1
Shopping Centre Investment Opportunity For Sale by Private TreatyTenants not Affected
A strong anchored retail scheme in the centre of Mullingar Town with immediate asset management opportunities.
Investment Summary
5,461 sq. m. (58,781 sq. ft.)Net Internal Area (excluding long leasehold interests)
300 Car Spacesunderground
Two Anchor Stores:
Prominent Location in the centre of Mullingar Town
€685,018 per annumof Net Operating Income(to include car park income)
Asset Management Opportunities
(long leasehold interest)
Outline is for illustrative purposes only.
Mullingar is the county town of Westmeath, with a population of 20,928 (census 2016). Mullingar is located centrally within Ireland’s midlands, approximately 80km from Dublin City Centre. The town is situated on the M4/N4 corridor (accessed via junction 15), one of Ireland’s main arterial routes servicing the Dublin to Sligo route. Mullingar is also connected to the main Dublin to Galway route via the N52 National Primary Road.
Fairgreen Shopping Centre is situated within Mullingar Town at a pivotal roundabout which connects Patrick Street and Ashe Road. The scheme has a prominent profile and benefits from vehicular and pedestrian passing trade.
Mullingar Train Station is situated approx. 350m from Fairgreen Shopping Centre. The station sits on the Dublin Connolly to Sligo line.
Shopping in Mullingar
R394
R156R400R390
R394 N52
N4
N4ASHE ROAD
HARBOUR
STREET
NEWBROOK
ROAD
DELVIN
ROAD
AUSTIN FRIARS ROAD
Accessing Fairgreen Mullingar
HARBOUR PLACE SHOPPING CENTRE
MULLINGARSHOPPING CENTRE
COLUMB BARRACKS RESIDENTIAL SITE
MULLINGARTRAIN STATION
OLIVER PLUNKETT STREET
PEARSE STREET
AUSTIN FRIARS STREET
The centre currentlyattracts footfall of
1.5 million per annum DESCRIPTION
Fairgreen Shopping Centre was constructed in 2005 and comprises a single storey shopping centre of approximately 5,461 sq. m. (58,781 sq.ft.) (excluding Penneys which is held under long leasehold interest). The centre has a simple, linear layout comprising eight units, two anchor units and six additional retail units fronting the central mall. Five of the units, including both anchor units, have mezzanines. The centre has the benefit of 300 underground parking spaces, which can be accessed from a central point in the main mall.
Fairgreen Shopping Centre serves a very strong purpose within Mullingar Town with anchors TK Maxx and Penneys proving to be a significant footfall draw. Currently the centre attracts footfall of 1.5 million per annum. The addition of Costa Coffee in 2016, which sits at the entrance to the scheme, has proven to be an additional footfall driver and offers a key amenity for customers.
Fairgreen Shopping Centre has excellent profile onto two main roads within Mullingar Town and is positioned within a densely populated residential area.
UNIT 1 PENNEYS (long leasehold interest)
UNIT 2A COSTA COFFEEUNIT 2B ELVERY SPORTSUNIT 3 TK MAXXUNIT 4 VACANTUNIT 4A DEALZUNIT 5A VACANT (terms agreed)
UNIT 5B NEW LOOK
Scheme Plan
Stores
ENTR
ANCE
UNIT 1
UNIT 3
UNIT 4UNIT
5A
UNIT 5B
UNIT 2B
UNIT 4A
UNIT 2A
The IDA has recently completed the services infrastructure for a 70 acre business park which should facilitate the arrival of additional multinational companies to Mullingar in the short to medium term.
Mullingar Regional Hospital is a 211 bedroom, public hospital which services the entire of the west midlands and is situated on the outskirts of Mullingar Town.
The newly established Land Development Agency which was set up as part of the ‘Ireland 2040’ plan has identified Columb Barracks in Mullingar as a site for residential development. Columb Barracks has capacity to hold 250 residential units and immediately adjoins Fairgreen Shopping Centre.
M1
M1
M4
M3
M9
M7
Kilkenny
WaterfordWexford
Cork
Killarney
Limerick
Galway Athlone
Sligo
Donegal
Castlebar Cavan
Derry
Belfast
Dublin
M7
M8
N20
N18
N84
N77
N4
N3
A5
N15
N25
N11
N21
N22
M50
M2
Mullingar
M6 KINNEGAD
Drogheda
Navan
Location
Local Employers
The subject property is located in Mullingar, the capital town of County Westmeath and its administrative headquarters. Mullingar is located centrally within Ireland’s midlands approximately 80km from Dublin city centre and approximately 140km from Galway city centre. The town is situated on the M4/ N4 corridor, one of Ireland’s main arterial routes servicing Dublin to Sligo. Mullingar Town is accessed via junctions 15, 16 and 17.
