GRAFTON STREET DUBLIN 2

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1 RETAIL INVESTMENT OPPORTUNITY DUBLIN 2

INVESTMENT SUMMARY TROPHY RETAIL INVESTMENT SOUTH DOCKLANDS PRIME PITCH ON IRELAND S PREMIER RETAIL DESTINATION ENTIRE LET TO LIFE STYLE SPORTS (IRELAND) LTD ON AN FRI LEASE TEMPLE

TO APPROXIMATELY 1,089 SQ. M. (11,723 SQ. FT.

2 INVESTMENT SUMMARY TROPHY RETAIL INVESTMENT SOUTH DOCKLANDS PRIME PITCH ON IRELAND S PREMIER RETAIL DESTINATION ENTIRE LET TO LIFE STYLE SPORTS (IRELAND) LTD ON AN FRI LEASE TEMPLE BAR COLLEGE GREEN TRINITY COLLEGE LIFE STYLE SPORTS IRISH FLAGSHIP STORE ANNUAL RENT OF 675,000 NASSAU STREET STRONG REVERSIONARY POTENTIAL WICKLOW STREET THE ENTIRE BUILDING EXTENDS TO APPROXIMATELY 1,089 SQ. M. (11,723 SQ. FT.) DRURY STREET PARENT COMPANY AND BANK GUARANTEE IN PLACE 20 YEAR LEASE FROM NOVEMBER 2014, BREAK OPTIONS IN YEAR 10 AND 15 DUAL FRONTAGE ONTO BOTH AND SOUTH KING STREET SOUTH KING STREET STEPHEN S GREEN SHOPPING CENTRE For Sale by Private Treaty on the instruction of Duff & Phelps (Tenant not affected) ST.STEPHEN S GREEN 3

DESCRIPTION Grafton Street is situated in the heart of Dublin s principal shopping destination, home to leading international

Boasting 11 metre frontage onto Grafton Street, the property also benefits from a dual return frontage of 5.

57 and 58 providing a large retail floor space of approximately of 676 sq. m. (7,277 sq. ft.) over ground and first floor.

retailer s needs. Storage and ancillary uses are located on the upper floors and the basement level is for access purposes only.

The structure of the property comprises a combination of traditional masonry and steel reinforced concrete framed construction

3 DESCRIPTION Grafton Street is situated in the heart of Dublin s principal shopping destination, home to leading international brands including Massimo Dutti, Ted Baker, Reiss, Zara and Nespresso. The property comprises a high profile 4 storey over basement mid terraced building extending to approximately 1,089 sq m (11,723 sq ft) net internal area. Boasting 11 metre frontage onto Grafton Street, the property also benefits from a dual return frontage of 5.5 metres onto South King Street. The property has recently been completely refurbished to include the amalgamation of Nos. 57 and 58 providing a large retail floor space of approximately of 676 sq. m. (7,277 sq. ft.) over ground and first floor. This is a rare commodity on Grafton Street, where small retail floor plates dominate the street and are unsuitable to large retailer s needs. Storage and ancillary uses are located on the upper floors and the basement level is for access purposes only. BOASTING 11 METRE FRONTAGE ONTO, THE PROPERTY ALSO BENEFITS FROM A DUAL RETURN FRONTAGE OF 5.5 METRES ONTO SOUTH KING STREET. The structure of the property comprises a combination of traditional masonry and steel reinforced concrete framed construction with No.58 being a protected structure. The floors are a mix of in-situ concrete and timber. The building incorporates a part-slate covered pitched and part-felt covered flat roof. Having opened for trade in April 2015, the property benefits from a high-spec modern fit out and now trades as Lifestyle s flagship Irish store. 5

INVESTMENT SUMMARY WICKLOW ST. IS DUBLIN S PRIME RETAIL DESTINATION AND ONE OF DUBLIN S MOST VISITED LOCATIONS, BOASTING FOOTFALL IN EXCESS OF 530,000 PER WEEK.

Massimo Dutti, Nespresso, Molton Brown and Space NK.

