FOR SALE BY PRIVATE TREATY (TENANT NOT AFFECTED) INVESTMENT OPPORTUNITY NEWENHAM COURT NORTHERN CROSS MALAHIDE ROAD, DUBLIN 17

Transcription

1 FOR SALE BY PRIVE TREY (TENANT NOT AFFECTED) INVESTMENT OPPORTUNITY NEWENHAM COURT MALAHIDE ROAD, DUBLIN 17

2 CONTENTS Investment Summary 01 Location Map 02 Location 03 Transport 03 Aerial 04 Description 06 Accommodation Schedule 06 Specification 07 Zoning 07 Floor Plans 08 Tenancy Schedule 08 Covenant Information 10 Occupier Market 11 BER 12 Title 12 Proposal 12 Data Room 12 Contacts 14 2

3 NEWENHAM COURT 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, 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 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

4 LOCION MAP SWORDS MALAHIDE M1 R1O7 N2 DUBLIN AIRPORT KINSEALY PORTMARNOCK NEWENHAM COURT M50 SANTRY R139 M50 M3 M50 BEAUMONT CHARDSTOWN N1 PORT TUNNEL BALDOYLE ARTANE R1O7 TRAIN LINE RAHENY DRUMCONDRA CLONTARF PHOENIX PARK M50 DUBLIN CITY CENTRE DUBLIN PORT DUBLIN BAY NDALKIN LUAS RED LINE M50 CRUMLIN LUAS GREEN LINE BALLSBRIDGE 2

5 NEWENHAM COURT LOCION 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

6 AERIAL Clongriffin Train/Dart Station Bank of Ireland t To MALAHIDE Meadows & Byrne/ Eurospar Carechoice Nursing Home Car Park Walls Construction DUBLIN AIRPORT x 4

7 NEWENHAM COURT Howth Baldoyle Industrial Estate Howth Junction Train/Dart Station Clare Hall Retail Centre Clare Hall Shopping Centre Hilton Dublin Airport Hotel NEWENHAM COURT MALAH Experian/ Cerner/ Aramark IDE RO AD The Logiskills Group/ Xsimbus Resources To CITY CENTRE u N32 Bewleys Coffee Ltd TO CITY CENTRE M1/M50 JUNCTION PORT TUNNEL DUBLIN AIRPORT q For illustration purposes only NEWENHAM COURT 5

8 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. ACCOMMODION 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, , , , , First Floor , , , , Second Floor , , , , , Third Floor , , , Fourth Floor , , , Total 4, , , , , , 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

9 NEWENHAM COURT 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 ZONING Newenham Court office building & development site are zoned Z14 Strategic Development and Regeneration Areas under the Dublin City Council Development Plan , 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 SPECIFICION Raised access floors Floor boxes at ratio of 1 per 10 sq.m Suspended ceilings with recessed C 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

10 FLOOR PLANS TYPICAL FLOOR PLAN TOILETS STAIRS LIFTS STAIRS STAIRS TENANCY & ACCOMMODION SCHEDULE Tenant Name Floor Lease Area sq.m. Lease Area sq.ft. Measurement Basis Car Parking Spaces Term (Years) Commencement Date Mylan Ireland Ltd. 2nd and 3rd 1, ,165 GIA /03/2012 Mylan Ireland Ltd. Ground, 1st and 4th 2, ,393 NIA /12/2014 Mylan Ireland Ltd. Car Park License n/a n/a n/a /12/2014 Total 4, ,

11 NEWENHAM COURT FOURTH FLOOR PLANT TOILETS STAIRS LIFTS STAIRS For illustration purposes only. Expiry Date Break Option Next Rent Review Current Rent Receivable p.a. 17/03/ /11/2019 n/a 397,170 01/12/ /11/2019 n/a 372, /12/ /11/2019 n/a 207, , Notes: 1. The tenancy schedule contains floor areas stated in the respective lease documents. 2. Lease 1 has a break option on 30 November 2019 and should the break not be exercised the lease extends to 17 March Lease 2 has a break option on 30 November 2019 and should the break not be exercised the lease extends to 30 November The rental position assumes a restructuring of the car spaces within Lease 1 and Lease 2 from what exists presently. 5. The area occupied by the Car Park License is a surface car park which extends to acres. 6. The planning consent for the surface car spaces under Licence 3 expires in June NEWENHAM COURT 9

12 COVENANT INFORMION 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 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

13 NEWENHAM COURT NORTH SUBURBAN OFFICE MARKET, Q Office leasing activity in the northern suburbs of Dublin amounted to approximately 2,900 sq m in 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 in the entire Dublin market during the nine-months to September. A comparison with the same nine-month period last year reveals a significant uplift in activity, when just 3,050 sq m was taken up. However, the fourth quarter of 2016 saw an additional 5,400 sq m of space taken up in the North suburbs, specifically the Serviced Office occupier, Regus, occupied approximately 1,300 sq m in the Tasc Building, Dublin Airport in Q 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. DUBLIN TAKE UP BY AREA (SQ M), YTD 2017 West 10% South 8% IFSC/North Docklands 12% North 7% Secondary 18% Source: Cushman & Wakefield Research Prime 45% IT/Telecommunications tenants continue to be the most active in the Dublin market, accounting for a 30% share of total take up in the year to date. Looking specifically at tenant demand in the North suburbs, the State absorbed 59% of activity in the nine months to September, due to the occupation of the ESBI. This was followed by the IT/Telecommunication sector, which accounted for 18% of North suburban activity in the year to date. The stock of available office space in the North suburbs continues to decline; at the end of September 2017, availability stood at just 25,350 sq m. This compares to 37,650 sq m in Q3 2016, a 33% decline year on year. When space that was signed and reserved at the end of Q3 is excluded, net availability declines further to 20,250 sq m. This represents just 4% of the total stock available in the entire Dublin office market. Development activity in the north suburbs remains limited. While the past three quarters has seen many new office developments in Dublin, this has not been the case in the north suburbs. Just one building, Dublin Airport Central, is now under construction, which only just commenced in the third quarter of this year. This is expected to complete in Extending to 19,100 sq m upon completion, there is nothing prelet 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

14 BER RING Full Building Energy Rating certificate is available on request. TITLE Long Leasehold, further details on request. VIEWINGS All viewings are strictly by appointment through the sole selling agent. DA ROOM A bespoke data room containing documents and background information is available at Access is restricted and will be granted by Cushman & Wakefield to interested parties on the verification of information. PROPOSAL Offers sought in excess of 9,150,000 which equates to Net Initial Yield of 9.84% assuming standard purchasers costs of 8.46%. V Further information available on the data room. 12

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16 NEWENHAM COURT SOLICITOR Michael Doran Mason Hayes & Curran South Bank House Barrow Street Dublin 4 Tel: AGENT 164 Shelbourne Road Ballsbridge Dublin 4 PSRA No JONHAN HILLYER +353 (0) jonathan.hillyer@cushwake.ie PSRA No JANE DOLAN +353 (0) jane.dolan@cushwake.ie PSRA No DERRY O NEILL +353 (0) derry.oneill@cushwake.ie PSRA No A full copy of our general brochure conditions can be viewed on our website at 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