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Investment Summary A unique opportunity to acquire an iconic Sam Stephenson designed prime office investment in the heart of Dublin s Central Business District 41,716 sq ft NIA (3,875.54 sq m) 50 5 storey over basement office building carefully and thoughtfully refurbished during 2014/2015 secure basement car parking spaces with a further 9 unmarked surface car parking spaces to the rear 100% occupied generating a rental income of approx. 2,021,000 per annum Lower Baggot Street dublin 2 4 Multi-National tenants Storyful DMS Governance FitBit Sanne Group Weighted average unexpired lease term across the entire approx. 7.03 years to the break High profile office refurbishments and developments in the immediate Baggot Street vicinity include Miesian Plaza, Baggot Plaza, Waterloo Exchange and Linkedin s new European headquarters Offers sought in excess of 37,000,000 reflecting a net initial yield of 5.23% assuming standard purchasers costs of 4.46% 02 7 6 L o w e r B a g g o t S t r e e t 7 6 L o w e r B a g g o t S t r e e t 03
R I V E R L I F F E Y CAMDEN STREET WEXFORD STREET GEORGE S STREET ST STEPHEN S GREEN S.C. CUFFE STREET DAME STREET HARCOURT STREET GRAFTON STREET IVEAGH GARDENS WESTMORELAND STREET DAWSON STREET ST STEPHEN S GREEN PE MOLESWORTH STREET TRINITY COLLEGE NASSAU STREET ADELAIDE ROAD KILDARE STREET MERRION ROW LEESON STREET LOWER PEARSE STREET MERRION ST UPR LOWER BAGGOT STREET PEMBROKE STREET FITZWILLIAM SQUARE FITZWILLIAM PL MERRION SQ WEST STREET WESTLAND ROW LOMBARD MERRION SQUARE MERRION SQ SOUTH LAD LANE MERRION SQ NORTH WILTON TERRACE MESPIL ROAD PEMBROK E ROW FITZWILLIAM SQUARE E FITZWILLIAM ST UPR FITZWILLIAM ST LWR GRAND CANAL MERRION SQ EAST TOWNSEND STREET GRAND CANAL STREET LOWER HOLLES STREET MOUNT STREET LOWER MOUNT STREET UPPER 76 Lower Baggot Street PEARSE STREET HADDINGTON ROA Location 76 Lower Baggot Street occupies a prominent position within Dublin s core Central Business District. The office building is located adjacent to Pembroke Row, on the western side of Lower Baggot Street, near its junction with Baggot Street Bridge. Transport Lower Baggot Street has excellent public transport links with numerous Dublin bus routes stopping immediately outside Number 76. The area is also within walking distance of the DART at Barrow Street and Luas (Green Line) stops at St Stephens Green, Harcourt Street and Charlemont Bridge.. The 24 hour air coach has a stop on Lower Baggot Street which allows business travellers easy access to Dublin International Airport. Cyclists can also take advantage of several strategically located Dublin bike stations with drop off stations all over the city centre. Baggot Street is a vibrant and colourful part of Dublin 2 with traditional Georgian squares, chic restaurants, gastro pubs and excellent retail amenities serving the surrounding commercial and residential occupiers needs. Lower Baggot Street is a main thoroughfare linking Merrion Row with St Stephen s Green and is 10 minutes walk from Grafton Street. This highly desirable location has seen an abundance of office redevelopment and refurbishment projects since 2013 with a resurgence of office occupiers making their home here. Occupiers in the immediate vicinity include IBEC, Bank of Ireland, LinkedIn, HSE, Shire Pharmaceuticals, Bord Gáis, AdRoll, BskyB, NTMA and Amazon in 2017. Luas Green Line Luas CROSS CITY dublin bus dublinbikes DART 04 7 6 L o w e r B a g g o t S t r e e t 7 6 L o w e r B a g g o t S t r e e t 05
Demographics Dublin city centre has a population of 553,000 persons with an estimated 1.3 million people living in the greater urban area. Dublin has a total catchment of approx. 1.9 million (Census 2016, Preliminary.) The city s population is expanding rapidly; it is estimated by the Central Statistics office (CSO) that it will reach 2.1 million by 2020. The population growth is driving demand for accommodation in the city centre. The availability of a young talented workforce is one of the many factors attracting foreign direct investment to the city. Facebook, ebay, Yahoo, Google, Linkedin, FitBit, Stripe and Twitter have all set up European headquarters in Dublin in recent years. 06 7 6 L o w e r B a g g o t S t r e e t 7 6 L o w e r B a g g o t S t r e e t 07
