Navan Town Centre - FOR SALE BY PRIVATE TREATY Shopping Centre Investment Opportunity
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Navan Town Centre
Shopping Centre Investment Opportunity
FOR SALE BY PRIVATE TREATY
Contents
For Sale by Private Treaty Investment Overview 4
Guiding in excess of €78.5 million which Asset Summary 6
reflects a net initial yield of 7.9%
Shopping in Navan 8
Scheme Plan 10
Location 12
Navan Home Building 14
Local Employers 15
Catchment 16
Local Demographics 16
Navan Town Centre Income 18
Economic Summary 22
Contacts 24
The Irish The Asset Asset Enhancement Platform
Retail Backdrop by numbers
3.8% 6.2% €6.7m
RISE RISE of NOI & WAULT (to break)
Opportunities
100%
of 6.5 years
In retail sales In consumer
1500
year-on-year sentiment
year-on-year
OWNERSHIP Refurbishment and
Car spaces producing 1st time asset in single extension opportunities.
€1.065m
€
ownership since early 2000’s Acquisition of outlying
leasehold interests
1,000
Household debt ratio New homes being 94% New Multi-Screen
at lowest level
since 2004
delivered in the short to
medium term in Navan
interest occupancy with
internal mall occupancy of 99% CINEMA
6m
footfall anually
Opportunity to expand F&B Lease
offer and benefit from added
Enhancement
60%
custom associated with
cinema redevelopment via re-gear and lease up
Navan
has a strong local
5.1%
Unemployment rate* of income
demographic *July 18 from top 10 tenants
4 | Shopping Centre Investment Opportunity Navan Town Centre | 5
Asset Summary Market Overview
Irish Market
Considerations
•E
conomic Growth Forecast at 5.7% for
2018, Europe's fastest growing economy
•U
nemployment rate of 5.1%, significantly
ahead of European average of 7.0%
•C
onsumer sentiment continuing to
strengthen, up 6.2% y.o.y.
•R
etail sales by value up 3.8% in the 12
months to July '18
•M
SCI Shopping Centre Rental Growth
increase of 6.4% for the 12 months to
June 2018
Overview Key Considerations
The Centre, which opened in 1980, and has • 65 retail units both internal an external
been extended on at least four occasions since •A
nchored by Dunnes, Tesco and Penneys
2005 to meet growing tenant demand. It is the (all long leasehold (LLH)
most dominant retail scheme situated in the
north east and is the main retail offering of • 170,000 sq. m. of retail, excluding LLH
the Town Centre. With close to 115,000 visitors • 1,500 car parking spaces
per week the scheme has continued to attract • Close to 6 million annual footfall
multinational retailers and has maintained
excellent occupancy ratios over the last decade. • NOI of €6.736m and 6.5 year WAULT
• 42% of income from top 5 tenants
The scheme comprises a single level shopping
mall with two storey retail units together with •C
onsistently high mall occupancy rate over the last decade,
a mezzanine area at its south entrance offering currently 99%
F&B outlets. •A
new multi-screen cinema will bolster footfall
and provide opportunity to increase Food and Beverage offer
6 | Shopping Centre Investment Opportunity Navan Town Centre | 7
Shopping
in Navan N51 to
M3 to Dublin
Navan Retail Park
Navan plays host to a good mix of retail uses, from the core
town centre offering, to the two retail parks on the outskirts of
the town.
Navan Town Centre dominates the retail offering within the
town and surrounding area with a variety of comparison
and convenience outlets ranging from local retailers to
international brands.
Blackwater Retail Park
Trimgate Street, which is the main street in Navan town,
provides for more administrative, food and beverage type uses.
The two retail parks on the outskirts of the town, namely
Navan Retail Park and Blackwater Retail Park, provide an
excellent complement to the Town Centre, housing many ALDI
of the household bulky goods retailers such as Woodies,
Homebase, PC World/Curry’s, Halfords and Smyth’s Toys.
