UNIQUE ‘SUPER PRIME’ RETAIL SALE & LEASEBACK INVESTMENT OPPORTUNITY

UNITS 155 & 241Blanchardstown Town Centre, Dublin, Ireland

BlanchardstownC E N T R E

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BlanchardstownC E N T R E

CORE SHOPPING CENTRE

BlanchardstownC E N T R E

RETAIL PARK 2

BlanchardstownC E N T R E

RETAIL PARK 1

RESTAURANTQUARTER

Investment Rationale

HIGH PROFILE ANCHORS AND IMPRESSIVE TENANT LINE UP

PASSIVE INVESTMENT WITH ZERO ASSET

MANAGEMENT COSTS

LET UNDER A NEW SINGLE LONG-TERM LEASE TO

EASON LTD (25X5 FRI WITH 10 YEAR TERM CERTAIN)

ACCESS TO A QUALITY ASSET USUALLY NOT

AVAILABLE AT THE LOT SIZE ON OFFER

SITUATED IN A SUPER PRIME DUBLIN

SHOPPING CENTRE

SIGNIFICANT LATENT VALUE IF UNITS WERE

RE-LET SEPARATELY ON LEASE EXPIRY

TWO INTERCONNECTED PRIME MALL UNITS AT LEVEL 1 AND LEVEL 2

EXTENDING TO 12,070 SQ FT

OPPORTUNITY TO CAPITALISE ON THE

IMPROVEMENTS IN THE WIDER CENTRE, SECURED BY THE WORLD’S LARGEST

ASSET MANAGER

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TRAIN LINE

TRAIN LINE

LUAS RED LINE

LUAS

GRE

EN L

INE

N2

N1

M3

M3

N7

N4

N7N81

N11

N11 N31

M50

M50

M50

M50

M50

M50

M1

M1

TRAIN LINE

DUBLIN PORT

PHOENIXPARK

MARLEYPARK

MALAHIDE

PORTMARNOCK

CLONTARF

BALLSBRIDGE

BOOTERSTOWN

DONNYBROOK

CLONSKEAGH

CRUMLIN

RATHFARNHAM

TALLAGHT

CLONDALKIN

LUCAN

BLACKROCK

DUN LAOGHAIRE

GLENAGEARY

DUNDRUM

SANDYFORDIND. ESTATE

DUNBOYNE

SWORDS

SANTRY

BEAUMONT

DUBLINAIRPORT

DRUMCONDRA

EXPRESS PORT TUNNEL

DUBLINCITY CENTRE

PAGE 4 | UNIQUE ‘SUPER PRIME’ RETAIL INVESTMENT OPPORTUNITY

Location

BlanchardstownC E N T R E

Blanchardstown C

entre

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Centre Backdrop

Blanchardstown Centre comprises a super-prime retail asset situated in the west of Dublin on the city’s main orbital motorway, the M50. It is currently owned by Mutli/Blackstone, one of the world’s largest retail asset managers. It was acquired by them in 2016 for almost €950m reflecting a shopping centre equivalent yield of approx. 4.75%.

The centre extends to approximately 1.2 million sq. ft. including the two level mall shopping centre and three retail parks. It boasts over 180 distinct retailers and benefits from 7,000 car spaces. The occupancy level within the centre hasnever fallen below 95% and currently stands at 99%.

THE CENTRE BOASTS A FOOTFALL OF 16.7M ANNUALLY AND A 31.6% MARKET SHARE WITHIN ITS CORE CATCHMENT.

Situated on an 85 acre site, the centre provides an extensive opportunity to evolve in response to changing consumer needs. The owners are currently in the process of implementing incremental extensions to the centre however the most significant opportunity to expand its dominance is reflected in the full planning permission which exists for a major extension of the scheme (called the yellow mall) by 23% / 272,000 Sq.Ft (NIA).

THE SUBJECT MALL UNITS LIE AT THE HEART OF THESE EXPANSION OPPORTUNITIES SO WILL BE ENHANCED AS THE CENTRE EVOLVES.

Main Centre and two retail parks

1,200,000 sq. ft.

