RETAIL INVESTMENT AND MIXED-USE DEVELOPMENT LANDS - ST. MARGARET'S ROAD DUBLIN 11 - Charlestown
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R E TA I L I N V E S T M E N T A N D MIXED-USE DEVELOPMENT LANDS ST. MARGARET’S ROAD • DUBLIN 11
CONTENTS
Investment Summary 04
Investment in Charlestown 06
Investment in Retail 07
Investment in PRS 07
Location 08
Catchment & Demographics 10
Description 14
Income Profile 18
Podium Site 20
Planning Permission 20
Market Research 22
Further Information 24
03
INVESTMENT SUMMARY
188,568 SQ FT Key occupiers include:
of retail and leisure
accommodation
J5
€2,835,738 M50
NOI Income
AMPLE 8.94 YEARS
WAULT OF 91%
OCCUPANCY
CINEMA & LEISURE BLOCK
CAR PARKING (AS AT 31ST MARCH 2018)
79%
LOT 1
Expanding local area with PODIUM SITE
7.42% POPULATION GROWTH of NOI from
LOT 2
Top 10 SHOPPING CENTRE
Infrastructure links tenants St. Margaret's Road
Asset management opportunities to
INCREASE NOI
PODIUM SITE
Melville Road
3.5 ACRES Planning permission
for
Supplement to existing
247
285 units 6,336 SQ M
developed in
residential units and
The asset is being offered for sale by private treaty (tenants not affected) in individual or collective lots:
LOT 1 – Shopping Centre and Cinema & Leisure Block
PHASE 1
LOT 2 – Podium Site with Planning Permission
of commercial LOT 3 – Lot 1 and 2 combined
accommodation
04 05
INVEST IN CHARLESTOWN INVEST IN RETAIL
+7.4%
Highly accessible and convenient location Strong owner occupied grocery anchor with Ireland’s economy continues Retail Sales (ex. Motor) Consumer Sentiment
at junction 5 on the M50 complementary sub anchors including Heatons
up 7.4% up 7%
to perform especially well with
and Boots annual output growth
averaging 7.4% in 2017
Well balanced tenant mix including One of Ireland’s largest dedicated cinema Household Total Employment Strong labour market The MSCI overall retail
up 2.7% 50,000
Ulster Bank, Game Stop, Lifestyle Sports, Carphone and leisure blocks anchored by Odeon Disposable Incomes ERV index has
up 5.3%
Warehouse, O’Briens, Eddie Rockets, Carry Out, and Leisure Plex increased by 5.1%
Bagel Factory, House of Colour and net new jobs over the past
David Cullen Jewellers per annum twelve months
INVEST IN PRIVATE RENTED SECTOR (PRS)
1.41%
Ample car parking provisions The Podium site offers development Minimal Vacancy - 1.41% 25% of all households Record Low Supply Supply figure is 61% below
and value-add prospects Record low PRS vacancy in Dublin are private renters Fewer than 1,250 residential long-term average recorded
rate in Dublin properties available to rent in a series dating back to
in Dublin in February 2017 January 2007
+10,000
The delivery of the future phases of residential Total footfall in 2017 of 2.84m Lack of institutional landlords Continued population growth PRS households nationwide
at Charlestown will directly benefit the retail in Ireland. 85% of landlords Since 2013 a net additional rose by 10,000 in the
(existing and future), leisure and cinema own two or less properties 82,700 persons have been added last 12 months
to Dublin’s population
Source: Savills Research, CSO, Daft.ie
06 07
Donabate
4
M2 M1
LOCATION
5 2 Swords Malahide Charlestown Shopping Centre and the adjoining Podium site are situated in an
expanding suburb of North Dublin located inside the M50/N2 at Junction 5 and
M3 DUBLIN
2
north of Finglas Village. Situated approximately 7km north of Dublin City and 5km
N2 AIRPORT Portmarnock
Dunboyne from Dublin Airport the location provides excellent vehicular and public transport
4
1 access to the Dublin City and the wider Dublin area.
Clonee 4 3
4
M50
Mulhuddart 5 N32
The Charlestown area is convenient to a range of current and expanding
Sterling N3
Coolock amenities to include an array of onsite retailing, Dublin City University, Cappagh
Santry
3 Finglas
2
and Bon-Secour hospitals, local parks and sport clubs.