The recent sale and proposed inclusion of a new multi-screen
McDonalds
cinema at Navan Town Centre is an excellent addition to
the scheme and it is clear that the strength of Navan Town
Centre’s retail offering will ensure that it retains its status as
being the epicentre of retailing in the north-east.
Planned New Bus Depot
Dunnes
Trimgate Street
Watergate Street New Multi-screen Cinema
Outline is for illustrative purposes only.
8 | Shopping Centre Investment Opportunity Navan Town Centre | 9
Stores
1&2 MCKENNA MAN 26 PENNEYS 1A GAMESTOP NE1 BD PHOTO GRAPHIX
Scheme
3&4 NOLAN’S PHARMACY 27 TESCO 1B VILA NE2 NEW LOOK
5 JACK KIERAN SHOES 28 DUNNES STORES 1C& 1D GINZENG NE3-4 BOOTS
6&7 VALUELAND 29 HALLMARK M1 3 STORE NE5 THE EDINBURGH WOODEN MILL
7A ULSTER BANK 30 MC2 JEWELLERY M2 KEYMOBILE EXPRESS NE6 VERO MODA
9 MARKET FRESH GREEN GROCER 31 NAME IT M3 NAVAN HEEL BAR NE9 CARRAIG DONN
Plan
10&11 P.GLEESON BUTCHERS 32 BOOK STATION M4 TECH CROSS NE7 SPORTS DIRECT
12A ALLIES HAIR 33 ART & HOBBY M5 COSTA COFFEE NE8 ARGOS
12&13 PAMELA SCOTT 34 PETER MARK M6 MC CLOSKEYS MSCP 1-6 EASON
14-15 HICKEYS PHARMACY 35 EURO GIANT M7 VACANT MSCP 7-8 KEYWAL
16 VON OPTICIANS 36 DEALZ M8 METEOR MSCP 9 VACANT
17 INDEPENDENT CLOTHING HOLDINGS 37&39 JACK & JONES M9 PREPYS AR1 VACANT
18 CEX 38 RIVER ISLAND MU10 HB SWIRL IT AR2 SEW GOOD
19 S&R DIAMONDS 40 CALENDAR CLUB MU12 BARMARCHE AR3 DOMINOS PIZZA
20 LIPSTICK 41 NEXT TO NATURE MU13 VODAFONE AR4 VACANT
21 TUTHILLS 42 SENSUS MU14 COFFEE GARDEN AR5 VACANT
22-24 DUNNES STORES VARIETY STORE 43 JM FOOD SERVICES KA SKY UNIT 1 VACANT
25A CAROL VENNY KB BEST4TRAVEL UNIT 2 CIARA LYNCH
KE BELLINI
KF VACANT
AR2 AR3
AR1
RESIDENTIAL
O AD Mall Entrance
BEY R
NE2
AB AR4
AR5
NE3-4
NE1 NE5 NE8
nce
NE6
39
KA
NE9 A BB
EY R
tra
37 KB OAD
En
KE NE7
38
ll
35
Ma
KF
33 36
31
29 34
32
28
P
14-15 30
ABBEY ROAD
12A 16
12-13 17
Green Multi-Storey 18
M7 19
10-11 M8 M12-M13
MU13 M9
9
P New
8 M6
M5 Multi-Screen
M4 Blue Multi-Storey Cinema
MU12
M3 26
M2 M1 20
SEETEC 21 Dunnes
22-24 1B
7 MSCP 1-6 MSCP 9
6 25A
5 1A
3-4
27 7A
1 -2 MSCP 7-8
1C
40
ance
41 42 43
1D
NE
Entr
SLA
Outline is for illustrative purposes only.
