BLOCK C CITY GATE PARK MAHON, CORK

BLOCK C CITY GATE PARK MAHON, CORK

THE OPPORTUNITY On behalf of the vendor, CBRE is delighted to offer one of the most high-profile and prestigious office investments in Cork, on a sale and leaseback basis. The property is situated in City Gate Park, Cork s leading out-of-town office campus, and comprises a state of the art, next generation office building. Block C is let in its entirety to an excellent tenant Quest Software International Limited on a new long-term 15 year lease. 1

INVESTMENT HIGHLIGHTS Modern, high specification, Grade A office building Located in City Gate Park, Cork s leading out-of-town office campus Sale and leaseback of the entire building A new 15 year lease with upwards and downwards rent reviews The property extends to 8,119.6 sq m in total (Gross) and has 180 secure basement car parking spaces Let to Quest Software International Limited Annual Rent of 1,600,000 Secure income for 10 years 2

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CONSTRUCTION DATE 2012 GROSS AREA 8,199.6 sq m LEED STANDARD GOLD LEASE TERM 15 years SECURE BASEMENT CAR-PARKING 180 cars 5

LOCATION Cork, with a population of 220,000 people in its metropolitan area, is the Republic of Ireland s second largest city and is the premier commercial, retail, administrative and educational centre in the south. Cork has an excellent infrastructure and is easily accessed through a principle port and an international airport. Cork railway station offers daily services to all major cities throughout the country, and hourly trains to Dublin. Major employers in Cork include Apple, Amazon, Dell EMC, Pfizer, Boston Scientific and PepsiCo. Cork is a University City with a student population of approximately 30,000. The property is situated in City Gate Park Mahon, approximately 5km southwest of Cork City and strategically positioned close to the South Ring road network, affording easy access to Cork Airport and all main arterial routes. Mahon has become a key location for economic activity in the Cork region, with over 600 million of private investment being made within a 0.5 km radius of City Gate Park over the past 15 years. Most notably Mahon Point Shopping Centre, Mahon Point Retail Park, the adjacent City Gate office complex and private hospital development together with the residential developments of Jacobs Island and Eden in Blackrock. City Gate Park is a modern office scheme, contained within three blocks, with a total floor area of approximately 27,870 sq m (300,000 sq ft). The Park provides an exceptional working environment with excellent on-site facilities which include cafés, restaurants, retail, and a gymnasium. The area is a well sought after office location attracting a high calibre of national and international corporations. Occupiers in the immediate area include Dell EMC, McAfee, Qualcomm, FireEye, Voxpro and Ronan Daly Jermyn Solicitors. To Dublin To Limerick N8 N20 CITY GATE PARK MAHON, CORK Glanmire Glounthuane To Waterford Midleton CORK Mahon Point JACK LYNCH TUNNEL N25 N22 Douglas CORK INTERNAT TIONAL AIRPORT Passage West Cobh SHANNON DUBLIN N71 N28 LIMERICK WATERFORD To Tralee Ringaskiddy Ferry Port Carrigaline

RIVER LEE JACOB S ISLAND MAHON POINT SHOPPING CENTRE MAHON POINT RETAIL PARK FIREEYE RDJ SOLICITORS DELL EMC PM GROUP QUEST MC AFEE EMEA BLOCK C CITY GATE PARK MAHON, CORK REGUS HOSPITAL VOXPRO MAHON

