Parnell Street Cineworld

Background

In April 2014, Quadrant acquired the Cineworld Complex, Parnell Street in partnership with Orion Capital Managers, with Quadrant appointed as asset manager. Located in central Dublin, the property comprised approximately 140,000 sq ft, including a 17-screen cinema with an IMAX screen, 3,360 seats, a licensed bar and concessions. The acquisition reflected the opportunity to reposition a major leisure investment through hands-on lease restructuring and asset management.

At acquisition, Cineworld’s occupation was documented through multiple non-coterminous leases, creating a complex and less institutionally attractive income profile. The property also included a 16,746 sq ft basement leisure space and a vacant former cinema foyer of approximately 3,180 sq ft, offering further asset-management potential.

What We Did

Drawing on its relationship with Cineworld and the tenant’s advisers, Quadrant negotiated the surrender of the existing leases and the simultaneous grant of a single new lease. The cinema was secured on a new 25-year term from 13 May 2014 at an initial rent of €1.9 million per annum, with five-yearly upward-only increases based on 2.75% per annum and no breaks.

Alongside the lease regear, Quadrant progressed the wider asset-management plan. The basement was leased to a leisure operator, while the former foyer was stripped back, refurbished and marketed. Planning consent for its conversion to restaurant or bar use was granted on 6 August 2014, improving the prospects for bringing the space back into productive use.

Outcome

Having transformed a fragmented occupational structure into a single, long-term and fixed-uplift income stream, the property was sold to Standard Life Investments in December 2014. The transaction demonstrates Quadrant’s ability to identify complexity, negotiate effectively with key stakeholders and use focused asset management to create an institutionally attractive investment.