New Century House - For Sale by Private Treaty - DUBLIN
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EXCELLENT INVESTMENT OPPORTUNITY
IN THE HEART OF THE IFSC
New Century
House
DUBLIN 1
For Sale by Private Treaty
ew Century
2
Executive Summary
4
Investment Highlights
6
Location
10
Docklands Occupiers
14
The Asset
18
ouse
Development Potential
20
Tenancy Details
24
Market Activity
2 3 Executive Summary The sale of New Century House provides an excellent opportunity to acquire a six- storey over basement car park, category A office building. The property is situated at the core of the IFSC hub, within the North Docklands. The direct surrounding area has an excellent transport infrastructure on its doorstep via the Luas, Dart and numerous Dublin Bus routes. The entire of New Century House is occupied by Bank of Ireland. The asset boasts a secure income profile, with significant reversionary income to be unlocked at the approaching upward only rent review in January 2019. There is a mix of opportunities to unlock additional value, which includes the potential to extend the building by approx. 34,000 sq.ft (Subject to Planning Permission).
4 5
The property has an Dublin is the European
unexpired lease term of Headquarters of a number of
leading global companies such
6 YEARS as Google, Facebook and LinkedIn
IRELAND IS THE ONLY
EXCELLENT COVENANT
native English speaking
let to Bank of Ireland country in the Eurozone area
Upward only lease with Ireland boasts one of
the most competitive
excellent reversionary
corporate tax rates at
potential, next review
in January 2019 12.5% rates
New Century Investment
House Highlights
OFFICE VACANCY
MODERN OFFICE BUILDING
IN THE IFSC
situated in a STANDS AT ONLY
core IFSC location
4.07%
The asset has excellent Unemployment is
estimated to fall towards
development potential
5% by the end of 2018
The property extends to 79,872 sq.ft.
Ireland has been the best
of office accommodation
performing economy in
and includes 2,267 sq.ft. of storage
EMEA for 3 years running
and 87 car parking spaces
6 7
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8 9
A Leading
Submarket
New Century House is located at the centre of the International
Financial Services Centre (IFSC), on the north side of the River
Liffey. The location boasts excellent connectivity with the Red Luas
line running along Mayor Street, the nearest stop is approximately
100m east of the subject property. The direct vicinity boasts
an excellent mix of amenities consisting of a number of pubs,
restaurants and cafes.
The North Docklands is an evolving office and residential location,
which, since regeneration in the early 1990’s, has experienced
substantial growth and development. The IFSC houses over
35,000 employees in over 500 companies and boasts a wealth of
high-profile international occupiers. The quality of the location is
reflected by the multinational corporations located in the area.
At present, there is a strong wave of development ongoing in the
North Docklands, which is underpinning this leading sub-market.
There are over 3,600 residential units in the pipeline in the North
Docklands. The area is serviced by excellent amenities, which include
a university, a concert arena and excellent transport infrastructure.
The North Docklands is currently served by all the key transport
links including the Luas, Dublin Bus, the DART and Irish Rail at
Connolly Station. Upon delivery of the DART underground (approx.
2025) it is estimated that 100,000 passengers will use the nearby
Docklands station daily.
EXCEPTIONALLY CORE WAVE OF
WELL CONNECTED EMPLOYMENT HUB DEVELOPMENT
Luas, Dublin Bus and Irish Rail IFSC houses over 35,000 Pipeline development includes
all situated within the North Docks employees and 500 companies over 3,600 residential units
10 11
Docklands
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14 House
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1 Yahoo
2 Voxpro 16 1
3 Bvlgari 17 9
M AYO R ST UP
PER 3
ES ROAD
12 2
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4 NTMA
EA ST WA LL ROAD
18 8
IS S T
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P EL S
5 Central Bank of Ireland
CA ST LEFO RB
10
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PwC ED E US E Q UAY 7
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23 24
C R EIG H
12 Depfa Bank FL EE T ST
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29 30
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13 Rabobank PE A L ANE
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14 JP Morgan ER S T R
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18 Societe Generale
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27 GRAND CANAL DOCK
Grant ThorntonEXCHE
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20 Morgan Stanley
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21 Bloomberg TRE
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26 William Fry
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12 13
New
Century
House
14 15
The Asset
THE BUILDING
New Century House is a six-storey over basement car park,
Category A office building constructed in 1999. It comprises UNEXPIRED TERM
7,420 sq.m. (79,872 sq.ft.) of office accommodation, together OF SIX YEARS
with 87 car spaces. In addition, there is 210.6 sq.m. (2,267
sq.ft.) of storage space*.
