07th November (Issue 121)
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.
RETAIL
Boylesports Acquisition: Boylesports has reportedly acquired six betting shops from Bambury Bookmakers in Munster in a deal which is expected to be announced shortly. The shops are located across Limerick and Clare in locations such as Sixmilebridge in Co. Clare and Wolfe Tone Street and Castletroy in Limerick. The purchase represents the second time Boylesports have purchased units from Bambury this year, having purchased nine shops in Leinster earlier this year, as the company looks to increase its retail footprint. The Irish Independent, 5th November
37 – 38 Capel Street: A private investor has paid €3.5m to purchase two shops and 11 overhead apartments at 37 – 38 Capel Street in Dublin 1. The portfolio currently generates rental income of €250k p.a., however it is believed that there is potential to increase this income to in excess of €300k p.a. One of the ground floor and basement shops is let to the Moldovan Supermarket (who originally traded on a fixed lease but is now overholding) at €50k p.a., while the other unit is vacant. The 11 apartments consist of three large two-bedroom units, six two-bedroom units and two one-bedroom penthouses. The Irish Times, 31st October
20 Duke Street: Agents Quinn Agnew are guiding in excess of €2.6m for 20 Duke Street, a three-storey, over-basement corner building in Dublin city centre which extends to 2,045 sq. ft. The high-profile retail and commercial building has potential for either refurbishment or redevelopment, and has come to the market with full vacant possession. The property is located within the busy pedestrian zone formed by Duke Street, Lemon Street, Royal Hibernian Way and South Anne Street. The Irish Independent, 6th November
Lower Kilmacud Road: Cushman & Wakefield is guiding in excess of €2m for a pharmacy and four apartments located at 5 Lower Kilmacud Road in Stillorgan, Co. Dublin. Bradley’s Pharmacy generates rental income of €97.1k p.a. under a 35-year lease running from 2003. The sale also includes two one-bedroom apartments and a two-bedroom unit to the rear of the pharmacy, and a vacant three-bedroom apartment on the first and second floors of the building. The Irish Times, 31st October
OFFICE
Dublin Office Market: The latest report from JLL on the Dublin office market has shown a continued level of demand for office space in the city, with just under 450,000 sq. ft. of take-up in Q3 2017. The total level of take-up YTD is now c. 2.1m sq. ft., an increase of 22% YoY. One of the key points of JLL’s report is that within the last twelve months there has been an increase in the number of larger-scale transactions, with nine transactions greater than 50,000 sq. ft. With regards to supply, the vacancy rate remains steady at 7.7%, although it is narrower in the city centre at 4.7%. Development activity is also strong, with 4.5m sq. ft. of space either under construction or undergoing refurbishment, with c. 40% of this either pre-let or reserved. The Irish Independent, 6th November
31 – 36 Golden Lane: Mm Capital is seeking in excess of €25.5m for an office investment in Dublin 2 which they purchased four months ago for c. €22m. The three-storey, 30,967 sq. ft. building is located at 31 – 36 Golden Lane and is being upgraded before being let to New Relic, a San Francisco-based software analytics company. New Relic will pay a rent of €1.455m p.a. on a 20-year lease, with a break option at the end of year 10 (subject to a three-month rent penalty). The lease will incorporate five-yearly open market rent reviews with a 10% cap and collar provision at the first review. Based on the guide price, the investment will offer a net initial yield of 5.26% and a capital value of c. €825 psf. The Irish Times, 1st November
Joyce’s Court: Corum Asset Management has paid €14m to purchase Joyce’s Court, an office and retail complex located on Talbot Street in Dublin. Block A and Block B in Joyce’s Court extend to 54,531 sq. ft. and currently produce rental income of c. €867k p.a. Two thirds of the rental income comes from Smartbox, who rent the 28,282 sq. ft. Block A and pay an average rent of €20 psf for most of their accommodation, under a lease which contains a break option in 2025. Block B is a 26,249 sq. ft. six-storey building which is let to a number of tenants including Veeam Software Ireland and the Dyslexia Association of Ireland. Four retail units are included in the sale (three of which are unoccupied), as well as 31 car parking spaces. The net initial yield of 5.7% is expected to rise to c. 7% as rent reviews occur. Corum Asset Management has invested over €80m in the Irish property market in recent years. The Irish Times, 1st November
