A time for resilience Belfast Crane Survey

A time for resilience Belfast Crane Survey February 2019

Contents Contents 01 The report 02 Key findings 03 Belfast development snapshot 04 1. Residential 06 2. Office 08 3. Retail, Hotel and Leisure 10 4. Education and Student Accommodation 12 5. Outlook 13 Development map 14 Development table 15 Endnotes 22 Contacts 23 Notes 24

The report What? A report that measures the volume of development taking place across central Belfast and its impact. Property types include residential, office, leisure, hotels, retail, student accommodation and education. Where? The City Core, Waterfront, Titanic Quarter, Transport Hub, Inner North, Linen Quarter and Southern Fringe. Who? Developers building new schemes or undertaking substantial refurbishments of the following: Size minimum = office 10,000 sq ft, retail 10,000 sq ft, residential 25 units, education, leisure and hotel schemes significant scheme for inclusion. When? The report covers the period from 1st January 2018 and 31st December 2018. Our research for the Crane Survey was undertaken between 15th August 2018 and 31st December 2018. How? Research for this report was undertaken by Deloitte s Northern Ireland team based in Belfast. The Deloitte Real Estate team have also been closely involved in the development of Belfast over recent years. In addition to our in-house knowledge and field research we have used a variety of sources to collate and validate our research. These sources include the Northern Ireland Planning Portal, local media and trade publications, and construction and development industry contacts. 02

Key findings Crane Survey 2018 Results The absence of a functioning Executive and Assembly since January 2017 and difficult ongoing Brexit negotiations have created an uncertain political context. Over 400,000 sq ft of new office space started in Belfast during 2018. Approximately 290,000 sq ft of office space was completed in 2018 across five schemes. Construction began on 200 new hotel rooms during 2018. This comes on the back of over 1,200 additional hotel rooms completed in 2018. Two new student accommodation blocks commenced construction, containing over 750 rooms. Retail development remains muted. The Primark extension on Castle Street was completed, but this was overshadowed by the fire in the original Bank Buildings store. Outlook Although political uncertainty remains, the Belfast Region City Deal with Westminster sets a more positive tone, securing 350 million to support value adding infrastructure projects over the coming years. Activity is ongoing in relation to Belfast s Local Development Plan. This will set out a vision of how the council area should develop with a 15 year framework aimed at place shaping opposed to simply land use. Ambitious landmark developments due to start in 2019 include Belfast Waterside (the former Sirocco Works) and the 500m mixed use development by Castlebrook Investment. Tourism continues to grow, with unprecedented numbers of people visiting Belfast. This will likely encourage further development in the hotel and leisure sectors. Queen s University Belfast and Ulster University will continue to develop their estates through capital investment programmes. The retail sector should start to pick up following the completion of the Primark extension and reopening of the surrounding businesses. 03

Belfast development snapshot Total number of schemes completed or under construction in-year 40 30 20 30 30 35 Which sectors are the most active? Under construction 2018 3 Residential 5 Office 10 0 2016 2017 2018 2 Student 2 Education 1 Hotel 1 Retail Completions 2018 4 Student 5 Office 1 Education 1 Retail 10 Hotel 04

New start construction volumes by category for 2017 and 2018 Office floorspace under construction 2017 new starts 160 Number of hotel rooms 124 Number of residential units 2018 new starts 224 Number of hotel rooms 0 Number of residential units Office refurbishments 247,569 sq ft (41%) 194,787 Sq ft of office space 414,502 Sq ft of office space 0 0 Student accommodation units Sq ft of education facilities 761 15,000 Student accommodation units Sq ft of education facilities New builds 363,000 sq ft (59%) 0 Sq ft of retail space 92,800 Sq ft of retail space Completed 2018 Hotel rooms 1,249 Office space 293,098 sq ft Education facilities 120,000 sq ft Residential units 0 Student accommodation bedspaces 2,029 Retail floorspace 48,500 sq ft 05

