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TELEPHONE HOUSE

43-46 MARLBOROUGH STREET, 1

FULLY LET PRIME CITY CENTRE OFFICE INVESTMENT - TENANT NOT AFFECTED

WWW.TELEPHONEHOUSEDUBLIN.COM INVESTMENT SUMMARY

› Substantial city centre office investment › 100% let to single occupier › Annual rental income €968,084 plus VAT › Additional annual income of €16,000 from communication mast licences › Extends to approx. 7,504.1 sq.m. (80,773 sq.ft.) NIA › Fully let to HCL () Information Systems Limited with full guarantee from HCL EAS Limited DESCRIPTION › 10 year lease from 23rd July The property comprises a late 1960’s/early and suspended ceilings incorporating recessed to the office areas by means of variable refrigerant 2015 with tenant break option 1970’s nine storey over partial basement office lighting. Typical storey heights are in the order flow (VRF) and direct expansion (DX) split system air at 30/9/2021 & 30/9/2023 building in Dublin City Centre. It is understood of 2.97m with the 1st floor being approximately conditioning installations. › Full repairing and insuring lease that a major refurbishment of the building was 4.35m and ground floor approximately 3.15m. The building has a fire alarm system, intruder undertaken in 2004. Office floors provide open plan flexible floor alarm system, CCTV and proximity detector › Renunciation of Renewal Rights The structure of the building comprises a cast plates with kitchen and staff toilet facilities. access control on main entry and egress points, › Superb parking provision of in-situ reinforced concrete frame supporting the The ground floor presents a feature reception and including the lift lobby and the office areas. approx. 61 car spaces (1 space flat asphalt covered roof with pre-cast reinforced main canteen facility. Permeability through the property is primarily per 123.02 sq.m.) concrete “T” beam and concrete block floors. There is a mix of natural and mechanical facilitated via three 13 Person Kone electric › Low base rent provides solid External walls comprise reinforced precast ventilation. Space heating to the building is traction lifts. platform to drive rental growth concrete ‘H’ panels set in uniform horizontal provided by means of a low temperature hot water Externally the property benefits from 61 surface

› Opportunity for considerable and vertical structural bays, with feature glazed/ (LTHW) system, comprising 2 Remeha P420 gas- and under-croft car parking spaces. 18 of the Asset Management potential in granite entrance. fired boilers, circulating pumps, pressurisation spaces are located on a separate plot adjacent, at the medium term Internally the offices benefit from plastered unit, controls and insulated steel pipework. Britain Place.

and painted walls, raised access carpet tiled floors Comfort cooling / air conditioning is provided

2 LOCATION

The building is located on the northern The property is ideally located to take is further enhanced by the current construction end of Marlborough Street just west of one of full advantage of all Dublin City Centre of the Cross City line that will link both the

Dublin’s main commercial/historic thoroughfares, amenities and services, to include Henry Street southside to the northside .

O’Connell Street. O’Connell Street is famous shopping (Arnotts/The Ilac Shopping Centre/ The south bound tramway of this key piece of for its historic buildings such as the General Jervis Shopping Centre) which is home to infrastructure will travel down Marlborough

Post Office (GPO) and hosts many of the all well-known and international high street Street, presenting a Luas stop within 50 metres of city’s most noteworthy monuments to include brands. Others include The Gate Theatre, The Telephone House.

Daniel O’Connell, O’Connell Bridge and the Ambassador Theatre, The Savoy Cinema, The The location is also superbly situated with

Millennium Spire. O’Connell Street has seen Gresham Hotel, The Garden of Remembrance, easy access to mainline rail as both Connolly significant regeneration over the years, with more Rotunda Maternity Hospital, the Pro Cathedral station and Tara Street stations are within easy pedestrian and shopping friendly pavements and and many more. walking distance. street furniture. The O’Connell Street area is set to be further All major bus routes, with regular Dublin

Busy Parnell Street lies just to the north of enhanced with the former Carlton Cinema site Airport/National services, also run along/close to

Telephone House with its ever enlarging variety and surrounding lands earmarked for future the O’Connell Street area. With a rapidly growing of ethnic eateries. Cathal Brugha Street lies to the major commercial redevelopment along with greater urban area population (the catchment area south and remains home to one of Dublin Institute the former Clery’s department store set to population is estimated at 1.8 million and expected of Technology’s main faculties; Hospitality, cater for both retail and office accommodation. to grow to 2.1 million by 2020), Telephone House is

Culinary Arts and Food Technology. The viability of both these large scale projects extremely commuter friendly.

