KILLARNEY OUTLET CENTRE. Killarney, Co Kerry

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1 FOR SALE BY PRIVATE TREATY TENANTS NOT AFFECTED KILLARNEY OUTLET CENTRE Killarney, Co Kerry

2 EXECUTIVE SUMMARY 8,407 sq. m (90,497 sq. ft.) of retail accommodation 2.08 hectare (5.14 acre site) 230 surface car spaces Highly Accessible Prominently positioned in the centre of Killarney Town, immediately adjoining Killarney Train and Bus Stations Potential to increase rent roll through asset management and letting the vacant space Strong tenant mix Nike, Costa Coffee, DV8, The Works, Tiger and Pavers Producing a gross rental income of 991,262 per annum

WHY RETAIL? IRISH RETAIL SALES EMPLOYMENT IRELAND S POPULATION BY AGE GROUP THE IRISH ECONOMY Conditions in the domestic Irish economy remain buoyant with GDP growth of 4.

3 WHY RETAIL? IRISH RETAIL SALES EMPLOYMENT IRELAND S POPULATION BY AGE GROUP THE IRISH ECONOMY Conditions in the domestic Irish economy remain buoyant with GDP growth of 4.9% expected to be achieved in 2016, making it the best performing economy in the Eurozone for the third year running. Economic activity is quite broad based and benefiting from a strong recovery in the services sector and domestic retail sales in particular. Indeed, retail sales volumes look set to record an enormous 7% expansion in 2016 as consumer confidence improves. Meanwhile, household debt levels continue on a downward trajectory. Index Base 2005 = M M M M M M02 All retail businesses 2010M M M M M M M M M M M08 All retail businesses, excluding motor trades 2016M M08 SOURCE: CSO Employment in the Irish economy grew by 2.9% in the year to Q with the unemployment rate falling to 7.9% in September its lowest level in more than 8 years. Average weekly earnings rose 1.5% y/y to in Q1 2016, which is the sixth quarter of consecutive wage growth and likely reflects the tighter labour market conditions in Ireland. DEMOGRAPHICS Ireland has one of the most youthful populations in Europe which is particularly attractive for retailers, especially as we have one of the highest proportions of year olds in the continent. The most recent Census of Population 2016 shows population growth of 3.7% since 2011 nationally and by 1.4% in Kerry specifically. By Age Group 85 years and over years years years years years years years years years years years years years years years 5-9 years 0-4 years 10.0% 8.0% 6.0% 4.0% 2.0% 0% 2.0% 4.0% 6.0% 8.0% 10.0% Europe Ireland SOURCE: CSO and Eurostat 2014 RETAIL AVAILABILITY NATIONAL QUARTERLY EARNINGS AND LABOUR IRISH RETAIL STOCK CBRE s vacancy audit of prime regional retail high streets, which is carried out bi-annually, shows that Killarney has consistently held one of the lowest levels of ground floor vacancy in the country, 2.5 standing at 2.0% in Q1 2016, in comparison to other strong retail ,800,000 1,750, towns such as Galway which stood at 2.8% in the same period and Cork at 9.5% Q Q Q Q3 Employment (Number) 2010 Q Q Q Q Q Q Q Q Q Q Q Q Q1 Average Weekly Earnings (Euro) 1,700,000 1,650,000 1,600,000 1,550,000 1,500,000 1,450,000 1,400,000 1,350,000 SOURCE: CSO Million Sq M Shopping Centres Retail Parks SOURCE: CBRE Following a period of extensive development between 2005 and 2009 when the amount of retail park and shopping centre accommodation in Ireland effectively doubled, there has been virtually no development in the sector since. This is during a period when the national population has increased by 3.7% between 2011 and The total stock of shopping centre accommodation (over 5,000 square metres in size) in Ireland is approximately 1.78 million square metres (19 million square feet).

1 LOCATION 2 Killarney is located in the South West of Ireland in County Kerry, Town and supporting its tourist industry.

Killarney Station provides trains to Tralee, 3 Killarney Outlet Centre is situated in the heart of Killarney Town, on the main vehicular route (R876 regional Limerick Road).

Killarney Bus Station adjoins Killarney Outlet Centre and Killarney Train Station is located immediately adjacent to the scheme. Dublin and Cork.