1. Residential Since the first Belfast Crane Survey in 2017, we have reported low residential development figures in the city centre, a trend consistent with the subdued activity over the last decade. Despite this, growing the city centre population remains a priority. The Belfast Agenda, published in 2017, sets an ambitious target of increasing the residential population of Belfast by 70,000 people before 2035. 1 This will be a prime indicator of success for the city moving forward. It relies on the expectation that as jobs and investment flow into Belfast, employees will seek housing in the city centre. The steady flow of new jobs into the city centre, an improving international image and status, and enabling projects such as the Glider (the Belfast Rapid Transit system introduced in Autumn 2018), have contributed to conditions which have seen the number of residential developments in the city increase, albeit slowly. Residential units under construction The student population has continued to increase in line with patterns across UK regional cities, it is projected that as graduates and students move into the workplace, they will continue to live centrally, assuming that suitable stock is available at an appropriate price. Despite this, there were no new residential starts in 2018, compared with two new starts in last year s report for 2017 activity. Anecdotally issues of density and height restrictions have been raised as challenges for developers seeking funding. While these are likely to be part of the rationale, the limited activity demonstrates that residential development remains challenging. Three schemes remain under construction across the city and are due to deliver 180 units. These are: The Sandford; a 56 unit development, due to be completed in Q2 2019. Serviced apartment management company, Dream Apartments, has pre-purchased 30 units in the building Portland 88; a 17 million investment comprising 88 units on the Ormeau Road by Bristol based Barnett Developments. Completion is due by Q4 2018 180 56 2018 2016 14-18 Montgomery Street; A 36 unit apartment building including a bar and private gym, developed by Villages Homes Ltd and due for completion in Q1 2019. It is understood that the building will be named FX Montgomery Street. 06

Until the completion of The Gallery (58 units, Dublin Road) in 2017, there had been no residential completions of new apartment blocks containing over 50 units since 2012, the last being The Arc in the Titanic Quarter. In this context, the sector has sustained modest activity, with four residential developments totalling 236 units starting and completed, or due to be completed from 2016-2019. Looking ahead initiatives such as the Glider transport investment to improve transportation in the city and employment growth supports the pipeline for new starts in Belfast s residential sector. Major schemes include: The 12 million build-to-rent scheme proposed by Lacuna Developments and Watkins Jones is due to commence on-site early in Q1 2019 Belfast Waterside; A major scheme for part of the former Sirocco Works site is currently in the planning process and could deliver 400 units. It is part of a wider masterplan for the area which will include 800 units in total, a scale that could transform the quantum of residential delivery in the city centre in the next few years and help create a new residential area in the city. 07

2. Office There were two new starts in 2018 which will deliver 414,502 sq ft of new office space. While this is a reduction in new starts compared to 2017 activity, these new starts will provide in excess of double the floor space provided by the four starts in 2017 (194,787 sq ft of new office space). This indicates that businesses are requiring more floor space to accommodate their growing workforces. Office floorspace completions 286,000 sq ft 293,098 sq ft The two schemes to commence in 2018 were: Bedford Square; An 85 million development project, has recently been announced as the new location for Deloitte in Northern Ireland. This 213,000 sq ft office development includes a modern new office building which will be linked to the refurbished and extended Ewart building on Bedford Street. Deloitte will be taking up to 100,000 sq ft of space to accommodate 1,000 staff with the option to increase space to accommodate up to 1,250. The development is expected to be open in 2021 Merchant Square; A 201,502 sq ft, 70 million office scheme developed by Oakland (FRO) Ltd which commenced in Q2 2018. In November, PwC announced that their Belfast operations would be relocating here on its completion in Q2 2020. 2017 2018 In total, just over 900,000 sq ft of office space was either completed or under construction across the city in 2018. There was almost 300,000 sq ft of office space completed in 2018, across a total of five developments. The one new build completion is the Allstate NI HQ scheme. 08