Mullingar is a thriving business, administrative and industrial centre with a population of
20,928Pharmed
Greene Farm FoodsImperial Tobacco
<15 Years 18,448 23%
15-24 Years 11,040 14%
25-44 Years 25,996 33%
45-64 Years 16,365 20%
65+ Years 7,899 10%
Demographic Profile, Census 2011
TOTAL POPULATION
88,770142,313142,31344,688 44,082
<15 Years 18,448 23%
15-24 Years 11,040 14%
25-44 Years 25,996 33%
45-64 Years 16,365 20%
65+ Years 7,899 10%
Demographic Profile, Census 2011
TOTAL POPULATION
88,770142,313142,31344,688 44,082
<15 Years 18,448 23%
15-24 Years 11,040 14%
25-44 Years 25,996 33%
45-64 Years 16,365 20%
65+ Years 7,899 10%
Demographic Profile, Census 2011
TOTAL POPULATION
88,770142,313142,31344,688 44,082
Population Growth
Houses / bungalos
45,663
100%
16%4%
5%16%
3%
2% 5%
32%17%
Total Household
Expenditure
Food Alcohol, Drinkand Tobacco
Clothingand Footwear
Housing Durable Household Goods
Non-Durable Household Goods
Fueland Light Miscellaneous
Goods and Services
Transport
1.2 Billion
€198 Million €44 Million
€56 Million
€27 Million €69 Million €397 Million €216 Million
€195 Million €37 Million
Misc
Catchment Analysis Westmeath
Workforce48.18%
Private Permanent Households Total
Per Household31,813 Cars
Household Spending €750 p.w.
<15 Years 18,448 23%
15-24 Years 11,040 14%
25-44 Years 25,996 33%
45-64 Years 16,365 20%
65+ Years 7,899 10%
Demographic Profile, Census 2011
TOTAL POPULATION
88,770142,313142,31344,688 44,082
<15 Years 18,448 23%
15-24 Years 11,040 14%
25-44 Years 25,996 33%
45-64 Years 16,365 20%
65+ Years 7,899 10%
Demographic Profile, Census 2011
TOTAL POPULATION
88,770142,313142,31344,688 44,082
<15 Years 18,448 23%
15-24 Years 11,040 14%
25-44 Years 25,996 33%
45-64 Years 16,365 20%
65+ Years 7,899 10%
Demographic Profile, Census 2011
TOTAL POPULATION
88,770142,313142,31344,688 44,082
No car
1 car
2 cars
3 cars
4 or more cars
4,289
13,188
11,108
1,807
545
50,000
100,000
150,000
1986
92,126 91,273
94,337108,666
126,403
142,313
1991 1996 2002 2006 2011
1991 1996 2002 2006 2016
61,880
-2%63,314
+2% +10 +271,858
+1379,346 87,887
2011
+986,164
1991 1996 2002 2006 2016
61,880
-2%63,314
+2% +10 +271,858
+1379,346 87,887
2011
+986,164
Population Change 1986 - 2011
- 0.93% 3.36% 15.19% 12.59%16.32%
Year
Fairgeen Shopping Centre is anchored by Penneys (long leasehold interest) and TK Maxx. Both tenants are key footfall drivers in the centre.
The additional tenants comprise a combination of well known and regarded national and international tenants including Costa Coffee, New Look, Dealz and Elverys.
The scheme is producing an income of €685,018 per annum (NOI) and has a WAULT of 3.04 years, 9.51 years to expiry.
