Shopping Centre Investment Opportunity For Sale by Private Treaty Tenants not Affected 1
Investment Summary 5,461 sq. m. (58,781 sq. ft.) Net Internal Area (excluding long leasehold interests) Two Anchor Stores: (long leasehold interest) Prominent Location in the centre of Mullingar Town 300 Car Spaces underground 685,018 per annum of Net Operating Income (to include car park income) A strong anchored retail scheme in the centre of Mullingar Town with immediate asset management opportunities. Asset Management Opportunities
Shopping in Mullingar Mullingar is the county town of Westmeath, with a population of 20,928 (census 2016). Mullingar is located centrally within Ireland s midlands, approximately 80km from Dublin City Centre. The town is situated on the M4/N4 corridor (accessed via junction 15), one of Ireland s main arterial routes servicing the Dublin to Sligo route. Mullingar is also connected to the main Dublin to Galway route via the N52 National Primary Road. Fairgreen Shopping Centre is situated within Mullingar Town at a pivotal roundabout which connects Patrick Street and Ashe Road. The scheme has a prominent profile and benefits from vehicular and pedestrian passing trade. Mullingar Train Station is situated approx. 350m from Fairgreen Shopping Centre. The station sits on the Dublin Connolly to Sligo line. HARBOUR PLACE SHOPPING CENTRE PEARSE STREET AUSTIN FRIARS STREET OLIVER PLUNKETT STREET MULLINGAR SHOPPING CENTRE MULLINGAR TRAIN STATION COLUMB BARRACKS RESIDENTIAL SITE Accessing Fairgreen Mullingar R394 N4 HARBOUR STREET DELVIN ROAD ASHE ROAD N4 R390 R400 AUSTIN FRIARS ROAD R156 NEWBROOK ROAD R394 N52 Outline is for illustrative purposes only
The centre currently attracts footfall of 1.5 million per annum DESCRIPTION Fairgreen Shopping Centre was constructed in 2005 and comprises a single storey shopping centre of approximately 5,461 sq. m. (58,781 sq.ft.) (excluding Penneys which is held under long leasehold interest). The centre has a simple, linear layout comprising eight units, two anchor units and six additional retail units fronting the central mall. Five of the units, including both anchor units, have mezzanines. The centre has the benefit of 300 underground parking spaces, which can be accessed from a central point in the main mall. Fairgreen Shopping Centre serves a very strong purpose within Mullingar Town with anchors TK Maxx and Penneys proving to be a significant footfall draw. Currently the centre attracts footfall of 1.5 million per annum. The addition of Costa Coffee in 2016, which sits at the entrance to the scheme, has proven to be an additional footfall driver and offers a key amenity for customers. Fairgreen Shopping Centre has excellent profile onto two main roads within Mullingar Town and is positioned within a densely populated residential area.
Scheme Plan UNIT 4A UNIT 4 UNIT 5A UNIT 3 UNIT 5B UNIT 1 ENTRANCE UNIT 2A UNIT 2B Stores UNIT 1 UNIT 2A UNIT 2B UNIT 3 UNIT 4 UNIT 4A UNIT 5A UNIT 5B PENNEYS (long leasehold interest) COSTA COFFEE ELVERY SPORTS TK MAXX VACANT DEALZ VACANT (terms agreed) NEW LOOK
Castlebar N77 Donegal N15 Sligo N4 Derry N3 Cavan A5 M2 Belfast M1 Drogheda Local Employers Pharmed Mullingar is a thriving business, administrative and industrial centre with a population of 20,928 N84 Galway N18 Limerick Athlone M6 M7 M8 Navan Mullingar M3 KINNEGAD M4 M7 M9 Kilkenny M1 M50 Dublin Imperial Tobacco Greene Farm Foods The IDA has recently completed the services infrastructure for a 70 acre business park which should facilitate the arrival of additional multinational companies to Mullingar in the short to medium term. Mullingar Regional Hospital is a 211 bedroom, public hospital which services the entire of the west midlands and is situated on the outskirts of Mullingar Town. N21 Killarney N22 N20 Cork N25 Waterford Wexford N11 The newly established Land Development Agency which was set up as part of the Ireland 2040 plan has identified Columb Barracks in Mullingar as a site for residential development. Columb Barracks has capacity to hold 250 residential units and immediately adjoins Fairgreen Shopping Centre. Location The subject property is located in Mullingar, the capital town of County Westmeath and its administrative headquarters. Mullingar is located centrally within Ireland s midlands approximately 80km from Dublin city centre and approximately 140km from Galway city centre. The town is situated on the M4/ N4 corridor, one of Ireland s main arterial routes servicing Dublin to Sligo. Mullingar Town is accessed via junctions 15, 16 and 17.