One Ballsbridge: Aircraft leasing firm Avalon is to let the largest of three blocks nearing completion in the One Ballsbridge development in Dublin 4. The company will rent 75,000 sq. ft. in Building 1 on a 25-year lease (with a break option in year 20), at a rent of €58 psf. Further space in the development has already been rented by other aircraft leasing firms, CMIG Aviation and a second unnamed aircraft lessor, while the Avoca food outlet and restauranteur Dylan McGrath have also taken space in the complex, which is now 62% committed. The Irish Times, 1st November
1 WML: UK law firm Pinsent Masons is to lease a 9,959 sq. ft. office suite in 1WML, the new mixed-use complex being developed in Dublin’s docklands by Hibernia REIT. The company will pay a rent of €558k p.a. on a 20-year lease with a break option after year 10. The lease will include two car spaces and an annual contribution to the reception and townhall space in the building. Pinsent Masons will join Informatica and Core Media who have also leased space in the building. The Irish Times, 31st October
86 – 88 Lower Leeson Street: General Electric has agreed to a 10-year lease for 16,500 sq. ft. of newly refurbished office space at 86 – 88 Lower Leeson Street in Dublin 2. The company will pay a rent of €50 psf for their space which is located between the first and fourth floors. The 4,500 sq. ft. ground floor of the same building has already been leased to the commercial estate agent Lambert Smith Hampton for 10 years, with the rent also set at €50 psf. The Irish Times, 31st October
HOTEL
McWilliam Park Hotel: JLL is guiding in excess of €9m for the four-star, 103-bedroom McWilliam Park Hotel in Claremorris, Co. Mayo. The hotel, which is understood to be profitable, also includes a bar, restaurant, a 600-person conference suite, four additional meeting rooms, a leisure centre and a pool and spa. The Irish Times, 31st October
RESIDENTIAL / LAND
‘Dublin Living’ Portfolio: The Irish Independent reports that Marlet Property Group’s proposed c. €450m sale of its ‘Dublin Living’ apartment portfolio to Round Hill Capital has encountered an unexpected obstacle, due to title issues with one of the four sites. The ‘Dublin Living’ portfolio consists of 1,205 apartments at various stages of construction, at sites in St Clare’s and Mount Argus in Harold’s Cross, Carriglea on the Naas Road and the Cabra Road. The title issues encountered relate to the St Clare’s site, as it appears that a small strip of land on the site actually forms part of the adjacent Parkview Mansions apartment development. The Irish Independent reports that the Chief Executive of Marlet, Pat Crean, is negotiating with the representatives of the Parkview Mansions development in an attempt to resolve the issue. The Irish Independent, 5th November
Irish Financial Services Centre for Shipping: A 70-acre site close to Kent Station in Cork has been identified as a site for a proposed €1bn ‘Irish Financial Services Centre for Shipping’. The project is being led by CBRE Director Cormac Megannety, who has stated that it would represent the biggest urban regeneration project in Ireland. The project is supported by the IDA, the Port of Cork and several developers who are building complementary infrastructure in the area. The consortium behind the project is believed to want to secure IFSC-style tax designated status and possibly a levy of €1 psf to subsidise cultural and community elements of the development, which could include a maritime museum and a historical and cultural centre. Mr Megannety believes the project has the potential to employ 3,500 people in the first five years, and double that figure in the long term. The Sunday Business Post, 5th November
Crowley Park Rugby Grounds: Joint agents DNG Maxwell Heaslip & Leonard and O’Donnellan & Joyce are guiding a minimum of c. €6m for the 9.76-acre Crowley Park rugby grounds which is located on the outskirts of Galway City on the Dublin Road. The site, which is home to the Galwegians rugby team, could accommodate a high-density housing development of at least 150 houses. However, The Irish Times reports that a considerably higher density may be permitted (subject to planning permission), due of the scarcity of development sites in Galway. The Irish Times, 1st November
