MEST MERCHANTS QUAY CONTENTS. Welcome to Merchants Quay. At a Glance. Location. Getting Around. Amenities. Current Opportunity

Size: px

Start display at page:

Download "MEST MERCHANTS QUAY CONTENTS. Welcome to Merchants Quay. At a Glance. Location. Getting Around. Amenities. Current Opportunity"

Terence Carroll
5 years ago
Views:

2 FOR SALE BY PRIVATE TREATY TENANTS NOT AFFECTED MEST MERCHANTS QUAY S H O P P I N G C E N T R E 1-5 ST PATRICK S ST. CORK CONTENTS Welcome to Merchants Quay At a Glance Location Getting Around Amenities Current Opportunity Planning / Future Development Investment Market Floor Plans Contacts

3 Welcome to Merchants Quay Shopping Centre, 2 CORK S MOST RENOWNED RETAIL DESTINATION. 3

4 CBRE and Savills jointly present Merchants Quay Shopping Centre for Sale by Private Treaty. Merchants Quay offers investors an excellent opportunity to acquire an established Shopping Centre in the heart of Cork City, the economic centre of the south west region. Merchants Quay provides an excellent opportunity to secure a key retail asset located on Cork s principal retailing street. The Shopping Centre extends to 4,040 sq m (43,488 sq ft) in total and benefits from four market leading anchor tenants which include Marks & Spencer, Dunnes Stores, Debenhams and SuperValu, although not part of the sale these key anchors significantly contribute to the annual footfall which is in excess of 8.2 million visitors per year. The scheme has full planning permission to reconfigure and enhance the internal layout allowing for the provision of a number of larger and more modern retail units. The proposed redevelopment plans are designed to create a new retail focal point at the northern end of St. Patrick s Street. 4 5

5 A T A G L A N C E 43,488 sq ft OF RETAIL SPACE FOOTFALL IN EXCESS OF 8.2 million PER YEAR 29 units OVER TWO INTERNAL FLOORS 36% SHOPPERS SHOP THERE MORE THAN ONCE A WEEK ADJOINING 4 ANCHOR STORES 10 min WALK TO CORK TRAIN STATION 500,000 CORK COUNTY S POPULATION Cork Adjoining 30,000 FULL-TIME AND PART-TIME CORK BUS STATION STUDENTS 6 7 APPROX.

Brown Thomas Debenhams Dunnes Stores Penneys English Market SuperValu One Albert Quay L O C A T I O N M&S The Capitol City Hall Bus Station Merchants Quay Shopping Centre boasts the benefit of dual

6 Brown Thomas Debenhams Dunnes Stores Penneys English Market SuperValu One Albert Quay L O C A T I O N M&S The Capitol City Hall Bus Station Merchants Quay Shopping Centre boasts the benefit of dual frontage along St. Patrick s Street, Cork City s premier retailing street and Merchants Quay. Opera Lane St. Patrick s Street Merchants Quay R I V E R L E E Bridge Street Cork Opera House St. Patrick s Street is located in the centre of Cork City and is home to a number of international and national retailers including Marks & Spencer, Brown Thomas, Penneys, Superdry, H&M, Next, Topshop, Debenhams, TK Maxx and French Connection. Cork City is Ireland s second largest city and serves as the economic capital of Ireland s southern region; the city has a combined metropolitan population of 200,000 rising to over 500,000 within a 60km radius. The city is home to Ireland s second largest airport and port and is also home to a number of third level institutions including UCC and CIT (with a combined part time and full time student population estimated over 30,000). The vibrant city and young skilled workforce has attracted a long list of international companies who provide rich employment to the area including Pfizer, Glaxosmithkline, Dell, Apple, Amazon and Johnson Controls. 8 9