There has been a significant amount of investment to refurbish and modernise existing office space or historic buildings. Four of the completions in 2018 fall within this category and constitute some of the major deals. River House; the redevelopment of an existing 14-storey office building to create 80,000 sq ft of office space. Funded by Londonbased Castleforge Partners, the scheme completed in Q2 2018 Weaving Works, Ormeau Avenue; Completing in Q1 2018, this scheme provides 24,500 sq ft and is let to First Derivatives and their subsidiary, Market Resource Partners Flax House, The Linen Quarter; The redevelopment of this building completed Q1 2018, providing 28,500 sq ft of renovated office space Artola House, Victoria Street; Stargime have restored and redeveloped a five storey former linen warehouse to create 20,000 sq ft of modern office space. In addition to the above, there were a number of projects that did not meet our threshold for inclusion in development statistics (with respect to the degree and significance of refurbishment undertaken, and the creation of new floor space) but which improved existing office stock in the city. One of the largest of these is Nine Lanyon Place Allstate NI s former home on Lanyon Place which was subject to an 8m refurbishment and rebranding project. The Northern Ireland Civil Service have signed up to occupy over 150,000 sq ft of floor space. Belfast has remained resilient in spite of ongoing political uncertainty in the absence of Government at Stormont and ongoing negotiations on Brexit. Investment announcements have continued. IT firm Novosco, based in the Titanic Quarter, has committed to the creation of 150 jobs. New jobs have also been announced by US cybersecurity firm Imperva, currently situated on Arthur Street, announcing 220 new jobs. In the legal and financial sectors, locally based FinTru announced that it will create 300 new jobs, while EY and Grant Thornton announced that they will be creating 95 and 48 new jobs respectively. European legal firm Fieldfisher plan to create 125 new roles over the next three years. The sustained job announcements in IT and the Professional Services sector in Belfast highlights that, going forward, there will be a continued need for new Grade A office space. Looking forward, there are a number of major developments in the pipeline. These include Olympic House, a proposed project in the Titanic Quarter which is a joint investment by Belfast Harbour and Titanic Quarter Ltd. They expect to begin construction on a third office block in the City Quays complex in 2019. At 250,000 sq ft City Quays 3 will be one of the largest Grade A office developments to be built in Northern Ireland supporting demand from international investors. Also adjacent to the River Lagan, Belfast Waterside (formerly Sirocco Works), is set to start work on their 400m regeneration project at the start of 2019. Plans continue to convert the former Belfast Telegraph Building, re-named The Sixth into Grade A office space. This will be the first joint venture with a private sector developer, Belfast City Council joining with Co Tyrone firm McAleer & Rushe. Furthermore, the 500 million Tribeca project is a mixed use space which will include 1,500,000 sq ft of residential space, office units as well as retail and hospitality elements. The scheme, is set to commence early 2019 and conclude in 2021. The BBC has announced a 77 million investment creating a technologically advanced broadcasting centre in its current premises in the Linen Quarter, retaining its long heritage in Broadcasting House on Ormeau Avenue, Belfast. 09

3. Retail, Hotel and Leisure Belfast s tourism success story continued into 2018, with growth in visitor numbers and spend. Reflective of this sector s strength, there has been a surge of hotel developments in recent years within the city centre. 2018 has been a banner year for the hospitality industry; there have been ten hotel completions last year a remarkable figure, and the yield of several years of development and investment by both the public and private sector to put Belfast on the map as a business and weekend destination. 98 hotel beds completed 2016 1,249 hotel beds completed 2018 These completions have added over 1,200 new rooms to the Belfast hotel market meaning that by the conclusion of 2018 there were almost 25% more hotel rooms available in Belfast than were available at the conclusion of 2017 (according to NISRA figures). 2 Four hotel developments started on site during 2018; two of which were extensions to existing hotels; and two of which were the redevelopment of existing buildings in the city centre. New starts in 2018 included: The easyhotel, Howard Street; The 81-bed easyhotel is situated in the Howard Buildings, above a row of retail units, and is the first hotel from the easyhotel brand to be opened in Northern Ireland representing a 5 million investment The George Best Hotel, Donegall Square South; This 15 million investment by Liverpool-based Signature Living Group will redevelop the former Scottish Amicable Building to create a 63-bed hotel themed on the life of perhaps Belfast s most famous sporting personality. Four hotels which completed in 2018 contain over 150 beds; the 188 bedroom AC Marriott Hotel on Donegall Quay, the 179 bedroom Hampton by Hilton hotel on Hope Street, the 206 bedroom Maldron Hotel on Brunswick Street, and, largest of all, the 300 bedroom Grand Central Hotel on Bedford Street. Outside of our survey area, the Crowne Plaza hotel in the south of Belfast is undergoing a 3.3 million refurbishment, with the addition of 13 new rooms demonstrating that investment in the sector is not limited to the city centre. In addition to the volume, the variety of new hotel stock entering the Belfast market is notable. 2018 saw the diversification of Belfast s hotel offering; from the budget accommodation opening at Belfast s first easyhotel; new luxury offerings at Grand Central; serviced apartments being developed at The Flint Hotel, and expansions to the existing boutique offering at Ten Square and Bullitt. This could be seen as a sign that the hotel offering in Belfast is beginning to reach a new level of maturity, indicating confidence in catering to a range of visitors. 10

