BLOCK C CITY GATE PARK - MAHON, CORK - 2 Grand Parade 19 & 19A Dartmouth Road ...
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BLOCK C CITY GATE PARK MAHON, CORK
THE OPPORTUNITY
On behalf of the vendor, CBRE is delighted to offer
one of the most high-profile and prestigious office
investments in Cork, on a sale and leaseback basis.
The property is situated in City Gate Park, Cork’s
leading out-of-town office campus, and comprises
a state of the art, next generation office building.
Block C is let in its entirety to an excellent tenant
Quest Software International Limited on a new
long-term 15 year lease.
1
INVESTMENT HIGHLIGHTS
• Modern, high specification, Grade A office building
• Located in City Gate Park, Cork’s leading out-of-town office campus
• Sale and leaseback of the entire building
• A new 15 year lease with upwards and downwards rent reviews
• The property extends to 8,119.6 sq m in total (Gross)
and has 180 secure basement car parking spaces
• Let to Quest Software International Limited
• Annual Rent of €1,600,000
• Secure income for 10 years
2
3
4
CONSTRUCTION DATE
2012
GROSS AREA
8,199.6 sq m
LEED STANDARD
GOLD
LEASE TERM
15 years
SECURE BASEMENT CAR-PARKING
180 cars
5
LOCATION
Cork, with a population of 220,000 people in its metropolitan area, is the Republic of Ireland’s
second largest city and is the premier commercial, retail, administrative and educational centre
in the south. Cork has an excellent infrastructure and is easily accessed through a principle port
and an international airport. Cork railway station offers daily services to all major cities throughout
the country, and hourly trains to Dublin. Major employers in Cork include Apple, Amazon,
Dell EMC, Pfizer, Boston Scientific and PepsiCo. Cork is a University City with a student
population of approximately 30,000.
The property is situated in City Gate Park Mahon, City Gate Park is a modern office scheme, contained
approximately 5km southwest of Cork City and strategically within three blocks, with a total floor area of approximately
positioned close to the South Ring road network, affording 27,870 sq m (300,000 sq ft). The Park provides an
easy access to Cork Airport and all main arterial routes. exceptional working environment with excellent on-site
facilities which include cafés, restaurants, retail, and
Mahon has become a key location for economic activity in a gymnasium.
the Cork region, with over €600 million of private investment
being made within a 0.5 km radius of City Gate Park over The area is a well sought after office location attracting
the past 15 years. Most notably Mahon Point Shopping a high calibre of national and international corporations.
Centre, Mahon Point Retail Park, the adjacent City Gate office Occupiers in the immediate area include Dell EMC,
complex and private hospital development together with McAfee, Qualcomm, FireEye, Voxpro and Ronan Daly
the residential developments of Jacobs Island and Eden Jermyn Solicitors.
in Blackrock.
To Dublin
To Limerick N8
N20 CITY GATE PARK
MAHON, CORK
Midleton
Glounthuane
Glanmire To Waterford
CORK JACK LYNCH TUNNEL N25
Mahon Point
N22
Douglas
Passage West DUBLIN
Cobh
CORK INTERNATIONAL AIRPORT
SHANNON
N28
LIMERICK
N71 WATERFORD
WATERFORD
Ringaskiddy
To Tralee Ferry Port
Carrigaline
RIVER L E E
JACOB’S ISLAND
MAHON POINT
SHOPPING CENTRE
MAHON POINT
R E TA I L PA R K
FIREEYE
R DJ S O L I C I TO R S
DELL EMC
PM GROUP
MC AFEE
QUEST EMEA
BLOCK C REGUS
H O S P I TA L
CITY GATE PARK
MAHON, CORK
V OX P R O
MAHON
DESCRIPTION
The property comprises a modern, high specification, four storey detached office
building, constructed in 2012. It is a state of the art, next generation modern
building comprising approximately 8,119.6 sq m (gross) of Grade A office
accommodation. The property has achieved a Gold LEED standard which ensures
that occupiers can minimise both operational costs and environmental impact.
The building has striking elevations, which consist of a combination of glazed
aluminium curtain walling and polished limestone finishes.
