42-43 HENRY STREET - PRIME RETAIL INVESTMENT OPPORTUNITY - Amazon S3
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PRIME RETAIL INVESTMENT OPPORTUNITY
42-43
HENRY
STREET
Investment
Considerations
Flagship investment opportunity in a
commanding Henry Street location
which attracts the best national and
international retailers.
• High-profile four storey over basement end terraced
corner building extending to approximately 958.2 sq m
(10,313 sq ft) NIA
• Includes approximately 685.4 sq m (7,377 sq ft) of retail
accommodation at basement, ground and first floor levels
• Prime retail unit benefiting from approximately 15 m
frontage onto Henry Street and return frontage of
approximately 12 m onto Moore Street
• Located on the north eastern side of Henry Street which
connects to O’Connell Street and in close proximity to
Arnotts Department Store and the Ilac Centre
• Landmark retail store fully let to Arcadia Group Limited
(trading as Evans), a blue-chip fashion retailer, on a 35 year
lease from October 1985, expiring in October 2020
• Currently producing a rent roll of €865,000 per annum
• Unexpired term of approximately 3.6 years offering
a number of exciting short-term asset management
opportunities
• Property is held under part Freehold and part Long
Leasehold titles
• Tenant not affected
42-43
HENRY
STREET
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Location
SQ
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ES J
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TTA
REE
F OL
OYCE
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G’S ET SHERIFF
ET
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T LO
INN
HEN
S T LOWER
ST
ELL S
LO
LTO
’S S ST
LINENHALL PARADE
DO
T WE L
MI
EL
WER
BO
MOOR
R
NI
RN CUSTOM HOUSE
CK
TR
TREET
PA OT ST
HARBOUR
LN
MO
TALB
E ET U
E LN
E
O
LAC
RE
NS S
OT P
S T
G ST
PPER
KI N
TALB
AMIE
NORT H
GREEN ST
MARL
42-43 Henry Street is situated ILAC
CENTRE LUAS Cross City
BOROU
GRAND CANAL DOCK GEORGE’S DOC
on the north eastern side of the
O’CON
K
GH
T
WOLFE
HE NR Y S
LN
JERVIS
ST
CUC K O O
ST OWER
N
MARY
TONE S
ARNOTTS
PEARSEY ST L STATION
ELL S
ABBE
street on the prime retail stretch
ST
T
JERVIS
TREET
MARY’S LANE
SHOPPING
CUSTOM HOUSE MERRION SQUARE
between the Ilac Centre and
CENTRE
BORD GÁIS MIDDLE ABBEY ST QUAY
CAPEL
ARRAN ST EAST
QUAY CUSTOM HO
EDEN
LO W E
US E QUAY
ENERGY THEATRE LOTT
S
LIFFEY S
T
BBEY S
UPPER A ST STEPHENS
O’Connell Street.
LUAS TH
QUAY
STREE
NOR
R
ABBE Y STOP BURGH
MARY’S K CITY QU GREEN
T
WAL
LOWER
CHANCER
Y ST AY
T
D ST S
TARA ST
STRAN ELOR AY
MOSS ST
POOLBEG ST
HAWKINS ST
GREAT N QU
BACH
CHARLES
ASTO
D’O
GLOUC
ESTER
L O W ER
LUKE ST
D SQ ST SOU
L
AY
ORMON ORMOND QU
TH
IER
Henry Street is the primary retail thoroughfare on the ST WEST
UPPER
ST
UA Y TOWNSEND ST
D QUAY GTON
Q FLEET ST
north side of Dublin City Centre. It is one of the two ORMON WELLIN TEMPLE BAR PEAR
SE S
Y TR E
ANGLESEA ST
main pedestrianised high street retail locations in ESSEX QUA ET
TEMPLE LANE S
EUSTACE ST
A Y ST EAS
T HANOV
WOOD QU ES S E X COPE ST MARK’S LN ER ST
EAST
Dublin, the other being Grafton Street on the south side
of the city. THE CUSTOM HOUSE
TRINITY COLLEGE
The significant Ilac and Jervis Shopping Centres are
located on Henry Street which is home to numerous
national and internationally recognised brands such CENTRAL BANK
as Zara, H&M, River Island and Boots, together with LUAS Cross City OF IRELAND
department stores including Arnotts, Debenhams,
Dunnes and Marks & Spencer. Neighbouring occupiers O’CONNELL ST BANK OF IRELAND
include Carrolls, Mango, Clarks, Pull & Bear, Vision
LUAS Red Line
Express, JD Sports and Holland & Barrett. TEMPLE BAR
The creation of the proposed 40,000 sq ft unit fronting
onto Henry Street from the Arnotts premises, coupled
with the planned addition of the Topshop flagship store RIVER LIFFEY
in the Jervis Centre will further enhance footfall levels
on the street. In addition, the owners of the Ilac Centre CLERYS
have commenced their refurbishment plans which will
be completed by summer 2017 which are also seen as
a very positive development for the area.
