14-16 Mary Street Dublin 1

PRIME RETAIL INVESTMENT OPPORTUNITY

14-16 MARY STREET DUBLIN 1

FOR SALE BY PRIVATE TREATY - TENANTS NOT AFFECTED 14-16 MARY STREET DUBLIN 1

KEY INVESTMENT HIGHLIGHTS

Prime Retail Investment

Single-let to McDonald’s Restaurants of Ireland Limited

Unexpired lease term in excess of 16.5 years

Currently producing a rent roll of €733,000 p.a.

Tenants not affected

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LOCATION

The retail thoroughfare of Mary Street and Henry Street is one of two primary retailing streets in Dublin and recorded an annual footfall of 29 million during 2016 (Source: Dublin Town). Mary Street and Henry Street have an extensive provision of retail, with 60 units providing approximately 110,000 sq m of retail accommodation. The street is resident to a number of leading department stores including Arnotts and Debenhams as well as a number of leading international and domestic retailers including Zara, River Island, H & M, Mango and Dunnes Stores.

14-16 Mary Street is situated at the western end of the street, directly facing the recently refurbished Penneys store. The property adjoins the Jervis Shopping Centre, one of the leading Shopping Centres in Dublin city centre, which boasts an impressive tenant mix including Top Shop, Forever 21, Next, Marks & Spencer and Tesco.

Due to the prime city centre location, the area offers excellent transport facilities including the Luas Red line, situated less than 140 metres from the subject property. In 2016 over 34 million passengers travelled on the Luas and this number is estimated to grow by 10 million passengers when the Luas Cross City commences operation at the end of 2017. Numerous Dublin Bus routes connect at O’Connell Street and Irish Rail at Heuston and Connolly Stations. In addition there are a number of taxi ranks, multi storey car parks and Dublin Bike stations in the immediate vicinity.

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LUAS RED LINE GRESHAM HOTEL FORMER CLERYS DEPARTMENT STORE

LUAS CROSS CITY

PENNEYS

PROPOSED DUBLIN CENTRAL SITE

E E EASONS R

S GPO ARCADE

N ARNOTTS DEPARTMENT STORE

DEBENHAMS DEPARTMENT STORE

ILAC SHOPPING CENTRE

ZARA T

E MARKS & SPENCER

H&M

M JERVIS SHOPPING CENTRE

14-16 MARY STREET

PENNEYS

CINEWORLD

3 N O R TH

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LUAS STOP P B A E R ST A N AY V ER AILW E H E PP R R E L U N L ST S RIE S TT T TTA Q RMO ST W C DE E MA J S AN G A LUAS Cross City T O SE A M ’ R E C S L O D P I J CONNOLLY N N O T A E Y S T T N C EY STATION T LUAS E R E L E E K O I E IN L S S F R R G STOP L T T N ’S R T S R E S IN SH E H N’ T E ERIFF P S D R E ST L P N ST O LUAS T OWER O M E U T I STOP E L T L N T O LUAS S IC M O K U W L B L O STOP E N O P E CUSTOM R P R HOUSE HA RI E E RBOUR O

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R R H O T NE LUAS

E S V Y LUAS Red Line L R S N I M F HE AYO S F STOP R S S T E L N L REE T OR L LOW S O L E CKO P R U N C T

T O S E O D R

N T E W G O S L E R T T N S S M T RY LUAS E EY S A B A M B A M T E STOP H O T C ARNOTTS X C E

JERVIS

L LUAS O E SHOPPING LAN STOP MARY’S W CUSTOM HOUSE C A A R CENTRE E Y A R P U ST R Q EY CUS A B EN TO E B M E A ED HOU L S N D E L Q G MID UAY

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E T TR L E S E T I T K F O A E T L S F S Y S E E B B E T A LUAS H T ER T T UPP Y OR Y N UA STOP S GH Q T BUR Y BBE L RY’S A O MA W CITY QU Y ST E AY CHANCER T R LK AND S WA H R A POOLB T ST EG ST T A W E S S R R D T G LO AY E ’ S U K

CH Q O A A I N S B L N TO I R G S S LO E S U A A CE T S R T O E S T R S ST S Q LUAS S T O S M UT MOND WER T E H O T OR QUAY L STOP K OND S ORM U L N

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COOK STREET DAME ST R E T W D S O R L WA DAME LN ED T RD S LO E N R 4 E 14-16 MARY STREET DUBLIN 1

DESCRIPTION

14 – 16 Mary Street comprises a three storey over basement mixed use end of terrace building which extends to a total net internal floor area of approximately 1,045 sq m (11,247 sq ft). The property benefits from extensive frontage of 15 metres along Mary Street and approximately 22 metres of return frontage along Jervis Street. Access to the subject property is available from both streets. The retail element extends to approximately 516 sq m (5,553 sq ft) in total and is laid out over basement and ground floor. The ground floor accommodation comprises an extensive restaurant dining area with capacity for 100 customer seats, customer toilets and a large kitchen and preparation area. The basement level comprises additional customer seating, customer toilets, storage, staff facilities and plant rooms. The office accommodation is accessed via Jervis Street and extends to approximately 529 sq m (5,694 sq ft) in total. The office accommodation is laid out on the first and second floors of the building with floor plates ranging from 260 sq m to 269 sq m. The accommodation is finished to a modern specification including raised access floors and suspended ceilings. A passenger lift and internal staircase serves all floors. The building is of concrete construction while the façade is finished with a mix of Portland Stone and red brick.