Internally, the ground floor comprises a main reception area, open-plan offices ACCOMMODATION
and meeting rooms. The first and second floors comprise open-plan offices,
meeting rooms and kitchen while the third floor comprises open-plan offices, Floor GIA Sq m GIA Sq ft NIA Sq m NIA Sq ft
larger meeting rooms, training room and a large communal canteen. The third floor Basement -2 183.7 1,978 4.7 51
has the benefit of generous wrap-around balconies. Each floor has ladies, gents and
disabled restrooms. Basement -1 131.4 1,415
Ground 1,838.3 19,787 1,597.3 17,193
Internal specifications include raised access floors with quality carpet tile finish, First 2,059.1 22,164 1,726.7 18,587
ceiling tiles with grid suspended ceiling system, air conditioning and energy
efficient lighting. There is a polished tile finish to lobby areas and three high Second 2,061.1 22,185 1,729.1 18,611
speed lifts serve each floor. Third 1,846.0 19,870 1,519.2 16,353
Total 8,119.6 87,399 6,577.0 70,795
The building has the benefit of secure basement car-parking for 180 cars.
Areas provided were measured by Malcolm Hollis. An assignable measured survey
to include IPMS measurements are available in the Dataroom.
8TENANCY COVENANT
The entire building is let to Quest Software Quest helps solve the complex technology
International Limited on a new 15 year full repairing and security problems that stand in the way of
and insuring lease subject to an initial rent of organisations’ ability to always be ready for what’s
€1,600,000 per annum. There is a tenant break next. With Quest solutions, companies of all sizes can
option at the end of year ten, subject to 12 months reduce the time and money spent on IT administration
prior notice. and security, so they have more time to focus on and
invest in business innovation.
The lease provides for 5 yearly rent reviews, subject
to a maximum increase of 10% and maximum Quest has more than 100,000 customers worldwide
decrease of 3% on the immediately preceding across its portfolio of software solutions spanning
rent prior to rent review. information management, data protection,
endpoint systems management, identity and access
A proportion of the ground is sublet to SonicWall management, and Microsoft platform management.
International Limited on a short-term lease. Please
refer to the data-room for further information. In 2017 Quest Software International had a turnover of
US$388.9m which increased by 13% on the previous
financial year. Net Profit increased significantly from
US$12.5m to US$26.7m over the same period. In 2017
the company had a net asset value of US$188.2m.
9WHY CORK
Cork has developed into a thriving hub of global growth sectors – ICT, pharmaceuticals, healthcare,
biotechnology, food and business services. Cork is home to leading international companies such as
Apple, Dell EMC, VM Ware, Amazon, McAfee, Intel Security, Johnson Controls and PepsiCo. Notably
Cork is also home to eight of the top ten pharmaceutical companies including Johnson and Johnson,
GlaxoSmithKline, Pfizer and Eli Lilly.
Cork City has a population of 220,000 150 multi-national companies are Cork was voted the No.1 Small City of Cork has excellent accessibility through
people with 300,000 people in the wider based in Cork, employing over 35,000 The Future for foreign direct investment a modern International Airport voted
metropolitan area. The National Planning people. Key attractions are the educated friendliness in the Financial Times FDI by Airport Council International as The
Framework Strategy (Project Ireland workforce, value for money, quality of Magazine European Cities and Regions Best Airport in Europe 2017 in the under
2040) has set a target population growth life and successful businesses already of the Future in 2016/2017 and again in 5m passenger category. Cork hosts 11
of 130,000 (plus 60%) for Cork City over operating here. As Ireland’s second 2018/2019. carriers servicing 48 routes including
the life time of the plan, meaning Cork city, Cork’s cost base compares very major UK and European cities and
is set to be the fastest growing Irish City favourably with that of Dublin. Office Cork is a University City with transatlantic flights to Boston. Cork is
over the coming years. rentals in Cork are less than half the approximately 30,000 students enrolled only 2.5 hours from Dublin via an hourly
price of Dublin for an equivalent prime in a number of institutions, the largest train service or by Road via the M8
location and salaries are 10% less than being University College Cork (UCC) and Motorway.
those in Dublin. Cork Institute of Technology (CIT). This
large student population is the future
workforce for the existing high calibre
employers and future employers of
Cork City.
10CORK INVESTMENT MARKET
In 2017 €2.5 billion traded in the Irish Investment market and total returns
reached 6.40%. Office Investments accounted for 37% of the overall spend.
Regional based transactions accounted for 16% of the spend.