GPO
Weekly footfall figures on the street for 2016 averaged
almost 335,000, resulting in total footfall for the year of
over 17.4 million. This was an increase compared to 17.3
million recorded in 2015. As well as a retail attraction,
Henry Street and the immediate area is a significant O’CONNELL ST
tourist destination. Footfall is boosted by excellent
LUAS Red Line
transport links including the LUAS Red Line stops on
the nearby Abbey Street and Jervis Street. The new
LUAS Cross City Line is due for completion by year end HENRY ST
and will have a station on O’Connell Street. There are
multiple Dublin Bus stops on O’Connell Street while LUAS Cross City
the immediate area is also well served by taxi ranks
and Dublinbikes with stations at Princes Street and
Cathal Brugha Street. Multi-storey car parks are located
in nearby shopping centres at the Jervis Centre, Ilac
Centre and Parnell Centre.
MARY ST
Description Tenancy
The entire building is let to Arcadia Group Limited trading as
42-43 Henry Street comprises a four storey over Evans on a 35 year full repairing and insuring lease from 1st
basement period end terraced corner building October 1985. The current rent is €865,000 per annum.
extending to approximately 958.2 sq m (10,313
sq ft) NIA. This prime retail unit benefits from
approximately 15 m frontage onto Henry Street Covenant Information
and return frontage of approximately 12 m onto
Moore Street.
Evans is a well-known women’s fashion retailer of clothing,
lingerie, shoes, swimwear and accessories. The brand forms
The property includes approximately An internal metal staircase which serves part of Arcadia Group, a British multinational retailing company
685.4 sq m (7,377 sq ft) of retail all floors provides a fire escape route to which also owns other notable fashion retailers including Burton,
accommodation at basement, ground the rear. Dorothy Perkins, Miss Selfridge, Topshop and Wallis. The group,
and first floor levels. The upper floors which is part of Taveta Investments owned by Sir Philip Green,
The building is of masonry / brick
provide for a variety of uses including has approximately 45,000 employees and operate more than
construction and includes a ground floor
a manager’s office, staff kitchen area, 2,500 stores.
glazed shop front.
stock rooms and toilets. There is lift
The upper floors contain part masonry, Arcadia Group Limited has a Dun & Bradstreet rating of ‘5A 1’. The
access for customers, with swipe card
part red brick and part granite façade to D&B rating of ‘5A 1’ represents a financial strength of 5A based on
access to non-sales areas for staff to
include traditional style sash windows a tangible net worth of over £2.62 billion and a risk indicator of 1
basement, ground, first and second
under a pitched slate roof. which represents a minimum risk of business failure.
floors. There are concrete stairs within
the sales areas to basement, ground
and first floor levels and timber stairs
serving staff areas to the upper floors. ITZA of approximately
148.3 sq m (1,597 sq ft) Accommodation
Floor Use Sq M Sq Ft
Ground Retail 254.4 2,738
Basement Retail 295.1 3,176
First Retail 135.9 1,463
Second Ancillary 128.8 1,386
Third Ancillary 144.0 1,550
Total Area 958.2 10,313
ITZA 148.3 1,597
Areas provided are NIA and were measured by Malcolm Hollis.
An assignable measured survey is available in the data site.
42-43
HENRY
STREET
HUT
MOBILE
RESERVED
GNC
RESER
VED
DIY SHOP
CLERYS
OCCUPIED
OCCUPIED
OCCUPIED
Fire
Floor Layout
Exit
Stairs
Asset Management
store
Stairs
CHANGING
ROOMS
Retail Storage
The current lease is due to expire in October 2020 presenting an investor
with a number of exciting short term asset management opportunities to
include the following:
Fire Exit
2.94 fc
Tenant
Stairs
store UP
Stairs Lift
basement
FCH 2.41
Lift Lift
Lobby Tenant part
Stairs
Stairs
0.000
Lift
• The current unexpired lease term of approximately • If vacant possession is obtained, this property could
2
4
Lift
MOORE STREET
Lobby Stairs
Tenant
Lift
3.6 years enables a timeline for an investor to capitalise be reconfigured / sub-divided and converted back
MOORE STREET
stairs
Stairs
part
Lobby
Fl-cl= 2.943
on the continued improvement and growth in the retail to two separate buildings (i.e. No.42 and No.43).
part
MOORE STREET
shop floor sector and pent-up demand for prime High Street Although there is a notable shortage of large prime
pitches coinciding with the lease expiry in October units on Henry Street, the creation of two reconfigured
COMMS
part
0.000
3
WINDOW
2020. and refurbished units at this location could command
0.000
DISPLAY 3
5
0.000
ENTRANCE
premium rents.