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SCHEDULE OF ACCOMMODATION

Malcolm Hollis Areas Rent Review Areas

Floor Level NIA (Sq m) NIA (Sq ft) NIA (Sq m) NIA (Sq ft)

RETAIL ACCOMMODATION

Ground Floor 259 2,785 298 3,203

Basement Floor 257 2,768 273 2,941

ITZA 121 1,302 149 1,601

OFFICE ACCOMMODATION

First Floor 269 2,894 278 2,989

Second Floor 260 2,800 304 3,277

Total 1,045 11,247 1,153 12,410

** The Malcolm Hollis measurement survey and details of the rent review areas are available in the data room. TENANCY

McDonald’s Restaurants of Ireland Limited occupy the entire of 14 - 16 Mary Street on a 35 year FRI lease from 4th of December 1998, with approximately 16.5 years remaining unexpired. The tenant is currently paying a rent of €733,000 per annum on a lease with upward only rent reviews, the next review is due in December 2018. The first and second floor office accommodation are sub-let. Details relating to the sub-letting are available in the data room. COVENANT INFORMATION

McDonald’s Restaurants of Ireland Ltd trading as McDonald’s originally commenced trading in Ireland in 1977 on Grafton Street and have since grown to operate over 80 stores in the Republic of Ireland. The company had a turnover in excess of €84.9 million in 2015 (as per their last audited accounts on Vision Net), with a post-tax profit of €10.4 million. A Vision Net Report on the company certifies a low trade risk with a score of 93/100.

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INVESTMENT MARKET OCCUPATIONAL MARKET

Retail focused Investment has dominated the Irish investment market over the past two years with According to the latest CSO Index, the volume of Irish retail sales show a year on year increase of 5.9%, investment in retail assets making up 49% and 50% of the overall investment spend in 2015 and 2016 highlighting the improved consumer confidence. This has lead to stronger retail trade and continued efforts respectively. Of the €4.5 billion invested in the overall Irish investment market in 2016, two very large from retailers to expand their presence in Ireland. On the back of a fast growing economy and improving retail investment transactions, namely Blanchardstown Town Centre and Liffey Valley Shopping Centre retail market, international brands are also seeking to secure a presence on Ireland’s prime retail streets. accounted for more than €1.5 billion of this overall spend. Prime Zone A rents in Dublin rose by 11% during 2016. Prime Zone A rents on Henry and Mary Street are Between 2013 -2016, CBRE estimates that there has been 7 transactions of Henry & Mary Street assets currently in the region of €4,500 per sq m having steadily increased since 2013 and are expected to accounting for approximately €120 million. 79% of the properties were acquired by Irish Institutions, continue to grow throughout 2017. Vacancy levels on Henry & Mary Street are now in the order of 3.2% whereas 22% were acquired by Private Irish Landlords. Today CBRE estimates that 64% of the retail and are anticipated to fall further on the back of growing retail demand. There has been a large number buildings on Henry & Mary Street are in the ownership of Pension Funds/Institutions & REIT’s such as Irish of leasing transactions completed on Henry & Mary Street in recent years, with retailers such as Mango, Life, IPUT, State Street and Hammerson, while 23.2% are in the ownership of Private/Individuals and owner Parfois, Pandora, I-Connect, Fatface and Sugar Dolls gaining a presence on the street. occupiers.

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KEY POINTS

UNEMPLOYMENT POPULATION Unemployment which is continuing to decline, Preliminary results from the 2016 Census show that the currently stands at 6.2%, its lowest level since June 2008 population has increased by 3.7% since 2011, to 4.76 million people, 1.8% higher than expected

UNEMPLOYMENT DECLINING TO 3.7% POPULATION 6.2% INCREASE

GROWTH OF THE ECONOMY FASTEST For the third consecutive year, Ireland has been the fastest growing economy in the Eurozone and is on course to be GROWING the fastest growing economy for a fourth straight year, with a prediction that gross domestic product (GDP) will ECONOMY IN grow 5 per cent in 2017 (Source: Davy) THE EUROZONE

OCCUPIER DEMAND RENTAL GROWTH RETAIL Tenant demand and activity has CBRE forecasts suggest that Prime strengthened particularly in prime retail Zone A rents will grow to €4,855 per SALES UP locations. This is evidenced by the volume sq m by the end of 2017 of deals occurring on the street since 2013

2017 STRONG ZONE A RETAIL 5.90% ZONE A ZONE GROWTH TO NOW LET DEMAND €4,855 psm

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RECENT LETTINGS

2 10 3 4

4 9

5 6 6 12 11 7 8 8 7 9 2 5

ELVERYS

12 3

SUBJECT PROPERTY

TOPSHOP

TOPMAN

50 metres

TENURE WEBSITE

We understand the property is held part Fee Simple Further information is available at www.cbresales.ie/14-16_marystreet and part Long Leasehold. PRICE VIEWINGS By appointment only with the Agents. On Application. METHOD OF SALE CONTACT DETAILS Agent Solicitor For Sale by Private Treaty. CBRE Sheehan & Company Solicitors

Natalie Brennan Mel Ferguson BER CERTIFICATE T: +353 1 618 5555 T +353 1 661 6922 E: [email protected] E: [email protected] Building Energy Rating: D2 BER Number: 800559106 Sandra Walsh Energy Performance Indicator: 721.79 kWh/m2/yr1.88 T: +353 1 618 5578 E: [email protected]

Disclaimer: CBRE U.c., (CBRE Ireland) These particulars are issued by CBRE U.C., registered in Ireland, no. 316570. PSRA Licence No. 001528 on the understanding that any negotiations relating to the property are conducted through them. While every care has been taken in preparing them, CBRE U.C., 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 CBRE U.C., nor any of their employees have any authority to make any or give any representation or warranty in relation to the property.