4 INVESTMENT SUMMARY WICKLOW ST. IS DUBLIN S PRIME RETAIL DESTINATION AND ONE OF DUBLIN S MOST VISITED LOCATIONS, BOASTING FOOTFALL IN EXCESS OF 530,000 PER WEEK. Anchored by Stephen s Green Shopping Centre at one end and Brown Thomas luxury department store at the other, Grafton Street continues to attract international brands with recent additions including Massimo Dutti, Nespresso, Molton Brown and Space NK. The subject redeveloped property occupies a prominent position at the southern end of the pedestrian thoroughfare, close to the intersection of Grafton Street and South King Street. It is situated a short distance from Stephen s Green Shopping Centre and surrounding occupiers include Disney Store, Vans, Swatch, Sisley and Ecco; with Zara, Warehouse and H&M close to the South King Street entrance. The retail offer is complemented by numerous cafes and restaurants in the immediate vicinity including the five star Westbury Hotel, Bewleys Café and Wagamamas. WILLIAM ST. SOUTH CLARENDON STREET HARRY ST. BROWN THOMAS ALDO BEWLEY S SPACE.NK BT2 MARKS AND SPENCER NESPRESSO BOOTS TOMMY HILFIGER DUKE ST. TRANSPORT THE PROPERTY S CENTRAL LOCATION PROVIDES FOR EXCELLENT TRANSPORT LINKS WITH LUAS STOPS AND DART STATIONS WITHIN WALKING DISTANCE AND NUMEROUS DUBLIN BUS ROUTES LOCATED IN THE IMMEDIATE AREA. H&M ZARA CHATHAM ST. WAREHOUSE MASSIMO DUTTI DISNEY VANS ECCO LEVI S TOPMAN TED BAKER TIMBERLAND ANN ST. SOUTH The LUAS Cross City Project is also expected to positively impact Grafton Street with two new nearby stops to include Dawson Street and College Street. There are also a number of multi-storey car parks located in the vicinity including Q-Park Stephen s Green, Setanta Place, Dawson Street and Drury Street car park which ensures this location is highly accessible. KING ST. SOUTH STEPHEN S GREEN SHOPPING CENTRE REISS OASIS TOPSHOP 7

ACCOMMODATION TENANCY THE AREAS ARE CALCULATED ON A NET INTERNAL AREA BASIS. AN ASSIGNABLE 3RD PARTY MEASUREMENT SURVEY IS PROVIDED IN THE DATA ROOM. Floor Use Area Sq. M. Area Sq. Ft.

45 1,415 The recently redeveloped property is let to Life Style Sports (Ireland) Limited for a term of 20 years from 21st of November 2014 on a full repairing and insuring lease.

The tenant is entitled to a 12 month rent free period from the first day of the second quarter of the term, the vendor will underwrite this rent free period.

Oxfam occupies the units which are held by Oxfam under a sub-lease for terms of 999 years and 250 years respectively from the early 1900s. Further information is available in the data room.

5 ACCOMMODATION TENANCY THE AREAS ARE CALCULATED ON A NET INTERNAL AREA BASIS. AN ASSIGNABLE 3RD PARTY MEASUREMENT SURVEY IS PROVIDED IN THE DATA ROOM. Floor Use Area Sq. M. Area Sq. Ft. Ground Retail ,377 First Retail ,900 Second Ancillary ,351 Third Ancillary ,153 Basement Ancillary Total 1, ,723 ITZA ,415 The recently redeveloped property is let to Life Style Sports (Ireland) Limited for a term of 20 years from 21st of November 2014 on a full repairing and insuring lease. The passing rent is 675,000 per annum which is subject to 5 yearly rent reviews. The tenant break option in years 10 and 15 are subject to 12 months written notice. The tenant is entitled to a 12 month rent free period from the first day of the second quarter of the term, the vendor will underwrite this rent free period. The reversion in the long leasehold interest of Nos. 54 South King Street (ground and basement level) and 53 South King Street (basement level only) is also incorporated in this sale. Oxfam occupies the units which are held by Oxfam under a sub-lease for terms of 999 years and 250 years respectively from the early 1900s. Further information is available in the data room. IN GOOD COMPANY... COVENANT INFORMATION Life Style Sports was founded in 1979 and has grown into Ireland s largest sporting retailer with over 60 stores country wide and is the official retail partner of Leinster Rugby and Munster Rugby in Ireland. Stafford Holdings Limited is the guarantor for Life Style Sports for the entire term of the lease. Stafford Holdings Limited has a D&B rating of 3A 4 based on a tangible net worth in excess of 16.3 million with an annual turnover of almost 360 million (based on 2013 year ending accounts). Stafford Holdings is a highly diversified company involved in several sectors including retail, oil and shipping. Furthermore, the Governor and Company of the Bank of Ireland have provided a bank guarantee on behalf of the tenant for a maximum aggregate amount of 1 million. The bank guarantee is for a period of 5 years from November 2014 and can be renewed for a 12 month period on each anniversary thereafter. Full information is available in the data room. 9

RETAIL GROWTH FORECASTS RETAIL ECONOMY IMPROVING Unemployment expected to drop below 9% in 2015, wage increases are forecasted and GDP to grow by 5.4% GROW BY 5.

Grafton Street is the focal point for international retailers seeking to expand into the Irish market. This is evidenced by the recent letting to Massimo Dutti, And Other Stories and Space NK.

