PRIME OFFICE INVESTMENT OPPORTUNITY CORRIB C O L L E C TIO N GA LWAY CITY GEATA NA CATHRACH & DOCKGATE
DTZ SHERRY FITZGERALD PRESENTS AN OPPORTUNITY TO GEATA NA CATHRACH CONTENTS 05 07 09 10 11 EXECUTIVE LOCATION DESCRIPTION ACCOMMODATION COVENANT SUMMARY & TENANCY
ACQUIRE GILT EDGE INVESTMENTS IN GALWAY CITY CORRIB COLLECTION GALWAY CITY DOCKGATE* *SALE EXCLUDES UNITS 2, 4, 8, 10 & 12 CONTENTS 13 14 16 17 20 22 EXECUTIVE LOCATION DESCRIPTION ACCOMMODATION COVENANT GALWAY OFFICE SUMMARY & TENANCY MARKET 01 CORRIB COLLECTION 1
AERIAL THE CLADDAGH SHOP STREET DOCK ROAD DOCKGATE 2
NUI GALWAY EYRE SQUARE GEATA NA CATHRACH CEANNT TRAIN STN. GALWAY COACH STN. LOUGH ATALIA ROAD RADDISON HOTEL CORRIB COLLECTION 3
4 GEATA NA CATHRACH
CORRIB COLLECTION GEATA NA CATHRACH, FAIRGREEN EXCEPTIONAL INVESTMENT OPPORTUNITY GALWAY CITY AN OPPORTUNITY TO ACQUIRE GEATA NA CATHRACH, ONE OF GALWAY S LANDMARK BUILDINGS EXECUTIVE SUMMARY For Sale by Private Treaty Modern purpose built, four storey over basement extending to total area of 11,765 sq m (126,637 sq ft) 33 Basement Car Spaces Potential to increase Car Parking Provision 11 Residential Two Bedroom Apartments Passing Rent is 1,636,040.96 per annum Let to OPW, Ulster Bank, Atlantic Language School & Loam Restaurant Tenants unaffected by the sale CORRIB COLLECTION / GEATA NA CATHRACH 5
R864 R338 N6 R336 DYKE ROAD N59 UNIVERSITY ROAD RIVER CORRIB HEADFORD ROAD PROSPECT HILL BOHERMORE ROAD GEATA NA CATHRACH COLLEGE ROAD LOUGH ATALIA SHANTALLA ROAD R864 R864 New Road HENRY ROAD BRIDGE STREET Eyre Street ABBEYGATE STREET Middle Street St. Augustine St. MERCHANTS ROAD DOCK ROAD EYRE SQUARE STATION RD. FAIRGREEN ROAD CEANNT TRAIN/BUS ST DOCK ROAD LOUGH ATALIA ROAD R337 R337 R336 CLADDAGH QUAY R864 BELFAST WHITESTRAND ROAD SOUTH PARK GALWAY BAY GALWAY DUBLIN LIMERICK GRATTAN ROAD CORK Galway Bus Stops Bus/Train Station Taxi Rank 6 GEATA NA CATHRACH
CORRIB COLLECTION LOCATION Prime city centre location approximately 100m north east of Eyre Square and directly adjacent to the Radisson Blu Hotel Prominent Corner Building situated at the entrance to the Radisson Hotel and located between Forster Street and Lough Atalia Road on Fairgreen Road Located adjacent to Galway Coach Station and in close proximity to CIE bus station and Ceannt rail station making it one of the most easily accessible buildings in the city. CORRIB COLLECTION / GEATA NA CATHRACHA 7
CORRIB COLLECTION COLLECTION DESCRIPTION High Profile Building comprising of a four storey over basement. It extends to a total area of 11,765 sq m (126,637 sq ft) to include the basement. Bounded by the Radisson Hotel to the south east and adjoining the Webworks development. The subject property comprises of two levels of retail accommodation with three levels of office accommodation and 11 no two bedroom duplex apartments, together with 33 basement car spaces. Lift access is provided to all floors. A communal lobby area on the ground floor which is finished with tiled floors and walls provides access to the upper floors via staircase or two passenger lifts. The apartments have a separate access from the ground floor, while the public entrance to the Department of Revenue is accessed directly from street level. CORRIB COLLECTION / GEATA NA CATHRACHA 9