7 G E T T I N G A R O U N D Cork City is served by a number of transport links including Rail and Bus Services. Irish Rail runs daily services from Cork (Kent Station) to Dublin (Heuston Station) and to a number of other key locations throughout the Country. Bus Eireann provides frequent bus services to Galway, Limerick, Dublin and many other regional counties. In addition Cork has an excellent road network which provides access between Cork and Dublin via the M8 / M7 in just less than three hours. S H A N D O N S T R E E T ST. MARY & ST. ANNE S CATHEDRAL SHANDON BELLS TOWER W A T E R C O U R S E R O A D This way to Limerick, M18, Galway S U M M E R H I L L N O R T H GRIFFITH COLLEGE CORK R614 P O P E S Q U A Y B A C K N20 L O W E R G L A N M I R E R O A D N8 KENT TRAIN STATION R846 S U N D A Y S W E L L R O A D G R E E N V I L L E P L A C E N O R T H M A L L S H E A R E S S T. B A C H E L O R S Q U A Y N22 W A S H I N G T O N S T R E E T SAINT PETER AND PAUL S CHURCH ENGLISH MARKET G R A N D P A R A D E N22 CORK OPERA HOUSE CRAWFORD GALLERY S T. P A T R I C K S S T R E E T ST. PATRICK S ST. SHOPPING DISTRICT O L I V E R P L U N K E T T S T R E E T S O U T H M A L L S T. P A T R I C K S Q U A Y M E R C H A N T S Q U A Y CENTRAL BUS STATION U N I O N Q U A Y P A R N E L L P L A C E A N D E R S O N S Q U A Y C L O N T A R F S T R E E T CITY HALL P E N R O S E Q U A Y A L B E R T S T R E E T CORK PORT A L B E R T Q U A Y K E N N E D Y Q U A Y N27 A L B E R T R O A D R I V E R L E E V I C T O R I A R O A D To M8 / Kilkenny / Dublin N8 CORK COLLEGE OF COMMERCE CRAWFORD COLLEGE OF ART AND DESIGN S U L L I V A N S Q U A Y UNIVERSITY COLLEGE CORK SAINT FIN BARRE S CATHEDRAL To N40, Jack Lynch Tunnel, Cork Airport

8 A M E N I T I E S 12 13

9 14 15

10 C U R R E N T O P P O R T U N I T Y The development which was constructed in 1989 benefits from high profile frontage spanning both Merchants Quay and St. Patrick s Street. The centre adjoins M&S, Debenhams, Dunnes Stores and SuperValu. Access to each of these anchor stores can be gained from within the centre acting as a catalyst for the 8.2 million a year footfall. Merchants Quay is laid out over two floors and extends to a net internal area of 43,488 sq ft across 29 retail units. The centre comprises a typical configuration including a thoroughfare retail mall leading to the four anchors stores surrounding the development. Merchants Quay Car Park providing 710 spaces also adjoins the scheme and pedestrian access to the car park can only be gained via the internal retail mall of the shopping centre. There are currently 22 tenants in occupation in the property generating a gross contracted income of 1,470,000 per annum 16 17

TOP 10 TENANTS BY GROSS INCOME COVENANT INFORMATION TENANT NAME GROSS RENT % OF INCOME BREAK DATE 1. Laura Ashley 292,000 19.86% 30-Jun-15 2. Boots 193,986 13.20% 10-Dec-15 3.

Laura Ashley (Ireland) Limited was established in 1978 and currently trades from 6 stores nationwide. According to Vision Net the company has a low credit risk with a score of 81/100. 5.