Mall
TGE
KENNEDY
ROAD ME T
ME
Green - Vendors 10,000 year leasehold interest GES
L ANE
Grey - Held by way of long leasehold interest
Pink - Held by way of long leasehold interest
UNIT 2
KENNEDY UNIT 1
ROAD
10 | Shopping Centre Investment Opportunity Navan Town Centre | 11
Location Donegal
Derry
A5
N15 M2
Navan, the county town of Meath, is situated 50km Belfast
North West of Dublin and is the fifth largest town Sligo
N3
M1
Cavan
in Ireland and 10 largest urban area by population.
Castlebar
N77
N4
Navan is a commuter town of Dublin and as such N84
Navan M1
has excellent access to the M3 motorway linking Galway Athlone M3
M4
the town with the Dublin Orbital Route (M50) Dublin
within 35 mins and Dublin Airport within 45 mins. N18
M7 M50
M7
Limerick M9
Meath & the Mid-East Region has benefited from a M8 Kilkenny
high concentration of Foreign Direct Investment, N21
N20
N11
including investments of significant scale in the Killarney
Waterford
Wexford
Technology and Pharma sectors. N22
N25
Cork
For illustrative purposes only.
N52
N2
Drogheda
Kells
Slane
Navan - a growing town
Gibbstown
N51
Beauparc
N52
Clonmellon
Navan
Duleek
M1 Navan is the main retail and commercial hub
N51 for County Meath with a population of 195,044 Navan Population Growth
elvin Balbriggan (Census 2016).
M3
Navan has experienced population growth of 21.4% 35,000
Trim Garristown
Skerries
during the period 2006-2016, rising from a town
population of 24,851 to 30,173. 30,000
25,000
Ashbourne Lusk
There is a significant development pipeline for
residential housing with a number of sites either under 20,000
Dunshaughlin Rathoth construction or due to commence. 15,000
M3 The Navan 2030 Initiative is currently ongoing and 10,000
M2
nnegad
will focus on improving the layout and appearance 5,000
Swords
Malahide of the town and public areas. This will compound the
M1 Town Centre's viability and future proof the expected
Dublin 1996 2002 2006 2011 2016
Airport population and economic growth occurring.
M4
Blanchardstown Source: CSO
Dublin
M50
Outline is for illustrative purposes only.
Maynooth Howth
For illustrative purposes only.
Clontarf
12 | Shopping Centre Investment Opportunity Clondalkin Ballsbridge
Navan Town Centre | 13
Local Employers
Navan - House Building
Under the Meath County Development Plan zoned for mixed-use development (of
2013-2019 a target of 15,613 residential which it is assumed 30% or 13.94 hectares
units were deemed to be required in the will be developed for residential use). This
context of growth of the population and brings the total undeveloped residential
general expansion. In addition to this, a area in Navan to 254.42 hectares which,
further 8,327 units will be required between at 45 units per hectare, would allow for
2020-2022 bringing the total target for new the development of 11,449 units. Seven industrial estates in Navan are home
residential units in the county to 23,940. to a number of major overseas companies
As at August 2018, approximately 1,000 including Generali Pan Europe and Welch
Within the plan Navan has been classed as a residential units had the benefit of valid Allyn Limited, with other companies
“large growth town 1” which is described as planning permissions within Navan Town located in Meath including International
“economically active supporting surrounding Centre & Environs significantly behind the Fund Services, Alter Pharma, and Alltech
area, located on multi-modal corridor in required 4,000 homes required under the Biotechnology Centre.
metropolitan hinterland” with provisions for current development plan. Glenveagh
population increase to approximately 50,000. plc, the listed home builder, are a key Tara Mines, Europe’s largest lead and zinc
protagonist with two schemes, namely mine is a significant employer within the
Navan had approximately 240.48 hectares of Cois Glaisin and Cluainn Adain, currently region with a recent announcement of a
land zoned solely for residential development, launched with provision for 432 units. €44m investment by Boliden Tara Mines
with an additional 46.47 hectares of land guaranteeing mining at the facility until at
least 2023.