In the context of the Cork Investment Examples of assets which traded in Cork When analysed by investment volume, The recent focus of large scale European
Market, CBRE estimate that there have in recent times include: One Albert Quay, 57% of the spend was acquired by and international investors in the Cork
been approximately €555 million of Merchants Quay Shopping Centre, The Institutional Investors. market is a welcome broadening of the
investment transactions since 2015 Capitol mixed office and retail scheme investor base and also illustrates the
accounting for 74 deals. In 2017 on Patrick Street, Unit 30 Cork Airport confidence these investors have in Cork
there was €187 million of investment Business Park and Building 7 Eastgate and its future.
transactions in Cork, up from €56.5 Avenue, Eastgate Business Park.
million in the previous year.
TOP 3 REGIONAL CITIES INVESTMENT VOLUMES 2015 - Q1 2018 CORK TRANSACTIONAL ACTIVITY 2015 – Q1 2018
€ million € million
300 250
€555m 74 deals
2015 – Q1 2018
250 €208m
200 24 deals
€187m
22 deals
200
150
150 73.81% of
regional
transactions
63.33% of 100 €102.7m
regional 4 deals
100 transactions
53.88% of
€56.54m
regional 50
50 26.63% of transactions 24 deals
regional
transactions
0 2015 2016 2017 Q1 2018 0 2015 2016 2017 Q1 2018
Cork Galway Limerick Source: CBRE Q1 2018 Source: CBRE Q1 2018
11OCCUPATIONAL MARKET
The Office Market has consistently been the best performing of the
commercial real estate sectors in Cork over the last number of years.
Similar to Dublin, the Cork office market has experienced strong recovery.
Strong office demand coupled with the lack of PRIME OFFICE RENTS COMPARED Q1 2018
development for several years has resulted in rising
rents and low vacancy rates. Currently prime city € per Sq M per Annum
centre office rents are €350 psm. 800
Research undertaken by CBRE in May 2018 shows
that there is approximately 265,000 sq m (2.85 m sq ft)
of potential new office stock in 19 individual schemes
at various stages of planning. 17 schemes have been
600
granted planning permission of which 8 are in the
city centre.
Approximately 33,479 sq m is currently under
construction of which approximately 75% is reserved,
pre-let or at advanced stages of negotiations. 400
Cork office vacancy rates have been declining in
recent years with limited availability of Grade A
accommodation.
A feature of the Cork office market over the last 200
12-18 months has been a strong shift in demand away
from the business parks towards the urban centres
such as Mahon and the city centre. Employees want
quality work environments with immediate access
to amenities and entertainment. City Gate Park is
situated within a short walking distance of residential 0
Dublin Manchester Birmingham Cork Liverpool
developments, Mahon Point Shopping Centre,
restaurants, retail services and a multi-screen cinema.
Source: CBRE Q1 2018
12SOLE SELLING AGENT
PSRA
PSRA
LICENCE
LICENCE
NO.
NO.
001528
001528
Brian Edwards Natalie Brennan Greg Kaveh
Managing Director, Cork Senior Director Surveyor
Contact: +353 (0) 21 491 7254 Contact: +353 (0)1 618 5555 Contact: + 353 (0) 1 618 5542
email: brian.s.edwards@cbre.com email: natalie.brennan@cbre.com email: greg.kaveh@cbre.com
WWW.CBRE.IE
BASIS OF SALE FURTHER INFORMATION
The property is being offered for sale by private treaty. Interested parties at the Vendor’s discretion will be provided
access to the Data Room. The data room will contain
PRICE comprehensive information about the property including
assignable measured survey, assignable building survey,
On Application. copy lease and title information.
TITLE DISCLAIMER
We understand that the property is held on a long leasehold CBRE U.C., (CBRE Ireland)
basis. These particulars are issued by CBRE U.C., registered in
Ireland, no. 316570. PSRA Licence No. 001528 on the
SOLICITOR DETAILS understanding that any negotiations relating to the property
are conducted through them. While every care has been
MASON HAYES & CURRAN taken in preparing them, CBRE U.C., for themselves and
South Bank House, Barrow Street , Dublin 4 for the vendor/lessor whose agents they are, give notice
Vanessa Byrne that: (i) The particulars are set out as a general outline for
Contact: +353 (0) 1 614 5000 guiding potential purchasers/tenants and do not constitute
email: vbyrne@mhc.ie any part of an offer or contract. (ii) Any representation
including descriptions, dimensions, references to condition,
BER permissions or licenses for uses or occupation, access and
any other details are given in good faith and are believed
BER Rating: B1 to be correct, but any intending purchaser or tenant should
BER Number: 800125403 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.
Block C, City Gate Park, Mahon. Prepared June 2018.You can also read