Figures published by the Northern Ireland Hotels Federation suggested some softening through 2018 reporting a 3% drop in hotel occupancy between summer 2017 and summer 2018. 3 Given that over 1,200 new hotel rooms will have opened to the market this year an approximate 25% increase in just one year compared with the total 3,400 hotel room stock that existed in the city in 2017 the relatively small fall in occupancy rates indicates a healthy visitor market. There has also been significant investment in tourism infrastructure through 2018. 15 million has been invested into a refit of Belfast City Airport, while permission has been granted for the development of a 5 million new Premier Inn hotel beside the International Airport. There was another record breaking year for cruise ship visitors in 2018 with over 185,000 visitors and the proposed development of a dedicated cruise ship terminal for the city should happen in the near term. Other large hotel schemes are still emerging. Perhaps the most notable of these while outside of the city centre is the proposed redevelopment of the Crumlin Road Courthouse. Signature Living have received planning approval to convert the building into a 77-bedroom hotel, representing a 10 million investment. Signature Living have also submitted plans to develop the Waring Hotel. Proposals to redevelop the old War Memorial building into a hotel has been floated previously, and the new 43-room scheme is branded as a party hotel in line with the successful brand created by the Group in Liverpool. Hospitality skills are in high demand. Efforts to fill skills gaps are helping, for example through a Hotel Employment Academy, and an increasing number of graduates completing hospitality related degrees. With that being said the number of people employed in the Tourism & Leisure sector in Northern Ireland increased by over 10,000 between June 2013 and June 2018 (and over 8,000 in the catering industry alone). 4 A reality is that skills shortages are a more likely short term constraint in capitalising on further growth in visitor numbers, rather than the number of available hotel rooms. In the leisure sector the Titanic Walkway and Great Light installation was completed in Q1 2018, representing a unique piece of heritage for visitors to the Titanic Quarter to enjoy. 2018 proved to be a turbulent year for the retail sector in Belfast, precipitated by the disruption caused in the aftermath of a significant fire at the historic Bank Buildings home to Primark in August. The blaze also forced the closure of surrounding shops, while other nearby businesses were badly affected by the reported fall in footfall in the city centre. The fire occurred just weeks before the scheduled opening of a 48,500 sq ft expansion of the existing Primark premises into the former Commonwealth House, located on Castle Street. Fortunately the expansion was saved and work is under way to preserve and eventually restore the Bank Buildings. In the interim it has been possible for Primark to recommence trading from the newly developed site. It is in these circumstances that the redevelopment of Commonwealth House was the sole retail completion in Belfast through 2018. Disruption following the fire has been blamed for a short term fall in footfall through Belfast city centre in the months following however there is cause for optimism looking forward. Work is planned to commence in early 2019 to refurbish Castlecourt shopping centre, and there are also plans to redevelop the former BHS site in the city into two new retail units. In the longer run, Castlebrooke Investments have announced their plans for the 500m Tribeca redevelopment project which will create new retail, leisure and restaurant space. 11

4. Education and Student Accommodation Following a wave of purpose built student accommodation (PBSA) schemes in recent years, two further PBSA schemes started on site in 2018. The new starts will deliver 761 beds and are large scale developments. In Q1 2018, work started on the 407 bed, five storey scheme on 123 York Street developed by a London based company, York Street (No.1) Ltd. Close by, a 354 bedroom scheme is being constructed at Little Patrick Street as part of a joint venture between Watkin Jones Group and Lacuna Developments. Student accommodation bedspaces completed Student Roost, Great Patrick Street; Close to the UU campus, this Olympian Homes scheme delivered 474 beds in an eleven storey building. Work restarted on the Ulster University Belfast phase 2 campus in June following a four month construction pause. The 720,000 sq ft campus will house 15,000 students and staff who are currently based in the Jordanstown campus. The campus has added a fifth crane to the site following the completion of levels 2, 3 and 4 in 2018. 156 (2017) 2,029 (2018) Queen s University Belfast (QUB) seek to increase their international student population from 8% to 20% by 2021. In order to accommodate this they will continue through their 700 million capital investment programme through 2018 including alterations and extensions to the McClay Library, conservation and restoration work to the Lanyon Building and refurbishment of student accommodation at Elms Village. The most significant education sector completion in 2018 was the QUB s School of Biological Sciences. This 39 million investment project, also housing The Institute of Global Food Security, comprises 120,179 sq ft of floor space over five levels, providing purpose built space for teaching, research, offices, study areas and laboratories. Four PBSA schemes completed in 2018, delivering of 2,014 bed spaces. These include: 1,238 of these units were developed by Queen s University Belfast as part of their 700 million capital development programme. Both Elms BT1 at College Avenue and Elms BT2 at McClintock Street completed and opened ahead of the 2018/19 academic year Swanston Hall; This Watkin Jones Group / Lacuna Developments scheme includes 114 studios and 203 cluster rooms (317 total) Looking forward, work will continue on the Ulster University Belfast phase 2 campus through 2019 and QUB are in the process of reviewing their Estates Strategy which will cover the next ten years (2019-2029). This includes the redevelopment of the former Students Union building which is due to commence Q4 2019. Also planned to commence Q4 2019 is a 32,000 sq ft extension of the Institute of Electronics, Communications and Information Technology (ECIT) building. 12