Emsworth: Sherry FitzGerald Country Homes and Sherry FitzGerald Blanc, as well as Sherry FitzGerald affiliate Christie’s International, are guiding €7.5m for Emsworth, a large Georgian villa situated on the Malahide Road in Kinsealy, Dublin 17. The 4,330 sq. ft. four-bedroom property is located on a 17-acre site and has been extensively renovated since it was purchased by the current owner in 2014 for €1.425m. The Irish Times, 2nd November
Brookfield Hall Student Village Apartments: Cushman & Wakefield is guiding €2.4m (c. €60k per unit) for a block of 40 student apartments in Castletroy, Limerick. The modern, purpose-built apartments are located in Block 8 of Brookfield Hall Student Village, and comprise 29 two-bedroom units, eight three-bedroom units and three four-bedroom units, totalling 94 bed spaces. The net income of the apartments, after costs, is c. €150k p.a. The Irish Times, 31st October
Fast-Track Planning: The Sunday Times reports that plans for over 10,000 homes, apartments and student bed spaces have been submitted to An Bord Pleanála by developers since the new fast-track planning rules came into force in July. While the normal planning process can take over a year, an outcome must be provided within 16 weeks under the fast-track planning process. An Bord Pleanála has received 22 separate pre-application requests for 10,926 residential units between July and October, with the largest application coming from UCD for 3,006 bed spaces on their campus. The Sunday Times, 5th November
Home Ownership Figures: Unpublished figures from the CSO, drawn from the Quarterly National Household Survey, show that home ownership figures continued to decrease throughout Ireland in H1 2017. Nationally, the percentage of people who own their own home fell from 69.8% at the end of 2016 to 68.7%. In Dublin, the percentage fell from 60.8% to 60.1%. The level of home ownership peaked in Ireland in 1991 at 80.1%. The Irish Times, 7th November
Household Net Worth: New figures from the Central Bank show that the net worth of Irish households has risen by almost 60% since 2012, as a result of rising property prices. Net worth in Q2 2017 stood at €686.3bn, up from €430bn in 2012, and just 4.6% below the peak of €719.6bn recorded in Q2 2007. Household debt as a proportion of income has also decreased, with a fall of 50% since 2013. Overall Irish household debt stood at €141.7bn (or €29,576 per capita) in June 2017, equating to 145.2% of disposable income. However, Irish households remain the fourth most indebted in the European Union, behind Denmark, the Netherlands and Sweden. The Irish Times, 6th November
Marsfield Avenue: Gannon Properties has applied to Dublin City Council for permission to reduce its planned development located at Marsfield Avenue in Clongriffin, north Dublin. The company is seeking to reduce the number of units from 213 (previously approved) to 147. Under the new application, the 147 units will consist of 47 three-bedroom houses, 56 two-bedroom houses and a mix of two- and three- bedroom apartments. NAMA Wine Lake, 5th November
Enniskerry Development: Lota View has sought planning permission from Wicklow County Council to build 44 houses on the Kilgarron Lands at the Powerscourt demesne in Enniskerry. The properties will be constructed on a c. 226,000 sq. ft. site beside the Powerscourt golf club, and will consist of a mixture of three- and four-bedroom properties. The Sunday Times, 5th November
Blackhall Place Apartments: Bartra Real Estate Ltd has applied to Dublin City Council to build a four-storey development containing 23 apartments at Blackhall Place in Dublin. The development will consist of six one-bedroom, 14 two-bedroom and three three-bedroom units. NAMA Wine Lake, 5th November
OTHER
New Ross Boat Yard: Joint agents CBRE and Palmer Auctioneers are guiding c. €4m for New Ross Boat Yard in Co. Wexford. The yard extends to four acres, and has 230 metres of shoreline to the west of the river Barrow, as well as access to the Nore and Suir rivers. The dry dock is understood to be one of only three operational dry docks in the country that can accommodate large commercial boats. The yard had a turnover of €840k in the past year. The Irish Times, 1st November
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