ACCOMMODATION DESCRIPTION (GIA) Sq m Sq ft Basement 394 4,253 Ground 3,781 40,708 Mezzanine 2,856 30,750 First 1,877 20,214 Second 871 9,378 Third 645 6,948 Apts 11-21 1,046 11,263 Sixth 837 9,009 Zoning Planning policy for the area is contained within the Galway City Development Plan 2011-2017. The property is located in an area zoned Objective CC which is defined as To provide for city centre activities and particularly these, which preserve the city centre as the dominant commercial area of the city. Total Area 11,765 126,637 TENANCY Tenant Lease Term Lease Start Lease Expiry Break Option Rent Review Review Date Current Rent p/a OPW 20 years 21 February 2006 20 February 2026 N/a Upward Only 21 February 2016 1,160,118 Ulster Bank 9 year 11 month 25 April 2007 25 March 2017 N/a Upward Only N/a 200,000 Atlantic Language School Atlantic Language School 5 year lease 1 July 2014 30 June 2019 N/a N/a N/a 100,000 5 year lease 1 July 2014 30 June 2019 N/a N/a N/a 110,000 Loam 20 year lease 1 November 2014 31 October 2044 2, 5, 10, 15 N/a 31 October 2019 30,000 Evidence Therapy Clinic 3 year lease 1 March 2013 28 February 2016 N/a N/a N/a 14,472 Car parking 33 21,450 10 GEATA NA CATHRACH
CORRIB CORRIB COLLECTION COLLECTION TENANT INFORMATION Ulster Bank was established in 1836, Ulster Bank was acquired by the Westminster Bank in 1917. As a subsidiary of National Westminster Bank, it became part of The Royal Bank of Scotland Group in 2000. It has 146 branches in the Republic of Ireland and 90 in Northern Ireland with over 1,200 non-charging ATMs. The Group has over 3,000 employees and over 1.9 million clients. The Ulster Bank Group is subdivided into two separate legal entities, Ulster Bank Limited (UBL registered in Northern Ireland) and Ulster Bank Ireland Limited (UBIL registered in the Republic of Ireland). The Group s headquarters (and UBIL s) is located in George s Quay, Dublin in the Republic of Ireland whilst the official headquarters of UBL is in Donegal Square East, Belfast, in Northern Ireland, and it maintains a large sector of the financial services in both the UK and Ireland. For further information www.ulsterbank.ie The Office of Public Works (OPW) is a State Agency of the Department of Finance in Ireland. Its chief responsibility is the ownership, upkeep, and maintenance of Government of Ireland and historic buildings in Ireland. For Further information www.opw.ie Atlantic Language School have over 20 years experience providing English Language courses for adults, juniors and families from all over the world. Atlantic Language has schools in Galway and Dublin and offer a wide variety of courses designed to meet the needs of all students of English whatever their language requirements. For further information http://www.atlanticlanguage.com/ Loam is an award winning restaurant and wine bar run by Michellin Star chef Enda McEvoy. The restaurant was the recent recipient of the RAI award for the Best Emerging Restaurant in Ireland. For further information visit www.loamgalway.com CORRIB COLLECTION / GEATA NA CATHRACH 11
12 DOCKGATE