4 1 LOCATION 2 Killarney is located in the South West of Ireland in County Kerry, Town and supporting its tourist industry. Killarney Train Station approximately 308 km from Dublin, 111 km from Limerick City and 85 km from Cork City. adjoins the site, providing a steady flow of pedestrian traffic throughout the day. Killarney Station provides trains to Tralee, 3 Killarney Outlet Centre is situated in the heart of Killarney Town, on the main vehicular route (R876 regional Limerick Road). Killarney Outlet Centre occupies a prominent corner profile onto Fairhill, where it benefits from being highly visible from one of the main thoroughfares into the town. Killarney Bus Station adjoins Killarney Outlet Centre and Killarney Train Station is located immediately adjacent to the scheme. Dublin and Cork. Killybegs Knock Sligo Donegal Portrush Letterkenny Derry Armagh Dundalk Coleraine Lough Neagh Larne Belfast Carlingford Killarney is the second largest town in County Kerry with a Westport population of 14,219 (census 2011). Killarney is a thriving tourist destination, forming part of the famous scenic route The Ring of Kerry, and well known for its attractions such as Killarney National Park, Muckross Abbey, Ross Castle, MacGillycuddy s Reeks and Torc Waterfall. Killarney attracts thousands of tourists each year and currently has the highest concentration of hotel bedrooms outside of Dublin. The Malton Hotel, Killarney Park Hotel and Scotts Hotel are all within a few minutes walk of Killarney Outlet Centre. Killarney Town is serviced by public transport in the form of bus and rail services. Bus Eireann provide frequent bus services to Dublin and other regional counties from Killarney Bus Station. There are also several private bus operators servicing Killarney Valentia Island Clifden Listowel Kenmare Tralee Bantry Cong Lahinch Ennis Blarney Galway Shannon Adare KILLARNEY LIMERICK CORK Youghal Waterford DUBLIN Enniskerry Kildare Arklow Enniscorthy Wexford Tourism has grown steadily nationally each quarter to stand at 2.6 million overseas visits by non-residents in Q alone. Kerry and in particular Killarney welcomes a strong proportion of these visitor numbers due to its natural beauty, activity offerings, good rail connectivity and welcoming environment. Indeed, according to the most recent regional tourism numbers produced by Failte Ireland in October 2016, Kerry welcomed over Killarney Community College 2 St. Mary s Cathedral 3 Killarney Town 4 Killarney Plaza 12 7 Killarney Royal Hotel 8 Killarney Park Hotel 9 Malton Hotel 10 Killarney Train Station million overseas visitors to its towns in 2015, creating additional revenue of over 234 million for the county, while an additional 779,000 Irish residents also chose the county as their main destination over 2015 spending over 5 High Street 6 Scott s Hotel 11 Killarney Bus Station 12 R876 Limerick Road 202 million during their stay.

DESCRIPTION GROUND FLOOR Killarney Outlet Centre was constructed in 1998. The centre passenger lift and several staircases which provide access to the comprises approximately 8,407 sq. m. (90,497 sq.

There are 18 retail units at first floor level in addition to staff and customer WC facilities, management offices and storage rooms.

BUS STATION units over ground and first floor levels. The retail units are laid out in a linear format alongside a central mall, which provides excellent circulation space and plentiful natural light.

There is a goods lift within the service area for deliveries to the first floor. Killarney Outlet Centre has generous car parking for 230 car spaces and 3 coach spaces.

5 DESCRIPTION GROUND FLOOR Killarney Outlet Centre was constructed in The centre passenger lift and several staircases which provide access to the comprises approximately 8,407 sq. m. (90,497 sq. ft.) of retail accommodation on a site of 2.08 hectares (5.14 acres). Killarney Outlet Centre is a two storey development comprising 39 retail first floor. There are 18 retail units at first floor level in addition to staff and customer WC facilities, management offices and storage rooms. The centre is surrounded by a perimeter service corridor, PACO TRESSPASS PAVERS OUTLET BRANDS FOR LESS RELOAD (BEST SELLER TIGER GROUP) NIKE MANGO CRAFTS 25 BUS STATION units over ground and first floor levels. The retail units are laid out in a linear format alongside a central mall, which provides excellent circulation space and plentiful natural light. There are two entrance points to the centre, providing access from both Killarney Town and the Limerick Road (R876). which provides loading access for deliveries. There is a goods lift within the service area for deliveries to the first floor. Killarney Outlet Centre has generous car parking for 230 car spaces and 3 coach spaces. The car park is accessed off Fairhill and is paid parking operated by Euro Car Parks. Killarney Bus Station forms 6m 6m 6.2m 7.6m 6m 6m 6m 6m 9.2m 6m 6m 6m 7.6m 6.2m 6m 71 STAIRS 72 SONA 6m 6m 14m 6m 6m 6m 6m 9.2m 6m 6m 6m 7.6m 6.2m 6m LEADING LABELS KERRY COSTA HOLLAND GAA EUROGIANT COFFEE THE WORKS DV8 & BARRETT STORE CLAIRE S LIFT 6m 27 6m BAGS ETC 26 The ground floor comprises 20 retail units which range in size from part of the overall scheme, situated at the eastern elevation of the 93 sq. m. (1,000 sq. ft.) to 678 sq. m. (7,300 sq. ft.). The retail units centre. The bus station has its own entrance from the car park in benefit from between 6 metres and 26 metres of frontage onto addition to a connecting access point into Killarney Outlet Centre. KILLARNEY RAILWAY STATION the central mall. There is an ATM located at ground floor level in TRADING VACANT RESERVED addition to several kiosk units. There are two escalators, a FIRST FLOOR NIKE STOCK ROOM UNBOUND LIFT STAIRS ARMY SURPLUS WAREHOUSE HOME DEPOT O BRIEN S 56 MANAGEMENT OFFICES OFFICES TRADING VACANT OFFICES TOILETS

