The Park Collection

THE PARK COLLECTION

CARRICKMINES, DUBLIN 18

Prime Suburban Investment Opportunity

Executive Summary • The Park Collection is brought to the market and was developed by Park Developments Group, Ireland’s most respected and long established development company • The Park Collection presents an opportunity to acquire a significant interest in the country’s leading suburban commercial park • All four buildings are constructed to the highest standards with top quality finishes throughout • This popular Southside location has attracted excellent tenants including State Street, Getty Images, Siro and AIB Bank • Highly accessible location at Junction 15 of the M50 orbital motorway and direct access to the Luas Green line • This location continues to thrive with a new social and cultural district planned for Quadrant 3, which will further enhance the park, making it the premier suburban destination to shop and work

4 BUILDINGS

located in The Park, Carrickmines

APPROX. 11,260 SQ. M. of superb quality office accommodation

APPROX. 1,275 SQ. M. of retail space

€2.75m approximate income per annum 95% let ...an opportunity to acquire a significant interest in the country’s leading suburban commercial park 02

Leopardstown Racecourse

THE PARK C O L L E C T I O N

Leopardstown Golf Course

Ballyogan Wood

The Herbert Building The Hyde Building

M50

Quadrant 3 For Further Development

The Holborne Building The Pavilion

Quadrant 4

Main Entrance to The Park Carrickmines

03

3

Donabate 4

M2

M1 Malahide

Swords

2

2

DUBLIN AIRPORT

N2

Portmarnock 1

4

M50

4

3 N32

5 N3

Blanchardstown

Coolock

Santry

Finglas

2

Howth

6

M50

Sutton

Beaumont

2

N2

M50 Drumcondra

Castleknock

Clontarf

Port Tunnel

N1

N3 N2 3

2

1

DUBLIN CITY CENTRE

7

Lucan

N4

Chapelizod N4

N1

Ballyfermot

N81

Ballsbridge Ranelagh

Crumlin

Clondalkin 1

Donnybrook 9

N7

N11

10

Milltown

Walkinstown

Terenure

Clonskeagh

N81

2

N31

Churchtown

3

Tallaght

11

Templeogue

N11

Dundrum

Dun Laoghaire

Stillorgan

Ratfarnham

N81 N82

Blackrock

Sandyford

12

Glenageary

N31

13

M50

Foxrock

14

Leopardstown

N11

Carrickmines 15

Stepaside 16

Cherrywood M11 17

5

M50

04

THE PARK C O L L E C T I O N

Location Carrickmines is an affluent suburb on Dublin’s Southside benefitting from excellent transport links to the city. The Park has become a major retail and commercial centre since its construction over 10 years ago. Located off exit 15 on the M50 motorway and close to M11/ N11 interchange, it is a highly accessible location.

The Park benefits from excellent public transport links with the Luas Green line stop at Ballyogan Wood just 800m away. In addition there are numerous Dublin Bus routes that serve The Park which connect to the city centre and other important destinations in the surrounding area.

Off M50 orbital motorway

Adjacent to N11

DUNDRUM TOWN CENTRE

R826

Numerous Dublin Bus Routes

Accessible to Luas Green Line

R826

DEANSGRANGE

R826

R118

R826

R828

R113

R827

R830

R119

N11

SALLYNOGGIN

DALK

R117

BALLINTEER

R830

R826

R118

R113

M50

N31

R828

CORNELSCOURT

14

SANDYFORD R113

R113

R1

FOXROCK R113

Ba

M50

llo R117 an Ro ad g

Quadrant 3 For Further Development

BA

15

R118 LLY OG

AN

ROA

R119

D

15

STEPASIDE

M50

LOUGHLINSTOWN BALLYBRACK

UC

K

RD

CARRICKMINES

Gl en am uc kR oa d

Ballyogan Wood

KILLINEY

CABINTEELY

M50

GL EN AM

R133

R827

GOLDENBALL

R116

R119

R116

M50

M11

KILTERNAN R116

SHANKHILL

05

Woodies

Next Home

Hickeys

53Ëš North

Halfords

Smyths Toys

IKEA

DFS

Costa

McDonalds

KFC

Currys PC World

The Hyde Building

The Herbert Building

The Pavilion The Holborne Building

Power City

The Development The Park, Carrickmines is home to Ireland’s busiest retail park. The Park comprises four quadrants with retail, office and leisure uses.

The subject properties are located in Quadrant 4, the business quarter of the Park. Current occupiers include Park Developments Group, AIB, Siro, Getty Images and Bimeda. There is further office development proposed for Quadrant 4, which will complete this business campus with attractive open spaces and state of the art buildings.

