FOR SALE BY PRIVATE TREATY (TENANT NOT AFFECTED) INVESTMENT OPPORTUNITY NEWENHAM COURT AT NORTHERN CROSS MALAHIDE ROAD, DUBLIN 17 CONTENTS
Investment Summary 01 Accommodation Schedule 06 Occupier Market 11 Location Map 02 Specification 07 BER 12 Location 03 Zoning 07 Title 12 Transport 03 Floor Plans 08 Proposal 12 Aerial 04 Tenancy Schedule 08 Data Room 12 Description 06 Covenant Information 10 Contacts 14
2 || NEWENHAM COURT AT NORTHERN CROSS
INVESTMENT SUMMARY
Opportunity to acquire a high yielding suburban office investment and development site (subject to fpp). ¡ Modern five storey over basement office building extending to approx. 4,511.20 sq m (48,558 sq ft) ¡ Fully let to Mylan Ireland Limited with full parent company guarantee from Mylan Inc. who are listed on the NASDAQ ¡ Development site (subject to fpp) extending to approx. 0.73 hectares (1.795 acres) ¡ Current passing rent €976,690 per annum subject to a deed of variation. Further information available upon request ¡ For sale by Private Treaty ¡ Tenant not affected ¡ Offers sought in excess of €9,150,000 which equates to Net Initial Yield of 9.84% assuming standard purchasers costs of 8.46%
NEWENHAM COURT || 1 LOCATION MAP
SWORDS MALAHIDE
M1 R1O7
N2 DUNBOYNE M3 DUBLIN KINSEALY AIRPORT PORTMARNOCK
NEWENHAM COURT AT NORTHERN CROSS M50 SANTRY R139
M50
BALDOYLE M3 M50 BEAUMONT ARTANE RAHENY R1O7 BLANCHARDSTOWN TRAIN LINE POR N1 T TUNNEL
DRUMCONDRA
CLONTARF N4 PHOENIX LUCAN PARK
DUBLIN PORT M50 DUBLIN CITY CENTRE DUBLIN BAY
LUAS RED LINE BALLSBRIDGE CLONDALKIN CRUMLIN
N LINE
M50
N7 LUAS GREE RATHFARNHAM
N11 BLACKROCK 2 || TALLAGHT DUN LAOGHAIRE
DUNDRUM N7 N81 SANDYFORD MARLEY IND. ESTATE PARK
M50 N11 GLENAGEARY N81
M50 NEWENHAM COURT AT NORTHERN CROSS
LOCATION
Newenham Court is located in Northern Cross Business Park which forms part of the Northern Cross mixed use commercial and residential development. The development is situated on the Malahide Road approximately 10km northeast of Dublin City Centre and adjacent to the 4 star Hilton Dublin Airport Hotel. The Hotel offers business and conference centre facilities along with a gym and a restaurant. Clare Hall Shopping Centre anchored by Tesco Extra is located on the Malahide Road 750m from Newenham Court. The vibrant coastal villages of Howth and Malahide are within a 15 minute drive.
As a result of substantial development in recent years, the area is considered a strong suburban office location in north Dublin.
ACCESSIBLE
4 min drive to M50 3km to Clongriffin and Howth Junction Dart Stations 10km to Dublin City Centre 7.5km to Dublin Airport
TRANSPORT
Northern Cross is situated adjacent to the junction of the Malahide Road and the R139, which provides access to the M1/M50 motorway interchange, approximately 3 km west of Northern Cross. Dublin city centre is easily accessible via the Dublin Port Tunnel which is located 6 km from the development and Dublin Airport is 7.5 km northwest of Northern Cross.
Northern Cross has good access to public transport links, with the Malahide Road Quality Bus Corridor linking the area with the city centre, DCU and Swords. Nearby bus routes include no 15, 27, 27X, 42 and 43. Both Clongriffin and Howth Junction DART stations are located 3.2 km and 3 km away respectively with free parking available for commuters at Clongriffin.
Northern Cross Business Park also provides a shuttle bus service to and from the DART daily.
NEWENHAM COURT || 3 AERIAL
Clongriffin Train/Dart Station
Bank of Ireland Meadows & Byrne/ Eurospar
t To MALAHIDE Carechoice Nursing Home
Car Park
Walls Construction
DUBLIN AIRPORT x
4 || NEWENHAM COURT AT NORTHERN CROSS
Howth
Baldoyle Industrial Estate
Howth Junction Train/Dart Station
Clare Hall Retail Centre Clare Hall Shopping Centre Hilton Dublin Airport Hotel
NEWENHAM COURT AT NORTHERN CROSS Experian/ MALAHIDE ROAD Cerner/ Aramark
To CITY CENTRE u The Logiskills Group/ Xsimbus Resources
N32
Bewleys Coffee Ltd
TO CITY CENTRE M1/M50 JUNCTION PORT TUNNEL DUBLIN AIRPORT q For illustration purposes only
NEWENHAM COURT || 5 DESCRIPTION NEWENHAM COURT The property comprises a five storey over basement modern office building with L shaped floor plates. The location of the main core allows for the floor plates to be sub-divided if required. The main core contains two 10 person passenger lifts, stairs, and male and female toilet facilities. Adjacent occupiers in Newenham House include: Experian, Cerner and Aramark.