The building was designed to be capable of subdivision into
two separate office blocks and has two main entrances at the
north east and north west elevation corners, opening onto
Mayor Street Lower. There are two main core areas close to
these entrances, with two secondary core areas located to the
southern end of the building. EXCELLENT
COVENANT
The interior office specification includes raised access floors with
carpet tiles, floor boxes wired for power and data, suspended
ceilings with recessed lighting and four-pipe fan coil air
conditioning. Each floor is laid out in a combination of open plan
and cellular offices. There is a staff canteen at ground floor level
and shower facilities in the basement. A large central courtyard
area adds natural light to the floors and provides breakout areas
at ground floor level.
REDEVELOPMENT
*For the purpose of the rent review the areas in the lease are listed to include OPPORTUNITIES
7,316 sq.m (79,750 sq. ft.) of office accommodation, together with 87 car
spaces at basement level. In addition, there is 192 sq.ft (2,067 sq. ft.) of
storage space.
Floor Sq.M. (NIA) Sq.Ft. (NIA)
Basement 211 2,267
Office 1,088 11,706
Ground Reception 96 1,032
Sub Total 1,183 12,738
First 1,408 15,151
Second 1,439 15,487
Third 1,439 15,487
Fourth 1,247 13,427
Fifth 705 7,582
Total Net Lettable Area 7,420 79,872
Total 7,631 82,139
This table is as per the Malcolm Hollis measurement survey which is available in the data room.
16 17
FLOOR PLANS
Not to Scale. For identification purposes only.
Office
Reception Reception
Office
Kitchenette Kitchenette
Riser
Riser
WC Lifts Lifts Lifts Lifts WC Plant
Lifts Lifts Lifts Lifts
Riser
Riser
Lobby Lobby
Lobby Lobby
Riser
Riser
Riser
Riser
WC WC WC WC WC WC WC WC
Riser
Riser
Riser
Riser
Stairs Stairs Stairs Stairs
Office Office
Office Canteen
Kitchen
Riser Riser
Riser Lift Riser
Riser
Riser
Stairs Stairs
Riser
Riser
Stairs Stairs
Ground Floor Typical Floor18 19
Development PROPOSED GROUND FLOOR PLAN
Potential
MAYOR STREET LOWER
Feasibility drawings have been prepared by Shay Cleary
Architects, which outline the potential to extend New
Century House by filling in the central courtyard and adding 34,000
an additional floor of accommodation.
sq.ft. of additional net floor
The study outlines the ability to extend the asset by area through infilling the
approximately 34,000 sq.ft. of additional net floor area
atrium on each level and
through infilling the atrium on each level, reconfiguring the 1
adding a 6th floor level
existing cores and constructing a new 6th floor (subject to
2
planning permission). This would result in a total net floor
area of approximately 114,200 sq.ft. The feasibility study
3
with drawings is available in the data room. 7
4
8 8
8 8
COMMONS STREET
5
SIXTH FLOOR
FIFTH FLOOR
FOURTH FLOOR
6
THIRD FLOOR
SECOND FLOOR
9 9
FIRST FLOOR
GROUND FLOOR
Proposed Extension
New Construction
Existing Construction Proposed Extension
Existing Construction
Proposed Section at New Century House 1. Entrance Foyer 2. Reception Desk 3. Mail Room 4. Bridge 5. Atrium 6. Office Floor Space 7. Speed Gates
8. Passenger Lift 9. Firefighting Lift20 21
Tenancy Details
THE COVENANT
The Bank of Ireland provides an excellent covenant.