2 Beaumont Sutton
Howth
Blanchardstown 6
N2
The immediate Charlestown / Meakstown area is continuing to develop. The
M50
Clontarf
lands to the rear of the shopping centre fronting the M50 are currently under
Drumcondra Port Tunnel construction to provide flagship Motor Showrooms. The Charlestown Phase 4
M50 Castleknock
N3 N1 lands, immediately south, fronting St Margaret’s Road will provide for residential
Leixlip N2
units which will be delivered by Bovale Developments.
M4 6
3
1 7
Lucan 2
N4
Chapelizod
DUBLIN
N4
N4 N1
Ballyfermot
N81
Ballsbridge
N11
Crumlin Ranelagh
Clondalkin
1 Donnybrook
9
N7
Walkinstown Milltown
10 Terenure
2 Belgard
N81 Clonskeagh
M50 N31
Churchtown
3
Blackrock Dun N2 Dublin Airport & M1
Tallaght 11
Templeogue Dundrum
N11 Laoghaire
N81
N7 Stillorgan 4
Saggart N81 Ratfarnham
Citywest Sandyford
M50
Glenageary
12
N31
IKEA
13 14 Foxrock ’ S RD
5
ET
S T M AR G A R
RD
M50 Leopardstown
’S
ET
R108
N11
AR
RG
Carrickmines
MA
JA M E STO W N R D
ST
15
ME
LV IL
LE
RD
16 Cherrywood
R1
M11
35
NO
17
R108
RT
BALLYMUN
H
BA
RO
LB
U TC H
ER LAN
E
AD
RD
5
N
W
TO
R 1 0 8 B A L LY M U N R O A D
ES
M50
JAM
H
R135
CA
Cappagh National P
FIN
P
A
Orthopaedic G
H
RD
GL
Hospital
AS
RO
A
FINGLAS WEST
D
NEVIN RD
CA R103 GLAS
P PA R103 SE R103 GL
AMU ASN EVIN R
GH S ENNIS RD D
RD
FINGLAS EAST
R AT
R 1 0 8 B A L LY M U N R
O AT
H RD
R1
RD
35
UN
T DCU - Dublin
FI
O
M City University
LL
N
E
G
W
LA
S
OA D
RO
Dublin Centre
A
D
08 09
RETAIL CATCHMENT & DEMOGRAPHICS
Retail Catchment According to Gamma*, the total annual spend within the defined catchment is in the region of €2.1 billion.
The catchment zone for Charlestown Shopping Centre is a rapidly growing area located to the south of This includes expenditure which is not relevant to goods and services that would be common in a shopping
Dublin Airport and N2/M2, west of Ballymun and north of the densely populated Finglas area. The catchment centre environment similar to Charlestown Shopping Centre. The spend has been refined to reflect
area is driven by the anchor and leisure offer which attracts patrons from the Dublin 7, 9 and 11 areas. expenditure categories that are relevant to Charlestown Shopping Centre.
The population of this catchment was 143,816 persons at the 2016 Census, representing a 7.42% increase Category of Spend Annual Spend Relevant to
since the previous, 2011 Census. This is an increase of almost more than twice the national average and it is Charlestown Shopping Centre
anticipated this will continue to grow given the current and proposed residential expansion of the immediate Clothing and Footwear €80,368,289
Charlestown area. Drink & Tobacco €108,963,918
Food €305,161,627
Census Population
Household Durables €63,660,993
2011 133,884
Household Non-Durables €39,109,091
2016 143,816 (up 7.42%)
Other Misc. Expenditure €544,980,043
TOTAL €1,142,143,961
*Annual spend is based on the 2016 Census and Household Budget Survey 2015/ 2016, adjusted by Gamma
Coolquoy
annually in line with the CSO CPI January data release.