Scheme Developer: Potential Status:
Units:
Cluain Adain Glenveagh plc 106 Under Construction
Cois Glaisin Glenveagh plc 326 Under Construction
Black Castle Lands Glenveagh plc 218 1st Phase
Spicers Lands, Dublin Road Davy Hickey 400 Pre-Planning
Navan Steel Site Caraige Road McAleere & Rushe TBC Recently Acquired
Dunville, Johnstown Granbrind 310 Under Construction
14 | Shopping Centre Investment Opportunity Navan Town Centre | 15
Cavan (Circa. 60km)
Navan Catchment Dundalk
and Competition Ardee (Circa. 35km)
Total Annual Household Expenditure
Map House Spend Spend Percent
Drogheda
Food and Non Alcoholic Drink €6,550,893 15%
Navan
We have identified a bespoke catchment for
Navan Town Centre which focuses on the area
to the north-west of the town. There is no Alcoholic Drink and Tobacco €1,543,223 3%
competing scheme or shopping centre within
this defined catchment area. Clothing and Footwear €1,776,673 4%
Delvin
(Circa. 35km)
Fuel & Light €2,113,048 5%
Dunshaughlin Housing €8,733,739 20%
Catchment Area
(Circa. 30km)
Non-Durable Household Goods €844,924 2%
Competition Towns Blanchardstown
Not to scale. For Illustrative purposes only.
Durable Household Goods €1,364,369 3%
Transport €6,319,028 14%
Health €970,432 2%
Retail Catchment Profile Communication €1,086,489 2%
D e m o g ra p h i c P ro f i le , C e n s u s 2 0 1 6 Recreation and Culture €4,277,718 10%
Education €1,415,035 3%
Miscellaneous Goods and Service €7,436,556 17%
Total Expenditure €44,432,127 100%
Average Weekly Household Spend €828
159,016 79,036 79,980
TOTA L P O P U L AT I O N 17492,9
,38103 7 9 ,0 3 6
159 ,016
Total Annual Catchment Expenditure
Top 10 Tenants by Income
Navan Town Centre Income
Tenant: Rent: Wault: Upward Only: % of NOI:
A full tenancy schedule has been provided on the data room. The scheme currently generates a Net
Income, after occupancy costs, of €6,736,777 with a blended WAULT (no break) of 6.5 years. See below Car Park €1,065,000 5 n/a 15.75%
highlights: M&S €520,699 15.6 Y 7.70%
New Look €451,000 12.0 Y 6.67%
• Passing NOI of €6,736,777
• Current occupancy at 94% with mall occupancy close to 99%, as at September 2018 Sports Direct €450,000 6.6 Y 6.65%
• 60% of income from Top 10 Tenants dominated by established retailers Boots €400,000 1.7 Y 5.91%
• Multi-Storey Car Parks consistently generates over 15% of NOI Dealz €300,000 6.2 N 4.44%
• Excellent Rent Collection rate annually and low historic mall vacancy
Argos €280,000 1.8 Y 4.14%
Eason €250,000 15.8 Y 3.70%
Income Profile
River Island €200,000 1.1 Y 2.96%
Jack & Jones €160,000 7.5 Y 2.37%
The Town Centre has the benefit of a strong income weighting of international brands equating to Total €4,076,707 6.7 60.27%
over 55% of current rent. The mix of retailer type is typical of an established town centre. There is
excellent opportunity to increase the lifestyle occupancy weighting particularly in light of the new Scheme Total: €6,736,777 6.5
cinema opening. 12 month net income to July '18.
Covenant Type Retailer Type
Income Term Certain as % of NOI
1.61 Fashion Footwear
34.64 Service
15.81
Food 40.00%
16% 55% International Discount Store 35.00% 36.53%
7% National 4.16 Pharmacy
% Local Cafe
30.00% 31.34%
22% N/A 4.69
% Jewellery 25.00%
24.84%
26.07%
7.70 Stationary 20.00%
Phone Gaming
15.00%
Catalogue
1.89 6.0 7.67 10.00%
Car Park
7.14 7.45
Other 5.00%
1.13
0%
0-2 years 2For Illustration Purposes - CGI prepared by Douglas Wallace Architects
Asset Management Opportunities
• Re-Gear Potential with a number of current occupiers with short term WAULT
or lease breaks approaching
• New Long Leasehold Cinema provides an opportunity to facilitate complimentary
F&B uses, subject to planning.
