F O R S A L EB A L L I N C O L L I G | C O R K

S Q U A R E

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INVESTMENT OVERVIEW

Cushman & Wakefield are excited to offer the Barrack Square investment portfolio for sale. This highly attractive sale includes 6 modern office buildings with 100% occupancy; Kavanagh House, Pearse House, Yeats House, Behan House, Unit 3 Emmet House, Parnell House. It also includes the adjoining Sliced Restaurant and 375 spaces in the multi-storey car park. This highly anticipated investment is offered for sale in 1 Lot.

The investment is anchored by VM Ware International, a leading international IT software company owned by Dell EMC. VM Ware accounts for 94% of total rental income and the total passing rent for the investment is €2.1M per annum. The offices also have the benefit of a multi-storey car park, serving all the buildings within the campus.

An exclusive office campus and restaurant investment with strong tenant covenants and an unrivalled rent roll

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THE INVESTMENT TODAYThe campus originally consisted of four barracks buildings and a central courtyard. Today, the office campus, which was rebuilt and extended in 2004, provides modern office accommodation to VM Ware, eSentire and other occupants including Foley Turnbull solicitors and McCutcheon Halley surveyors. The central courtyard has been maintained and modernized including a feature fountain and historic artillery.

The sale includes 5 of the 8 office blocks, Unit 3 of the sixth block in the scheme and also Sliced Restaurant which is located directly between Barracks Square and Ballincollig Main Street. Office accommodation includes modern, open plan office space, board rooms, reception areas, numerous large canteens, break out space, external balcony areas and a gym. The development also provides 652 multi-storey parking spaces in addition to surface car parking to occupants and visitors, 375 of which are included in the sale.

THE LEGACY Barracks Square was originally a military barracks established in approximately 1800. Soldiers working at the barracks provided protection for the gunpowder mills located to the rear of what is now the Barracks Square Office Campus.

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KAVANAGH HOUSE

YEATS HOUSE

UNIT 3, EMMET HOUSE

PARNELL HOUSE

CAFE/RESTAURANT

BEHAN HOUSE

Aerial

Office Space

CanteenYeats HousePearse House

PEARSE HOUSE

375 MULTI-STOREY CAR PARKING SPACES

126,297 GIA SQ FT OF OFFICE SPACE, 100% OCCUPIED

SEEKING OFFERS IN EXCESS OF €24M

€2.1M OF RENTAL INCOME PER YEAR WITH A LONG 6.3

YEAR WAULT

6 MODERN OFFICE BUILDINGS LOCATED IN BALLINCOLLIG, CORK (IRELAND’S SECOND LARGEST CITY)

94% OF RENTAL INCOME SECURED AGAINST LONG LEASES TO VM WARE, A LEADING INTERNATIONAL IT FIRM

OWNED BY DELL COMPUTERS

TENANTS ARE NOT AFFECTED

INVESTMENT HIGHLIGHTS

S O U T H M A L L

N 20

CORK CITY

U N I V E R S I T Y C O L L E G E C O R K

T H E K I N G S L E Y H O T E L

N 2 2

C O R K I N S T I T U T E O F T E C H O L O G Y

C O R K U N I V E R S I T Y H O S P I TA L

W I LT O N S H O P P I N G C E N T R E

O R I E L H O U S E H O T E L

BALLINCOLLIG

C O R K A I R P O R T ( 2 0 M I N U T E S )

PAT R I C K ST

N 2 2

N 40

N 40

N 2 7

N 7 1

(10 MINUTES)

LOCATION Ballincollig is Cork’s largest town located 5 miles west of Cork City Centre. Cork is Ireland’s second largest city with a population of 417,211 in the county and 125,657 persons in the City. It is also a university city and is home to approximately 25,000 students.

The satellite town is recognised as one of Cork’s most attractive suburbs due to its proximity to both the local employment hubs at Barracks Square and Castle West Shopping Centre in addition to the city centre, Mahon Point and Little Island.

Local connections include the South Link Ring Road, N22 Cork to Kerry road network, the M8 Cork to Dublin motorway, the Jack Lynch Tunnel, N25 Cork to Waterford Road and a number of public bus routes.

There are a number of large scale local housing developments and there are 278 apartments in the Castle West Quadrant apartments that neighbour Barracks Square.

The town is well serviced by a large variety of local amenities, retailers and service providers including Dunnes Stores, Tesco, Aldi, Lidl, SuperValu, Heatons, McDonalds, Topaz, AIB, multi storey car parks, a medical centre, New Look, Boots and a number of pharmacies. Ballincollig is a strategically located town providing an attractive range of residential, retail and employment options.