ACCOMMODATION
Lease Area Lease Area NIA Measurement Survey GIA Measurement Survey Floor sq.m. sq.ft. sq.m. sq.ft. sq.m. sq.ft. Ground Floor 1,009.95 10,871.00 767.90 8,265.60 1,011.30 10,885.53
First Floor 994.99 10,710.00 836.10 8,999.70 1,014.60 10,921.05
Second Floor 824.20 8,871.61 1,018.30 10,960.88 1,966.30 21,165.10 Third Floor 837.10 9,010.46 1,013.70 10,911.37
Fourth Floor 539.96 5,812.00 404.20 4,350.77 548.60 5,905.08
Total 4,511.20 48,558.10 3,669.50 39,498.13 4,606.50 49,583.91
An assignable measured survey has been completed by ORS and is available on the data room. Any intended purchaser will need to satisfy themselves as to the exact area of the subject property. Please note the lease areas above are as stated in the occupational lease documents.
6 || NEWENHAM COURT AT NORTHERN CROSS
NEWENHAM COURT SURFACE CAR PARK AND SITE
The subject site extends to approximately 0.73 hectares (1.795 acres) and forms part of the Northern Cross development. The site is situated to the north of Newenham Court and is currently in use as a car park, generating income of €207,000 per annum under a 10 year licence.
The landlord reserves the right upon granting at least one months’ notice to re-allocate or substitute all licenced car spaces.
Planning was granted by Dublin City Council on 25th June 2014 for a period of 5 years. We understand this planning permission will expire on 25th June 2019.
ZONING
Newenham Court office building & development site are zoned “Z14 Strategic Development and Regeneration Areas” under the Dublin City Council Development Plan 2016 – 2022, The local authority describes the zone as – “To seek the social, economic and physical development and/or rejuvenation of an area with mixed use, of which residential and Z6 would be the predominant uses.”
PROPERTY SPECIFICATION
¡ Raised access floors ¡ Floor boxes at ratio of 1 per 10 sq.m ¡ Suspended ceilings with recessed CAT 2 lighting ¡ Four pipe fan coil air conditioning system ¡ High quality reception finishes ¡ Two by ten person Otis passenger lifts ¡ Each floor can be separately metered
NEWENHAM COURT || 7 TOILETS
AIRS ST
LIFTS
PLANT
RS AI ST FLOOR PLANS
TYPICAL FLOOR PLAN S TOILET
AIRS ST
LIFTS
ST AIRS RS AI ST
TENANCY & TOILETS
ACCOMMODATION SCHEDULEAIRS ST
FTS Lease Lease LI Car Current Rent Tenant Name Floor Area Area Measurement Parking Term Commencement Expiry Date Break Next Rent Receivable CEPTIONBasis (Years) Date Option Review sq.m. sq.ft. RE Spaces p.a.
Mylan Ireland Ltd. 2nd and 3rd 1,966.30 21,165 GIA 18 10 18/03/2012 17/03/2022 30/11/2019 n/a €397,170
ST AIRS Mylan Ireland Ltd. Ground, 1st and 4th 2,544.90 27,393 NIA 27 10 01/12/2014 01/12/2024 30/11/2019 n/a €372,520.35
Mylan Ireland Ltd. Car Park License n/a n/a n/a 207 10 01/12/2014 01/12/2024 30/11/2019 n/a €207,000
Total 4,511.20 48,558 252 €976,690.35
8 || NEWENHAM COURT AT NORTHERN CROSS
FOURTH FLOOR
TOILETS
AIRS ST
LIFTS
PLANT
RS AI ST
For illustration purposes only.
TOILETS
AIRS ST
LIFTS Notes: Lease Lease Car Current Rent Tenant Name Floor Area Area Measurement Parking Term Commencement Expiry Date Break Next Rent Receivable 1. The tenancy schedule contains floor areas stated in the sq.m. sq.ft. Basis Spaces (Years) Date Option Review p.a. respective lease documents. 2. Lease 1 has a break option on 30 November 2019 and ST should the break not be exercised the lease extends to Mylan Ireland Ltd. 2nd and 3rd 1,966.30 21,165 GIA 18 10 18/03/2012 17/03/2022AIRS 30/11/2019 n/a €397,170 RS 17 March 2022. AI ST 3. Lease 2 has a break option on 30 November 2019 and should the break not be exercised the lease extends to Mylan Ireland Ltd. Ground, 1st and 4th 2,544.90 27,393 NIA 27 10 01/12/2014 01/12/2024 30/11/2019 n/a €372,520.35 30 November 2024. 4. The rental position assumes a restructuring of the car spaces within Lease 1 and Lease 2 from what exists Mylan Ireland Ltd. Car Park License n/a n/a n/a 207 10 01/12/2014 01/12/2024 30/11/2019 n/a €207,000 presently. 5. The area occupied by the Car Park License is a surface car park which extends to 1.795 acres. 6. The planning consent for the surface car spaces under Total 4,511.20 48,558 252 €976,690.35 Licence 3 expires in June 2019.