5. Outlook With 2019 likely to see continued economic and political uncertainty, the city will need to demonstrate resilience. As a result of the collapsed Executive, it is estimated that 2 billion worth of infrastructure projects have been put on hold, with media reports suggesting that this could include the Belfast Transport Hub. 5 It is unclear how this will impact the city going forward, but a further period of uncertainty lies ahead. Nevertheless, the Belfast Region City Deal secured a 350 million investment from Treasury in Q4 2018. Business plans are currently under way for the proposed projects which hopes to create up to 20,000 new jobs alongside delivering a ten year programme of inclusive economic growth. The 2019 Belfast Crane Survey captures the ongoing evolution in development patterns in Belfast. In 2018 we saw the completion of several student accommodation many of which commenced during a surge in 2016 and early 2017. This will considerably impact on Belfast. The completion of new student accommodation is good news, it widens the higher education offer, increases the city centre living population, as well as supporting new investment in previously neglected parts of the city centre. Belfast performed well with respect to office development in 2018 with two large developments under way, and is making good progress against the Belfast Agenda target of 1.5 million sq ft of new space by 2021. It may be appropriate to increase the target as the potential to deliver more certainly exists. New occupier deals in 2019 would instil further confidence in the market and might alleviate some of the fears around Brexit. 2019 will be a real test in that regard. The Belfast retail sector was a focal point in 2018 with a decline in footfall as a result of the Bank Buildings fire. There has also been limited new developments in the city centre, however this is in line with other UK cities and reflects an ongoing trend. The fire has potentially accelerated the discussion on retail resilience within a city centre accommodating a wider range of business, cultural, educational, residential and leisure uses. The residential market continued to see only limited growth in 2018. We expect to see a number of new residential schemes promoted in 2019. A critical challenge will be funding, if it can be found then we would forecast an increase in the residential pipeline during 2019. Landmark projects such as developments on Sirocco Quays and Castlebrooke Investment s Cathedral Quarter project continue to move through the planning stages and we also expect to see The Sixth site to make headlines in 2019, which was announced late 2017 and is set to commence in 2019. The era of student accommodation developments is not yet over in the city, with a couple of new starts in 2018 and potentially more to come. The Ulster University Belfast campus development continues, while QUB have significant developments relating to the Students Union and Institute of Electronics, Communications and Information Technology (ECIT) to look forward to. Other notable projects in the pipeline include the Transport Hub, which is comprised of a new station, taxi ranks and integrated cycling and pedestrian facilities. 6 Furthermore, Destination Hub is a proposed visitor experience that will include a large scale visitor attraction, exhibition space and cafés, restaurants and retail outlets. 7 13

A1 Development map A12 Cityside Retail & Leisure Park Titanic Belfast Queens Road Shankill Road A12 North St Carrick Hill Frederick St 26 29 27 28 A2 M3 18 River Lagan SSE Arena Belfast Falls Road A501 B38 Under construction A12 Donegall Rd Belfast City Hospital 25 Westlink Belfast Great Victoria Street station Linfield Industrial Estate City Hospital Completed Barrack St A501 Grosvenor Rd Grand Opera House Donegall Rd A1 Sandy Row Europa Hotel 21 University Rd B126 C ollege Ave B126 24 Castle Court Shopping Centre 30 32 Gre s h a m St A1 Castle St 3 Belfast City Hall A1 Botanic North St Royal Ave High St Victoria Square 8 Wellington Pl A1 Chichester St Bruce St A1 6 5 16 23 14 2 4 Ulster 1 22Hall DublinRd Maryville St Donegall Pass Waring St Ca stle Ln 15 9 35 13 17 33 Ormeau Ave 11 7 May St Victoria St A24 A24 Ormeau Rd 34 31 12 10 Victoria St A2 Ann St Oxford St McAuley East Bridge St t S River Lagan River Lagan t t S S e wa r t 20 M3 A2 East St 19 Central River Lagan Ormeau Embankment Bridge End A23 B506 B506 M3 Albertbridge Rd B506 A23 Titanic Quarter Newtownards Rd 14