Tenancy ScheduleDemise Tenant Total sq. m. Total sq. ft. Term Start Date Term End Date Rent Review Break Passing Rent
Unit 1 Penney's (long leasehold interest) 5,121 55,121 - - - - -
Unit 2 Staunton Sports t/a Elverys 603 6,487 01/01/2017 31/12/2026 31/12/2021 31/12/2023 €120,000
Unit 2a MBCC Foods t/a Costa Coffee 275 2,958 01/08/2016 31/07/2031 N/A 31/07/2023 €55,000
Unit 3 TJX Ireland t/a TK Maxx 2,334 25,119 06/07/2015 05/07/2030 05/07/2020* 06/07/2020 €140,000
Unit 4 Vacant 374 4,027 - - - - -
Unit 4a Poundland t/a Dealz 717 7,714 09/11/2015 08/11/2025 08/11/2020 08/11/2020 €120,000
Unit 5a Vacant (terms agreed) 465 5,010 - - - - -
Unit 5b New Look Retailers 694 7,466 13/09/2007 12/09/2032 12/09/2022 13/09/2022 €229,920
Mall Machines Clearhill Retail Entertainment - - 01/09/2015 31/08/2020 - - €8,000
Underground Car Park Car Park Income - - - - - - €91,333
Total 10,583 113,902 €764,253
Total Buying 5,461 58,781
Fairgreen Mullingar Income
Occupancy(by floor area)
Income Hierarchy By Tenant
Average Weighted Unexpired Term
to Expiry
0-2 YEARS
€600,000
€500,000
€400,000
€300,000
€200,000
€100,000
€0
€424,930
31%56%
MULTINATIONAL€240,000
NATIONAL CAR PARK AND MALL INCOME
3.04YEARS
2-5 YEARS 5-10 YEARS
0-2 YEARS
€600,000
€500,000
€400,000
€300,000
€200,000
€100,000
€0
2-5 YEARS 5-10 YEARS
€800,000
€700,000
10+ YEARS
COUNTY WESTMEATH
13%
€99,333 9.51YEARS
Average Weighted Unexpired Term to
Earliest Event
85%
15%
Occupancy
Vacant
* Please refer to lease side letter.
The Irish Retail Market 2018 The Irish economy is providing a backdrop for strong retail performance
At the beginning of autumn 2018, Ireland’s economic fundamentals are sound: GDP output grew by 7.2% in 2017 making Ireland the fastest growing economy in EMEA. At this juncture, according to CBRE’s House View, Ireland is on course to achieve GDP growth in excess of 5.1% in 2018 and is on target to be the best performing economy in EMEA for a fifth consecutive year.
This momentum has continued into the first half of 2018 with the labour market performing especially well. More than 74,100 jobs were created in H1 2018 indicating another 3.4% increase compared to the Q2 2017.
Unemployment has fallen to 5.6% in August - its lowest level in August since 2006.
Disposable household incomes are growing in the long-term and bounced back after the recession. The figure is standing at EUR 56.968 per household per year and is forecasted to grow by another 2.8% in 2018 due to a combination of modest pay increases, tax cuts and increased numbers at work. A combined positive consumer sentiment and retail sales are likely to provide for a strong consumer demand and a strong performance of the retail sector.
Household Disposable Income Ireland
Source: Oxford Economics, 2018.
Retail investment demand is centred around assets with strong fundamentals
Investor appetite is focused on well located and well managed assets with potential for some value add but with limited leasing risk
Retail investment accounted for 27% of investment spend in 2017 and 12% ytd 2018 with the most significant trade being Westend Retail Park in Blanchardstown which traded at €148 million. Secondary retail yields are currently at 7.00% - comparing favourably to other sectors where yields have compressed significantly.
The Irish occupier market is supporting the underwrite of assets that are correctly positioned for growth.
Figure: Prime Yields Shopping Centres Ireland
The Irish occupier market remains robust amid global speculation in the retail market
Amidst global speculation around the sustainability of retail, the Irish market is performing well, being supported by strong economic fundamentals Regionally there is strong performance from national occupiers with many retailers looking to expand their operations.
The food and beverage and beauty sectors are performing exceptionally well, as are the homeware retailers who are seeing growth on the back of a strong housing market. While demand from UK and international brands has slowed down somewhat in the aftermath of the Brexit announcement, there are live requirements for the correct locations where retailers have witnessed strong online trading.
Consumer Sentiment Index (CSI) Ireland
Source: ESRI/KBC, 2018
21
BER:
BER numbers available upon request
TenureFreehold
ContactsSole Selling Agents
Natalie Brennan Senior Director T +353 1 618 5555 M +353 87 680 [email protected]
Fiona Kennedy Associate DirectorT +353 1 618 5742M +353 87 181 9913 [email protected]
Willie NorseExecutive DirectorDD +353 1 618 5529M +353 86 299 [email protected]
fairgreenmullingarsale.com
design | conradjones.com
Solicitor
Arthur CoxEarlsfort Centre,Earlsfort Terrace,Dublin 2,Ireland.
Deirdre Sheehan T +353 1 920 [email protected]
Disclaimer: CBRE U.C., (CBRE Ireland)
These particulars are issued by CBRE U.C., registered in Ireland, no. 316570. PSRA Licence 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 Sep-tember 2018.
22