Catchment Analysis Westmeath TOTAL POPULATION 88,770 100% Food 16% Total Houses Household / bungalos Expenditure 1.2 Billion 45,663 4% Alcohol, Drink and Tobacco 31,813 Cars Private Permanent Households Total Per Household No car 1 car 2 cars 3 cars 4,289 13,188 11,108 1,807 142,313 44,688 44,082 4 or more cars 545 198 Million 44 Million TAL POPULATI 5% Clothing and Footwear 56 Million 16% Housing 3% Durable Household Goods 195 Million 37 Million 44,082 Workforce 48.18% <15 Years 18,448 23% 15-24 Years 11,040 14% 25-44 Years 25,996 33% 45-64 Years 16,365 20% 65+ Years 7,899 10% 2% 5% Non-Durable Household Goods Fuel and Light Miscellaneous Goods and Services Misc 32% 17% Transport 27 Million 69 Million 397 Million 216 Million Population Growth 61,880-2% 63,314 71,858 79,346 86,164 87,887 +2% +13 +10 +9 +2 Household Spending 750 p.w. 2011 1991 1996 2002 2006 2016
Fairgreen Mullingar Income Occupancy (by floor area) 15% Average Weighted Unexpired Term to Earliest Event Income Hierarchy By Tenant Fairgeen Shopping Centre is anchored by Penneys (long leasehold interest) and TK Maxx. Both tenants are key footfall drivers in the centre. 85% 3.04 YEARS 56% 31% 13% The additional tenants comprise a combination of well known and regarded national and international tenants including Costa Coffee, New Look, Dealz and Elverys. Occupancy Average Weighted Unexpired Term to Expiry COUNTY WESTMEATH The scheme is producing an income of 685,018 per annum (NOI) and has a WAULT of 3.04 years, 9.51 years to expiry. Vacant 9.51 YEARS 424,930 MULTINATIONAL 240,000 NATIONAL 99,333 CAR PARK AND MALL INCOME Tenancy Schedule Demise Tenant Total sq. m. Total sq. ft. Term Start Date Term End Date Rent Review Break Passing Rent Unit 1 Penney's (long leasehold interest) 5,121 55,121 - - - - - Unit 2 Staunton Sports t/a Elverys 603 6,487 01/01/2017 31/12/2026 31/12/2021 31/12/2023 120,000 Unit 2a MBCC Foods t/a Costa Coffee 275 2,958 01/08/2016 31/07/2031 N/A 31/07/2023 55,000 Unit 3 TJX Ireland t/a TK Maxx 2,334 25,119 06/07/2015 05/07/2030 05/07/2020* 06/07/2020 140,000 Unit 4 Vacant 374 4,027 - - - - - Unit 4a Poundland t/a Dealz 717 7,714 09/11/2015 08/11/2025 08/11/2020 08/11/2020 120,000 Unit 5a Vacant (terms agreed) 465 5,010 - - - - - Unit 5b New Look Retailers 694 7,466 13/09/2007 12/09/2032 12/09/2022 13/09/2022 229,920 Mall Machines Clearhill Retail Entertainment - - 01/09/2015 31/08/2020 - - 8,000 Underground Car Park Car Park Income - - - - - - 91,333 Total 10,583 113,902 764,253 Total Buying 5,461 58,781 * Please refer to lease side letter.
The Irish Retail Market 2018 The Irish economy is providing a backdrop for strong retail performance At the beginning of autumn 2018, Ireland s economic fundamentals are sound: GDP output grew by 7.2% in 2017 making Ireland the fastest growing economy in EMEA. At this juncture, according to CBRE s House View, Ireland is on course to achieve GDP growth in excess of 5.1% in 2018 and is on target to be the best performing economy in EMEA for a fifth consecutive year. This momentum has continued into the first half of 2018 with the labour market performing especially well. More than 74,100 jobs were created in H1 2018 indicating another 3.4% increase compared to the Q2 2017. Unemployment has fallen to 5.6% in August - its lowest level in August since 2006. Disposable household incomes are growing in the long-term and bounced back after the recession. The figure is standing at EUR 56.968 per household per year and is forecasted to grow by another 2.8% in 2018 due to a combination of modest pay increases, tax cuts and increased numbers at work. A combined positive consumer sentiment and retail sales are likely to provide for a strong consumer demand and a strong performance of the retail sector. Retail investment demand is centred around assets with strong fundamentals Investor appetite is focused on well located and well managed assets with potential for some value add but with limited leasing risk Retail investment accounted for 27% of investment spend in 2017 and 12% ytd 2018 with the most significant trade being Westend Retail Park in Blanchardstown which traded at 148 million. Secondary retail yields are currently at 7.00% - comparing favourably to other sectors where yields have compressed significantly. The Irish occupier market is supporting the underwrite of assets that are correctly positioned for growth. Figure: Prime Yields Shopping Centres Ireland Household Disposable Income Ireland Source: Oxford Economics, 2018. The Irish occupier market remains robust amid global speculation in the retail market Consumer Sentiment Index (CSI) Ireland Amidst global speculation around the sustainability of retail, the Irish market is performing well, being supported by strong economic fundamentals Regionally there is strong performance from national occupiers with many retailers looking to expand their operations. Source: ESRI/KBC, 2018 The food and beverage and beauty sectors are performing exceptionally well, as are the homeware retailers who are seeing growth on the back of a strong housing market. While demand from UK and international brands has slowed down somewhat in the aftermath of the Brexit announcement, there are live requirements for the correct locations where retailers have witnessed strong online trading.
Contacts Sole Selling Agents Solicitor Natalie Brennan Senior Director T +353 1 618 5555 M +353 87 680 8986 natalie.brennan@cbre.com Fiona Kennedy Associate Director T +353 1 618 5742 M +353 87 181 9913 fiona.kennedy@cbre.com Willie Norse Executive Director DD +353 1 618 5529 M +353 86 299 6627 willie.norse@cbre.com Arthur Cox Earlsfort Centre, Earlsfort Terrace, Dublin 2, Ireland. Deirdre Sheehan T +353 1 920 1759 deirdre.sheehan@arthurcox.com BER: BER numbers available upon request Tenure Freehold fairgreenmullingarsale.com Disclaimer: CBRE U.C., (CBRE Ireland) These particulars are issued by CBRE U.C., registered in Ireland, no. 316570. PSRA Licence No. 001528 on the understanding that any negotiations relating to the property are conducted through them. While every care has been taken in preparing them, CBRE U.C., 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 U.C., nor any of their employees have any authority to make any or give any representation or warranty in relation to the property. Brochure prepared September 2018. design conradjones.com 21
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