Development table No. Name/Address Developer Main Use Total size (sq ft/units) Start date Completion date Comments City Core 1 Bedford Square Phase 2, Belfast, BT2 7GP 2 Grand Central Hotel, 9-15 Bedford Street, Belfast, BT2 7EG Bedford Street Enterprises (McAleer & Rushe) Hastings Hotel Group Office, Retail 213,000 Q4 2018 Q4 2021 A 213,000 sq ft Grade A office building. Piling has commenced on site 85 million investment to develop 213,000 sq ft of Grade A office space. Includes a new office building which will be linked to the refurbished and extended Ewart building on Bedford Street, a prime city centre location which has been unoccupied for some time. Hotel 300 Q3 2016 Q2 2018 Part demolition and rebuild of the former Windsor House, a 24 storey office building on Bedford Street. Originally constructed in 1975, Windsor House is over 80 metres tall and 122,000 sq ft in size. It was at one time the tallest commercial building in Ireland. The re-developed building will include 1 or 2 retail units and approximately 2,500 sq ft of office space and 300 hotel rooms. 3 Elms BT1 at College Avenue 78 College Avenue, Belfast, BT1 6BU Queen s University Student Accommodation 762 Q3 2016 Q3 2018 The development of managed student accommodation including 762 standard bedrooms and studio rooms. The development will also include ground floor retail space, as well as student welfare facilities and an enclosed car park. McAleer & Rushe announced in February 2016 that the site would be developed as part of a 70m agreement with Queen s University that also includes a second student accommodation scheme at McClintock Street. 4 Elms BT2 at McClintock Street, McClintock Street, Belfast, BT2 7GE Queen s University Student Accommodation 476 Q3 2016 Q3 2018 Development of a new-build 16 storey student accommodation development, adjacent to the Maldron Hotel, under construction on Brunswick Street. Red text denotes new starts since last Crane Survey. 15

No. Name/Address Developer Main Use Total size (sq ft/units) Start date Completion date Comments 5 Primark Extension, 1-43 Castle Street, Belfast, BT1 1BL Primark Stores Ltd Retail 48,500 Q4 2016 Q4 2018 A 30m redevelopment scheme by Primark Stores Ltd and WDR & RT Taggart that comprises the demolition of Commonwealth House (29 43 Castle Street) and development of a new six-storey retail building providing an extension to Bank Buildings, which will be refurbished and connect into the new building. The completed scheme will comprise c. 48,500 sq ft retail store for Primark. 6 Swanston Hall, 41-49 Queen Street, Belfast, BT1 6HL Watkin Jones Group / Lacuna Developments Student Accommodation 317 Q4 2016 Q3 2018 The development includes the retention of the existing facades of the former redbrick warehouse. The scheme comprises 114 studios and 203 cluster rooms (317 total) with a ground floor retail unit and ancillary space. 7 Chichester House, Causeway Asset Office 46,067 Q4 2017 Q3 2019 8 million investment by Causeway Asset 21-27 Chichester Street, Belfast, BT1 4JB Management Management to partially demolish and redevelop the existing building on Chichester Street. The development will also include 5,000 sq ft of ground floor retail space. 8 Erskine House, 20-32 Chichester Street, Belfast, BT1 4GF 9 11 Donegall Square South, Belfast, BT1 5JE Orby Investment Ltd Kilmona Property Ltd Office 110,000 Q4 2017 Q4 2019 Development by Orby Investment Ltd to construct an eight storey office building with ground floor retail space. The building has been pre-let on a 25- year lease to HM Revenue & Customs, with c.1,600 employees expected to move into the space by late 2019. Hotel 66 2017 Q1 2018 Redevelopment of the previous Scottish Amicable office building to form a 66 bedroom extension to the existing Ten Square Hotel. 10 Artola House, 91-97 Victoria Street, Belfast, BT1 3GL Stargime Office 20,000 Q1 2017 Q4 2018 Redevelopment of a former 1870s linen warehouse into a modern Grade A office space while retaining some of the original façade. Red text denotes new starts since last Crane Survey. 16

No. Name/Address Developer Main Use Total size (sq ft/units) Start date Completion date Comments 11 River House, 48-60 High Street, Belfast, BT1 2BE 12 Bullitt Hotel Expansion, 79-81 Victoria Street, BT2 7AF 13 14-18 Montgomery Street, Belfast, BT1 4NX Castleforge Partners Cathedral Leisure Ltd. (Beannchlor Group) Village Homes NI Office 80,000 Q4 2016 Q2 2018 Re-development of an existing fourteen-storey office building with five ground floor commercial units. The extensive refit is due for completion in Q2 2018 Hotel 31 2017 Q1 2018 A 31 bedroom expansion to the Bullitt Hotel. Residential 36 Q4 2017 Q1 2019 Demolition of existing building and erection of a new multi-storey apartment building containing 36 one bedroom units and ground floor retail space. 14 easyhotel, Howard Buildings, 24-40 Howard Street, Belfast, BT1 6PA easyhotel Hotel 81 Q1 2018 Q3 2018 A four-storey building built around 1820 at the corner of Howard Street and Brunswick Street to accommodate a number of linen businesses. The planning for the hotel was approved in May 2017. McCusker Demolition commenced strip-out works in March 2017. The hotel now operates via a franchise agreement as an easyhotel. 15 George Best Hotel, 15-16 Donegall Square South, Belfast, BT1 6JH Signature Living Hotel 63 Q1 2018 Q1 2019 A 15 million investment by Liverpool-based developer Signature Living which will transform the six-storey, Grade B1 listed Scottish Mutual Building in a 63 bedroom hotel themed on the life of footballer George Best. The Scottish Mutual Building was originally constructed in the early 20th century and most recently was the premises for Nationwide Building Society, who have now vacated. Red text denotes new starts since last Crane Survey. 17