The Property Developed in the late seventies, 76 Lower Baggot Street was specifically designed for Bord Na Móna to occupy as their national headquarters on the site of a former Christian Science Building. This striking building commemorated with its image on an An Post stamp in 1980 s, occupies a prominent position on Lower Baggot Street and is instantly recognisable. Number 76 is of steel reinforced concrete frame construction with reinforced concrete floor slabs and staircases. The building facade is finished with a combination of granite stone cladding and glazed curtain walling to the elevations. A large scale refurbishment project was undertaken in late 2014/2015. The works included the installation of new Toshiba manufactured Heating/Cooling systems with internal fan coil units and external condenser along with two new high speed passenger lifts. The refurbishment included 3 new boilers and flues and an extensively upgraded BMS system. The main distribution board for electricity supply was substantially upgraded along with all local distribution boards on each floor. All lighting systems were upgraded and replaced. The property is approximately 41,716 sq ft NIA (3,875.54 sq m) comprising 5 floors of office accommodation over a secured access basement. The common area reception at ground level has a full height atrium leading to a central core with a bank of two new high speed passenger lifts accessing all floors. Each floor offers superb flexibility with highly efficient L shaped open plan air conditioned floor plates. Each floorplate can be easily subdivided as there are two separate entrances per floor on either side of the central core. Typical floor plates are approx. 8,000 sq ft NIA. The property benefits from 50 secure basement car parking spaces and the potential to add a further 9 car spaces on the tarmac surfaced area to the left of the entrance to the basement car park at the rear of the property. Specifications The office accommodation is finished to a high specification to include: Plastered and painted walls Suspended metal ceilings with recessed low energy lighting Category II lightings Raised access floors with floor boxes wired for power and data Category 6 cabling Air-conditioning providing integrated heating and cooling 2 new high speed 10 person lifts Fully finished toilet facilities on each floor 08 7 6 L o w e r B a g g o t S t r e e t 7 6 L o w e r B a g g o t S t r e e t 09
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dublin port dublin convention centre 3arena eastlink bridge three mobile facebook hq south docklands shelbourne park google hq boland s mill kbc stripe ntma bt accenture nmh Holles Street Credit Union Bord Gáis opw northumberland road merrion square mount street haddington road esb miesian plaza HSE & Shire wilton terrace percy place Lower Baggot Street Lower Baggot Street 76 Lower Baggot Street Baggot Street bridge ibec linkedin canadian embassy pembroke Street fitzwilliam square fitzwilliam place wilton park house ida, whitney moore & SEAI wilton terrace grand canal grand canal mespil road bank of ireland ebs 12 7 6 L o w e r B a g g o t S t r e e t 7 6 L o w e r B a g g o t S t r e e t 13
plans Staircore Staircore 13.42 13.42 31.18 31.20 31.43 31.47 7.13 7.18 Reception Atrium Lift Lift Staircore Staircore Ground floor first floor accommodation schedule Please note these floor areas were measured and certified by Malcolm Hollis. A copy of the full report, which is assignable to the purchaser, is available in the online data room. Staircore Floor Tenant Gross Internal Area (GIA) net Internal Area (NIA) 13.42 sq. m. sq. ft. sq. m. sq. ft. Basement Various 109.5 1,179 31.45 31.21 Ground Storyful 989.5 10,651 762.5 8,208 7.18 First Fitbit 906.0 9,752 759.8 8,178 Second Fitbit 890.8 9,588 747.7 8,048 Atrium Third DMS 891.6 9,597 748.2 8,054 Lift Fourth Sanne Group 891.8 9,599 747.8 8,049 Staircore Totals 4,569.7 49,187 3,875.5 41,716 A factor of 10.7639 has been used to convert from sq. m. to sq. ft. fourth floor 14 7 6 L o w e r B a g g o t S t r e e t 7 6 L o w e r B a g g o t S t r e e t 15
