FOR SALE Waterside Tower North Tower Office Investment
Clarendon Dock is regarded as one of Belfast s premier business addresses with high profile occupiers including Belfast Harbour Commissioners, Council for the Curriculum, Examinations and Assessment (CCEA), Capita, Grant Thornton UK LLP and Lagan Group.
Investment Considerations Prominent waterfront office investment situated in Clarendon Dock, Belfast. Modern office buildings constructed in early 2000 totalling c 42,570 sq ft (c 3,955 sq m) and benefitting from 94 car parking spaces on site and within Clarendon Dock. The property currently produces a gross rental income of 422,000 per annum exclusive from Government and strong private sector covenants. Estimated gross rental value 594,825 per annum exclusive. Opportunity for income enhancement upon letting of vacant space comprising of c 13,826 sq ft (c 1,284 sq m). Offers sought in excess of 4,500,000 exclusive (Four Million Five Hundred Thousand Pounds). A purchase at this level would reflect a net initial yield of 6.69%, a reversionary yield of 11.31%, an equivalent yield of 10.52% and a capital value of c 105 per sq ft. (assuming purchaser s costs of 6.57%).
Belfast City Belfast is the capital of Northern Ireland and is located 100 miles (160 km) north of Dublin and 70 miles (112 km) southeast of Londonderry. The City is serviced by excellent transport links including two airports providing flights to all major UK, European and North American hubs. The City benefits from strong internal road and rail connections with a dedicated rail service to Dublin City Centre. The Belfast Metropolitan Area has a population of c. 672,000 (c 37% of Northern Ireland s population, 2011 census) and represents Northern Ireland s largest commercial centre. Belfast has developed into one of the UK s premier business destinations as a result of its highly skilled and educated employment pool, competitive operating costs and strong digital infrastructure. The pending corporation tax changes, increased foreign direct investment and new conferencing capability will increase Belfast s profile as a global business and investment destination.
Waterside Tower North Tower 15 16 12 13 14 07 06 08 09 10 11 04 05 01 02 03 Location 01. KPMG 02. Danske Bank 03. Deloitte 04. Belfast City Hall 05. Bank of Ireland 06. Castle Court SC 07. St Anne s Square 08. Victoria Square SC 09. Laganside Courts 10. BT 11. PWC 12. Obel 13. City Quays 14. SSE Arena 15. Titanic Belfast 16. Titanic Studios
Clarendon Dock The property occupies a secure setting within the Clarendon Dock Business Park which forms part of the Belfast Harbour Estate to the north west of the city centre. Clarendon Dock is regarded as one of Belfast s premier business addresses with high profile occupiers including Belfast Harbour Commissioners, Council for the Curriculem, Examinations and Assessment (CCEA), Capita, Grant Thornton UK LLP and Lagan Group. The area has recently been boosted with the City Quays development adjacent to Clarendon Dock. The Belfast Harbour Commissioners have completed construction of City Quays 1, a c. 69,000 sq ft Grade A office building, now fully let. City Quays 2 comprising of c. 95,500 sq ft is currently under construction and Marriott Hotels have confirmed that the City Quays development will be the location for their first hotel in Northern Ireland.
