DANESFORT Malone Belfa EXECUTIVE SUMMARY
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DANESFORT Malone Belfa EXECUTIVE SUMMARY • Prime Office Investment opportunity with refurbishment and redevelopment potential, subject to planning. • Prestigious HQ building occupying a prime location in the Stranmillis / Malone area, one of the most affluent suburbs in Belfast. • Impressive 4-storey office building with adjoining multi-storey car park. • The building comprises 7,327.50 sq m (78,873 sq ft) of air-conditioned office space with 350+ car spaces and a total Site Area of approximately 2.80 acres (1.13hectares). • Part let to NIE Networks Limited at a total current rental income of £183,500 per annum exclusive for a Term expiring on 31st October 2022 with vacant possession to the remainder upon sale completion. • The property offers an excellent refurbishment opportunity to provide quality office accommodation as well as being suitable for a range of alternative uses including residential, PRS, hotel, student accommodation and primary care, subject to planning and the existing lease to NIE Networks Limited. BELFAST CITY CENTRE east bridge street LOCATION a22 ormeau road donegall road t n e Danesfort is located just off the Stranmillis Road in South Belfast, close a12 westlink m k to the junction with the Malone Road, widely regarded as one of the most n a d b affluent suburbs in Belfast. The area is characterised by its many tree lined a o m r e avenues and housing stock of Victorian and Edwardian character. Nearby y u t a i occupiers include Queens University, Stranmillis College, The Ulster s e m r r e BELFAST o Independent Clinic, The Lyric Theatre, the U.S Consulate and Inchmarlo v i M1 n BOTANICAL Preparatory School. u GARDENS d a SITUATION o r Danesfort is situated on the Stranmillis Road and occupies an elevated r e lisburn road h site within the surrounding development. The property bounds the c u o U.S Consulate at Danesfort House and the Danesfort Park residential b development comprising a modern high-quality development of family d a houses and apartments. o a r d n e a n n o a o r d TRANSPORT l a stockmans lane s l a i D ANESFORT l e m Malone Belfa Belfast has two principal railway stations; Lanyon Place and Great Victoria il e m m n b Street, supplemented by Botanic and Yorkgate stations. The remainder of the a a tr n s k Province and the Republic of Ireland is easily accessed via the M1 motorway m e MUSGRAVE n leading south and west and the M2 motorway to the north. PARK t a55 balmoral avenue Belfast benefits from excellent communication links via the Provinces’ two airports; George Best (Belfast City) Airport, a 15 minute drive time and LAGAN A Belfast International Airport, a 30 minute drive time and providing direct 2 MEADOWS 2 links to all major UK and European hubs. The immediate area is well served BALMORAL by numerous bus routes providing easy access to Belfast city centre. s GOLF a i CLUB n BELVOIR t f i In addition, the city is well served by the ports of Belfast and Larne. PARK e l GOLF d CLUB r o Danesfort’s location provides easy access to the A55 Outer Ring Road and a d the wider motorway network including the M1 and M2 motorways. ad o r e 5 n 5 o BELVOIR a l a m PARK FOREST r e p p u d a o r ir o v l e b 5 a5 Victoria Square Belfast City Hospital Shopping Centre Stranmillis College Stormont Ulster Independent Clinic Grand Central Hotel Queens Univeristy City Airport Lyric Theatre US Consulate Danesfort DEMOGRAPHICS AND ECONOMY Belfast is the capital city of Northern Ireland and the economic centre with a population of approx. 340,000 people in the city rising to over 1 Million people in the Belfast region. The Belfast City Council area accounts for 18% of the population and 30% of all jobs in Northern Ireland. Northern Ireland has a population of approximately 1.8 million people and Belfast is one of the youngest cities in Europe with 53% of the population under 40 years of age. Belfast is Europe’s leading FDI destination for new software development and No.1 international investment location for US cyber security firms as well as the world’s top region for FS technology inward investment. Northern Ireland is one of Europe’s most Business Friendly Regions of its size and has attracted in excess of 1,100 international investors and a multitude of investors from the rest of the UK have chosen to locate in Northern Ireland. According to Invest NI data, over 70% of new inward investors to Northern Ireland reinvest.. Northern Ireland has a highly educated, skilled, English speaking workforce with a strong and loyal work ethic. In 2019, 84.8% of Northern Ireland’s students achieved the three top grades in A-level exams compared to 75.8% in the rest of the UK. Recent FDI projects in Belfast