Footfall

16,700,000

Retailers

180Car Spaces

7,000

Site (acres)

85Occupancy Level

99%

Subject Property

PAGE 6 | UNIQUE ‘SUPER PRIME’ RETAIL INVESTMENT OPPORTUNITY

UNITS 155 AND 241

The subject property comprises two interconnected mall retail units located within the heart of the shopping centre, namely Units 155 and 241. Unit 155 trades on to level 1 and Unit 241 trades on level 2 and collectively extend to 1,121 sq m (12,070 sq ft) including stores. Both units are arguably in the most prime run of each mall. There are limited independently held non-Anchor units in the centre hence this investment represents a unique opportunity.

The units are interconnected internally by means of an escalator, which travels upwards from the lower level together with a conventional staircase which provides access in both directions. In addition to the large retail areas there is ancillary office and storage accommodation to the rear of each unit. There is an upper floor storage area to the rear of Unit 241.

An assignable Measurement Survey, prepared by Hollis, is available on request.

UNIT 155 – Level 1Sq.M. GIA Sq.Ft. GIA

Mall Unit 458.0 4,896

ITZA 176.33 1,898

A MULTI IRELAND DEVELOPMENT

Peter Mark

SostreneG

rene

Jay’sKitchen

Schuh

PTSB

Dorothy

Perkins

Disney

Superdry

Pamela Scott

Tiger

Nando's

Milano

Vodafone

155

LEVEL 1Centre Plan

Escalator and Stairs up to Level 2

Back of House

PAGE 7

An assignable Measurement Survey, prepared by Hollis, is available on request.

UNIT 241 – Level 2Sq.M. GIA Sq.Ft. GIA

Mall Unit 536.6 5,776

Upper Floor/Storage 129.9 1,398

ITZA 199.65 2,149

A MULTI IRELAND DEVELOPMENT

Peter Mark

SostreneG

rene

Jay’sKitchen

Schuh

PTSB

Dorothy

Perkins

Disney

Superdry

Pamela Scott

Tiger

Nando's

Milano

Vodafone

241

LEVEL 2 Centre Plan

Stairs down to Level 1

Back of House

Back of House Level 3

PAGE 8 | UNIQUE ‘SUPER PRIME’ RETAIL INVESTMENT OPPORTUNITY

Lease, Covenant &

Title

COVENANT

The lessee of the combined unit will be Eason Limited. This entity is the lessee on all the major Eason’s units in Ireland including the four other M50 shopping centres being Dundrum Town Centre, Liffey Valley Shopping Centre, The Square Tallaght and The Pavilions Swords.

Eason Limited had a turnover of €106m in the year ended January 2019, with a profit after tax and restructuring costs (€1.2m) of €2.6m. The company has a balance sheet values of c.€5.4m. Full accounts for 2019 are available on request.

Uniquely, Eason Operations Limited (EOL) will provide a 10 year parent guarantee. This is a newly incorporated parent with a €19m balance sheet value, held mainly in cash and unemcumbered Northern Ireland properties (£2.0m GBP), with zero bank borrowings. This guarantee will be limited in terms of financial exposure to 3 years rent. Full 2019 accounts for EOL are available on request.

TITLE

The property is held by way of Long Leasehold title. Full title documents are available on request.

The property is subject to the scheme service charge (payable by the tenant) in accordance the standard apportionment provisions. Service charge details are available on request.

LEASE

The property will be leased on a new 25 year effective FRI lease which reflects the terms and conditions typical of the wider ‘centre lease’. The lease will incorporate five yearly open market rent reviews and a break option, in favour of the tenant, at the end of year 10 (subject to 6 months’ prior written notice). The lease rent will be €1,100,000 per annum.

Rent & Recent Letting

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The lease rent of €1,100,000 per annum reflects a headline gross Zone A rate of approx. €272 per sq ft (or a flat rate of €101 per sq ft GIA assuming €10 per sq ft on the upper floor of Unit 241) for the combined units. This ITZA reflects a quantum discount due to the scale of the unit.

In the long term the units could be let independently of each other, upon Eason lease expiry, which could attract an improved Market Rent based on two smaller format stores.

The adjoining table details recent letting activity which supports the above position.

