAR S & SPENCER
S T . P A T R I C
S T . P A T R I C
5
NG03 G03 E isting entrance E isting MALL entrance 1 G04 G05 G06 G07 G08 G09 / G10 D NNES STORES 2 1 New pedestrian entrance D NNES STORES 2 level access 3 3 4 Mall 4 Entrance
NG07 NG06 NG05 G17 G11a NG04 Mall Entrance G22 G21 G12a Mall G20 / G19 / G18 G16 / G15 G14b G14 G13 G12b G11 Entrance G21 G22 G18 / G19 / G20
New automatic doors to entrance
NEW RETAIL GLA ING TO ELEVATION
MERCHANT S QUAY MERCHANT S QUAY
GROUND FLOOR
SCHEDULE OF ACCOMODATION SCHEDULE OF ACCOMODATION
UNIT TRADING AS GROUND MEZZ UNIT TRADING AS GROUND MEZZ K1 Vacant 199 G8B Dr Acupuncture 294 UNIT OCCUPIER SQ M SQ FT UNIT TRADING AS GROUND K2 Boston Barbers 220 G9/10 Laura Ashley 2722 1338 NG03 Available 53 570 K1 Vacant 183 K2 Boston Barbers 216 K3/4 Newsagent / Ticketmaster 237 G11/G11A/ NG04 Available 330 3,552 Edinburgh Woolen Mills 2499 158 G12/G12B NG05 Available 252 2,712 "Ticketmaster / G3 Card Shop 997 584 PROPOSED K3 / 4 237 Newsagents” CURRENT LAYOUT NG06 Available 245 2,637 G4 Fabio Dericci 716 G13/G14/G114B/ REDEVELOPMENT K5 Vacant n/a Dealz 3063 797 NG07 Available 205 2,206 G5 Holland & Barrett 694 425 G15/G16/G17 G18/19/20 Costa Coffee 187 2,013 G6 Vacant 699 439 G18/G19/G20 Costa Coffee 2035 341 G21 Available 65 693 G7 Vacant 735 66 G21 Vacant 465 395 G22 Available 107 1,410
G8A Panabread 352 G22 Vacant 939 FLOOR PLANS FIRST FLOOR
28 29 30 30 DEBENHAMS
M LTI-STORE CAR PAR MAR S & SPENCER M LTI-STORE LEVEL 1 S S T R E E T CAR PAR K LEVEL 1
F17 S S T R E E T F17 K
S T . P A T R I C
MAR S & SPENCER
GOLDEN F03 DISCS S T . P A T R I C F03
F04 / F05 / F06 F07 F08 NIT A F01 F02 CAFE HI VOID D NNES F01 / F02 STORES D NNES STORES NITS B/C/D/E NF04 Retail nit Entrance with Shutters Retail
F11a
F16 F15 F14 F13 F12 F11 / F10 / F09 F09a NITS F/G F16 / F15 O’BRIENS F14 F13
Fire Escape Route
New projecting full height frameless gla ing panel with backlit frame NEW F LL HEIGHT DISPLA WINDOWS ALONG ELEVATION Projecting signage backing panel with strip lighting below and above MERCHANT S QUAY MERCHANTS QUAY
FIRST FLOOR
SCHEDULE OF ACCOMODATION SCHEDULE OF ACCOMODATION
UNIT TRADING AS FIRST MEZZ UNIT TRADING AS FIRST MEZZ UNIT OCCUPIER SQ M SQ FT F1/2 The Pantry 2315 F13 Down Syndrome Ireland 757 F01/F02 The Pantry 211 2,271 F3 Golden Discs 646 F14 O'Briens 546 259 PROPOSED F03 Golden Discs 54 581 F4/F5/F6/F7 Boots 3099 488 F15 Bag Shop 1353 CURRENT LAYOUT NF04 Available 1,575 16,947 F8 Vacant 675 F16 Vacant 1043 REDEVELOPMENT F13 Available 51 548.9 F9A Dealz 785 F17 Boots 349 F14 O’Briens Sandwich Bar 51 548.9 F9/F10/F11 Vacant 2150 Unit A Vacant 652 F15/F16 Available 237 2,550 F11A Tony Quinn 100 Unit B/C/D/E Vacant 3933 666 F17 Available 65 700 F12 Vacant 709 Unit F/G Peter Mark 1427 34 CONTACTS
TITLE BER CERTIFICATES Freehold / Long Leasehold
PRICE BER Number: 80003488 - 800519100 On application. Energy Performance Indicator: 598.26 kWh/m²/yr0.7 -1819.19 kWh/m²/yr2.1 VAT Further information available on request VIEWINGS and is also available on the data room. By Appointment only with the Joint Agents.
Further information is available at www.MQSCCORK.com METHOD OF SALE For Sale by Private Treaty.
AGENTS
CBRE Connaught House, Johnny Horgan Natalie Brennan Sandra Walsh 1 Burlington Road, T +353 1 618 5797 +353 1 618 5555 +353 1 618 5578 Dublin 4 [email protected] [email protected] [email protected] PSRA: 001528 www.cbre.ie
Savills Ireland 11 South Mall, Peter O’Meara Lia Dennehy Isobel O’Regan Cork +353 21 490 6114 +353 21 490 6122 +353 21 490 6344 PSRA: 002233 [email protected] [email protected] [email protected] www.savills.ie
SOLICITOR
Stephen O’Riordan Tom Conway A&L Goodbody, +353 1 649 2138 +353 1 649 2000 IFSC, North Wall Quay, [email protected] [email protected] Dublin 1
DISCLAIMER: These particulars are issued by CBRE Ireland/ Savills Ireland on the understanding that any negotiations relating to the property are conducted through them. While every care has been taken in preparing them, by CBRE Ireland/ Savills Ireland for themselves and for the vendor/lessor whose agents they are, give notice that:- (i) The particulars are set out as a general outline for guiding potential purchasers/tenants and do not constitute any part of an offer or contract. (ii) Any representation including descriptions, dimensions, references to condition, permissions or licenses for uses or occupation, access and any other details are given in good faith and are believed to be correct, but any intending purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves (at their own expense) as to their correctness. (iii) Neither by CBRE Ireland/ Savills Ireland, nor any of their employees have any authority to make any or give any representation or warranty in relation to the property.
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