TENANCY SCHEDULE Floor Tenant Guarantor Lease Leased Lease Floor Lease Floor Lease Lease Next Break Passing L length Car areas - Sq M areas - Sq Ft Start Date Expiry Review Date Rent Spaces Date Ground Storyful News 10 years N/A 746.01 8,030.00 25/11/2015 24/11/2025 25/11/2020 25/11/2022 364,554 Limited Corporation First & Fitbit N/A 10 years 26 1490.45 16,043.04 03/03/2016 02/03/2026 03/03/2021 02/03/2023 812,936 Second International Limited 76 Lower Baggot Street Third DMS Governance DMS 15 years 10 743.04 7,998.00 01/04/2016 31/03/2031 01/04/2021 31/03/2026 402,408 (Europe) Limited Governance previously known Limited as DMS Offshore Investment Services (Europe) Fourth Sanne Capital Sanne Group 10 years 13 742.85 7,996.00 11/07/2016 10/07/2026 11/07/2021 10/07/2023 425,310 Markets (Ireland) Plc Limited Roof Telefonica Ireland N/A 15 years N/A N/A N/A 01/07/2010 30/06/2025 30/06/2018 30/06/2017 16,000 Limited Total 49 3,722.35 40,067.04 2,021,208 The above schedule is provided on a without prejudice basis and for discussion purposes only. The agents, vendors, solicitors et al do not warrant the accuracy of the above in any way. This schedule is provided for information purposes only and should not be used to influence any transaction or for funding purposes. 16 7 6 L o w e r B a g g o t S t r e e t 7 6 L o w e r B a g g o t S t r e e t 17
Key Covenants Storyful fitbit DMS Governance Sanne Group 18% of Current OFFICE INCOME (Ground Floor tenant) 41% of Current OFFICE INCOME (First & Second Floor tenant) 20% of Current OFFICE INCOME (Third Floor tenant) 21% of Current OFFICE INCOME (Fourth Floor tenant) Storyful is a global social media news agency. Founded by Mark Little, the company was sold to News Corporation for 18m in 2013. The company now has offices in London, New York and Hong Kong as well as its headquarters in Dublin. Storyful Limited under their lease has a parent company guarantee from News Corporation. News Corporation reported fiscal 2016 full year total revenues of 8.3 billion. www.storyful.com Fitbit was founded in San Francisco in 2007 to promote fitness and health through sensors and wireless technology. With 7 offices globally, Dublin is their new European headquarters and Fitbit s shares began trading publically on June 18th 2016. Fitbit Inc. reported a revenue of 1.86 billion for 2015 and has a full 2016 outlook on revenue in the range of 2.5 to 2.6 billion. Third quarter results out in November and fiscal year end December 31st. Fitbit International Limited who are Dublin based have a have a Dun & Bradstreet rating of 1A3. DMS Governance has been a recognised leader in fund governance for the last 10 years. They offer a one stop shop service for navigating the world of offshore investing. 7 offices worldwide, the global headquarters is in the Cayman Islands. DMS established a presence in Dublin in 2008 and has been growing steadily ever since. DMS Governance (Europe) Limited have a Dun & Bradstreet rating of A2. Under their lease, there is a parent company guarantee from DMS Governance Limited who are Cayman Island registered. Sanne Group was established in Jersey in 1998 and originally focused on the provision of private client fiduciary services. The business is now primarily focused on corporate and fund administration services. In 2015 Sanne Group Plc listed on the London Stock Exchange and in 2016 acquired corporate service businesses in Dublin and a Hedge fund administration business in South Africa and Malta. Sanne Group have 600 staff worldwide in 12 jurisdictions with more than 50% of staff outside Jersey. Sanne Group Capital Markets Ireland Limited has a parent company guarantee from Sanne Group PLC who have a 3A2 Dun & Bradstreet rating. www.fitbit.com www.dmsgovernance.com www.sannegroupplc.com 18 7 6 L o w e r B a g g o t S t r e e t 7 6 L o w e r B a g g o t S t r e e t 19