No. Name/Address Developer Main Use Total size (sq ft/units) Start date Completion date Comments 16 Merchant Square, 12-26 Wellington Place, Belfast, BT1 6GE 17 13-25 Castle Lane, Belfast, BT1 5HX Oakland (FRO) Ltd M&G Real Estate Office 201,502 Q2 2018 Q2 2020 Merchant Square is a 70m office scheme comprising the redevelopment of existing buildings (Oyster and Royston House) by creating two additional floors, extending into the rear courtyard and installing a new glass and steel facade. The completed scheme will comprise eight floors (201,500 sq ft) of office accommodation. This scheme received a 20m loan from the NI Investment Fund. Retail 92,800 2018 2019 British Home Stores occupied the buildings above until closing on Sunday 28th August 2016. Waterfront M & G Real Estate and Todd Architects submitted a planning application in November 2017 proposing refurbishment and reconfiguration of the former BHS buildings including installation of new external fabric, new entrances, shopfronts, and service access and services connections. 18 AC Hotel by Marriott, Donegall Quay, City Quays, Belfast, BT1 3AT 19 Allstate NI HQ, East Bridge Street, Belfast, BT1 3DB Belfast Harbour Hotel 188 Q3 2016 Q2 2018 Development of a four star, nine storey, waterfront hotel on land which is adjacent to Donegall Quay. The hotel will include a signature bar and restaurant, a gym, and meeting facilities. Allstate NI Office 140,000 Q1 2016 Q2 2018 A six-storey office building, adjacent to the former Maysfield Leisure Centre. Titanic Quarter 20 The Sandford, 35-55 Bridge End, Belfast, BT5 4BG Property Frontiers Residential 56 Q3 2016 Q2 2019 A seven-storey residential development, including basement parking, containing a mix of one and two bed apartments. First released to the market in 2014, construction is now fully underway and scheduled for completion in March 2018. Red text denotes new starts since last Crane Survey. 18

No. Name/Address Developer Main Use Total size (sq ft/units) Start date Completion date Comments Transport Hub 21 Hampton by Hilton Hotel, 7-13 Hope Street, Belfast, BT2 7BB Andras House Hotel 179 Q3 2016 Q2 2018 Development of Belfast s first Hampton by Hilton hotel. The development will include 179 rooms with a restaurant upon completion. 22 Maldron Hotel, 14 Brunswick Street, Belfast, BT2 7GE McAleer & Rushe Hotel 206 Q3 2016 Q1 2018 A 21 million investment by Dalata Hotel Group to build a new 14-storey hotel on the former site of Belfast Metropolitan College. The old college building has been demolished, and construction of the hotel structure is due to be completed by early 2018. 23 The Flint Hotel, Howard House, 48 Howard Street, Belfast, BT1 6PG Martin Group Hotel 55 Q4 2016 Q2 2018 Howard House is an existing 7-storey building; floors 1 through 6 previously accommodated offices with retail units on the ground floor. Redevelopment work has stripped out the previous office space on upper floors with space repurposed to create 55 serviced short-stay apartments. 24 Jurys Inn Belfast, Great Victoria St, Belfast BT1 6DY 25 Weaver s Court, Linfield Road, Northern Ireland, BT12 5GH M & R Estates Ltd Linfield Properties Ltd Hotel 80 Q1 2018 Q4 2018 Expansion adding 80 new rooms to the existing Jury s Inn Hotel on Great Victoria Street. This extension follows a 2 million refurbishment of the existing hotel rooms which was completed in late 2017. Office 40,000 Q1 2017 Q1 2019 A four storey 40,000 sq ft office building designed by Doherty Architects for Linfield Properties Ltd. Dixon Contractors commenced construction in November 2017 and completion is scheduled for January 2019. Red text denotes new starts since last Crane Survey. 19