CORRIB COLLECTION DOCKGATE HIGH PROFILE INVESTMENT, GALWAY CITY. OPPORTUNITY TO ACQUIRE HIGH PROFILE BUILDING WITH SIGNIFICANT REVERSIONARY POTENTIAL. EXECUTIVE SUMMARY For Sale by Private Treaty Impressive five storey office building comprises of Units 1, 3, 5, 6, 7, 9, 11, 13-21 extending to total area of 4,463 sq m (48,039 sq ft) with 90 surface car spaces Docklands Area likely to witness extensive development further enhancing value in the future Passing Rent is 526,934 per annum Current vacancy allows for immediate rental uplift Strong Reversionary potential Tenants Unaffected by the sale THE CURRENT SALES DOES NOT INCORPORATE THE ENTIRE DOCKGATE BUILDING. UNITS 2, 4, 8, 10 & 12 ARE OWNED BY THIRD PARTIES AND DO NOT FORM PART OF THE SUBJECT SALE. CORRIB COLLECTION / DOCKGATE 13
R864 UNIVERSITY ROAD RIVER CORRI Eyre Street EYRE SQUARE STATION RD. PROSPECT HILL FAIRGREEN ROAD COLLEGE ROAD LOUGH ATALIA ROAD LOUGH ATALIA SHANTALLA ROAD R864 New Road HENRY ROAD BRIDGE STREET ABBEYGATE STREET Middle Street St. Augustine St. DOCK ROAD MERCHANTS ROAD CEANNT TRAIN/BUS ST DOCK ROAD DOCKGATE R337 R337 R336 CLADDAGH QUAY R864 WHITESTRAND ROAD SOUTH PARK GALWAY BAY GRATTAN ROAD LOCATION THE SUBJECT PROPERTY IS LOCATED IN GALWAY CITY CENTRE AND HAS DOUBLE FRONTAGE ONTO BOTH DOCK ROAD AND MERCHANTS ROAD. THE BUILDING OVERLOOKS THE GALWAY DOCKS AREA TO THE FRONT Prime city centre location approximately 100m south of Eyre Square and directly adjacent to the Galway Harbour. 14 DOCKGATE
CORRIB COLLECTION
DESCRIPTION THE SUBJECT PROPERTY CONSISTS OF A SIX STOREY BUILDING FINISHED TO THE HIGHEST STANDARDS TO TAKE ADVANTAGE OF ITS SITUATION OVERLOOKING GALWAY S DOCKS. THE BUILDINGS ELEVATIONS ARE MADE UP PRIMARILY OF LARGE GLAZED CURTAIN WALLING. THE DESIGN MAKES THE BUILDING ONE OF GALWAY S MOST RECOGNISABLE The property extends over four floors with a fifth floor penthouse office on the Dock Road side of the building the structure is built around a central courtyard which includes 90 car parking spaces. Internally all units have been fit-out by the tenants to a high standard and each unit accommodates w.c. and kitchen facilities. All units are accessible via a lift and have signage at ground floor lobby. 16 DOCKGATE
CORRIB COLLECTION ACCOMMODATION We have set out below the net internal (NIA) floor areas which have been calculated in accordance with the SCS/IAVI Measuring Practice Guidance Notes. Zoning Planning policy for the area is contained within the Galway City Development Plan 2011-2017. The property is located in an area zoned Objective CC which is defined as To provide for city centre activities and particularly these, which preserve the city centre as the dominant commercial area of the city. Floor Unit Nett Int. Area Sq.m G.F 1A 127.09 G.F 1B 46.45 G.F 1B 37.16 G.F 13 74.97 1st F 3 405.91 1st F 14 405.30 1st F 15 313.98 2nd F 5, 6 & 17B 867.00 2nd F 16 325.15 2nd F 17A 212.43 sq 3rd F 7 392.60 3rd F 18 325.16 3rd F 19 317.82 4th F 9 186.00 4th F 11 185.80 4th F 20 159.97 4th F 21 106.84 Total 4,489.63 CORRIB COLLECTION / DOCKGATE 17