Dublin Core Office Market In terms of occupier demand, the Central Business District (CBD) firmly remains the most sought after area. Within the CBD, quarter three was the most active quarter so far in 2016, with 36,200 sq m transacted in the three month period. This was almost one-third higher than the previous quarter and significantly higher than the long-run quarterly average CBD take up level of 20,600 sq m. Total take up in the CBD in the nine months to September stood at 89,050 sq m, accounting for half of overall take up in Dublin, and increasing from the 37% share recorded in the comparable period last year. In the CBD availability is more constrained. Supply levels rose by 5% over the quarter and by 2% year on year, to stand at 160,750 sq m, with a corresponding vacancy rate of 9.3%. However, given the significant volume of space signed and awaiting occupation at the end of September, net availability of total space in the CBD fell to just 67,300 sq m. This brought the net vacancy rate in the CBD down to 3.9%, the lowest level on record. Market Stock > Central Business District Take Up YTD > 89,050 sq m Availability > 160,750 sq m (Net Availability 67,300 sq m) Vacancy Rate > 9.3% (Net Vacancy Rate 3.9%) Under Construction > 273,850 sq m Pre-let > 21% Reserved > 10% Source: Cushman & Wakefield Research 20 7 6 L o w e r B a g g o t S t r e e t 7 6 L o w e r B a g g o t S t r e e t 21
Dublin Office Market Year To Date - Leasing Analysis Dublin Office Market Year To Date - Leasing Analysis 6% 24% 50% Dublin Take Up by Location DUBLIN CBD TAKE UP BY LOCATION 8% 51% 9% 50% CBD 51% Traditional/Core 26% Suburban 26% South Docks 24% Secondary 9% Fringe 8% IFSC - North Docks 6% Ballsbridge 26% 26% 5% 3% 3% 1% 6% 32% 5% 4% 1% 1% 1% DUBLIN TAKE UP BY TENANT TYPE Dublin CBD Take Up by Tenant Type 5% 34% 6% 32% IT/Comm 23% Finance 34% Finance 25% IT/Comm 6% 11% Professional 18% Professional 10% Unknown 6% Recruitment 6% Retail 5% Retail 10% 6% Pharmaceutical/Health 5% Other 5% Other 4% Unknown 18% 3% Recruitment 1% Training/Development 3% State 1% Pharmaceutical/Health 1% Training/Development 1% State 11% 23% 25% Source: Cushman & Wakefield Research Source: Cushman & Wakefield Research 22 7 6 L o w e r B a g g o t S t r e e t 7 6 L o w e r B a g g o t S t r e e t 23
Planning Zoned Z6 under the Dublin City Council Development Plan 2011-2017 - To provide for the creation and protection of enterprise and facilitate opportunities for employment creation. Title Freehold. VAT Further information upon request. Proposal Offers sought in excess of 37,000,000 which equates to Net Initial Yield of 5.23% assuming standard purchasers costs of 4.46%. BER Rating B3 C2 Full Building Energy Rating certificates available on request. Data Room A bespoke data room containing legal documents and background information is available at: www.76lowerbaggotstreet.com. Access is restricted and will be granted by Cushman & Wakefield to interested parties on the verification of information. All viewings are strictly by appointment through the sole selling agent Agent: Cushman & Wakefield, 164 Shelbourne Road, Ballsbridge, Dublin 4. CIARA HORGAN T: +353 (0) 1 6399 229 E: ciara.horgan@cushwake.ie PRSA No. 002222-002303 KEVIN DONOHUE T: +353 (0) 1 6399 234 E: kevin.donohue@cushwake.ie PRSA No. 002222-005462 JANE DOLAN T: +353 (0) 1 6399 225 E: jane.dolan@cushwake.ie PSRA No. 002222-002314 Solicitor: Elaine O Keeffe, Bord Na Móna, Main Street, Newbridge, Co Kildare. Conditions to be noted: 1. These particulars do not constitute an offer or contract or any part thereof and none of the statements contained in the particulars as to the property to be relied on as a statement or representation of fact. 2. The vendor does not make or give, nor is the Agent(s) or its staff authorised to make or give any representation or warranty in respect to this property. 3. All descriptions, dimensions, references to condition and necessary permission for use and occupation, and 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 himself/herself by inspection or otherwise as to the correctness of each of them. 4. In the event of any inconsistency between these particulars and the contract of sale, the latter shall prevail. 5. The terms, Vendor and Purchaser, where the context requires shall be deemed to refer to Lessor and Lessee and Landlord and Tenant respectively. 6. Prices are quoted exclusive of VAT (unless otherwise stated) and the purchaser/lessee shall be liable for any VAT arising on the transaction. 7. The Vendor reserves the right not to accept the highest or any offer made. 24 7 6 L o w e r B a g g o t S t r e e t