07th March (Issue 86)

Welcome to the Origin Capital Weekly Irish Property Review. This update is designed to provide you with a full recap of the latest property news from the media over the last seven days.



Patrick Street, Cork: Savills is guiding €9.5m for three fully let retail buildings located on 73, 74-75 and 79 Patrick Street in Cork city centre. Based on the €9.5m guide price, the properties offer a net initial yield of c. 6.15%. The three buildings have strong tenants including Carphone Warehouse and Abrakebabra, and produce a combined rent roll of €610k p.a. with a weighted average unexpired lease term (WAULT) of c. 7.6 years. The portfolio extends to 14,000 sq. ft., including 5,450 sq. ft. of ground floor retail space. The Irish Times, 1st March

Ballyfermot Investment: A detached two-storey Iceland supermarket and overhead offices located in Ballyfermot, Dublin 10, have been put on the market with a guide price in excess of €2.7m by Cushman & Wakefield. The guide price will offer a net initial yield of c. 7.24%, with this figure expected to rise to a minimum of 8.19% after the next rent review in three years. Iceland has a 25-year lease on the ground floor supermarket and storage space on the first floor at a rent of €203k p.a. This lease runs until 2030, however there is a tenant-only break option in 2025. There are also 10 car spaces located to the front of the building. The Irish Times, 1st March



Central Park, Leopardstown: AIB has agreed to rent the newly completed Block H office block in Central Park, Leopardstown, Dublin 18. The bank will pay a rent of c. €28 psf for the c. €40m, eight storey, 151,586 sq. ft. property, which includes 300 car spaces and 375 bicycle spaces. The bank will use the property to accommodate 500 support staff who are currently located in a variety of locations across the city. AIB will move into the premises, which were completed by Green REIT, in c. 3 months, once fit-out has been completed. The letting comes as Green REIT evaluate the potential to construct up to 400,000 sq. ft. of additional office space on the Central Park site. The Irish Times, 1st March

Burlington Plaza: NAMA Wine Lake reports the sale of two shareholdings in the 235,000 sq. ft. Burlington Plaza office complex. Percy Nominees has reportedly sold their 25% interest to Coolbrook Developments for €61m, while Lington Developments has reportedly sold their 25% interest to Davy Target Investments for €51m. Coolbrook Developments now controls 75% of Burlington Plaza, a threshold which NAMA Wine Lake understands allows Coolbrook to have effective control of the building. NAMA Wine Lake, 5th March

Ranelagh Office Development: Grand Parade Property Trading Company DAC has sought planning permission from Dublin City Council to refurbish the former Carroll’s building located on Grand Parade in Ranelagh and build a six-storey over two-level basement extension, providing a gross floor area of nearly c. 120,000 sq. ft. The directors of the applicant are Francis Martin and Brian Moran. NAMA Wine Lake, 5th March

Nassau Dawson Street Development: Meyer Bergman has been granted planning permission by Dublin City Council for a c. €58m mixed use retail and commercial development located on the corner of Nassau Street and Dawson Street in Dublin city centre. The development will be six storeys tall and will include over 120,000 sq. ft. of office space and over 83,000 sq. ft. of retail space. Construction Information Services, 23rd February



Dublin Hotel Rates: Dublin hotel room rates rose by 15% last year, according to a new report from PwC. The capital has the highest occupancy rate of any European city at 82.5%, outperforming cities such as London, Amsterdam and Berlin. Dublin has the fifth most expensive room rate, at €105 per night. According to the report, there are currently 18,500 hotel rooms in Dublin, one third of the total in Ireland. The supply of hotel rooms over the last decade has been relatively static, however there are plans for 65 new hotels in the city, which should add c. 5,500 new rooms. The report highlights that Brexit could result in a reduction in the number of tourists visiting from Europe this year. The Irish Independent, 6th March

Dalata Expansion Plans: The Sunday Business Post reports that Dalata will look to expand into European markets in the coming years. CEO Pat McCann has stated that the company’s Irish growth is all but complete, and whilst the UK market will provide a growth platform for the next three-to-four years, the company will look to the European market in the longer term for growth opportunities. The Sunday Business Post, 5th March