• General upgrade of centre malls and entrances to enhance offer as per the CGI prepared by
Douglas Wallace Architects. Report available on request.
• Ongoing management of shop front fit-out to enhance feel of main malls.
• Acquisition of remaining long leasehold interests to provide new retailer friendly units.
Service Charge
The scheme service charge budget equates to €1,743,563 for the year end 2018. The service charge is
weighted to reflect different unit sizes and is currently operated by Aramark. An existing SPV, Pagetech
Ltd, operates the service charge and employees and will be conveyed to the purchaser.
For Illustration Purposes - CGI prepared by Douglas Wallace Architects
20 | Shopping Centre Investment Opportunity Navan Town Centre | 21Economic Summary
• The Irish economy continues to exceed expectations, with • Sales of household related purchases remain strong as the Residential Property
revised CSO figures showing GDP to have increased by 7.2% recovery in disposable income allows people to undertake • House price inflation continues to accelerate with growth of
in 2017 making Ireland the fastest growing economy in the home improvements and construction levels rise. As such 10.40% recorded nationwide by the CSO in the year to July.
European Union for the fourth consecutive year. GNP, which the electrical goods category was a top performer in the year Prices outside of Dublin prices rose by 13.7% annually with
strips out the effects of cross-border flows by multinationals, to July, registering a 20.8% increase in sales volumes, while growth in the 12 months to July ’18 in the mid ease region of
increased by 4.4% annually. sales values rose by 8.3 %. circa. 11.7%
• The first quarter of 2018 saw a contraction of 0.6% in GDP • Whilst retail sales remain buoyant, sentiment continues to be
relative to the final quarter of 2017 (seasonally adjusted), impacted on a global scale as Brexit negotiations continue.
while GNP declined by 4.9%. On an annual basis however, Despite some initial market volatility, the impact on the retail
unadjusted GDP increased by 9.1% in Q1 2018 relative to sector has been moderate with the main impact coming from
the same period in 2017, with GNP seeing similar growth of exchange rate fluctuations.
8.8%. In this context it must be noted that a quarterly decline
in Q1 2018 is reflective of the very strong growth seen in the
final quarter of 2017 as opposed to a slowdown in economic
growth in general.
• Personal consumption remains a key driver of growth, with • Average weekly earnings (seasonally adjusted) reached
the latest figures showing an annual increase of 2.7% in €742.19 in Q2 2018, a rise of 3.3% from €720.52 one year
consumer spending, while exports saw strong growth of earlier. Earnings increased in all of the 13 employment
6.1% year-on-year thanks to continued growth in business, sectors in the economy in the year to Q2 2018, with the
technology and financial services. Imports continue to be largest increase recorded in the Financial, Insurance, Real
negatively affected by Brexit, although not to the same Estate activities sector (+7.6%). • Whilst demand-side factors such as the Central Bank’s
extent as was seen last year, recording a decline of 1.1% controversial mortgage lending rules and Government’s Help-
year-on-year. to-Buy scheme have exacerbated price trends, the main issue
Consumer Economy is still insufficient housing supply.