DESCRIPTION The property comprises a modern, high specification, four storey detached office building, constructed in 2012. It is a state of the art, next generation modern building comprising approximately 8,119.6 sq m (gross) of Grade A office accommodation. The property has achieved a Gold LEED standard which ensures that occupiers can minimise both operational costs and environmental impact. The building has striking elevations, which consist of a combination of glazed aluminium curtain walling and polished limestone finishes. Internally, the ground floor comprises a main reception area, open-plan offices and meeting rooms. The first and second floors comprise open-plan offices, meeting rooms and kitchen while the third floor comprises open-plan offices, larger meeting rooms, training room and a large communal canteen. The third floor has the benefit of generous wrap-around balconies. Each floor has ladies, gents and disabled restrooms. Internal specifications include raised access floors with quality carpet tile finish, ceiling tiles with grid suspended ceiling system, air conditioning and energy efficient lighting. There is a polished tile finish to lobby areas and three high speed lifts serve each floor. The building has the benefit of secure basement car-parking for 180 cars. ACCOMMODATION Floor GIA Sq m GIA Sq ft NIA Sq m NIA Sq ft Basement -2 183.7 1,978 4.7 51 Basement -1 131.4 1,415 Ground 1,838.3 19,787 1,597.3 17,193 First 2,059.1 22,164 1,726.7 18,587 Second 2,061.1 22,185 1,729.1 18,611 Third 1,846.0 19,870 1,519.2 16,353 Total 8,119.6 87,399 6,577.0 70,795 Areas provided were measured by Malcolm Hollis. An assignable measured survey to include IPMS measurements are available in the Dataroom. 8

TENANCY The entire building is let to Quest Software International Limited on a new 15 year full repairing and insuring lease subject to an initial rent of 1,600,000 per annum. There is a tenant break option at the end of year ten, subject to 12 months prior notice. The lease provides for 5 yearly rent reviews, subject to a maximum increase of 10% and maximum decrease of 3% on the immediately preceding rent prior to rent review. A proportion of the ground is sublet to SonicWall International Limited on a short-term lease. Please refer to the data-room for further information. COVENANT Quest helps solve the complex technology and security problems that stand in the way of organisations ability to always be ready for what s next. With Quest solutions, companies of all sizes can reduce the time and money spent on IT administration and security, so they have more time to focus on and invest in business innovation. Quest has more than 100,000 customers worldwide across its portfolio of software solutions spanning information management, data protection, endpoint systems management, identity and access management, and Microsoft platform management. In 2017 Quest Software International had a turnover of US$388.9m which increased by 13% on the previous financial year. Net Profit increased significantly from US$12.5m to US$26.7m over the same period. In 2017 the company had a net asset value of US$188.2m. 9

WHY CORK Cork has developed into a thriving hub of global growth sectors ICT, pharmaceuticals, healthcare, biotechnology, food and business services. Cork is home to leading international companies such as Apple, Dell EMC, VM Ware, Amazon, McAfee, Intel Security, Johnson Controls and PepsiCo. Notably Cork is also home to eight of the top ten pharmaceutical companies including Johnson and Johnson, GlaxoSmithKline, Pfizer and Eli Lilly. Cork City has a population of 220,000 people with 300,000 people in the wider metropolitan area. The National Planning Framework Strategy (Project Ireland 2040) has set a target population growth of 130,000 (plus 60%) for Cork City over the life time of the plan, meaning Cork is set to be the fastest growing Irish City over the coming years. 150 multi-national companies are based in Cork, employing over 35,000 people. Key attractions are the educated workforce, value for money, quality of life and successful businesses already operating here. As Ireland s second city, Cork s cost base compares very favourably with that of Dublin. Office rentals in Cork are less than half the price of Dublin for an equivalent prime location and salaries are 10% less than those in Dublin. Cork was voted the No.1 Small City of The Future for foreign direct investment friendliness in the Financial Times FDI Magazine European Cities and Regions of the Future in 2016/2017 and again in 2018/2019. Cork is a University City with approximately 30,000 students enrolled in a number of institutions, the largest being University College Cork (UCC) and Cork Institute of Technology (CIT). This large student population is the future workforce for the existing high calibre employers and future employers of Cork City. Cork has excellent accessibility through a modern International Airport voted by Airport Council International as The Best Airport in Europe 2017 in the under 5m passenger category. Cork hosts 11 carriers servicing 48 routes including major UK and European cities and transatlantic flights to Boston. Cork is only 2.5 hours from Dublin via an hourly train service or by Road via the M8 Motorway. 10