Sandymount Hotel: The Sunday Business Post reports that the Sandymount Hotel in Dublin 4 has recently received a c. €6m refurbishment, and the owner is planning to begin work to add an additional 19 rooms this autumn. The hotel is currently generating c. €1.5m p.a. in profits. The Sunday Business Post, 5th March



Marlet Property Group: Marlet Property Group has retained Savills to market four prime residential sites which together may be worth over €450m. The group is looking to “forward sell” the sites, which could provide c. 1,500 apartments. It is understood a further two developments may be added to the portfolio, depending on demand. One of the developments is Mount Argus in Harold’s Cross, which is already under construction and has planning permission for 200 apartments. Another site is located in Cabra, where 300 apartments are due to be built on former CIE lands. All unbuilt sites are ‘shovel ready’, well located and are to be built to a high standard with amenities such as gyms and common areas. Marlet Property Group was formerly New Generation Homes, and is backed by fund manager M&G. The Sunday Times, 5th March

Mortgage Market: New figures compiled by Investec show that AIB has increased its share of the mortgage market at the expense of its main rivals. The bank currently has a c. 35% share of the market, compared to c. 25% for Bank of Ireland (BoI), c. 18% for Ulster Bank, c. 12% for KBC and c. 10% for PTSB. Traditionally, AIB and BoI have had similar shares of the mortgage market, however it is believed that BoI’s focus on fixed rates, high variable rates and the disposal of its ICS broker channel are impacting its market share. The Irish Independent, 6th March

Sandyford Site: Joint agents JLL and HWBC are guiding in excess of €10m for a 0.24 acre site in Sandyford, south Dublin, which is being sold by UK property developer U+I. The site has planning permission for 147 apartments, a crèche, café and gym. The site, which is located at the junction of Blackthorn Road and Carmanhall Road, currently contains a commercial building, and the new development will consist of three six-to-eight storey blocks which will accommodate 29 one-bedroom, 102 two-bedroom and 16 three-bedroom homes alongside 151 car parking spaces and a central courtyard. U+I acquired the site for c. €6.5m in 2015. The Irish Times, 1st March

Smurfit Printworks Site: The Irish Times reports that Eastwise Homes has paid c. €18m to acquire the former Smurfit Printworks site in Glasnevin, Dublin 9, from an Irish subsidiary of Westhill Land & Property UK Ltd. Following the completion of the purchase, work is expected to shortly begin on the construction of 43 houses and 76 apartments. Lisney oversaw the sale of the five-acre site, and told prospective acquirers that it may be possible to add a further 19 homes following new regulations adopted by Dublin City Council. The Irish Times, 1st March



Stillorgan Industrial Park: Agents JLL is seeking €2.55m for a blue-chip industrial investment opportunity on the Chadwicks store, at Birch Avenue in Stillorgan Industrial Park, south Dublin. The 15,000 sq. ft. semi-detached building, which contains both staff and customer parking, is currently rented to The Grafton Group for €180k p.a. on a 35-year, upwards only lease running from 1990, offering a return of 6.76% p.a. The Irish Times, 1st March



Camden Deluxe Hotel: The Murray Group, which operates five Dublin city centre pubs including The Living Room and The Czech Inn, has emerged as the preferred bidder for the former Camden Deluxe Hotel on Dublin’s Camden Street. The group is reportedly set to buy the premises for c. €8.5m, and will re-open it as a supersized sports bar with capacity for c. 1,000 people. The complex currently houses a 35-bedroom hotel, Planet Murphy’s Bar and the Palace Nightclub. Camden Street is one of the busiest areas for nightlife in Dublin’s city centre. The Sunday Times, 5th March


If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie

Origin Capital funds senior debt transactions in the CRE investment sector, typically in the €3m – €15m range. If you would like to discuss how Origin Capital can help with your funding requirements, please contact us on 01 662 9264.

Origin Capital is a wholly owned subsidiary of LeBruin, a leading provider of corporate finance and debt advisory solutions.