NEWENHAM COURT || 9
TOILETS
AIRS ST
LIFTS
CEPTION RE
ST AIRS COVENANT INFORMATION
Guarantor Mylan Inc. is one of the world’s leading generic and specialty pharmaceutical companies, with sales in approximately 165 countries and territories. The company was founded in Pennsylvania in 1961 and listed on the public stock exchange in February 1973. They have been dedicated to providing access to medicine for more than 50 years, distributing high quality medicine to 7 billion people globally and have a portfolio of more than 7,500 products. They employ a workforce of 35,000 people worldwide and have approximately 1000 employees in Ireland. The Newenham Court offices act as their Centre of Excellence and is a regional hub for a variety of business functions, some of which include, Global Supply Chain, Sales & Marketing, Sourcing, Master Data, Quality, Product Launch, IT and HR.
Mylan posted a total revenue of $2.99 billion for the first 3 quarters of 2017, of which $1.04 billion was attributed to their Europe segment. Their net cash flow for the same period was $1.57 billion.
10 || NEWENHAM COURT AT NORTHERN CROSS
NORTH SUBURBAN OFFICE MARKET, Q3 2017
Office leasing activity in the northern suburbs of DUBLIN TAKE UP BY AREA Dublin amounted to approximately 2,900 sq m in (SQ M), YTD 2017 the three months to September 2017, bringing year to date take up to 14,250 sq m. This accounts for 7% of the overall 195,950 sq m of space occupied North in the entire Dublin market during the nine-months 7% South to September. 8%
A comparison with the same nine-month period West last year reveals a significant uplift in activity, when 10% Prime just 3,050 sq m was taken up. However, the fourth 45% quarter of 2016 saw an additional 5,400 sq m of space taken up in the North suburbs, specifically IFSC/North Docklands the Serviced Office occupier, Regus, occupied 12% approximately 1,300 sq m in the Tasc Building, Dublin Airport in Q4 2016. Secondary 18% The largest deal so far in 2017, both in the North suburbs and indeed outside of Dublin’s CBD, was that of 8,350 sq m at One, Dublin Airport Terminal, taken up by ESBI in quarter one. All other deals in this area were less than 1,000 sq m in size. Source: Cushman & Wakefield Research
IT/Telecommunications tenants The stock of available office Development activity in the continue to be the most active space in the North suburbs north suburbs remains limited. in the Dublin market, accounting continues to decline; at the end While the past three quarters for a 30% share of total take of September 2017, availability has seen many new office up in the year to date. Looking stood at just 25,350 sq m. This developments in Dublin, this specifically at tenant demand compares to 37,650 sq m in has not been the case in the in the North suburbs, the State Q3 2016, a 33% decline year north suburbs. Just one building, absorbed 59% of activity in the on year. When space that was Dublin Airport Central, is now nine months to September, signed and reserved at the end under construction, which only due to the occupation of the of Q3 is excluded, net availability just commenced in the third ESBI. This was followed by the declines further to 20,250 sq m. quarter of this year. This is IT/Telecommunication sector, This represents just 4% of the expected to complete in 2018. which accounted for 18% of total stock available in the entire Extending to 19,100 sq m upon North suburban activity in the Dublin office market. completion, there is nothing pre- year to date. let or reserved in this building.
As a result of the increase in demand and the reduction in availability of good quality accommodation, rents are experiencing upward pressure for both office accommodation and car parking spaces. In the northern suburbs, headline rents generally range between €183 and €296 per sq.m per annum.
NEWENHAM COURT || 11 BER RATING DATA ROOM A bespoke data room containing documents and background information is available at Full Building Energy Rating certificate is www.newenhamcourt.com available on request. Access is restricted and will be granted by Cushman & Wakefield to interested parties on TITLE the verification of information. Long Leasehold, further details on request. PROPOSAL VIEWINGS Offers sought in excess of €9,150,000 which equates to Net Initial Yield of 9.84% assuming All viewings are strictly by appointment standard purchasers costs of 8.46%. through the sole selling agent.
VAT Further information available on the data room.
12 || NEWENHAM COURT AT NORTHERN CROSS
NEWENHAM COURT || 13 NEWENHAM COURT AT NORTHERN CROSS
SOLICITOR Michael Doran Mason Hayes & Curran South Bank House Barrow Street Dublin 4 Tel: 01 614 5000
AGENT
164 Shelbourne Road Ballsbridge Dublin 4 PSRA No. 002222
JONATHAN HILLYER JANE DOLAN DERRY O’NEILL +353 (0)1 639 9362 +353 (0)1 639 9225 +353 (0)1 639 9283 [email protected] [email protected] [email protected] PSRA No. 002222-002663 PSRA No. 002222-002958 PSRA No. 002222-006581
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 and Wakefield office. We strongly recommend that you familiarise yourself with these general conditions. While care has been taken to ensure that information contained in Cushman & Wakefield publications is correct at the time of publication, changes in circumstances after the time of publication may impact on the accuracy of this information.
Brochure design by