6 RETAIL GROWTH FORECASTS RETAIL ECONOMY IMPROVING Unemployment expected to drop below 9% in 2015, wage increases are forecasted and GDP to grow by 5.4% GROW BY 5.4% 57/58 OFFERS SUPERB REVERSIONARY POTENTIAL WITH THE SHORTAGE OF GOOD QUALITY RETAIL SPACE IN THE CITY AND HIGH LEVELS OF OCCUPIER DEMAND DRIVING RENTS UPWARDS. Grafton Street is the focal point for international retailers seeking to expand into the Irish market. This is evidenced by the recent letting to Massimo Dutti, And Other Stories and Space NK. RETAIL OUTLOOK The outlook for the retail economy is very positive. The ESRI is predicting that up to 50,000 new jobs will be added this year. The unemployment rate is expected to fall below 9% in 2015 for the first time since January 2009 with an additional decline to just over 8% expected by Ibec in Further wage rises are likely to result as the labour market tightens, this will lead to increased consumer spending. Taken together, these factors will lead to another strong year for the Irish economy in 2015 with Ibec expecting GDP to grow by 5.4%. RENTAL GROWTH FORECAST Savills research team has examined the mathematical link between consumer sentiment, retail sales and retail rents to produce a statistically backed rental forecast model specific to Grafton Street. Consumer sentiment index has increased year on year by 17.8% as of Q while retail sales have increased by 9.2% over the same period. CONSUMER SENTIMENT AND RETAIL SALES ARE UP Consumer Sentiment up 17.8% Year on Year Retail Sales up 9.2% Year on Year LOW VACANCY RATES As of Q the unit vacancy rate stood at 2% on Grafton Street, highlighting strong occupier demand FORECAST FOR RENTAL GROWTH Savills forecasts suggests Grafton Street Rental Growth of 17% in 2015 Source: Savills Research REAL GRAFTON RENTS INDEX 2015 UP 17.8% STOOD AT 2% GROWTH 17% The forecasting exercise suggests that rents in Grafton Street will progress along the lines illustrated on the graph up to March That is, real rents on the street will rise by approximately 17% per annum in Overall, according to the model, real Grafton Street rents are likely to be approximately 36% lower at the end of March 2016 than they were at the peak of the market in December 2007 which would suggest there is scope for further rental growth. The vacancy rate on Grafton Street stood at approximately 2% as of Q which shows the strength of occupier demand at present. 11

CONTACTS & FURTHER INFORMATION WEBSITE TITLE PRICING BER www.5758graftonst.

7 CONTACTS & FURTHER INFORMATION WEBSITE TITLE PRICING BER Part Freehold / Part Long Leasehold On application VIEWINGS Viewings are strictly by appointment through Savills, the sole selling agent. SELLING AGENT FERGUS O FARRELL T E Fergus.OFarrell@savills.ie DIANE CREAN T E Diane.Crean@savills.ie PAUL CALLANAN T E Paul.Callanan@savills.ie SAVILLS IRELAND 33 Molesworth Street, Dublin 2, Ireland SOLICITORS ARTHUR COX Earlsfort Centre Earlsfort Terrace Dublin 2 Ireland DEIRDRE BARRETT T E deirdre.barrett@arthurcox.com AINE BAMBRICK T E aine.bambrick@arthurcox.com Savills Ireland and the Vendor/Lessor give note that the particulars and information contained in this brochure do not form any part of any offer or contract and are for guidance only. The particulars, descriptions, dimensions, references to condition, permissions or licences for use or occupation, access and any other details, such as prices, rents or any other outgoings are for guidance only and are subject to change. Maps and plans are not to scale and measurements are approximate. Whilst care has been taken in the preparation of this brochure intending purchasers, Lessees or any third party should not rely on particulars and information contained in this brochure as statements of fact but must satisfy themselves as to the accuracy of details given to them. Neither Savills Ireland nor any of its employees have any authority to make or give any representation or warranty (express or implied) in relation to the property and neither Savills Ireland nor any of its employees nor the vendor or lessor shall be liable for any loss suffered by an intending purchaser/lessees or any third party arising from the particulars or information contained in this brochure. Prices quoted are exclusive of VAT (unless otherwise stated) and all negotiations are conducted on the basis that the purchasers/lessees shall be liable for any VAT arising on the transaction. This brochure is issued by Savills Ireland on the understanding that any negotiations relating to the property are conducted through it. All maps produced by permission of the Ordnance Survey Ireland Licence No AU Government of Ireland.

TO LET PRIME RETAIL OPPORTUNITY

TO LET PRIME RETAIL OPPORTUNITY PRIME RETAIL OPPORTUNITY 18 Dawson Street occupies a prestigious and highly coveted location at the junction of Dawson Street and Molesworth Street in the heart of Dublin