The Governor and Company of the Bank of Ireland provides
various banking and other financial services in the Republic of
Ireland, the United Kingdom and internationally. Bank of Ireland
Group, whose shares are listed on the main markets of the Irish
Stock Exchange plc and the London Stock Exchange plc, is the
holding company of Bank of Ireland. It has a registered address
at 40 Mespil Road, Dublin 4.
TENANCY SCHEDULE
Car Parking 87 spaces
The Governor and Company
Tenant of the Bank of Ireland
Current Rent €2,847,446 (incl. cars) per annum
Lease Term 25 years from 22nd January 1999
Next Rent
22nd January 2019 (Upwards Only)
Review Date
Lease Expiry 21st January 2024
Covenant Excellent
Held under two separate
Long Leaseholds (East & West),
Tenure
subject to a peppercorn rent
(includes option to purchase)
Bank of Ireland is in occupation under two leases, which are to be
reviewed on the basis of a single lease.22 23
24 25
Recent Sales &
Leasing Transactions
SALES LEASING TRANSACTIONS
1 One Spencer Dock 10 One Windmill Lane
Let to PwC (2016) Pre-let to Informatica and Core Media
Sold for: €243 million Headline rent: €55.00 per sq.ft
Purchaser: AGC Equity 3,250 sq.m and 2,200 sq.m
2 13-18 City Quay 11 The Exchange IFSC
14
Let to Grant Thornton (2016) Let to Food Safety Authority
Sold for: €126 million Headline rent: €50.00 per sq.ft
5 Purchaser: Irish Life 1,802 sq.m
8 3 Harbourmaster III 12 Two Docklands Central
6
Multi-Let (2016) Let to Hubspot
9 Sold for: €42 million Headline rent: €52.50 per sq.ft
10 Purchaser: Banca Intesa San Paulo 3,000 sq.m
1
4 II Harbourmaster Place 13 13-18 City Quay
Multi-Let (2016) Pre-let to Grant Thornton
7 12 Sold for: €53 million Headline rent: €52.50 per sq.ft
Purchaser: Real IS 11,000 sq.m
13 16 5 Capital Dock 14 Velasco, Lower Grand Canal Street
2 13,000 sq.m (2017) Pre-let to Google
11 15 Pre-sold to: JP Morgan Headline rent: €55.00 per sq.ft
Reported Price: €125 million 4,738 sq.m
6 4-5 Grand Canal Square 15 lock A George’s Quay
B
New Let to Facebook (2015) Let to Innovative Interface
Century Sold for: €233 million Headline rent: €57.50 per sq.ft
House Purchaser: Union 800 sq.m
4 7 Three Spencer Dock 16 George’s Quay
Multi-Let to OPW, Central Bank, Let to WeWork
3 Nationwide (2015) Headline rent: €57.50 per sq.ft
Sold for: €104 million 4,645 sq.m - Reserved
Purchaser: Central Bank
8 Bloodstone Building
Multi-let (2015)
Sold for: €70 million
Purchaser: Real IS
9 Dublin Landings
Let to NTMA
Sale Agreed
Guiding: €150 million26 27
Office Market Dublin Office Vacancy Rate Q4 2017
The office occupational market performed very strongly in the number of office workers in Dublin will increase by approx.