• Continued employment growth along with rising wages and
increasing disposable income have had a positive effect on
the consumer economy in recent years with the consumer Summary/Outlook
sentiment index at 107.6 in July. Despite global uncertainty The Irish economy has now moved beyond the recovery
phase and into a period of sustainable growth, driven by
dampening stable monthly growth in sentiment, there has
been an overall uplift in sentiment of 171.8% since trough in Irish Property Markets business investment and employment growth as opposed
July 2008. to unsustainable credit flows. Davy Stockbrokers recently
revised up GDP projections to 5.7% for 2018 and 4.9% for 2019
• Employment growth and population expansion are driving Commercial Property with exports again expected to be a key contributor thanks
a remarkable increase in the amount of money circulating • The Irish commercial property market continues to stabilise to continued foreign investment and imports of intellectual
in the economy, with gross household disposable income with the IPD Quarterly Property Index recording a total return property by large multinationals. The strength of the labour
increasing by 5.3% in 2017. of 2.2% in Q2 2018 bringing annual returns to 7.0%. Retail saw market is forecast to drive unemployment down as low as 4.7%
annual returns of 4.8%. in 2019 following the return to positive inward migration last
• This has contributed to steady growth in retail spending with year. Consumer spending is expected to rise by 3.2% in 2018 and
• Most importantly, economic growth continues to be broad retail sales volumes up 6.2% in the year to July 2018, while • Strong activity in all occupier markets on the back of robust 3% in 2019 with sentiment improving as the economy nears full
based, with almost all sectors contributing positively. sales values increased by 5.6% annually. If motor trades are domestic economic fundamentals has meant that despite employment and household debt levels continue to fall.
Impressive growth of 16% was recorded in the information excluded, there was an increase of 3.8% in sales volumes and external developments and subsequent uncertainty,
and communication sector in 2017, while construction also an increase of 6.7% in sales values year-on-year. the commercial property market has remained buoyant On a macroeconomic level, the most significant factors facing
performed well recording an increase in value added terms throughout the year. Ireland are the outcome of ongoing Brexit negotiations and the
of 15.2%. Q1 data for 2018 bolsters this growth, particularly in potential for change regarding US foreign policy.
the information and communications sector, which recorded • Increases in employment and disposable income have driven
quarter on quarter growth of 13.7%. competition for good retail space with positive MSCI rental
growth figures of 6.4% across the Shopping Portfolio, off
which Navan forms part.
Labour Market
• The pace of employment growth remains robust, with • While it is too soon to understand the full impact of Brexit and
74,100 new jobs created in the year to Q2 2018 to bring total US developments on the Irish commercial property market,
employment to 2.255 million, on par with the peak achieved it will be extremely important to closely monitor key property
in 2007. This has impacted on the unemployment rate, which and economic indicators in the coming months in order to
has fallen from a peak of over 15% in 2012 to 5.1% by July take full advantage of any positive developments in an Irish
2018. Irish unemployment is now well below the current euro context, while also monitoring risks to minimise negative
area average of 7.0%. effects.
22 | Shopping Centre Investment Opportunity Navan Town Centre | 23Price
We are seeking offers in excess of €78.5 million. Pricing at this level would
reflect a net yield of 7.9% based on a NOI of approximately €6.736 million.
Subject to Contract / Contract Denied.
BER
A full suite of BER data is available on the Data Room.
Contacts
Sole Selling Agents Solicitor
Bannon Arthur Cox
Hambleden House Earlsfort Centre
19/26 Pembroke Street Lwr Earlsfort Terrace
Dublin 2 Dublin 2
Ireland Ireland
PSRA No. 001830 Deirdre Sheehan
+353 (0) 1 618 0309
Rod Nowlan deirdre.sheehan@arthurcox. com
+353 (0) 1 6477909
rnowlan@bannon.ie
David Carroll
+353 (0) 1 6477961
dcarroll@bannon.ie
navantowncentresale.com
Bannon 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 Bannon nor any of their employ-
ees have any authority to make or give any representation or warranty (express or implied) in relation to the property and neither and neither. Bannon 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. This brochure is issued by Bannon on the understanding that any negotiations relating to
the property are conducted through it. All maps produced by permission of the Ordnance Survey Ireland Licence No AU 001799 © Government of Ireland.
design | conradjones.com
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