CORK INVESTMENT MARKET In 2017 2.5 billion traded in the Irish Investment market and total returns reached 6.40%. Office Investments accounted for 37% of the overall spend. Regional based transactions accounted for 16% of the spend. In the context of the Cork Investment Market, CBRE estimate that there have been approximately 555 million of investment transactions since 2015 accounting for 74 deals. In 2017 there was 187 million of investment transactions in Cork, up from 56.5 million in the previous year. Examples of assets which traded in Cork in recent times include: One Albert Quay, Merchants Quay Shopping Centre, The Capitol mixed office and retail scheme on Patrick Street, Unit 30 Cork Airport Business Park and Building 7 Eastgate Avenue, Eastgate Business Park. When analysed by investment volume, 57% of the spend was acquired by Institutional Investors. The recent focus of large scale European and international investors in the Cork market is a welcome broadening of the investor base and also illustrates the confidence these investors have in Cork and its future. TOP 3 REGIONAL CITIES INVESTMENT VOLUMES 2015 - Q1 2018 CORK TRANSACTIONAL ACTIVITY 2015 Q1 2018 million million 300 250 555m 74 deals 2015 Q1 2018 250 200 200 208m 24 deals 187m 22 deals 150 150 100 73.81% of regional transactions 63.33% of regional transactions 100 102.7m 4 deals 50 26.63% of regional transactions 53.88% of regional transactions 50 56.54m 24 deals 0 2015 2016 2017 Q1 2018 0 2015 2016 2017 Q1 2018 Cork Galway Limerick Source: CBRE Q1 2018 Source: CBRE Q1 2018 11

OCCUPATIONAL MARKET The Office Market has consistently been the best performing of the commercial real estate sectors in Cork over the last number of years. Similar to Dublin, the Cork office market has experienced strong recovery. Strong office demand coupled with the lack of development for several years has resulted in rising rents and low vacancy rates. Currently prime city centre office rents are 350 psm. PRIME OFFICE RENTS COMPARED Q1 2018 per Sq M per Annum 800 Research undertaken by CBRE in May 2018 shows that there is approximately 265,000 sq m (2.85 m sq ft) of potential new office stock in 19 individual schemes at various stages of planning. 17 schemes have been granted planning permission of which 8 are in the city centre. 600 Approximately 33,479 sq m is currently under construction of which approximately 75% is reserved, pre-let or at advanced stages of negotiations. Cork office vacancy rates have been declining in recent years with limited availability of Grade A accommodation. 400 A feature of the Cork office market over the last 12-18 months has been a strong shift in demand away from the business parks towards the urban centres such as Mahon and the city centre. Employees want quality work environments with immediate access to amenities and entertainment. City Gate Park is situated within a short walking distance of residential developments, Mahon Point Shopping Centre, restaurants, retail services and a multi-screen cinema. 200 0 Dublin Manchester Birmingham Cork Liverpool Source: CBRE Q1 2018 12

SOLE SELLING AGENT PSRA LICENCE NO. 001528 Brian Edwards Managing Director, Cork Contact: +353 (0) 21 491 7254 email: brian.s.edwards@cbre.com Natalie Brennan Senior Director Contact: +353 (0)1 618 5555 email: natalie.brennan@cbre.com Greg Kaveh Surveyor Contact: + 353 (0) 1 618 5542 email: greg.kaveh@cbre.com WWW.CBRE.IE BASIS OF SALE The property is being offered for sale by private treaty. PRICE On Application. FURTHER INFORMATION Interested parties at the Vendor s discretion will be provided access to the Data Room. The data room will contain comprehensive information about the property including assignable measured survey, assignable building survey, copy lease and title information. TITLE We understand that the property is held on a long leasehold basis. SOLICITOR DETAILS MASON HAYES & CURRAN South Bank House, Barrow Street, Dublin 4 Vanessa Byrne Contact: +353 (0) 1 614 5000 email: vbyrne@mhc.ie BER BER Rating: B1 BER Number: 800125403 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. Block C, City Gate Park, Mahon. Prepared June 2018.