9.60
2017, reflecting the highest year on record with office take- 20% between now and 2025 to over 500,000 persons. 10
up exceeding 330,000 sq.m. This take-up largely comprised
Strong net absorption has gradually reduced the vacant stock 7.61
of small to medium-sized lettings, however, was significantly 08
in the Dublin office market in recent years. The vacancy rates
boosted by the pre-lettings of a number of large developments 6.75
have dropped from almost 23% in mid - 2010 to just 6.08% at 5.96
under construction. 06
5.68
OVERALL VACANCY RATE
present. The Dublin office market has a natural vacancy rate 5.16 4.94
4.63
Interestingly, lettings to UK tenants doubled year-on-year, which, based on historic rental growth patterns seems to lie 4.07 4.07 GRADE A VACANCY RATE
demonstrating the extent to which Brexit added a welcome layer between 7% and 9%. In particular, occupational conditions in the 04
2.96 2.90
of additional demand to the Dublin market during 2017. The sale prime Central Business District (CBD) are much tighter than 2.66
of Capital Dock to JP Morgan in the Dublin Docklands was the in less prime locations. The Grade A vacancy rate in the CBD 02
1.22
most significant Brexit-related transaction recorded. currently stands at 2.9%.
%
According to the CSO, the Irish economy has performed better There is approximately 350,000 sq.m. (gross) of office space
Dublin 1, 3 & 7 Dublin 2 & 4 Dublin 6 & 8 IFSC City Centre Suburban South Suburbs
than expected in 2017, with GDP increasing by 4.2% for the 3rd currently under construction in the CBD, 109,000 sq.m. (net)
quarter YOY. Labour market numbers are also improving and of which is pre-let. Although there is potential for further supply
Source: CBRE, Q4 2017
estimates see the unemployment rate, which stands at 6.1% in in the North and South Docklands, due to the limited availability
January 2018, expected to fall below 5% by the end of this year. of finance, the pace of development has consistently under shot
market expectations.
There are now 2.06 million people in the Irish workforce, which
is not far off the previous peak of 2.16 million. Recent FDI
announcements look to have a high jobs content, which bodes
INVESTMENT MARKET
well for the Irish workforce. Oxford Economics estimates that
In 2017 investment spend equated 37%
to more than €2.56 billion, of which INVESTMENT
OFFICE
SECTOR
SPEND
Dublin Docklands Supply 2017 - 2020 (F) the office sector was the most
( > 50% probability**) dominant, representing over 37%
of all investment transactions.
140,000
126,769
112,576 112,337
120,000
109,000
COMPLETE
100,000
PLANNING APPLICATION 2017 WAS A RECORD YEAR FOR OFFICE sq.m.
80,000 TAKE-UP WITH LETTINGS IN EXCESS OF
SQ.M.
68,026
330,000 sq.m.
PLANNING GRANTED of office accommodation currently
60,000
under construction in the CBD has
UNDER CONSTRUCTION
40,000 pre-lets in place, representing 31%
UNDER CONSTRUCTION - PRE-LET
20,000
*These are gross areas
0
2017 2018 2019 2020** IT IS ESTIMATED BY OXFORD
Grade A
2.9%
ECONOMICS THAT THE
Office Vacancy number of office workers in
Source: CBRE Research January 2018
in the CBD is below Dublin will grow by 20% by 202528
Contact
TITLE LEGAL TEAM
Held under two separate Long Leaseholds (East & West),
subject to a peppercorn rent (includes option to purchase).
PRICE
On application.
Eversheds Sutherland
METHOD OF SALE One Earlsfort Centre,
For Sale by Private Treaty. Earlsfort Terrace,
Dublin 2, Ireland
BER CERTIFICATES
Marie O’Riordan
BER Number: 800147381
T +353 1 664 4914
Energy Performance Indicator: 560.92 kWh/m²/yr1.82
E MarieORiordan@eversheds-sutherland.ie
AGENTS
Willie Norse Johnny Horgan Sandra Walsh
T +353 1 618 5529 T +353 1 618 5797 T +353 1 618 5578
E willie.norse@cbre.com E johnny.horgan@cbre.com E sandra.walsh@cbre.com
Further information is available at PSR Reg. No.001528
www.newcenturyhouse.com www.cbre.ie
Disclaimer: CBRE U.C (CBRE IRELAND)
These particulars are issued by CBRE U.C., registered in Ireland, no. 316570. PSRA License 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. Brochure prepared January 2018.You can also read
