11th February (Issue 233)

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.




Point Campus, Dublin 1 The Irish Times understands that DWS Group has purchased the largest off-campus student accommodation complex in Ireland, Point Campus in Dublin 1, for c.€172 million. Comprising 966 bedspaces (€178k per bedspace), the complex features amenities including a gym, cinema, common room and roof terrace. The 2.3 acre site was purchased in 2016 for a sum believed to be in the region of €20 million. A subsidiary of Deutsche Bank, DWS has become one of the most active investors in the Irish property market. During 2019 alone it was linked to the acquisition of Next’s flagship store on Henry Street for c.€44 million; the forward-funding of a €70 million aparthotel development named Tivoli Place in Dublin 8; and the €108 million purchase of the Fairway build-to-rent apartment scheme at Cualanor, Dún Laoghaire. The Irish Times, 5th February

Finglas, Dublin 11 An Bord Pleanála has granted planning permission for 129 apartments in north Dublin – in spite of opposition from local residents. The appeals board granted planning permission to Dublin builders, Dywer Nolan Developments for the expansion of the Hampton Wood development. It will comprise five apartment blocks including one reaching to nine storeys. The development is located north of the Poppintree industrial estate and a short distance from IKEA’s flagship store. The Irish Independent, 5th February

Drumcondra, Dublin 3 Cushman & Wakefield is guiding €5 million for 14 apartments with ground floor storage at The Granary on Richmond Road, Dublin 3. The portfolio comprises four one-bed apartments, nine two-bed apartments and one three-bed penthouse all housed in a converted five-storey mill building. The portfolio is producing a total gross rental income of €230,604 per annum from 13 apartments. The three-bed penthouse, which is vacant at present, could be let as is, or potentially be split into three separate apartments subject to planning permission. The Irish Times, 5th February

Connolly Quarter, Dublin 1 Ballymore Group has secured the green light from An Bord Pleanála to proceed with the development of a 23-storey apartment block in Dublin city centre. The proposed tower forms part of the wider Connolly Quarter mixed-use scheme that Ballymore and its partner, Oxley Holdings, intend to deliver on a 7.12 acre site adjacent to Connolly Station in Dublin 1. In total, the developer has secured permission for the construction of 741 Build-to-Rent apartments distributed across eight blocks ranging in height from four storeys to 23 storeys. The apartments will be a mix of studios and one-, two- and three-bedroom units. The Irish Times, 7th February

A report by Hooke & MacDonald has highlighted that multi-family or private rented sector (PRS) transactions now dominate the Irish property investment market and accounted for 44% of transactions in Dublin in 2019. There were 22 main residential investment transactions contracted in Dublin in the fourth quarter of 2019, 12 of which were new build while the remaining were existing stock. The new builds comprised 1,650 units and the existing stock 1,065, with an overall total of 2,715. The total sales value was €1.1 billion. The Sunday Business Post, 9th February



Parkgate St, Dublin 8 The Irish Times understands that Chartered Land have submitted a fast-track planning application to An Bord Pleanála for the development of a 29-storey apartment building at Parkgate Street in Dublin 8. The proposed (305ft) tower forms part of a major mixed-use complex Chartered Land is aiming to deliver on the landmark Hickeys site. The residential element of the scheme is set to comprise 481 studio, one- and two-bed apartments distributed across four blocks ranging in height from eight storeys to 29 storeys. Some 39,805 sq.ft. of space will be dedicated to office use while a further 7,083 sq.ft. will be reserved for retail, cafe and restaurant space. The development will feature numerous amenities including a residential communal courtyard, a co-working space, a gym, multipurpose function rooms and games rooms. The Irish Times, 5th February



Drumcondra, Dublin 3 The Sunday Times understands that Fund provider BlackBee Investments has bought Quinn’s pub in Drumcondra to supplement its plans to develop student accommodation in the north Dublin suburb. BlackBee already has permission for student accommodation with 46 bedrooms on an adjacent site, and intends to increase this to 57. It is thought that incorporating Quinn’s, which was on the market with a price tag of €1 million, would increase the total area to almost half an acre, with the potential to accommodate up to 170 students. The Sunday Times, 9th February

Blackrock, South Dublin Knight Frank is guiding €45 million for a 10 acre site (€4.5m per acre) located just 500 metres from Blackrock Village. Located on lands formerly owned by the Daughters of Charity of St Vincent de Paul, the site which has more than 250 metres of frontage to Temple Road is being offered to the market in one or more lots. Lot 1 comprises St Teresa’s House, a gate lodge and several vacant buildings which have been unoccupied for a number of years, on a site area of 9.8 acres, while lot 2 consists of a residential dwelling known as “Carmond” situated on 0.2 acres. Lot 3 comprises the entire 10-acre holding. In terms of the existing planning permission, Oakmount secured approval from An Bord Pleanála for 291 apartments with creche facilities, set out in 13 buildings ranging in height from one to eight storeys. A feasibility study prepared in advance of the sale suggests the holding could accommodate two increased density Build-to-Rent apartment schemes comprising between 493 and 521 units (€91k – €86k per unit). The Irish Times, 5th February

Moss Street, Dublin 2 The Irish Times understands that the former City Arts Centre on Moss Street will be brought to the market in the coming weeks by agent HWBC at a guide price of between €50 million and €60 million. The building has laid derelict since it was purchased for €4.2 million 17 years ago. Located at the junction of Moss Street and City Quay, and with surface car parking along Gloucester Street, the property offers the prospective purchaser the opportunity to deliver an office or residential scheme at a prime location within Dublin’s central business district. Under the Local Area Plan, the height strategy for the City Arts site is for buildings of between six and nine storeys. The Irish Times, 5th February