include Fintech companies, CME Group, Visa and Tullett Prebon along with cyber security companies including Rapid 7, WhiteHat Security, Black Duck Software, Anomali and Proofpoint. DESCRIPTION The property originally formed a part of the Danesfort House Estate, which was acquired by Northern Ireland Electricity in the 1950’s for their Belfast Headquarters. The original four storey building was constructed c. 1959 with a significant extension added in the 1970’s, all of which has been extensively upgraded in the intervening period to provide modern open plan office accommodation arranged either side of the main circulation and service core housing the entrance foyer, lift and reception area. The building is principally of concrete frame construction with suspended concrete floors whilst the top storey of the westerly extension and emergency exist staircase is of steel framed construction. Externally, the building is predominantly clad in cavity brickwork to both sides of the feature stone clad double-height reception. The windows are double-glazed UPVC. The roof is of a flat felt construction, coated with a liquid applied solar reflective treatment. The imposing double-height reception area leads to the main circulation core from which the office floors and ground floor staff restaurant facility is accessed. To the rear of the main building is a purpose-built security controlled multi- storey car park constructed in c.2002 of steel frame design with supporting concrete floors, which provides for approx. 330 car parking spaces. There are additional surface car parking spaces located at the front and rear of the building providing an additional 20 spaces, approximately. FEATURES AND SPECIFICATIONS Typical specification includes:- • Impressive Double-Height Reception Area • Raised access floors with floor boxes • Carpeted floor covering • Plastered and painted walls • 600mm x 600mm mineral fibre suspended ceiling tiles • Mix of recessed LED, fluorescent and spot lighting • Versatemp heating and cooling system • Four passenger lifts • Male and female wc’s on each floor • Staff restaurant to Ground Floor • Double-Glazed windows • Excellent natural light • Staff Gym room and shower facilities • C. 350 car spaces ACCOMMODATION SCHEDULE The property has been measured by Plowman Craven Associates in accordance with the RICS Code of Measuring Practice, 6th Edition. This survey will be assignable to the Purchaser. The property provides the following net internal areas:- FLOOR USE AREA SQ M AREA SQ FT Ground Office/Restaurant/Ancillary 1,241.30 13,361 Reception 98.00 1,055 First Office 1,796.50 19,337 Car Park Stair Stair Ancillary 35.40 381 Second Office 1,719.10 18,504 Ancillary 34.40 371 Third Office 1,730.40 18,626 Core Ancillary 24.7 266 Fourth Office 1 529.80 5,703 Toilets Plant Core Office 2 & 3 106.20 1,143 Core Ancillary 11.70 126 Plant TOTAL 7,327.50 78,873 Stair Please note that the NIE Ground Floor floorspace (865 sq ft GIA) shown does not form part of the Net Internal Areas above. Ground Floor Office NIE Reception Staff Restaurant ACCOMMODATION SCHEDULE Core Core Plant Plant Car Park Car Park Stair Stair Stair Stair Core Core Plant Plant Lift Lift Corridor Corridor Corridor Corridor Core Core Stair Stair Stair Stair Void First Floor Second Floor Office Ancillary ACCOMMODATION SCHEDULE Core Core Core Core Plant Li Toilet Stair Core Stair Plant Stair Stair Third Floor Fourth Floor Office NIE NIE Ancillary Ancillary Void Void PROPERTY DE TAIL OFFICE MARKET COMMENTARY • Strategic existing planning consent for office use; one of a few buildings of such a size with substantial dedicated parking permitted outside of the city centre office core. • Operating costs in Northern Ireland remain up to 30% more competitive than other UK and European locations. Northern Ireland prime office rents are 60% lower than Dublin and 70% lower than London. • High Quality Grade A refurbished space has continued to be a dominant feature of the Belfast office market during 2019 and 2020 due to the lack of new-build accommodation available. • Despite the more challenging market conditions due to the uncertainty over BREXIT in particular, Office Take-Up for 2019 was 517,380 sqft. The 2020 Take-Up figure of 140,911 sqft reflects the significant COVID-19 pandemic impact. • The 2019 Take-Up figure was boosted by a strong finish to the year despite market uncertainty with Q4 Take-Up accounting for 53% of the 2019 total by floorspace and 41% by total number of transactions. • Total Office Take-Up for 2019 was spread across 64 separate transactions with highlights including Deloitte (80,000 sqft), Rapid 7 (47,651 sqft), PWC (46,000 sqft), Proofpoint (34,000 sqft) and Neueda (29,220 sqft) all taking new-build or high quality Grade A refurbished space.