N22 & N40 ROADS

MULTI STOREY, ON-STREET & SURFACE PARKING

MULTIPLE PUBLIC BUS ROUTES

ON-SITE BIKE DEPOTS

15KM TO CORK INTERNATIONAL AIRPORT

ORIEL HOUSE & THE KINGSLEY HOTELS

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BALLINCOLLIG TOWN CENTRE & APARTMENTS

07 06

MULTI STOREY & SURFACE CAR

PARKING

LOCAL SERVICES INCLUDE RETAIL,

BANKING, EDUCATION, FOOD & LEISURE

DUNNES STORES

TESCO

MCDONALDS

ALDI

AIB

A WIDE RANGE OF LOCAL

TRANSPORT LINKS

NEIGHBOURING APARTMENTS & HOUSING

DEVELOPMENTS

MULTI-STOREY CAR PARK

MEDICAL CENTRE

CASTLEWEST SHOPPING CENTRE

EXCELLENT BUILD QUALITY & WELL

PRESENTED

TENANCY & ACCOMODATION SCHEDULE

BUILDING USE TENANTRENT PER

ANNUM

LEASE COMMENCEMENT

DATE

TENANT BREAK

OPTION

LEASE EXPIRY

UNEXPIRED LEASE TERM (YEARS) AS OF

SEPTEMBER 2017

SQ M GIA SQ FT GIA

BEHAN HOUSE

OFFICEVM WARE

INTERNATIONAL LIMITED

€659,505 17.07.2011 17.07.2021 18.07.2031 3.83 3,501 37,686

KAVANAGH HOUSE

OFFICEVM WARE

INTERNATIONAL LIMITED

€450,795 19.12.200719.12.2017

NOT EXCERCISED

20.12.2027 10.25 2,274 24,474

PARNELL HOUSE

OFFICEVM WARE

INTERNATIONAL LIMITED

€429,940 13.11.2006 NA 14.11.2026 9.15 3,021 32,518

YEATS HOUSE

OFFICEVM WARE

INTERNATIONAL LIMITED

€376,250 01.05.2015 30.04.2022 01.05.2028 4.61 1,997 21,500

UNIT 3 EMMET HOUSE

OFFICEVM WARE

INTERNATIONAL LIMITED

€62,825 13.02.2015 NA 13.02.2018 0.40 316 3,398

VM WARE SUBTOTAL RENT

€1,979,315

PEARSE HOUSE OFFICEESENTIRE

EU LTD€92,430 17.09.2015 18.11.2020 17.09.2025 2.99 478 5,150

CAFE POD

RESTAURANTSTAR

INNOVATION LTD

€23,500 29.05.2015 29.05.2020 29.05.2025 2.69 146 1,571

TOTAL €2,095,245 6.3 YEAR WAULT 11,733 126,297

TOTAL:

€2,095,245 TOTAL:

126,297 SQ. FT. GIA

OCCUPANCY

MULTI-STOREY CAR PARKA four storey car park is located immediately next to Barrack Square and offers secure parking to tenants and visitors. The car park offers an electric charging point for cars and access is via controlled swipe cards. 375 car parking spaces are included in the sale and are held by way of a 999 year lease. The car parking spaces included are as follows:

LEVEL OCCUPANT NO. OF SPACES

LEASED LICENCED

1

ESENTIRE 15 15 0

VM WARE 12 12 0

VISITOR 3 NA NA

2VM WARE 49 49 0

UNASSIGNED 2 NA NA

3 VM WARE 147 147 0

4 VM WARE 147 122 25

TOTAL 375

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INCOMEKEY

94.5% VM WARE

4.4% ESENTIRE

1.1% SLICED

INCOME

OCCUPANCY

93.7% VM WARE

4.7% ESENTIRE

1.6% SLICED

TENANTS OVERVIEW 1. VM WARE INTERNATIONAL

LIMITED – Generate 94.5% of Rental Income & Occupy 93.7% of the investmentVM Ware (NYSE: VMW) is a global leader in virtualization solutions. Dell EMC Corporation acquired VM Ware in 2004 and as such is now a subsidiary company providing customers of all sizes strategic solutions to reduce capital and operating expenses, ensure business continuity, strengthen security and go green.

VM Ware is one of the fastest-growing public software companies. Internationally, the company boasts revenues in excess of $1.9 billion, more than 130,000 customers worldwide and more than 22,000 partners. VM Ware is recognised for their award-winning technology and employ more than 6,600 people in 40 locations worldwide.

VM Ware employs over 1,000 people in Ballincollig, a number which is constantly expanding. The availability of a skilled local workforce attracted the company to Cork. Services provided from the Cork headquarters include; sales, marketing and software support for VW Ware products and related services.

2. ESENTIRE EU LIMITED – Generate 4.4% of Rental Income & Occupy 4.7% of the investmenteSentire is leading and internationally recognised cyber -security firm. The company provides the financial services sector protection against online hacking and cyber attacks. This Canadian company originated in Cambridge, Ontario however they have identified Barrack Square as their European headquarters.