Quadrants 1 & 2 comprise predominately of retail warehouse units with associated car parking. Occupiers include TK Maxx, Harvey Norman, PC World, Woodies, Next Home, Halfords, McDonalds, Costa Coffee and IKEA. Quadrant 3 currently comprises 18 acres of prime, undeveloped lands. Currently at design stage Q3 will provide a social and cultural quarter with a mix of retail, food and leisure uses. This development will further enhance the scheme, introducing evening trade to the area. This will no doubt further attract office occupiers to the scheme.

06

TK Maxx

Harvery Norman

Halpenny Golf

THE PARK

Lifestyle Sports

C O L L E C T I O N

Boots

Petstop

Mothercare & ELC

Heatons

The Iveagh Building

Quadrant 3 For Further Development

local amenities

To the M50

07

The Herbert Building Overview The Herbert Building is a high specification office building completed in 2008. Extending to approximately 7,949.2 sq. m.

(85,564 sq. ft.) IPMS 2, the property is laid out over five floors with 125 car spaces.

The block is fully let to 6 tenants with a WAULT of 2.25 years.

Specification Raised access floors Suspended ceilings with recessed lighting Four pipe fan coil air conditioning Two 10 person “Kone” passenger lifts serving all floors Concrete frame construction with toggle glazing system Flexible 15m deep L shaped floor plates Breeam “Very Good” rating

BER Details

08

THE PARK C O L L E C T I O N

Tenancy Schedule Demise

Tenant

GIA sq. m.

GIA sq. ft.

Cars

Lease Start

Lease End

Break Date

Passing Rent per annum

Ground Floor West PTC (SSI) Ltd

735.32

7,914

12

28/07/2016

27/07/2026

27/07/2021

€201,817

Ground Floor East

SIRO

705.64

7,595

12

19/08/2015

18/08/2025

18/08/2020

€165,840

First Floor West

Getty Images

735.13

7,912

12

24/09/2015

23/09/2025

23/09/2020

€185,486

First Floor East

Bimeda

797.97

8,589

15

26/09/2014

26/09/2034

26/09/2019 & 26/09/2024

€135,047

Second and Third Floor

International Fund Services

3,049.85

32,828

50

17/09/2007

16/09/2032

17/09/2017

€710,967

Fourth Floor

Park Developments (Dublin) Ltd

1,456.09

15,673

24

01/10/2007

30/09/2032

30/06/2018

€415,800*

7,480

80,514

125

Total

€1,814,957

* Rent effective from January 1st 2017.

The above areas are stated in the leases for rent review purposes.

Floor Plans

Ground Floor Plan

Fourth Floor Plan

Floor plans are for indicative purposes only 09

The Hyde building Overview

Specification

The Hyde Building is an impressive block of 40 fully fitted office suites finished to a high standard. Included in the sale are 33 of the 40 units, extending to approximately 3,249.25 sq. m.

(34,975 sq. ft.) IPMS 2.

Raised access floors

All units are currently let to 16 tenants. Occupancy rates are high and the current WAULT is 2.25 years.

Two 13 person “Kone� passenger lifts serving all floors

Suspended ceilings with recessed lighting VRV air conditioning

Each suite is fully fitted with kitchen and WC facilities Large impressive atrium with generous common areas Flexibility to amalgamate suites to suit occupier requirements

BER Details

10

THE PARK C O L L E C T I O N

Tenancy Schedule Unit

Tenant

Area sq. m.

Area sq. ft.

