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
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 Office 2 & 3 106.20 1,143 Core
Ancillary 11.70 126 Core
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. • The total Take-Up figure for 2020 was spread across 29 separate transactions with highlights including Applied Systems (19,160 sqft), CME Group (17,000 sqft), Imperva (17,397 sqft) and ESO Solutions Inc (16,156 sqft). • The 5 Year Average Office Take-Up for Belfast equates to approx. 515,500 sqft ignoring 2020 figures and 482,000 sqft if the 2020 Take-Up figure is included. • Prime ‘Headline’ Grade A office rents for Belfast city centre now stand at £23.00 psf. ® PROPERTY ACEmap Single Scale: 1:1,250
Printed: 11/12/2019 Customer Ref: Order no. ORD79456 5 3
DE TAIL 2
Centre Point (Easting, Northing): 333084, 371149 Plan No. 14705SW2 3 3
3 371246 PLANNING The Belfast Urban Area Plan (BUAP) 2001 is the relevant statutory plan whilst the Draft Belfast Metropolitan Plan (BMAP) 2004 is also a material consideration. Belfast City Council is now also progressing with its Local Development Plan up to 2035. , d e
The site is located within the Settlement Limitc of Belfast and also u d o r within Local Landscape Policy Area BT155 according. to BMAP but p s e e r c lies outside the Malone Conservation Area. i e v r b
e 371200 y l S
n
The site is not zoned in either the BUAP or BMAPy for any specific o t
r y e a use and is thus ‘White Land’. As such it is consideredp that the 6 o m r
p P property has the potential to be used a range ofa alternative uses US Consulate &
m
d 4 s n including residential, PRS, student accommodation,i hotel and 2 a h t L
f primary care, subject to planning as well as for8 existing office use. o
8
9 n 9 4 1 T
o H 2 i T
t 3 R s
c O
N
Todd Architects has prepared 2 no. alternative indicative9 residential N s i A K
5 P
E
s t T m t o R apartment development schemes for the site andr these are included O
n F e
M
e 5 ES p t
AN 1 7
a D e within the Data Room. E Car Park h P
t D T
d
h AN n t A i a
w Interested parties should make their own planningT enquiries in
s , ES 371150 n s S g n relation to the property. i a s F
T
e e 1 O D
m 1
H R 1 t 4 y
h 2
n T G g i a
I
r P
y y 3 p b AR R
o TENURE r
o Y C 5 K e m P
r h
t C o
f O r
The tenure of the property is mixed freehold and long leasehold. EN e y d n C n a
Further details are available in the Data Room. T
u 3 7
n 2
i R d
e
d 1 AL t t 9 e i t t
i 4 m r m e s p n 5 a SITE AREA e P D r s t
i A
AN r w
o R r 371100
e
d K ES The entire site extends to approximately 2.8 acresh (1.13 hectares) and e t r
o M o
t
s F the extent of the ownership is shown edged red fors identification O a
O t U p 1 R purposes only. The building presently occupiede by the US Consulate N
c 8 T x 229 T benefits from a right of way along the front of E the property which 3 2 4
is shown coloured yellow on the plan. The US Consulate further 9 10
1 3 exercises ad hoc and informal rights of way to the rear of the 9
property as shown coloured blue on the plan. Further details are 2
1
available in the Data Room. 4 7
5
3 1 1 3 1 371051 Not to23 scale1 – For identification purposes only. 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 3 3 3 3 2 2 9 0 0 1 1 9 0 5 0 5 0 5 3 0 0 0 0 0 0 2 Every care has been taken to ensure accuracy in the compilation of this map at the time of publication. Land & Property Services cannot, however, accept responsibility for errors or omissions and when such are brought to our attention, the amendment of any future publication as appropriate shall be entirely at our discretion. Ordnance Survey of Northern Ireland and ACEmap® are registered Trademarks of Department of Finance and Personnel. Licence / Permit No. © Crown Copyright 2019 PROPERTY TENANCY
NIE NETWORKS LIMITED COVENANT DETAILS The property is let, in part, to NIE Networks Limited comprising NIE Networks Limited Year Ending Year Ending Year Ending part of the 3rd Floor and part of the 4th Floor along with a small (Company No. NI026041) 31.12.2020 31.12.2019 31.12.2018 Ground Floor store at the rear of the main building and totalling c. 15,317 sqft together with 63 no. demised car parking spaces. Turnover £302,200,000 £276,300,000 £275,800,000 The Lease is for a term which commenced on 1st February 2020 and expires on 31st October 2022 at an annual rent of £176,000 Pre-Tax Profit £92,700,000 £72,900,000 £68,000,000 pax. NIE also have a separate Licence Agreement for 15 no. additional car parking spaces within the multi-storey car park at Shareholder’s Funds £425,000,000 £390,700,000 £373,600,000 an annual Licence Fee of £7,500 pax. NIE pay an annual service charge which includes for the provision of electricity of £75,000 pax and which is subject to an RPI increase annually with effect from 1st February each year. A copy of the NIE lease and Car park Licence is provided in the Data Room. For further information on NIE Networks Limited, please go to www.nienetworks.co.uk PROPERTY DE TAIL
VAT The property is VAT registered and it is proposed that the transaction will be completed by way of a Transfer of a Going Concern.
CAPITAL ALLOWANCES There will be no capital allowances available.
PROPOSAL The property will be sold with vacant possession to the majority of the building and subject to the occupational lease of part to NIE Networks Limited of the remainder.
PRICE GUIDE Upon application.
DATA ROOM A Data Room has been created for prospective purchasers to review due diligence relating to the property on completion of a non-disclosure agreement. Please contact Avison Young for details.
EXCEPTIONAL DEVELOPMENT GAIN/OVERAGE PROVISION Bidders will be invited to submit, as part of their financial offer, proposals for the Vendor to share in any exceptional development gain/overage which may be applicable where planning permission is granted for the development of the property. Further details will be available in the Data Room.
EPC Danesfort has a rating of E115. A copy of the EPC is available in the Data Room. VIEWING
VIEWING LEGAL AND TITLE ENQUIRIES For further information or to view For legal and title enquiries refer to the please contact:- Data Room or contact:- Jago Bret Emma Cooper Tel: +44-28-9031 6123 Tel: +44-28-28 9034 8939 Email: [email protected] Email: [email protected] Gavin Weir Yvonne McMahon Tel: +44-28-9031 6127 Tel: +44-28 9034 8860 Email: [email protected] Email: [email protected] Liam McAuley Claire Elliott Tel: +44-28-9031 6122 Tel: +44-28 9034 8807 Email: [email protected] Email: [email protected] DANESFORT www.avisonyoung.co.uk/ni www.carson-mcdowell.com Malone Belfa
Avison Young a trading name of GVA NI Ltd, a wholly owned subsidiary company of Donal O’Buachalla & Co. Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: i) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. ii) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. iii) No person in the employment of GVA NI Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. iv) All rentals and prices are quoted exclusive of VAT. April 2021.
Reproduced by courtesy of Land & Property Services/OSNI HMSO Crown Copyright reserved. Licence No 2281. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map.