The Opportunity The investment opportunity comprises of two adjoining modern self-contained buildings, Waterside Tower and North Tower each with generous parking provision. Waterside Tower, comprising a net internal area of 24,888 sq ft (2,312 sq m) is arranged over five floors with 58 car parking spaces, of which 22 are secured within the demise of the building with the balance in surrounding dedicated car parks. The offices are finished to a good standard to include plastered and painted walls, suspended tile ceilings incorporating lighting and carpets. Example of office floor space within Waterside Tower (Northern Ireland Policing Board) North Tower, comprising a net internal area of 17,682 sq ft (1,642 sq m), is arranged over four floors and also benefits from 36 dedicated car parking spaces. Internally the vacant offices are finished to include plastered and painted walls, suspended ceilings with integrated lighting, carpeted floors and glass office partitioning and air handling system. Example of office floor within North Tower (Grant Thornton)
Accommodation Waterside Tower Area (sq ft) Area (sq m) Ground Floor 477 44.4 First Floor 5,149 478.4 Second Floor 5,156 479.0 Third Floor 5,287 491.2 Fourth Floor 5,081 472.0 Fifth Floor 3,737 347.2 Net Internal Area 24,888 2,312 Car Parking 58 Approximate areas scaled off plans provided and available for inspection North Tower Area (sq ft) Area (sq m) Ground Floor 3,856 358.2 First Floor 4,671 433.9 Second Floor 4,648 431.8 Third Floor 4,507 418.7 Net Internal Area 17,682 1,642.60 Car Parking 36 North Tower plans available for inspection
Tenancy Schedule Demise Floor Tenant Net Internal Area (sq ft) circa Term Commencement Term Length Passing Rent (p.a.) North Tower Ground Floor Grant Thornton UK LLP 3,856 08/10/2012 6 years 52,000 First Third Floor Vacant 13,826 - - ERV 172,825 Waterside Tower Ground Fifth Floor The Northern Ireland Policing Board 24,888 01/09/2015 5 years 370,000 42,570 sq ft GROSS 422,000 TOTAL ERV 594,825
Tenancy Waterside Tower Tenant The Northern Ireland Policing Board Terms 5 years from 1 September 2015 Rent Repairing Liability Service Charge Liability 370,000 plus VAT Effective full repairing lease The property is subject to an estate surcharge and a building service charge which is apportioned on a percentage basis across all internal lettable space. Details upon request.
Tenancy North Tower GROUND FLOOR Tenant Terms Grant Thornton UK LLP 6 years from the 8th October 2012 Rent 52,000 plus VAT Repairing Liability Service Charge Liability FIRST-THIRD FLOOR Tenant Rent ERV Service Charge Liability Internal repairing lease The property is subject to an estate surcharge and a building service charge which is apportioned on a percentage basis across all internal lettable space. Details upon request. Vacant 172,825 plus VAT The property is subject to an estate surcharge and a building service charge which is apportioned on a percentage basis across all internal lettable space. Details upon request. *Copies of leases available upon request
Covenant Information The Northern Ireland Policing Board is an independent public body made up of 19 Political and Independent Members established to ensure an effective, efficient, impartial, representative and accountable police service for Northern Ireland. Grant Thornton UK LLP is the world s seventh largest professional services network of independent accounting and consulting member firms which provide assurance, tax and advisory services to privately held businesses, public interest entities and public sector entities. The group registered an operating profit of 85,718,000 in the period 30th June 2014 to 30th June 2015 (Source: Redflag Alert).
Rates Land & Property Services have advised of the following rating information: Waterside Tower Floor NAV Rate in the pound for 2016/2017 Estimated Rates Payable (p.a.) Ground - Fifth Floor 286,500 0.58260p 166,915 North Tower Floor NAV Rate in the pound for 2016/2017 Estimated Rates Payable (p.a.) Ground (including car park) First Floor (including car park) Second Floor (including car park) Third Floor (including car park) 47,400 0.58260p 27,615 53,000 0.58260p 30,878 Estimated Vacant Rates Liability 15,439 48,400 0.58260p 28,198 Estimated Vacant Rates Liability 14,099 47,500 0.58260p 27,674 Estimated Vacant Rates Liability 13,837 Title Held by way of a 250 year ground lease from and including 1st August 2000 from the Belfast Harbour Commissioners subject to an overall site rental of 52,000 per annum plus VAT. Reviewed every 5th year, next review 1st August 2020. The ground rent is assessed on 10% of the achievable rental value of the Lettable Parts and the car parking spaces within the overall site known as 31 Clarendon Road, Clarendon Dock. Further details upon request.