Swords Pavillions
Estimated Annual Household Expenditure, 2016 Demographic Profile
Swords
M1
13%
Hollystown St Margaret’s
18%
Golf Club
DUBLIN
AIRPORT
27%
N2
30%
47% 21%
Silloge Park
14%
Golf Club
M50 Northside
Barnageeragh
N3 Shopping Centre
ABC1 demographic
Mulhaddart Corduff
Santry profile
10%
Ballymun
M50
6% 34%
7%
Beaumont
Blanchardstown
Centre
Finglas Glasnevin
North Beaumont
Kilmore
Coolock
3%
Hospital
Glasnevin Artane
Cardiff Bridge Rd Whitehall
M50 Donnycarney
Castleknock
27% Food & Non Alcoholic Drink 18% Total Population
The Shopping Centre and Leisure Block,
excluding Dunnes, extends to 17,519 sq m
(188,568 sq ft) and comprises 26 mall units,
9 external units and 11 kiosk locations
12 13
ST. MARGARET’S ROAD
CH
AR
TAXI BUS
LE
RANK STOP
ST
OW
ENTRANCE DESCRIPTION
NP
Shallotts Wilson The
Moore Barber
Ca
LAC
Indian Restaurant
rry
Eddie
The existing retail and residential scheme was developed by
E
Rocket’s
O
Ulster
ut
Bank Bovale Developments and built by G&T Crampton. It opened for
AIB
ATM trade in late 2007.
CENTRE FACILITIES
PC Repair
Specs
Centre
for Less
The Shopping Centre comprises a modern single storey ‘T’ shaped
EuroGiant
Urban
Lifestyle
Outlet
mall anchored by a drapery and grocery Dunnes Stores. The
The Carphone
Petzone
Warehouse
Sports
Dunnes Stores
Factory
Boots
Shopping Centre, excluding Dunnes, which does not form part
Bagel
(Owner Occupied) Expense
Less of the sale, extends to 8,638 sq m (92,983 sq ft) and comprises 26
mall units, including 5 external units. In addition to the mall units
there is 11 kiosks within the centre. The scheme is developed
TRAVELATORS Maple Red
Diamond
Best4 Smoke MAIN above a double level basement car park providing 1,400 spaces
Moose Accessories Travel Green ENTRANCE
An serving the entire estate.
Post
AIB
ATM Village Phase 2A, which contains the cinema and leisureplex operations,
O’Briens Sandwich Bar
Shoe Rack
Catch
The Gift
Emporium
The Gift
Emporium
Bookstation
Jewellers
opened in 2014 and comprised 8,880 sq m (95,586 sq ft) of
Game
Stop accommodation including a purpose built 9 screen (seat) cinema
McArdle
Meats operated by Odeon.
Bushra’s
Beauty
Phase 1 residential element, which does not form part of this sale
Heatons is majority owned by IRES. There are 285 residential units in total,
SERVICE YARD
House of developed at podium level above the shopping centre with large
Colour
communal landscaped areas. The accommodation is provided
Unit 17 Unit 18
over 5 floors.
ENTRANCE
Shopping Centre Ground Floor Plan
M50
PHASE 2A - CINEMA
& LEISURE BLOCK
PHASE 2B - PODIUM SITE
RESIDENTIAL
SEPARATE OWNERSHIP
PHASE 1
SHOPPING CENTRE
St. Margaret's Road
14 15
16 17
INCOME PROFILE
A full Tenancy Schedule has been provided in the data room.
The scheme currently generates a gross annual income of €3,310,032 across 50 leases/licenses which
after non-recoverable operational costs equates to an NOI of €2,835,738.
Leases provide for standard service charge provisions effectively creating full repairing and insuring
terms across the scheme. The current scheme occupancy, as at March 2018, is 91%, with a WAULT of
9 years (to the earlier of break/expiry) on an NOI basis.
n Current NOI of €2,835,738 per annum
n Blended WAULT of 8.94 years
n 79% of Income generated from 10 tenants
Top 10 Tenants
Tenant Rent NOI WAULT % of Total NOI
1.00 Odeon €675,000 7.34 23.80%
2.00 Heatons €450,000 14.35 15.87%
3.00 Boots €400,000 4.34 14.11%
4.00 Leisureplex €225,000 22.16 7.93%
5.00 The Carphone Warehouse €105,145 4.34 3.71%
6.00 O’Brien’s Irish Sandwich Bars €84,000 14.35 2.96%
7.00 Eddie Rockets €80,646 14.35 2.84%
8.00 Bookstation €77,500 14.35 2.73%
9.00 Ulster Bank €75,000 4.25 2.64%
10.00 Lifestyle €70,000 14.35 2.47%
18 19PODIUM SITE (PHASE 2B)
The Podium Site (Phase 2b) is situated adjacent to the Phase 1 shopping centre bounded to the east and
north by the estate roads. The site is developed to podium level above the estate car park. The Podium slab
was constructed in 2007, in line with Phase 1.