TENANCY Unit Tenant Floor Unit Rent KPMG 2nd F Units 5, 6 & 17B 130,653 Bank Of Ireland 3rd F Unit 7 63,390 Smart Bear 3rd Fl Unit 19 51,315 Comhairle 4th Fl Unit 20 40,400 Unit 1 Davy Stockbrokers Ltd G.Fl Unit 1A 32,840 Heskin Auctioneers G.Fl Unit 1B 12,500 Short Term Tenancy 3rd F Unit 18 29,000 Short Term Tenancy 3rd F Unit 18 4,800 Short Term Tenancy 3rd F Unit 18 5,200 Unit 18 Short Term Tenancy 3rd F Unit 18 5,980 Short Term Tenancy 3rd F Unit 18 4,680 Short Term Tenancy 3rd F Unit 18 8,190 Short Term Tenancy 3rd F Unit 18 5,980 Short Term Tenancy 4th Fl Unit 9 30,000 Unit 9 Short Term Tenancy 4th Fl Unit 9 6,760 Short Term Tenancy 4th Fl Unit 9 4,160 Short Term Tenancy 4th Fl Unit 9 2,550 Short Term Tenancy 4th Fl Unit 11 21,996 Unit 11 Short Term Tenancy 4th Fl Unit 11 11,700 Short Term Tenancy 4th Fl Unit 11 11,400 Short Term Tenancy 4th Fl Unit 21 7,200 Short Term Tenancy 4th Fl Unit 21 4,680 Unit 21 Short Term Tenancy 4th Fl Unit 21 11,440 Short Term Tenancy 4th Fl Unit 21 5,200 Short Term Tenancy 4th Fl Unit 21 4,420 Parking KPMG Parking 14 Spaces 10,500 Vacant G.Fl Unit 1A - Vacant G.F - Cafe Unit 13 - Vacant Vacant 1st F Units 3, 14 & 15 - Vacant 2nd F 16 - Vacant 2nd F 17A - 526,934 18 DOCKGATE
CORRIB COLLECTION Lease Start Length of Lease Lease Expiry Break Options 1st July 2014 15 Years 30th June 2029 5,8 & 12 1st January 2012 20 Years 1st January 2032 5,10,15 1st July 2014 2 Years 30th June 2016 1 1st July 2005 20 Years 30th June 2025 10 17th July 2006 25 Years 16th July 2031 5 & 10 1st October 2012 4 Years 30th September 2016 16th July 2010 25 Year 15th July 2035 5,10.15 & 20 1st February 2010 1 Year Initially Ongoing 1st December 2013 6 Months Ongoing 1st September 2014 6 Months Ongoing 1st March 2015 6 Months Ongoing 17th Feb 2012 1 Year Initially Ongoing 20th June 2012 8 Months Ongoing 1st May 2011 3 Years Ongoing 7th April 2014 4 Years 9 Months 6th January 2019 1st August 2014 3 Months Ongoing 17th September 2010 35 Years 16th September 2045 5,10,15,20,25&30 30th May 2014 6 Months Initially Ongoing 10th July 2013 6 Months Initially Ongoing 28th July 2014 3 Months Initially Ongoing 1st November 2013 3 Months Initially Ongoing 1st September 2014 4 months Initially Ongoing 9th March 2015 12 Months 8th March 2016 6th February 2015 3 Months Initially Ongoing 23rd March 2015 3 Months Initially Ongoing 1st July 2014 15 Years 30th June 2029 5,8 & 12 CORRIB COLLECTION / DOCKGATE 19
CORRIB COLLECTION PRIMARY TENANT INFORMATION Founded in 1926, Davy is Ireland s largest stockbroker, wealth manager, asset manager and financial advisor and has offices in Dublin, Belfast, Cork, Galway and London. Davy offer a range of services to private clients, small businesses, corporations and institutional investors. Employing over 560 people, Davy is an independent company owned by management and staff.[1] Company operations are centred on five interrelated business areas Asset Management, Capital Markets, Corporate Finance, Private Clients and Research. The Bank of Ireland (Banc na héireann) is a commercial bank operation in Ireland and one of the traditional Big Four Irish banks. Historically the premier banking organisation in Ireland, the Bank occupies a unique position in Irish banking history and currently employs over 11,000 people. Bank of Ireland operate their Private Banking section from the Dockgate Building. For further information www.boi.ie For more information www.davy.ie KPMG is one of the largest professional services companies in the world and one of the Big Four auditors, along with Deloitte, EY