6 TENANCY Contracted income of 991,262 per annum 18 high quality tenants including renowned national and international brands such as Nike, Costa Coffee, Claires Accessories, Tiger and Pavers There have been a number of new lettings and existing retailers are extending lease terms, showing commitment to the centre. Opportunity to increase the rental income through asset management and letting vacant space 15% TOP 5 TENANTS 17% 27% 21% 20% Top Five Tenants 407,710 per annum Nike Leading Labels Pavers Shoes Creeslough Retail Ltd. t/a DV8 The Works Stores Ltd. t/a The Works SOURCE: CBRE COVENANTS NIKE Nike is an American multinational sportswear brand that specialises in footwear, clothing, equipment and accessories. Nike is the world s largest supplier of sports footwear, employing 62,000 people worldwide and having a net income of over $3 billion in Nike anchor Killarney Outlet Centre with a large outlet store, stocking a wide range of men s, women s and children s clothing and footwear. LEADING LABELS Leading Labels is a UK clothing retailer which was established in The company stocks well-known brands of both menswear and womenswear including Ben Sherman, Wrangler, Jack and Jones, Elle and Pringle. The company operates 19 stores across the UK and the Republic of Ireland. THE WORKS is a British retailer selling discount Art and Craft items, toys, books and stationery. The Works operates 350 stores throughout the UK and have three stores in the Republic of Ireland, two in Dublin and one in Killarney Outlet Centre. DV8 DV8 is a fashion and footwear retailer stocking branded and own branded clothing for men and women. DV8 originates in the UK and currently opearates over 40 stores in the UK and the Republic of Ireland. PAVERS SHOES Pavers Shoes is a family owned footwear business operating in the UK and Ireland. Pavers stock a wide range of well-known brands such as Skechers and Padders. The company currently operates 115 stores throughout the UK and Ireland and have recently launched an online store through their website. TOP 5 TENANTS (BY INCOME) UNIT TENANT AREA SQM CONTRACTED RENT* START DATE TERM YEARS EXPIRY/ BREAK OPTION ASSET MANAGEMENT POTENTIAL Nike BV Ltd. t/a Nike 7, ,256 26/07/ /07/ Leading Labels 6,382 80,000 01/06/ /07/2020 There is opportunity to increase the occupancy rate through letting the upper floor space. Current tenants on the first floor currently trade well with footfall being created through O Brien s Sandwich Bar. The addition of further service tenants and food and beverage operators would be highly beneficial to the first floor space Pavers Shoes 3,140 87,629 01/07/ /07/ DV8 4,078 60,000 01/07/ /07/2017 (BRK) 34 The Works 2,269 70,825 01/07/ /07/2019 7, ,710 *Rent calculated on base rent plus turnover top ups (2015) where applicable. There is opportunity to re-gear leases and implement longer lease terms, thereby increasing the WAULT. Killarney Outlet Centre has traditionally been let on 5 year lease terms. We believe there is demand from both new and existing tenants to take longer terms in the centre. The introduction of new complimentary retailers would further enhance the offering of the scheme. Killarney High Street has the lowest vacancy rate of any regional town in the country. Killarney Outlet Centre provides an opportunity for occupiers to locate within the town centre and alongside key retailers who drive footfall in the scheme. There is potential to increase the food and beverage offering in the scheme (subject to planning permission). This would allow the centre to cater for its tourism and family orientated customer base.

TITLE The property is held under a long leasehold interest (250 years) with CIE from 1st July 1999.

7 TITLE The property is held under a long leasehold interest (250 years) with CIE from 1st July TOWN PLANNING Killarney Outlet Centre is located in an area zoned Town Centre in the Killarney Town Development Plan CONTACT BER RATING BER Rating: C1 BER Numbers: Energy Indicator: kwh/m²/yr 1.07 SOLICITORS Arthur Cox Earlsfort Centre, Earslfort Terrace, Dublin 2 CONTACT John Walsh Tel: john.walsh@arthurcox.com Viewings by Appointment with the Sole Selling Agent. JOHNNY HORGAN Executive Director/Head of Investment Properties Tel: (1) johhny.horgan@cbre.com FIONA KENNEDY Senior Surveyor, Investment Properties Tel: (1) fiona.kennedy@cbre.com NIAMH SHEAHAN Associate Director, Retail Agency Tel: (1) niamh.sheahan@cbre.com DISCLAIMER: These particulars are issued by CBRE Ireland on the understanding that any negotiations relating to the property are conducted through them. While every care has been taken in preparing them, CBRE 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 CBRE Ireland, nor any of their employees have any authority to make any or give any representation or warranty in relation to the property. CBRE Ireland PSRA Licence No:

KILLARNEY OUTLET CENTRE. Killarney, Co Kerry

KILLARNEY OUTLET CENTRE. Killarney, Co Kerry FOR SALE BY PRIVATE TREATY TENANTS NOT AFFECTED KILLARNEY OUTLET CENTRE Killarney, Co Kerry EXECUTIVE SUMMARY 8,407 sq. m (90,497 sq. ft.) of retail accommodation 2.08 hectare (5.14 acre site) 230 surface