The opportunity comprises 49,860 sq ft of office accommodation and 2,309 sq ft of retail space, with dedicated basement car parking. Obel 68 was developed as part of the overall Obel development which sits along side a 27 storey, 282 unit apartment block.
Obel is located in a very prominent location on the side of the River Lagan between the popular City Quays and Lanyon Plaza office developments opposite Custom House Square in the city centre of Belfast. It is within easy walking distance of the prime city centre retail core and close to Central Train station.
The adjacent office developments at City Quays and Soloist at Lanyon Plaza have proven popular with recent lettings to KPMG, Pinsent Masons, Baker McKenzie, Macon and UTV. Also with the new City Quays development comes a new Mariott 188 bed hotel that has just opened. Other major occupiers in the immediate area include Citi, Allstate, PWC, Tullet Prebon, NYSE, Concentrix and Cayan.
Financial services companies are attracted to Belfast by the competitive cost base as well as access to talent with a pipeline of over 5,000 graduates each year across a range of relevant disciplines including finance, accounting, economics, law and computing.
Belfast’s economy has seen a revival in recent years with significant growth in the Fintech and tourist industries. The city has a number of specialisms including asset management, financial services technologies, fund administration operations and risk, regulation and compliance.
The Fintech industry employs in excess of 36,000 people with major financial institutions such as Citigroup, PWC, Santander and Barclays having headquarters in the city.
Tourism is also a main driver of the local economy with in excess of 1.5m tourists visiting the city in 2016 spending over £334m. Hotel occupancy in 2016 was c80% driving investment in the sector with over 1/3 more hotel capacity being added throughout 2017/2018 in 7 new hotels adding around 1,200 more rooms. A talented and strong labour market, low cost base and good quality of life are driving global companies to consider Belfast as a base.
The property was originally constructed in 2011 and comprises a 52,169 sq ft building over basement, ground and six upper floors, with typical floorplates of 7,000 sq ft.
The building is of steel portal frame construction with feature full height glazing to front and side. Internally the units were let with concrete floors and block walls and been fitted out to a high standard by the tenants.
There are 2 additional retail units on ground floor and 42 dedicated secure car parking spaces within the basement car park for the obel development.
Please refer to the downloadable PDF Brochure.
Office Occupational Market
Q1 2018 has seen record breaking volumes of office take up with c. 270,310 sq. ft. of transacting across 23 deals, the largest of which was Allstate at East Bridge Street. The Belfast Office Market remained robust throughout 2017 with c. 326,000 sq ft tracking in line with our 5 year average. Up to this point, with a lack of new build development options available the majority of take up has been in refurbished properties such as First Derivatives letting of Weaving Works and Instil at Linen Lofts.
The Belfast Harbour’s City Quays development is well advanced with CQ1 fully let and CQ2 now complete with UTV recently taking 11,000 sq ft at a rent of £20psf. The Soloist building at Lanyon Plaza is now fully let with KPMG having taken 40,000sq ft in 2016 at a rent of £21.50psf and have recently upsized into the remainder of the building.
Belfast’s reputation as a hotbed of activity in the tech and digital sectors continues to gain momentum and is further evidenced by last year’s office take up which showed c. 56% of letting activity attributable to occupiers operating in these sectors, to include software design, cyber security, fintech and digital services.
Office Investment Market
The Investment market in Northern enjoyed a resurgence in H2 2017 following the pausing elate 2016/early 2017. Investment Volumes for 2017 were up 40% year on year with the majority of that activity in the latter half of the year. This trend was mirrored across the UK with Investment in commercial property up 27% year on year.
Office deals rose 25% year on year to £26.5bn fuelled by strong demand for regional locations which were up 17% on 2016, indeed regional office investment enjoyed its strongest Q4 in a decade both in terms of deal volume, frequency and overall proportion of capital deployed. *Source Co-Star Investment Review and Lisney Research
The Property is held on a lease from Obel Offices Limited for 998 years from 23rd June 2010 at an annual rent of £10.
Allen and Overy (SSF) Ltd guaranteed by A&O LLP
Allen and Overy are a global legal practice employing 5,400 people in 44 international locations. They set up operations in Belfast in 2011 and currently employ over 500 people based in Obel 68 providing legal services to its network of international offices and clients. Allen and Overy (SSF) Limited has a Creditsafe rating of 96 out of 100 – very low risk.=
At year end 2017 Allen and Overy LLP had turnover of £1.5bn with a pre-tax profit of £716m.
The Mount Charles Group Limited
Mount Charles are a major contract catering and foodservice provider based in Belfast and employing 1,600 people across the UK and Ireland. The Mount Charles Group Limited has a Creditsafe rating of 79 out of 100 – very low risk
Lagan Boat Company (NI) Limited
Lagan Boat Company have been providing tours of the River Lagan and Titanic Harbour for over 20 years. Lagan Boat Company (NI) Limited has a Creditsafe rating of 67 out of 100 – Low Risk
We are instructed to seek offers in excess of £15,000,000 (Fifteen Million Pounds) subject to contract and exclusive of VAT.
A purchase at this level reflects a net initial yield of 6.73% (after vendor top ups allowing) allowing for purchasers costs of 6.73% and a capital value of £288 psf.
The property has been elected for VAT and it is intended that the transaction will be treated as a Transfer of a Going Concern (TOGC)
The building has a rating of D88. A full report is available on request.
By special appointment with the sole letting agent, Lisney.