11 TOP 10 TENANTS BY GROSS INCOME COVENANT INFORMATION TENANT NAME GROSS RENT % OF INCOME BREAK DATE 1. Laura Ashley 292, % 30-Jun Boots 193, % 10-Dec Poundland Ltd 155, % 4-Sep MBCC Foods / Costa 130, % 15-Sep-22 Laura Ashley is part of an international franchise that with partners operate in 29 countries worldwide. Laura Ashley (Ireland) Limited was established in 1978 and currently trades from 6 stores nationwide. According to Vision Net the company has a low credit risk with a score of 81/ The Edinburgh Woolen Mill 99, % 14-Nov Naturesway (Dublin) Ltd 97, % 31-Dec Peter Mark 71, % 10-Dec Doyle Retail Cork 70, % 31-Dec Charlie Buckley 60, % 11-Aug Kellillie Ltd t/a D Bag Shop Ltd 43, % 17-Jan-17 TOTAL 82.50% Boots was established in Ireland in 1996 and today operates over 80 stores nationwide. According to Vision Net the company has a low credit risk with a rating of 91/100, this score is based on accounts analysed in On an international level Boots Alliance merged with Walgreens in 2014 to create the Walgreens Boots Alliance who operates over 4,500 retail stores worldwide. Laura Ashley Boots Poundland Ltd MBCC Foods / Costa The Edinburgh Woolen Mill Naturesway (Dublin) Ltd Peter Mark Doyle Retail Cork Charlie Buckley Kellillie Ltd t/a D Bag Shop Ltd 0 50, , , , , , ,000 Costa Coffee is a brand within the Whitbread Group PLC, who trade in the Republic of Ireland & Northern Ireland as MBCC Foods (Ireland) Ltd. Costa Coffee currently operate more than 110 stores nationwide including five in Cork. According to Vision Net the company has a low fair trade score of 77/100. Poundland Limited trade as Dealz in Merchants Quay. The Dealz franchise entered the Irish market in 2011 and now operates a network of over 50 stores in the republic of Ireland, three of which are located in Cork City. 8.84% 4.08% 130,000 60,000 INCOME BY TERM CERTAIN TOTAL: 1,470, % 1,280,000 Income expiring in 0-5 years Income expiring in 5-10 years Income expiring in 10+ years ZONING The property is zoned ZO 1 City Centre Retail Area (CCRA) To provide for the protection, upgrading and expansion of retailing, in particular higher order comparison retailing, as well as a range of other supporting uses in the City Centre retail area. Cork City Development Plan

PLANNING / FUTURE DEVELOPMENT OPPORTUNITY In July 2015 Planning Permission was granted to allow for the reconfiguration of the ground and first floor retail malls.

12 PLANNING / FUTURE DEVELOPMENT OPPORTUNITY In July 2015 Planning Permission was granted to allow for the reconfiguration of the ground and first floor retail malls. The grant of planning allows for the repositioning of the current mall directly adjacent to Marks and Spencer, with the aim of accommodating a row of larger box units. All pedestrian connections between the existing anchor tenants will be maintained and ultimately enhanced. The plans also allow for the redevelopment of the front elevations providing contemporary new frontage overlooking St. Patrick s Street. Internally the enhanced mall will provide for a number of new units ranging from 2,260 sq ft to 3,648 sq ft. On the first floor adjacent to Marks & Spencer, the former Kylemore Café location will be reconfigured to provide one unit of 17,000 sq ft or two units of 6, 897 sq ft and 6,488 sq ft respectively. (Subject to Planning Permission) PLANNING REF: T.P. 14/36159 Permission was granted on the 15th of July 2015 for change of use of part of the ground floor and first floor mall zones from circulation space to mall from St. Patrick s Street, repositioning the entrance to abut the neighbouring building; change of use of the existing first floor café units in addition to Unit G21 on the ground floor to general retail. Material changes to the three storey corner of Merchants Quay and St. Patrick s Street, replacing brick cladding and shop front glazing with new glazing, stone and white aluminium grillage, material change to the two storey Merchants Quay façade including replacement and enlargement of the first floor windows and replacement of ground floor shop fronts and entrance doors

I N V E S T M E N T M A R K E T COMSUMER SENTIMENT AND RENTAL GROWTH THE SHOPPING CENTRE INVESTMENT MARKET In the timeframe between 2005 and 2009 Approximately 1.