Unit Occupier Size (sq ft) GIA

ITZA (sq ft) GIA Annual Rent ITZA PSF

GIA Date Comment

Unit 151 Therapie 444 419 €125,700 €300 Nov 2018 New letting

Unit 226 Rituals 1,372 826 €240,000 €290 Oct 2018 New letting

Unit 205 Ann Summers 2,582 1,113 €325,000 €292 Jul 2017 New Letting

Unit 156 Lifestyle Sports 5,038 2,339 €670,000 €286 Jul 2017 New Letting

Unit 154 Smiggle 1,077 665 €189,000 €284 May 2017 New Letting

Unit 157 Sostrene Greene 3,013 1,316 €360,000 €274 Jul 2016 New Letting

Unit 131 Newbridge Silverware 730 523 €130,000 €249 Apr 2018 Unit Relocation

Unit 234 Clarks 3,245 1,501 €420,280 €280 May 2018 Unit Relocation

Unit 231 Body Shop 743 568 €165,000 €290 Jul 2018 Lease Renewal

PAGE 10 | UNIQUE ‘SUPER PRIME’ RETAIL INVESTMENT OPPORTUNITY

Future Developm

ents

Red Mall Extension

Central M

all Extension

Blue Mall Extension

Yellow M

all Extension

Planning permission was granted (reg. ref. FW18A/0143) for changes to the red mall entrance to include the partial demolition of the structure to create a new c. 22,000 sq ft retail unit and a smaller unit for a cafe. The larger unit is now let to Aldi and is currently under construction.

Planning permission was granted (reg. Ref. fW18A/0105) for unit amalgamations and extensions on Levels 1 & 2. These include;

• Units 114, 115 & 116 on level 1 forming a single unit of approx. 12,000 sq ft. This has been let to JD Sports.

• Units 206, 208, 211 & 212 on Level 2 (formally Newbridge Silverware, Clarkes, Thornton’s and Shoe Zone) to form three larger units with a combined area of approx. 12,000 sq ft. These units are under construction with one let to the popular fashion brand Hollister and another to a yet to be named European retailer.

A planning application (reg. ref. FW18A/0168) was lodged in November 2018 for nine new external café/restaurant units at the southern entrance of the centre known as the Blue Mall entrance. This application also includes a new feature entrance and the creation of an internal plaza. These units are currently under construction and are at an advanced stage of letting.

The proposed Yellow Mall extension, which has full planning permission, could in time see the shopping centre grow by an extra 260,000 sq ft (over 20% of the floor space) and strengthen its appeal to domestic and international retailers and its shoppers.

Yellow Mall Extension Central Mall Extension

DROGHEDA

NAVAN

ATHOY

KELLS

TRIM

ASHBOURNE

BALBRIGGAN

SWORDS

MAYNOOTHEDENDERRY

NAAS

TALLAGHT

RATHCOOLE

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Catchm

ent

According to the letting agents for the shopping centre:

Due to its strategic location and excellent transportation links, Blanchardstown Town Centre has an extensive catchment. Its catchment is defined as the areas located to the north and east of Dublin along the M3 Motorway axis whilst also encompassing the areas East and west of this axis, namely Drogheda and Athboy.

Blanchardstown Centre catchment extends to

605,000 people in the local area.

Growing Population

10% increase

in catchment area population by 2023 (compared to 6% nationally) will be driven by new housing developments

Large Local Work Force

c.1,300 jobs are provided by adjacent employers eBay, Liberty Insurance and Fingal County Council

Age Profile

34% of the catchment residents are in the high-spending 25-44 age category

DAVID CARROLL+353 1 6477916dcarroll@bannon.iePSRA: 001830-002388

ROD NOWLAN+353 1 6477900rnowlan@bannon.iePSRA: 001830-002131

FIONNUALA MURPHY +353 1 637 6200fionnuala.murphy@orpenfranks.ie

Hambleden House, 19/26 Pembroke Street Lower, Dublin 2.

28 Burlington Rd,Dublin 4,Ireland.

Disclaimer: These particulars are issued by Bannon on the understanding that any negotiations relating to the property are conducted through them. While every care is taken in preparing them, Bannon, for themselves and for the Vendor/lessor whose agents they are, give notice that: (1) 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. (2) Any representation including description, dimensions, references to condition, permissions or licences 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. (3) Bannon nor any of its employees have any authority to make or give any representation or warranty in relation to the property.

AGENT SOLICITOR

SALES PARTICULARS The property is being offered for sale by way of a Private Treaty process.

VIEWINGS Viewings are strictly through the sole selling agent, Bannon. Please contact Rod Nowlan or David Carroll to arrange.

DATAROOM Further details pertaining to the sale are contained within a secure data room accessed via www.easonsblanchardstown.com. Please contact Bannon to request access.

VAT Transfer of Business.

TITLE Long Leasehold.