3 GRAND CANAL

TARA STREET CONVENTION CENTRE TRINITY COLLEGE DART STATION IFSC GEORGES QUAY

SIG

CONNOLLY STATION

LIBERTY HALL LUAS RED LINE IRISH LIFE CENTRE

DART

O’CONNELL STREET

ST. MARY’S GPO DIT CATHAL PRO-CATHEDRAL BRUGA STREET

DEPARTMENT OF EDUCATION & SKILLS

GRESHAM HOTEL

HENRY STREET CLERYS Q PARK

LUAS CROSS CITY

TELEPHONE HOUSE JURYS INN HOLIDAY INN

ROTUNDA HOSPITAL

4 SPECIFICATION

› Concrete frame construction (Combination steel Universal Beams and Universal Columns are evident in some parts of the property)

› Pre-cast concrete “H” panel elevations

› Combination of variable refrigerant flow (VRF) and direct expansion (DX) split system air conditioning installations

› Suspended Ceilings/Recessed Lighting throughout

› 3 floors benefit from Raised Access Floors with scope to ACCOMMODATION incorporate throughout

NIA SQ.M. NIA SQ.FT. GIA SQ.M. GIA SQ.FT IPMS SQ.M. IPMS SQ.FT. › Automatic, early warning fire

GROUND 860 9,256 1,021.6 10,997 870.7 9,372 alarm and detection system, providing protection for all FIRST 889.3 9,572 1,071.2 11,530 908.8 9,782 areas of the building SECOND 898.7 9,674 1,069.0 11,507 919.2 9,894

THIRD 888.5 9,564 1,0 67.1 11,486 910.2 9,797 › The building is provided with a metered natural gas supply FOURTH 889.3 9,573 1,0 67.2 11,488 910.2 9,797

FIFTH 916.8 9,868 1,073.8 11,559 933.6 10,050 › Windows are a combination

SIXTH 915.8 9,858 1,072.6 11,546 932.9 10,042 of single and thermally broken double glazed units SEVENTH 881.9 9,492 1,066.1 11,475 902.5 9,714

EIGHTH 146.3 1,575 167.7 1,806 146.6 1,578 › Three 13 Person Kone electric

BASEMENT 217.4 2,341 680.9 7,329 219.1 2,358 traction lifts

7,504.0 80,773 9,357.2 100,721 7,653.7 82,384 › 61 car parking spaces

GIA – Gross Internal Area NIA – Net Internal Area IPMS – International Property Measurement Standards

5 TENANCY SUMMARY The property is fully let to the HCL (Ireland Limited) Information Systems limited on a full repairing and insuring lease. Salient terms are as follows:

Lease Term Renunciation of Renewal Rights 10 Years Tenant has executed a Deed of Renunciation. Term Commencement Roof Licence Fee 23rd July 2015 Where licenses for third party equipment/ Rent plant are secured, any income arising shall be €968,084 per annum plus VAT paid quarterly split 50/50 between the Landlord and Tenant. in advance. Alienation Repairing Group Companies can sub-let or assign in Full Repairing in the condition prevailing at the whole or part but not below the passing rent. Term Commencement Date as evidenced by The Tenant has an entitlement to assign or sub- the Schedule of Condition. let the entire or any part to Eircom Limited or Rent Review any subsidiary or affiliate company on condition 22nd July 2020, capped €1,303,190 per annum. that Eircom Limited provides a guarantee. Tenant Break Option Guarantee 30th September 2021 & 30th September 2023 The Lease is guaranteed by HCL EAS subject to 6 months prior notice in writing. Limited (UK).

COVENANT DETAILS

HCL (Ireland) Information Systems is a 100% Uttar Pradesh. It offers services including software

owned subsidiary of HCL EAS Limited (UK consulting, enterprise transformation, remote

Company) who guarantees the lease. HCL EAS infrastructure management, engineering and R&D

Limited is a holding company that has reported services, and business process outsourcing (BPO).

net assets of €124,482,468 as of 30th June 2015. HCL Technologies has demonstrated strong

The company is a subsidiary undertaking of HCL growth through the recent economic downturn,

Technologies Austria Gmbh Limited, a Company emerging as one of only eight 21st century listed

incorporated in Austria. The Company’s ultimate technology companies in the world to cross

parent undertaking is HCL Technologies Limited, $1bn in Net Profit, $5bn in Revenue and $15bn in

a company incorporated in India. Market Capitalization.

HCL Technologies Limited is an Indian global The company operates in 31 countries and has

IT services company headquartered in Noida, over 10,000 employees.