and PwC. Its global headquarters are located in Amsterdam, the Netherlands. KPMG employs 162,000 people and has three lines of services: audit, tax, and advisory. Its tax and advisory services are further divided into various service groups. Headquartered in Beverly, Massachusetts, SmartBear develops software that other software developers use to ensure their applications provide a superior user experience. SmartBear has customers in over 90 countries and additional offices in the United States, Sweden, Spain and Russia SmartBear is a leading U.S. software application quality and performance management company, has established its European Headquarters in Galway. For Further information www.smartbear.com For further information www.kpmg.ie 20 DOCKGATE
GEATA NA CATHRACH & DOCKGATE CORRIB COLLECTION GALWAY CITY BER The property is rated BER is available in the dataroom. TENURE Title to the property is held by way of long leasehold on Geata Na Cathrach and freehold on Dockgate. VAT We understand that the property has been elected for the purposes of VAT. DATA ROOM Access to an online data room containing the following documentation is available via www.corribcollection.ie - Occupational leases - Indicative floor plans - BER s - Title Documentation PROPOSAL We are inviting parties to bid by way of individual lots or the entire. Guiding in excess of 23 million for Geata Na Cathrach, pricing at this level would reflect a net initial yield of 6.47% after standard purchaser s costs of 4.46%. Guiding in excess of 9 million for Dockgate, pricing at this level would reflect a net initial yield of 5.6%, after standard purchaser s costs of 4.46%. CORRIB COLLECTION 21
GALWAY OFFICE MARKET VERY LOW VACANCY RATES IN GALWAY AT PRESENT WITH ONLY 7.5% VACANCY AT THE END OF MARCH 2015. THIS DEARTH OF SUPPLY IS EVEN MORE ACUTE WHEN IT COMES TO LARGE FLOOR PLATE ACCOMMODATION The acute shortage of supply in the city centre has resulted in more occupiers looking to the suburbs, in particular to satisfy larger requirements. The proportion of larger Grade A offices has declined rapidly in the suburbs as demand continues to increase. Demand for offices in Galway is led by multi-national companies looking for high quality large offices. GALWAY OFFICE MARKET: YEAR-ON-YEAR TAKE-UP (SQ M) & VACANCY RATE (%) 30,000 Year on Year Take Up Vacancy Rate 20.0% 18.0% 25,000 16.0% 20,000 14.0% 12.0% 15,000 10.0% 8.0% 10,000 6.0% 5,000 4.0% 2.0% 0 Q1 2005 Q3 2005 Q1 2006 Q3 2006 Q1 2007 Q3 2007 Q1 2008 Q3 2008 Q1 2009 Q3 2009 Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 0.0% 22 CORRIB COLLECTION
www.corribcollection.ie CORRIB C O L L E C T I ON GALWAY C ITY AGENTS All viewings are strictly by appointment through the sole selling agent. Patricia Staunton 2 Dockgate, Dock Road, Galway, Ireland. Head of DTZ Galway Email: patricia.staunton@dtz.ie Tel: +353 91 569181 Patricia Ward Director Email: patricia.ward@dtz.ie Tel: +353 01 6399300 Sean Coyne Associate Director Email: sean.coyne@dtz.ie Tel: +353 91 569181 George Brady Surveyor Email: george.brady@dtz.ie Tel: +353 91 569181 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. t 01 845 9925 e info@avalanchedesign.ie w www.avalanchedesign.ie PSRA No. 002222 Brochure design by