Planning Permission
Planning permission was granted in Q1 2018 (Reg. Ref. F18A/0025) to complete and reconfigure Phase
2B development. The proposed Phase 2B development comprises a total of 33,404 sq m gross floor area
incorporating;
n 247 apartments (26,112 sq m) comprising:
– 66 x 1 bed
– 121 x 2 bed
– 60 x 3 bed
n 4 retail units (6,336 sq m)
n Ancillary areas (506 sq m)
n Crèche (450 sq m)
The proposed accommodation is arranged in 5 blocks ranging in height from 2 to 6 storeys.
A new phase of development will complete the original vision and support the existing Centre in providing
much needed facilities for the area.
Proposed Site Outline Pedestrian
access to
New Street
Pedestrian
access
Residents
Mews
ts Cinema &
m en Leisureplex
art
Ap
Retail
Ap
art
me
nts
Link t
Residents o Cou
rt
Mews
Ap
Retail
art
me
nts
Retail Retail
Residents
Mews
Apartments
Pedestrian
access to
New Street
20 21MARKET RESEARCH
Economic Overview Retail Research Residential Research Residential Rental Market
Ireland’s economy continues to perform especially well with Notwithstanding the recent acceleration in consumer Property prices are ultimately driven by the balance The demand for rented accommodation continues to
annual output growth averaging 7.4% in 2017. Growth in spending growth, core (ex. Motors) retail sales continue to between housing supply and demand. At a most basic be driven by the scarcity and cost of owner occupied
consumer spending continues to contribute positively to indicate stronger underlying spending trends, with sales level demand depends on population growth. Dublin’s properties. Despite an increase in the overall stock of
this and, most recently, accelerated to a five-quarter high volumes rising by 7.4% in the three months to December population is currently expanding by around 12,500 properties in the private rented sector (PRS), the number
of 2.7% (see Figure 1). Underpinning this is jobs growth. 2017. persons (0.9%) per annum. This implies a need for about of units that are available to rent has fallen sharply since
Ireland is currently creating nearly 50,000 additional 4,600 additional dwellings per annum just to meet the 2011. Consequently, vacancy rates for private rented
jobs per annum. As a result unemployment has fallen to Furniture and electrical stores continue to enjoy the most demand from population growth. However, when we factor accommodation in all locations are now negligible. As a
6.2%, leading to a more competitive labour market and rapid growth in volume sales. This reflects improved in buildings required to replace dilapidated units, and to result, strong rental inflation continues to be recorded
a sustained period of modest but meaningful earnings disposable incomes, a strong trend in household compensate for the fact that we haven’t built anywhere near with latest data indicating that rents nationally rose by
growth. Greater numbers at work, coupled with increased formations, sharply rising house prices and the Government enough units in the last eight years, the current requirement 9.5% in the twelve months to September 2017. Despite
earnings and modest tax cuts, have led to almost 5% growth sponsored Home Renovation Incentive (HRI) – the latter is higher. ESB connections data indicate that around 6,000 being designated a Rent Pressure Zone (RPZ), rents in
in real aggregate disposable incomes over the past twelve of which have encouraged people to invest more in properties were constructed in the capital in 2017. However, Dublin grew by 9.9% over the same period. Rental growth
months. Adding to this, sustained growth in consumer credit their homes. Bank of Ireland, for instance, reported a it is now well understood that this metric substantially in properties that had not previously been let and those
balances has further boosted consumers’ spending power. 47% increase in the number of home improvement loan overstates housing completions, and the reality is that that have undergone substantial changes – both of which
applications in the first nine months of 2017. Dublin’s housing market remains undersupplied. are excluded from the rent caps – likely explains why rental
Looking ahead, legislation to refund domestic water growth continues to exceed the regulated growth rate of
charges has now passed and payments totalling €173m are Despite competition from online sales – which are largely With too few units being built to meet demand, there is 4% per annum.