6 ECONOMIC AND INVESTMENT COMMENTARY

Ireland’s impressive economic recovery has is slightly behind that of the €2.9 billion transacted The weight of capital chasing assets is increasingly continued in Q3 2015, and with the conditions at the same point in 2014, it remains well ahead of coming from longer-term domestic capital, with in place for continued rapid growth, it is set to long term averages. One of the primary reasons Irish pension funds particularly active in 2015. remain the euro-zone’s fastest-growing economy. for the apparent slowdown in transaction activity Although the geographic focus of investment

Irish GDP posted another very solid quarterly is due to more prolific presence of loan debt sales activity has broadened in 2015, activity expansion of 1.4% in Q3. While this was smaller throughout the year with Project Jewel leading remains focused on Dublin, accounting for than the expansions seen in the first half of the the way selling at approx. €1.85 billion. The office 90% of transactions. year, it still lifted the annual growth rate from Q2’s market continues to account for the largest share The largest single office lot sale of 2015 was

6.8% to 7.0% and suggests that average growth of the investment market comprising 60% of the the purchase by the Central Bank of the 127,000 in 2015 overall will also be around 7%. Household €2.2billion transacted by the end of Q3 2015. sq.ft. Block R in Spencer Dock for €104 million. spending also posted another solid gain of 0.7% Although prime office yields have steadied The sale was significantly ahead of the €90 million in Q3, reflecting the continued recovery in the at 4.5% following a sustained period of guide price, with the price achieved representing housing and labour markets. Exports also posted contraction, the out-performance of the Irish a capital value of €819 per square foot. The next a quarterly gain of 2.2%. economy in a European context combined with most significant transaction in Dublin 1 was the

The investment property market has also the continuation of the ECB quantitative easing purchase of Georges Dock House in the IFSC for remained buoyant with approx. €2.2 billion programme will continue to exert downward €35.5 million by an Irish institutional investor. transacted up to Q3 2015. Although the €2.2 billion pressure on yields in the coming quarters.

7 OFFICE MARKET

A total of 543,570 sq.ft. of office space was The third largest deal in the entire Dublin let in the third quarter, which represented the market was the letting to HCL Information highest letting activity for a third quarter in over Systems at Telephone House, indicating the five years. Total activity for the first nine months strength of demand for well-located city of 2015 now stands at 1.73 million sq.ft., which centre space. The other significant letting in represents a 25% increase on the same period Dublin 1 outside of the IFSC was the leasing of last year. As the market still awaits a significant 25,000 sq.ft. at the Steelworks on Foley Street by supply of new office stock to come online, the Independent Colleges. scarcity of available accommodation continues Although the city centre still had the highest to drive rental appreciation with prime grade take-up in the third quarter with a market share A rents now in the order of €55.00 per sq.ft. of 36%, the figure represents a substantial The share of Dublin 1 as a percentage of total decline from the 60% share it held in 2014 as firms take-up at the end of the third quarter in 2015 searched outside the city core due to severe was 11%, slightly ahead of the 5 year average of supply shortage. This is reflected in the fact that 9.8%. In total, there were 31 deals transacted at an the south suburbs and the city fringe accounted average deal size of 8,792 sq.ft. in Dublin 1. While for 28% and 20% respectively in quarter three, the majority of these lettings were transacted in which compares to 14% and 12% during the full the IFSC, there were a number completed in other year in 2014. areas of Dublin 1 also.

8 FURTHER INFORMATION

TITLE The property is held on a combination of Long Leasehold and Freehold title

GUIDE PRICE On application

BER DETAILS BER No: 800359762 BER Rating:

ZONING Zoned Z5 - City Centre

WEBSITE www.telephonehousedublin.com

CONTACT Adrian Trueick [email protected] Ross Fogarty [email protected]

Knight Frank 20-21 Upper Pembroke Street Dublin 2 +353 1 634 2466 www.Knightfrank.ie

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Conditions to be noted: These particulars are issued by HT Meagher O’Reilly trading as Knight Frank on the understanding that all the negotiations are conducted through them.

Whilst every care has been taken in the preparation of these particulars, they do not constitute an offer or contract. All descriptions, dimensions, references to condition, permissions

or licenses of use or occupation, access and other details are for guidance only, they are given in good faith and believed to be correct, and any intending purchaser/tenant should not

20-21 Upper Pembroke Street rely on them as statements or representation of fact but should satisfy themselves (at their own expense) as to the correctness of the information given. Prices are quoted exclusive

Dublin 2 of VAT (unless otherwise stated) and all negotiations are conducted on the basis that the purchaser/lessee shall be liable for any VAT arising on the transaction. Neither HT Meagher

+353 1 634 2466 O’Reilly trading as Knight Frank or any of their employees have any authority to make or give any representation or warranty in respect of this property. www.Knightfrank.ie

HT Meagher O’Reilly trading as Knight Frank, Registered in Ireland No 385044, PSR Reg No 001266. HT Meagher O’Reilly New Homes Limited trading as Knight Frank, Registered in

WWW.TELEPHONEHOUSEDUBLIN.COM Ireland No. 428289, PSR Reg No 001880. Registered Office – 20 -21 Upper Pembroke Street, Dublin 2.