Market Commentary In 2015 the Northern Ireland investment market witnessed transaction volumes in excess of 420 million. This volume has to continued into 2016 with an increase in demand for prime assets from both local and international buyers. The market has seen a renewed focus on the office sector driven by the scarcity of Grade A space and the prospect of increasing rental levels, with headline rents expected to exceed 18.00 per sq ft by Q4 2016. Relevant transactional evidence includes: Property Reported Price Net Initial Yield Purchaser Date Area (Sq ft) approx. Capital Value (Per Sq ft) Oxford & Gloucester House 49-63 Chichester Street, Belfast Capital House Wellington Place/Upper Queen Street, Belfast 5.75 million 9.38% NI Investor April 2016 51,506 111.63 11.1 million 8.06% ROI Investor January 2016 72,000 154.17 39 Corporation Street, Belfast 29 Clarendon Dock Clarendon Dock, Belfast 4.8 million 8.16% NI Investor October 2015 38,804 123.70 6.65 million 7.18% NI Investor August 2015 46,764 142.30
Proposal Offers sought in excess of 4,500,000 exclusive (Four Million Five Hundred Thousand Pounds). A purchase at this level would reflect a net initial yield of 6.69%, a reversionary yield of 11.31%, an equivalent yield of 10.52% and a capital value of c 105 per sq ft. (assuming purchaser s costs of 6.57%) EPCs Waterside Tower Energy Performance Certificate Northern Ireland Non-Domestic Building Waterside Tower Certificate Reference Number: 31 Clarendon Road 9207-3068-0964-0100-1505 BELFAST BT1 3BG This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this information on the Department's website www.epb.dfpni.gov.uk. Energy Performance Asset Rating North Tower Energy Performance Certificate Northern Ireland Non-Domestic Building GROUND FLOOR Certificate Reference Number: North Tower 0030-9931-0332-5141-2004 31 Clarendon Dock BELFAST BT1 3BG This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this information on the Department's website www.epb.dfpni.gov.uk. Energy Performance Asset Rating Dataroom A dataroom facility has been made available for potential purchasers. Login details available upon request. VAT We are advised that the property has been elected for VAT. Technical Information Main heating fuel: Natural Gas Building environment: Heating and Natural Ventilation Total useful floor area (m²): 3038 Building complexity (NOS level): 3 Building emission rate (kgco 2/m²): 36.9 Benchmarks Buildings similar to this one could have rating as follows: If newly built If typical of the existing stock Technical Information Main heating fuel: Natural Gas Building environment: Heating and Mechanical Ventilation Total useful floor area (m²): 462 Building complexity (NOS level): 3 Building emission rate (kgco 2/m²): 37.31 Energy Performance Certificate Non-Domestic Building Benchmarks Buildings similar to this one could have rating as follows: If newly built If typical of the existing stock Northern Ireland Contact Gavin Clarke gavin.clarke@osborneking.com 028 90 270000 Andrew McCabe andrew.mccabe@osborneking.com North Tower Certificate Reference Number: 31 Clarendon Dock 0190-9225-3430-2300-9703 BELFAST BT1 3BG This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this information on the Department's website www.epb.dfpni.gov.uk. Energy Performance Asset Rating OSBORNE KING THE METRO BUILDING, 6-9 DONEGALL SQUARE SOUTH, BELFAST, BT1 5JA Technical Information Main heating fuel: Natural Gas Building environment: Air Conditioning Total useful floor area (m²): 2206 Building complexity (NOS level): 3 Building emission rate (kgco 2/m²): 52.36 Benchmarks Buildings similar to this one could have rating as follows: If newly built If typical of the existing stock MISREPRESENTATION ACT The premises are offered subject to contract, availability and confirmation of details. The particulars do not form part of any contract and whilst believed to be correct, no responsibility can be accepted for any errors. None of the statements contained in the particulars are to be relied upon as statements of fact any attending purchasers or lessees must satisfy themselves by inspection or otherwise as to the correctness of those statements including areas. The vendors or lessors do not make or give Osborne King and Megran Limited or any person in its employment, any authority to make or give any representation or warranty whatsoever in relation to this property. Unless otherwise stated, all prices and rentals quoted are exclusive of any Value Added Tax to which they may be subject. These particulars are issued on the understanding that all negotiations are conducted through this company. Osborne King & Megran Limited. Registered in Northern Ireland No. 27969. Registered Office: The Metro Building, 6-9 Donegall Square South, Belfast, BT1 5JA. Any maps / Plans based on the Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office Crown Copyright Reserved Licence No. CS 369. This plan is for convenience only. Its accuracy is not guaranteed and shall not be deemed to form part of any contract. Reproduced with the consent of Goad Cartographers Ltd, Old Hatfield. Design by Positive.