13 I N V E S T M E N T M A R K E T COMSUMER SENTIMENT AND RENTAL GROWTH THE SHOPPING CENTRE INVESTMENT MARKET In the timeframe between 2005 and 2009 Approximately 1.6 billion of shopping centre the amount of retail park and shopping investments traded between 2006 and 2007 centre accommodation in the country where at the peak of the market shopping effectively doubled on the back of favourable centre yields dipped as low as 3%. Up demographics and strong economic until the past three years, very few centres conditions. In 2009 the development of new changed hands. Following some very rapid accommodation effectively halted following yield contraction between 2012 and 2014, the very dramatic economic deterioration. prime yields for shopping centres stabilised throughout 2015 and for the first half of Today there is a total of 19 million square Yields for super prime shopping centres in feet of shopping centre accommodation Ireland are currently in the region of 4.00%. in Ireland, of which 68% extends to more than 5,000 square metres in size, Munster In 2014, 23% of the investment spend in Ireland accommodates 25% of this space. Outside comprised retail assets. In total, there were 68 of Dublin the largest stock of shopping centre retail investment transactions, 75% comprising accommodation is located in Cork, which shopping centre/retail parks and portfolio sales boasts 14 shopping centres extending to more which contained retail assets. This figure grew than 5,000 square metres. in 2015 with retail investment comprising 29% of the total 3.54 billion invested. This momentum has maintained through the first half of 2016 as retail investment spend made up 49% of the total investment in Irish incomeproducing assets. On an annual basis the CSO Retail Sales Index indicates that the volume of retail sales have increased by approximately 5.2%. These figures are mirrored in consumer sentiment which has largely recovered from any post Brexit declines. The strong volumes of retail sales combined with strengthening consumer sentiment indicate that consumers remain positive on the general economic outlook. Retail activity in Cork has shown continued signs of strength in the first half of 2016 following from a robust There has been significant uptake on St. Patrick s Street in recent months with a number of new retailers gaining a presence on the street including Superdry, Holland & Barrett, Pandora, Hairspray and Sostrene Grene (who are due to open in October 2016). Over the past year, rents on St. Patrick s Street have experienced significant growth by approximately 15% as demand from retailers for representation on St. Patrick s Street continues. FLOOR PLANS G R O U N D F L O O R Retail activity in Cork has shown continued signs of strength in the first half of 2016 with a significant uptake on St. Patrick Street. The growing rental levels coupled with the fall in vacancy rates bodes well for the redevelopment of Merchants Quay as the new units will present key opportunities for retailers in the City Centre

entrance (level access) G22 Mall Entrance G21 G20 / G19 / G18 G17 G16 / G15 G14b G14 G13 G12b G12a G11a G11 G22 Mall Entrance G21 G18 / G19 / G20 NG07 NG06 NG05 NG04 New automatic doors to entrance

14 DEBENHAMS DEBENHAMS SUPERVALU MARKS & SPENCER CARROLLS S T. P A T R I C K S S T R E E T SUPERVALU MARKS & SPENCER CARROLLS PHELAN S PHARMACY S T. P A T R I C K S S T R E E T K5 DUNNES STORES K1 K3 K2 K4 G03 Existing entrance G04 G05 G06 G07 G08 G09 / G10 Mall Entrance DUNNES STORES K1 K3 K2 MALL K4 NG03 Existing entrance New pedestrian entrance (level access) G22 Mall Entrance G21 G20 / G19 / G18 G17 G16 / G15 G14b G14 G13 G12b G12a G11a G11 G22 Mall Entrance G21 G18 / G19 / G20 NG07 NG06 NG05 NG04 New automatic doors to entrance NEW RETAIL GLAZING TO ELEVATION M E R C H A N T S Q U A Y M E R C H A N T S Q U A Y G R O U N D F L O O R SCHEDULE OF ACCOMODATION SCHEDULE OF ACCOMODATION UNIT TRADING AS GROUND MEZZ UNIT TRADING AS GROUND MEZZ K1 Vacant 199 K2 Boston Barbers 220 G8B Dr Acupuncture 294 G9/10 Laura Ashley UNIT OCCUPIER SQ M SQ FT NG03 Available UNIT TRADING AS GROUND K1 Vacant 183 K3/4 Newsagent / Ticketmaster 237 G3 Card Shop G4 Fabio Dericci 716 G5 Holland & Barrett G6 Vacant G11/G11A/ G12/G12B G13/G14/G114B/ G15/G16/G17 Edinburgh Woolen Mills Dealz G18/G19/G20 Costa Coffee CURRENT LAYOUT PROPOSED REDEVELOPMENT NG04 Available 330 3,552 NG05 Available 252 2,712 NG06 Available 245 2,637 NG07 Available 205 2,206 G18/19/20 Costa Coffee 187 2,013 G21 Available K2 Boston Barbers 216 K3 / 4 "Ticketmaster / Newsagents 237 K5 Vacant n/a G7 Vacant G21 Vacant G22 Available 107 1,410 G8A Panabread 352 G22 Vacant 939

15 FLOOR PLANS F I R S T F L O O R

MULTI-STOREY CAR PARK LEVEL 1 F03 F17 MARKS & SPENCER S T. P A T R I C K S S T R E E T MULTI-STOREY CAR PARK LEVEL 1 GOLDEN DISCS F03 F17 DEBENHAMS MARKS & SPENCER S T.