No. Name/Address Developer Main Use Total size (sq ft/units) Start date Completion date Comments Inner North 26 Ulster University Belfast Campus, Phase 2, York Street, BT15 1ED Ulster University Education 720,000 Q3 2015 To be confirmed 250 million investment in the development of an expanded Ulster University Belfast campus to accommodate the relocation of facilities from Jordanstown. While there is no formal confirmation of timelines it is understood there will be a phased completion and occupation of the first block within the next two years and the larger second block following this. The timetable for moving in is part determined by the academic calendar. 27 28-30 Great Patrick Olympian Street, Belfast, BT1 2LT Homes Student Accommodation 474 Q4 2016 Q3 2018 An eleven-storey building comprising a retail unit and café at ground floor level and 474 managed student rooms. 28 26-44 Little Patrick Street, Belfast, BT15 1BA Watkin Jones Group / Lacuna Developments, Rolloz LLP Student Accommodation 354 Q2 2018 Q3 2019 Under construction, some ground work has been done. 29 123-127 York Street, Belfast, BT15 1AS York Street (No.1) Ltd Student Accommodation 407 Q1 2018 Q3 2019 Under construction, builders on site suggest that it could be completed by Easter 2019. Red text denotes new starts since last Crane Survey. 20

No. Name/Address Developer Main Use Total size (sq ft/units) Start date Completion date Comments Southern Fringe 30 School of Biological Sciences, 15 Chlorine Gardens, Belfast, BT9 5AH Queen s University Education 120,000 Q2 2015 Q2 2018 A four-storey building being constructed on the site of the old QUB science library. The construction also includes landscaping of the surrounding public realm. 31 Holiday Inn Express extension, 106 University Street, Belfast, BT7 1HP Andras House Hotel 63 Q1 2017 Q2 2018 A c. 5 million investment to create a 63 bedroom extension and refurbish public areas of the Holiday Inn Express, bringing the total room count to 171. MSM commenced construction in February 2017 and will complete in May 2018. 32 McClay Library, 10 College Park Avenue, Belfast, BT7 1LP Linen Quarter 33 The Weaving Works, 11 Ormeau Avenue, Belfast, BT2 8YB 34 Portland 88, 55-71 Ormeau Road, Belfast, BT7 1EB Queen s University Karl Asset Management Barnett Developments Education 15,000 Q2 2018 Q4 2019 Alteration and extension of McClay Library to increase provision of group study rooms and computer / reader spaces. A 9.45m investment which is currently in the design phase. Office 24,500 Q1 2017 Q1 2018 A 6 million investment by Karl Asset Management to redevelop a former linen manufacturing building into an office building complete with ground floor retail space. The office space has been pre-let to Newry based financial services firm First Derivatives, while the retail space is due to be occupied by The Barking Dog restaurant and a Caffé Nero. Residential 88 Q1 2017 Q1 2019 c. 17 million investment in the construction of a seven storey residential development containing 88 apartments on a formerly vacant side adjacent to the Belfast Gasworks. 35 Flax House, 83-91 Adelaide Street, Belfast, BT2 8FE Straidorn Properties Office 28,598 Q3 2016 Q1 2018 Significant refurbishment of an existing five-storey building located on Adelaide Street, originally constructed in the Victorian era. Red text denotes new starts since last Crane Survey. 21

Endnotes 1. http://www.belfastcity.gov.uk/council/communityplanning/belfastagenda.aspx 2. https://www.nisra.gov.uk/sites/nisra.gov.uk/files/publications/annual-hotel-occupancy-survey-2017.pdf 3. https://www.bbc.co.uk/news/uk-northern-ireland-45889436 4. NISRA, https://www.nisra.gov.uk/publications/quarterly-employment-survey-historical-tables-september-2018 5. https://www.belfasttelegraph.co.uk/news/northern-ireland/projects-worth-2bn-left-in-limbo-following-stormontcollapse-37630740.html 6. https://weaverscross.co.uk/belfast-transport-hub/bus-rail-cycle-and-road/ 7. http://www.belfastcity.gov.uk/buildingcontrol-environment/regeneration/city-growth-deal.aspx 22

Contacts Simon Bedford Partner, Deloitte Real Estate +44 161 455 6484 sbedford@deloitte.co.uk Jackie Henry Office Senior Partner, Belfast +44 28 9053 1197 jahenry@deloitte.co.uk Colin Mounstephen Senior Manager, Consulting +44 28 9053 1109 cmounstephen@deloitte.co.uk 23

Notes 24

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