underway. A further round of tax cuts arising from Budget excluded from the official retail sales statistics – clothing strong competition for the limited number of available
2018 will now also kick in, adding an additional €335m to stores continue to trade well, with volume sales growth properties. The net result is competitive bidding leading to In our view, the investment rationale remains positive for
workers’ spending power this year.1 advancing by 5.6% in the three months to December. price inflation. Official CSO statistics show that house prices cash financed investors. While rental growth in RPZs is likely
Although CSO figures show that clothing is the most nationally rose by 9.0% y/y in 2016. Prices have picked- to be outstripped by HPI over the next two years, any yield
1
Dept. of Finance Budget 2018 Economic and Fiscal Outlook – Page 20, Table 9 common online purchase by internet users in Ireland, with up further since then and are currently rising by 11.6%. In slippage will be from a strong starting point relative to
44% buying clothes though this channel in the year to March Dublin, house price inflation (HPI) has accelerated from returns on other assets. It must also be remembered that
2017, it’s interesting to note that, despite better broadband 6.6% at the end of 2016 to 11.3% currently (see Figure 2). investors benefit from the capital growth associated with
coverage in Dublin, internet users in the capital were not HPI.
the most likely to buy clothing online – 46% of them did so,
exactly the same proportion as in the South-West region
and fewer than in the West (50%). One interpretation is Average Residential Property Yields by Location Q3 2017 – Dublin
that, where a good quality retail offering is available locally,
Ireland’s economy continues consumers continue to use the face-to-face channel for
fashion purchases.
to perform especially well
with annual output growth
Retail Rents
averaging 7.4% in 2017 Savills econometric modelling shows that jobs growth is
ultimately the strongest driver of growth in retail rents.
With Ireland’s economy creating close to 50,000 additional
jobs per annum, we should continue to see retail rents rise
over the medium term. In the short term this relationship
may be complicated by recent global uncertainties. But, as
the reality of events like Brexit becomes internalised and
accepted as an ongoing part of the economic landscape,
commerce will have to continue as normal and retail rents
should trend higher. The MSCI overall rental value index has
increased by 3.8% over the past twelve months.
22 23FURTHER INFORMATION VIEWINGS
Service Charge Viewings
The Scheme service charge and operation is managed by All viewings are strictly by appointment through the joint selling agents.
Charlestown Management Company Ltd, an SPV which
handles the administration of the centre and estate.
Please refer to the data room for service charge budgets and Joint Selling Agents
apportionment schedules.
SPV Heating / Man Co.
Please refer to the data room for more information.
VAT Bannon
The Sale of the Shopping Centre and Leisure Block Savills Ireland Hambleden House
will be treated as a transfer of business relief. 33 Molesworth Street 19/26 Pembroke Street Lower
Dublin 2, Ireland Dublin 2, Ireland
BER PSRA: 002233 PSRA: 001830
A full suite of BER Documents are available in the Domhnaill O’Sullivan Roderick Nowlan
data room. T: +353 1 618 1364 T: +353 1 647 7909
E: domhnaill.osullivan@savills.ie E: rnowlan@bannon.ie
Website Leona Mullen David Carroll
T: +353 1 618 1762 T: +353 1 647 7961
www.charlestown-investment.com
E: leona.mullen@savills.ie E: dcarroll@bannon.ie
Title
Freehold / Leasehold.
Solicitors
Please refer to the Title Summary in the data room.
Sale Process
The asset is offered for sale by private treaty in individual or
collective lots:
LOT 1 – Shopping Centre and Cinema & Leisure Block Smith Foy & Partners Solicitors
LOT 2 – Podium Site 59 Fitzwilliam Square, Dublin 2
LOT 3 – Lot 1 and 2 combined
Raymond Smith
T: +353 1 676 0531
E: raymond.smith@smithfoy.ie
PROPERTY MISREPRESENTATION ACT
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 Ireland, Bannon 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 Ireland nor 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. Designed and produced by Creativeworld. Tel +44 [0] 1282 858200.
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