Cherry Orchard, Dublin 10 Agent Harvey is quoting €1.95 million for a portfolio of three industrial units with potential for future residential development at Cherry Orchard Industrial Estate in Dublin 10. Located on a high-profile site of 2.2 acres, Units 26, 42 and 43 are fully interlinked and extend to a total of 46,253 sq.ft. Under the terms of the South Dublin County Council Development Plan 2016-2022, the site is currently zoned Objective EE – “to provide for enterprise- and employment-related uses”. Under the same development plan, a significant portion of the estate was rezoned REGEN. This is a superior zoning objective that includes residential-led regeneration. The subject holding is immediately adjacent to an area which is already rezoned. The Irish Times, 5th February

Dublin Industrial Market 3.74 million sq.ft. transacted in 2019, representing an 18% increase on the 3.18 million sq.ft. transacted in 2018. Lettings accounted for 66% of activity. On a geographical basis, the North-West accounted for the vast majority of take-up with a 55% market share. There was strong demand for space in excess of 107,000 sq.ft. which accounted for 23% of the market, however the highest demand was for the 54,000-107,000 sq.ft. range which had a 31% market share. Knight Frank Research Report Q4 2019



Roscrea, Co Tipperary TWM is guiding €8.8 million for the Tesco’s supermarket premises in Roscrea, Co Tipperary. The property is let to Tesco Ireland on a 35-year full repairing and insuring (FRI) lease from July 1st, 2011. There is a tenant break option after 15 years (2026). The current annual rental income is €950,000. The lease to Tesco provides for an uplift in the rent through a consumer price index-linked (CPI) mechanism whereby the accumulated CPI uplift over the first 10 years of the lease is applied to the rent. As of today the rent, ignoring any uplift over the next two years, would increase to over €989,000. Built in 2011, the property comprises a modern, detached retail building with supermarket at ground-floor level and car parking at lower ground floor. The property extends to 46,640 sq.ft. with 224 car spaces. The Irish Times, 5th February



Naas, Co Kildare Yew Grove Reit has completed the purchase of six office buildings in Millenium Park, Naas, Co Kildare for €25.3 million. The buildings offer 140,000 sq.ft. of space and 773 parking spaces beside a 6 acre greenfield site. Five of the buildings are let to a mix of foreign multinationals and domestic enterprises that pay c.€1.6 million in annual rent. The sixth building is vacant. The acquisition expands Yew Grove’s portfolio to 28 properties, with a gross asset value of €140m and an annual rent totalling c.€10.4m. The Irish Independent, 8th February

Tallaght, Dublin 24 Joint agents QRE and Savills are guiding a price of €3.6 million for Hainault House at Belgard Square, Tallaght. The subject property comprises a modern standalone office block extending to 20,350 sq.ft. and arranged over three floors with 59 surface car-parking spaces. The property has been substantially refurbished since 2016. Following the completion of its upgrade, Hainault House is now fully let to the Citizens Information Board, Optical Express and Early Childhood Ireland, and is generating contracted rental income of €281,000 per annum (€13.80 psf; 7.8% gross yield). The Irish Times, 5th February

Cork Office Market Occupier activity reached c.283,600 sq.ft. in the twelve months to December end. Whilst the number of deals was down from 2018, the average sized deal increased from 5,380 sq.ft. in 2018, to 9,687 sq.ft. in 2019. The largest deal of 2019 took place in the second quarter, and saw Eli Lilly occupy c.68,350 sq.ft. at Eastgate, Little Island. Availability in the Cork office market stood at 627,500 sq.ft. at the end of 2019. Despite the completion of 249,700 sq.ft. throughout the year, availability has risen only marginally (0.7%) since the end of 2018. At the end of December, 414,410 sq.ft. of office accommodation remained under construction in Cork, all of which is due to be delivered to the market in 2020. Cushman & Wakefield Research Report Q4 2019

Galway Office Market The Galway office market recorded its strongest year since 2015. Take up in the twelve months to the end of December totalled 107,100 sq.ft, across 19 deals. Whilst considerably up on activity levels recorded in 2018, occupier activity in the year remained below the long run average of 139,900 sq.ft. At the end of Q4 2019, availability in the Galway office market stood at 182,000 sq.ft. This represents a fall of 19% in available office space since the end of 2018. The corresponding vacancy rate fell to 5.5%, down from 6.8% at the same point in 2018. Cushman & Wakefield Research Report Q4 2019



Naas, Co Kildare The former Odlum’s flour mills located along the Grand Canal Greenway at Osberstown, outside Naas in Co Kildare is for sale through Lisney at a guide price of €2 million. There is over 30,000 sq.ft. of existing buildings with attractive stone facades and timber beams. The main corn mill with 20,870 sq.ft. rises to five storeys while a fully-refurbished three-storey annex contains renovated offices of 6,286 sq.ft. There are several additional buildings including a refurbished mews (in office use), various stables, outbuildings and courtyard sheds. The two main buildings have 77m of frontage to the Grand Canal where parking is provided opposite at the canal lock. The property is located close to the Millennium Park business campus just off the M7 motorway. The Irish Times, 5th February

The Irish Investment Market A Cushman & Wakefield report has revealed that €4.56bn was invested in the Irish commercial property market in 2019. The 12 months to December end saw the office sector dominate investor interest, accounting for approximately 42% of total investment, translating to a value of €1.9bn. Following offices, the second most sought after asset class in 2019 was the residential sector, which attracted €1.1bn, or 24% of investment turnover. This compares to just €654 million in 2018. Notably, a further €1.3bn was invested in the residential sector through forward commit transactions. Cushman & Wakefield Research Report Q4 2019


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