• Potential to restructure the current lease with Arcadia
WINDOW
DISPLAY
WINDOW
DISPLAY
HENR HENR part
HENRY Y STR Y STR Group (trading as Evans) to secure a longer lease term.
STREET EET EET
Basement Ground Floor First Floor
Retail Market Outlook
RETAIL
ECONOMY IMPROVING
Ireland’s economy continues to perform extremely well. Total Retail sales up 3.4%
employment is rising by 2.9% per annum and the number of people at
work in Ireland has surpassed 2 million for the first time since 2008.
Average earnings have been rising for the last two With the jobs market continuing to improve, retailer
years. Rising house prices and share values have demand for occupational space is to remain strong.
increased households’ asset wealth and there has Given the fact that large scale retail development is UNEMPLOYMENT
been a pronounced rebound in consumer credit. still some way off, rents will continue to rise further. Unemployment continues
Taken together these continue to add to consumers’ to fall and is currently just above 7%
Savills Director of Research, Dr. John McCartney,
spending power which remains particularly
has developed a framework for forecasting retail
favourable for retail property.
rents in conjunction with economists at the ESRI.
With the consumer economy continuing to tell The forecasting model uses the Grafton Street sub-
a positive story, retailers continue to expand, index as a representative of what is happening in
with new entrants such as & Other Stories and the prime Dublin High-Street market, due to the
Victoria’s Secret further cementing Dublin’s status high correlation between ERV growth on Grafton
as a premier shopping location. On Henry Street, Street and on Henry Street. EARNINGS
Topshop’s decision to consolidate its position as Real average earnings have been
The latest analysis indicates that a 1% increase
a key fashion driver from a reconfigured store of rising for two years
in total employment growth is associated with a
approximately 20,000 sq ft in the Jervis Centre will
1.09% increase in rental growth on prime Dublin
further enhance the scheme and benefit local retail
High-Streets two years later. It is forecasted that
occupiers.
prime Dublin High-Street ERVs should rise by
Additionally, Arnotts continues its resurgence with approximately 11.3% over the 8 quarters between
growing sales and profitability, aided by an ongoing Q3 2016 and Q2 2018 inclusive.
refinement of its concession mix, with Nespresso
the latest brand to locate within the store.
HOUSEHOLD NET WORTH
The net worth of Irish households has
risen by 39.6% in the last four years
Prime Dublin High-Street Rents Forecast to Q2 2018
450
400
350
Index: Dec 1994 = 100
300
250 LOW VACANCY RATES
200 As of Q1 2017 the unit vacancy rate
is 3% on Henry Street, highlighting
150
strong occupier demand
100
50
0
1996Q1
1997Q1
1998Q
1999Q1
2000Q1
2001Q1
2002Q1
2003Q1
2004Q1
2005Q1
2006Q1
2007Q1
2008Q1
2009Q1
2010Q1
2011Q1
2012Q1
2013Q1
2014Q1
2015Q1
2016Q1
2017Q1
2018Q1
Source: Savills Research FORECAST FOR
RENTAL GROWTH
42-43 Savills forecasts suggest Henry Street
HENRY Rental Growth of 11.3% by Q2 2018
STREET
42-43
HENRY
STREET
Contacts
& Further Information
GUIDE PRICE SELLING AGENT
In excess of €18,000,000. Savills
33 Molesworth Street
Dublin 2
DATA SITE
PSRA: 002233
www.savills.com/42-43HenryStreet www.savills.ie
Fergus O’Farrell
VIEWINGS T +353 1 618 1300
fergus.ofarrell@savills.ie
All viewings are strictly by appointment
through the sole selling agent. Kevin McMahon
T +353 1 618 1328
kevin.mcmahon@savills.ie
BER
Roisin Rafferty
BER No: G
T +353 1 618 1431
Energy Performance:
roisin.rafferty@savills.ie
2098.97 kWh/m²/yr 3.68
SOLICITORS
Sheehan & Company Solicitors
TENURE 1 Clare Street
Dublin 2
We understand the property is
held part Freehold and part Long Mel Ferguson
Leasehold. T +353 1 634 4329
fergusonm@sheehanandco.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 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 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.
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