Cars

Lease Start

Lease End

Break Date

Passing Rent per annum

1, 3, 4, 5, 6 & 8

Wind Prospect Ireland Ltd

562.85

6,058.46

12

20/11/2012

19/11/2022

19/11/2017

€89,979

10

Globalstar Europe Satellite Services Ltd

119.5

1,286.29

2

12/06/2016

11/03/2021

11/06/2019

€33,475

11, 12 & 13

Conference Partners Ltd

277.15

2,983.21

6

28/08/2016

27/08/2026

27/08/2021

€72,530

14

Prime Active Capital (Services) Ltd

93.6

1,007.50

2

01/01/2016

30/09/2020

30/06/2017

€23,651

15

Hospira Ireland Sales Ltd

113.2

1,218.47

2

01/12/2011

31/08/2016

n/a

€18,000

16 & 23

i3PT

202.6

2,180.77

4

28/05/2015

28/02/2020

-

€50,904

17 & 18

Synergy Serviced Apartments Ltd

222.10

2,390,66

4

27/01/2014

26/01/2024

26/01/2017

€40,947

19

Ground Labs

83.4

897.71

2

29/08/2016

28/08/2021

28/08/2019

€21,950

20

Vacant

102

1,097.92

2

-

-

-

-

24

Triska Energy Ltd

89.5

963.37

2

03/12/2013

02/09/2018

02/12/2016

€17,000

25 & 26

Brosna Communications International Ltd

222.1

2,390.66

4

22/03/2013

21/12/2017

n/a

€36,988

27-29

JF Hillebrand Ltd

277.1

2,982.68

6

22/12/2008

21/12/2033

21/12/2018

€89,604

32

Unwired Planet International Ltd

89.5

963.37

2

01/12/2014

30/08/2019

30/08/2017

€18,191

33 & 34

WeLink

222.1

2,390.66

4

25/09/2015

25/06/2020

n/a

€62,975

35-40

Boehringer Ingleheim Ireland Ltd

459.5

4,946.01

10

17/08/2012

16/08/2022

16/08/2017

€83,078

39

Pentair Valves & Controls Ireland Ltd

113.1

1,217.40

2

23/01/2015

23/10/2019

22/01/2018

€22,445

3,249.30

34,975.14

66

Total

€681,717

Floor Plans Ground Floor Plan

Fourth Floor Plan

Floor plans are for indicative purposes only 11

The HOLBORNE Building Overview The Holborne Building is a two storey mixed use block, with two retail units on the ground floor and vacant commercial accommodation overhead. There are terms agreed with a medical use tenant on the vacant space. This deal is subject to Planning Permission. The block extends to approximately 1,162 sq. m. (12,507 sq. ft.) NIA overall. There are 18 car spaces included in the sale.

Specification Statement façade with extensive glazing Generous floor to ceiling on the first floor One 8 person “Kone” lift (installed 2016) Steel frame construction Tenant installed air conditioning on the ground floor Flexible first floor layout Double height atrium lobby

BER Details

12

THE PARK C O L L E C T I O N

Tenancy Schedule Demise

Tenant

NIA sq. m.

NIA sq. ft.

Lease Start

Lease End

Break Date

Passing Rent per annum

Ground Floor Unit 1 & 3

O'Briens Wines Off Licence

490

5,274.31

07/02/2011

06/02/2031

06/02/2019

€126,924

Ground Floor Unit 2

TC Matthews

116

1,248.60

15/03/2016

14/03/2026

14/03/2021

€55,000*

First Floor Restaurant

Venus Medical

556

5,984.73

n/a

1162

12,507.64

TOTAL

€181,924

* Rent abated to €50,000 per annum for years 1 & 2.

The above areas are provided by McGovern Building Surveys and an assignable measurement survey is available in the data room.

Floor Plans

Ground Floor Plan

First Floor Plan

Floor plans are for indicative purposes only 13

The PAVILION Overview

Specification

The Pavilion comprises a single storey building occupying a high profile location at the entrance to The Park. The block is split in two units, a retail bank extending to 113 sq. m. (1,216 sq. ft.) NIA and an office suite extending to 64.55 sq. m. (695 sq. ft.) IPMS 2.

The majority of the space is occupied by AIB, who operate a retail bank from the premises. The smaller suite is occupied

by The Park Management Company. There are 5 car spaces included in the sale.

Extensive glazing with timber batten cladding Steel framed construction High level of tenant fit out Tenant installed air conditioning Comprises two self-contained units Each unit has a WC and Kitchenette

BER Details

14

THE PARK C O L L E C T I O N

Tenancy Schedule Demise

Tenant

Unit 1

AIB

Unit 2

The Park Management Company

Area sq. m.

Area sq. ft.

Lease Start

Lease End

Break Date

Passing Rent per annum

113

1,216

17/08/2015

16/08/2025

17/08/2020

€55,000

64.55

695

01/01/2016

31/12/2025

01/01/2021

€15,768

TOTAL 177.55 1,911

The above areas are provided by McGovern Building Surveys and an assignable measurement survey is available in the data room.

€70,768

Floor Plans

Floor plans are for indicative purposes only

15

irish economic backdrop GDP

4.9%

in 2016*

EXPORT GROWTH

55.4%

The latest Quarterly National Accounts (QNA) indicate a quantum leap in the size of Ireland’s economy last year. While the reason behind the substantial revision is somewhat convoluted, it likely reflects more complete and up-to-date data relating to a small number of multinational corporations (MNCs), in particular pharma manufacturing firms, using Ireland as an operational hub in response to a global clampdown on tax avoidance. This restructuring looks to explain the step-change in goods exports which are now estimated to have grown by 55.4% last year (17.2% previously), elevating the contribution of net trade to GDP growth in the process.