F11 / F10 / F09 F09a UNITS F/G F16 / F15 O BRIENS F14 F13 Fire Escape Route New projecting full height frameless glazing panel with backlit frame NEW FULL HEIGHT DISPLAY WINDOWS ALONG ELEVATION M E R

16 MULTI-STOREY CAR PARK LEVEL 1 F03 F17 MARKS & SPENCER S T. P A T R I C K S S T R E E T MULTI-STOREY CAR PARK LEVEL 1 GOLDEN DISCS F03 F17 DEBENHAMS MARKS & SPENCER S T. P A T R I C K S S T R E E T DUNNES STORES F01 F02 F04 / F05 / F06 F07 F08 UNIT A UNITS B/C/D/E DUNNES STORES CAFE HI F01 / F02 Retail Unit Entrance with Shutters NF04 VOID F11a F16 F15 F14 F13 F12 F11 / F10 / F09 F09a UNITS F/G F16 / F15 O BRIENS F14 F13 Fire Escape Route New projecting full height frameless glazing panel with backlit frame NEW FULL HEIGHT DISPLAY WINDOWS ALONG ELEVATION M E R C H A N T S Q U A Y Projecting signage backing panel with strip lighting below and above M E R C H A N T S Q U A Y F I R S T F L O O R SCHEDULE OF ACCOMODATION SCHEDULE OF ACCOMODATION UNIT TRADING AS FIRST MEZZ F1/2 The Pantry 2315 F3 Golden Discs 646 F4/F5/F6/F7 Boots F8 Vacant 675 F9A Dealz 785 F9/F10/F11 Vacant 2150 F11A Tony Quinn 100 UNIT TRADING AS FIRST MEZZ F13 Down Syndrome Ireland 757 F14 O'Briens F15 Bag Shop 1353 F16 Vacant 1043 F17 Boots 349 Unit A Vacant 652 Unit B/C/D/E Vacant CURRENT LAYOUT PROPOSED REDEVELOPMENT UNIT OCCUPIER SQ M SQ FT F01/F02 The Pantry 211 2,271 F03 Golden Discs NF04 Available 1,575 16,947 F13 Available F14 O Briens Sandwich Bar F15/F16 Available 237 2,550 F17 Available F12 Vacant 709 Unit F/G Peter Mark 1427

17 34

18 C O N T A C T S TITLE Freehold / Long Leasehold BER CERTIFICATES PRICE On application. VAT Further information available on request and is also available on the data room. BER Number: Energy Performance Indicator: kwh/m²/yr kwh/m²/yr2.1 VIEWINGS By Appointment only with the Joint Agents. Further information is available at METHOD OF SALE For Sale by Private Treaty. AGENTS CBRE Connaught House, 1 Burlington Road, Dublin 4 PSRA: Johnny Horgan T johnny.horgan@cbre.com Natalie Brennan natalie.brennan@cbre.com Sandra Walsh sandra.walsh@cbre.com Savills Ireland 11 South Mall, Cork PSRA: Peter O Meara peter.omeara@savills.ie Lia Dennehy lia.dennehy@savills.ie Isobel O Regan isobel.oregan@savills.ie SOLICITOR A&L Goodbody, IFSC, North Wall Quay, Dublin 1 Stephen O Riordan soriordan@algoodbody.com Tom Conway tconway@algoodbody.com DISCLAIMER: These particulars are issued by CBRE Ireland/ Savills Ireland on the understanding that any negotiations relating to the property are conducted through them. While every care has been taken in preparing them, by CBRE Ireland/ Savills Ireland 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 by CBRE Ireland/ Savills Ireland, nor any of their employees have any authority to make any or give any representation or warranty in relation to the property. 36

RETAIL INVESTMENT OPPORTUNITY

RETAIL INVESTMENT OPPORTUNITY INVESTMENT SUMMARY Prominent trading position on the west side of O Connell Street, Dublin s primary thoroughfare. Let to Schuh ROI Ltd. on an upwards only lease at an annual