The company currently employs approximately 20 people in Cork, however planned expansion over the next five years will see this figure increase to approximately 100 employees. Like VM Ware, eSentire identified Cork as a suitable location for the European Headquarters because of the access to technical talent.

3. INNOVATION STAR LIMITED – Generate 1.1% of Rental Income & Occupy 1.6% of the investmentInnovation Star Limited, trading as Sliced, is a modern restaurant offering wood fired pizzas, healthy salad options, coffee and cakes. The restaurant is operated by a local restaurant owner and has been trading in Ballincollig for over two years since taking occupation of the property. The company is currently expanding their successful offering and is opening a second, city centre location in late 2017.

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The Office Investment MarketOffice investment absorbed 44% of the total investment spend in H1 2017 which was largely driven by the sale of 13-18 City Quay, Dublin for €126M.

The Capitol office and retail development at the Grand Parade, Cork City was recently sold to German property investment fund Real IS for €43.75M providing an initial yield of 5.5%.

IRISH INVESTMENT MARKET BY LOT SIZE, H1 2016 & H1 2017

H1 2016

€1-10m (72 deals) €10-20m (13 deals)

€20-50m (9 deals) €50 -100m (7 deals)

€100m+ (4 deals)

H1 2017

€1-10m (73 deals) €10-20m (13 deals)

€20-50m (9 deals) €100m+ (1 deal)

INVESTMENT MARKET The Office Rental Market• Availability in the Cork office market is now at its lowest point

since 2008.

• Q3 2017 supply levels stood at just under 60,000 sq m /645,000 sq ft.

• The shortage of available Grade A office space continues as the current net vacancy rate in Cork is 7.4%. Cork has now overtaken Galway as the region with the lowest vacancy rate.

• Office rents are anticipated to continue trending upwards, reaching €325 per sq m by the latter stage of the year. At the end of quarter two 2017, prime headline rents remained unchanged on the previous quarter at €315 per sq m per annum. This represents an annual uplift of 8.6%. Prime suburban accommodation, such as Ballincollig, saw a 2% rise on the previous quarter, while rent in Mahon remained stable at €255 per sq m per annum.

• Office space take up in the first half of 2017 recorded a threefold increase to just over 3,900 sq m / 42,000 sq ft, bringing total take up in the year to date 5,150 sq m/ 55,450 sq ft. Approximately 30% of the newly completed office development, The Capitol, was occupied in the second quarter of 2017.

CORK OFFICE NET AVAILABILITY BY GRADE A, Q2 2017

A STOCK NO. OF

OFFICES

SUM OF AVAILABILITY

SQ M%

CITY CENTRE

<1,000 SQ M 14 5,450 18%

>1,000 – 5,000 SQ M 3 4,800 16%

>5,000 – 10,000 SQ M 0 – –

SUB-TOTAL 17 10,250 34%

SUBURBS

<1,000 SQ. M 19 7,050 23%

>1,000 – 5,000 SQ M 7 12,900 43%

>5,000 – 10,000 SQ M 0 – –

SUB-TOTAL 26 19,950 66%

TOTAL 43 30,200 100%

Source for both graphs: Cushman & Wakefield Research

Disclaimer Conditions to be noted: A full copy of our general brochure conditions can be viewed on our website at http://www.sherryfitz.ie/terms or can be requested from your local Cushman & Wakefield office. We strongly recommend that you familiarise yourself with these general conditions. PSRA Registration Number: 002607.

CONTACT Sales Agent

SALES INFORMATION Data Roomwww.barracksquarecork.com

TitleWe have been advised the properties are held by way of a long leasehold title

ZoningTown Centre, Ballincollig Local Area Plan

TenureTenants not Affected

Guide PriceSeeking offers in excess of €24M exclusive

BER

BER Numbers available upon request

Cushman & Wakefield 6 Lapps Quay Cork

T: +353 (0)21 427 5454 E: cork@cushwake.ie

cushmanwakefield.ie

PETER O’FLYNNT: 021 464 8502 E: peter.oflynn@cushwake.ie SIOBHÁN YOUNGT: 021 464 8524 E: siobhan.young@cushwake.ie

Solicitor

Arthur Cox Solicitors Ten Earlsfort Terrace Dublin 2

T: +353 (0)1 920 1000 E: dublin@arthurcox.com

arthurcox.com

D U B L I N | B E L F A S T | L O N D O N | N E W Y O R K | S I L I C O N V A L L E Y

DEIRDRE BARRETTT: 01 920 1100 E: deirdre.barrett@arthurcox.com

GILLIAN BEECHINORT: 01 920 1322 E: gillian.beechinor@arthurcox.com

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