As a small open economy, Ireland is highly exposed to the activities of MNCs to such a degree that GDP growth can be heavily distorted from one period to the next. One implication stemming from the revisions to last year’s accounts is that they create an unfavourable base in which to compare the latest figures with.

As a result, economists are increasingly turning to alternative measures. Jobs creation is one such measure.

A simple approach assuming constant productivity, i.e. each additional person that enters into the work force is as productive as the last, would mean a 1 percentage point increase in employment yields the same growth in output. However, younger, more skilled labour, coupled with advancements in technology and a recent sectoral shift argues for output growth of more than 1 percentage point. As a result, this metric suggests that Ireland’s economy is currently expanding by 4.0-4.5% per annum.

in 2015

Total Employment Growth 4

DISPOSABLE INCOMES

6.2%

in past 12 months

% Change Year on Year

3 2 1 0 -1 -2 -3

NEW JOBS

EMPLOYMENT

2.1%

in 2016*

*Central Bank / IMF July Forecast

16

2016 Q1

2015 Q4

2015 Q3

2015 Q2

2015 Q1

2014 Q4

2014 Q3

2014 Q2

2014 Q1

2013 Q4

2013 Q3

2013 Q2

2013 Q1

2012 Q4

2012 Q3

2012 Q2

2012 Q1

2011 Q4

2011 Q3

2011 Q2

2011 Q1

2010 Q4

47,000

2010 Q3

-5

2010 Q2

-4

Source: CSO

One positive takeaway from the latest QNA, is the uplift in consumer spending. With 47,000 additional jobs created in the last 12 months, household disposable incomes are up by 6.2%. €210m of this extra income has been saved but the majority (€1.3bn) has been spent. In combination with a resurgence in consumer credit this has led to personal consumption expenditure (PCE) growth of 4.5% in 2015 and 5.0% in the year to Q1 2016. This is the fastest pace of PCE growth in over eight years. With consumer spending accounting for approximately 55% of domestic demand, and subject to far less distortion than headline GDP, this also provides clear evidence that underlying economic growth trends remain robust.

THE PARK C O L L E C T I O N

Real Consumer Spending Growth 8 6

% Change Year on Year

4 2 0

-2 -4 -6

2016 Q1

2015 Q3

2015 Q1

2014 Q3

2014 Q1

2013 Q3

2013 Q1

2012 Q3

2012 Q1

2011 Q3

2011 Q1

2010 Q3

2010 Q1

2009 Q3

2009 Q1

2008 Q3

2008 Q1

2007 Q3

2007 Q1

-8

Source: CSO

Although the fundamentals of the economy remain favourable, Brexit has added a new layer of uncertainty to the economic outlook. While the full effects of this will take time to materialise, it’s likely to weigh on Irish exports because of slower UK growth and weaker Sterling. In the longer run, obstacles such as quotas and tariffs may add further challenges to bilateral trade between Ireland and the UK. Despite the potential offsetting effect of prolonged low interest rates, Brexit is expected to have a negative impact on the Irish economy. However, two qualifying factors should be noted. Firstly, some slippage can be afforded as the Irish economy is clearly expanding quite robustly at present. Secondly, as shown in the table below, notwithstanding the expected impact of Brexit, Ireland is forecast to continue showing robust output and jobs growth.

2016

2017

Central Bank

IMF

Central Bank

IMF

GDP

4.9 (5.1)

4.9 (5.0)

3.6 (4.2)

3.2 (3.6)

Employment

2.1 (2.3)

2.0 (2.0)

1.3 (1.8)

1.7 (1.9)

July forecasts (April forecasts in parentheses)

17

Dublin office market Office Demand Vigorous economic growth is resulting in very strong jobs creation in Dublin (+4.6% y/y in Q1 2016). At the same time, the general trend has been for a gradually higher proportion of office based employment within this total (see graph below). In particular the office based sectors of ICT and professional services are growing strongly.

Office Based Share of Total Employment in Dublin 35

% of Total Employment

34

33

32

31

2016 Q1

2015 Q2

2014 Q3

2013 Q4

2013 Q1

2012 Q2

2011 Q3

2010 Q1

2010 Q4

2009 Q2

2008 Q3

2007 Q4

2007 Q1

2006 Q2

2005 Q3

2004 Q4

2004 Q1

2003 Q2

2001 Q4

2002 Q3

2001 Q1

2000 Q2

1999 Q3

1998 Q1

1998 Q4

30

Source: CSO

Occupier demand is rising in the suburbs but we believe that some of this can be explained by displacement of demand from the CBD where vacancy rates for Grade A space have now hit sub 1.5% (increasing execution risk for tenants) and secondly due to rising rents in the CBD and the relative value of the suburbs. Over the short term we foresee that these trends will likely continue. With rising suburban rents, planning application volumes have increased in the suburbs and hence, competition will emerge.

Gross Office Take Up - Dublin 120,000

100,000

Sq M

80,000

60,000

40,000

20,000

Take Up Sq M Source: Savills Research

18

5 Year Average Sq M

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q2 2013

Q1 2013

Q4 2012

Q3 2012

Q2 2012

Q1 2012

Q4 2011

Q3 2011

Q2 2011

Q1 2011

0

THE PARK C O L L E C T I O N

Office Availability Increasingly, gross take-up is feeding through to net absorption. This is because, compared with the crisis period, an increasing proportion of lettings are accounted for by expansions and new entrants. This, and the fact that significant space is now beginning to be withdrawn for redevelopment, means that the vacancy rate is falling quickly and now stands at 9.4%. However, this overall figure conceals the fact that there is currently very little availability of Grade A office space in prime locations within the CBD. The VR currently stands at 6.1% in Dublin 2 and 4.2% in the South Docks.

Vacancy Rate Dublin Offices: Q1 2016 21

19

%

17 15 13 11

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q2 2013

Q1 2013

Q4 2012

Q3 2012

Q2 2012

Q1 2012

Q4 2011

Q3 2011

Q2 2011

9

Source: Savills Research

Office Supply On the supply-side, there have been no significant office completions since 2010 and this, combined with growing demand, has been driving explosive rental growth at this point in the cycle.

Net Dublin Office Completions – Actual and Forecast 2015 - 2021 +30%

450,000

1995 - 2003 +103%

350,000

Sq M

250,000

1989-1994 +29%

1977 - 1988 +101%

150,000

Prime headline office rents in Dublin grew by 100% between the start of 2013 and Q1 2016. This has drawn out new development.

However, a scarcity of funding has slowed down this process and because of this and the construction lag, significant office completions will not begin to emerge until 2018. In addition, because the next development cycle requires significant demolition of existing office space, it will only result in net additional space of 30% by 2021. As illustrated in the graph above this is not high by historical standards.

2004 - 2011 +43%

50,000 -50,000

Delivered

2021 (f)

2019 (f)

2017 (f)

2013

2011

2009

2007

2015 (f)

Likely

2005

2003

2001

1997

1999

1995

1993

1991

1989

1987

1985

1983

1981

1979

1977

1975

-150,000

Source: Savills Research

Rental Growth The fall in vacancy rate and increased demand has led to strong rental growth in the Dublin office market.

Headline rents for prime city centre space now stand at €645 per sq. m. (€60 per sq. ft.) headline (with one recent transaction over this), while rents in the South Suburbs are approximately €268 per sq. m. (€25 per sq. ft.) headline. Tenant inducements are also tightening as a result of competitive tension and the removal of upwards only rent reviews making inducements less beneficial to landlords.

19

THE PARK C O L L E C T I O N

contacts & further information A bespoke website with a link to a data room containing legal documents and property information is available at; www.theparkcollection.com For further information please contact:

Sole Selling Agent

Solicitors

Developer

Savills Ireland 32 Molesworth Street Dublin 2

Matheson 70 Sir John Rogersons Quay Dublin 2

www.savills.ie

www.matheson.com

Park Developments Group The Herbert Building The Park Carrickmines Dublin 18

Fergus O’Farrell +353 (0) 1 618 1311 fergus.ofarrell@savills.ie

Brian Doran +353 (0) 1 232 2125 brian.doran@matheson.com

Marguerite Boyle +353 (0) 1 618 1334 marguerite.boyle@savills.ie

Rachel Ward +353 (0) 1 232 2332 rachel.ward@matheson.com

www.parkdevelopments.ie

Leona Mullen +353 (0) 1 618 1762 leona.mullen@savills.ie

The agents 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 nor any of their employees have any authority to make or give any representation or warranty (express or implied) in relation to the property and neither Savills nor any of their 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. All maps produced by permission of the Ordnance Survey Ireland Licence No AU 001799 Š Government of Ireland.

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