11th September (Issue 163)

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.



Swords Central Shopping Centre has been brought to market guiding €21.5m through JLL. The property comprises 30,000 sq.ft retail and a 320 space car park which generates €1.3m per annum from the retail tenants and €280,000 per annum from the car parking. While the anchor tenant Penneys owns its store, other tenants include An Post, More 4 Less, The Works, Specsavers and Holland & Barrett. There is also a 742 sq.ft vacant unit available to let for €60,000 per annum. The Irish Times, 5th September

Wilton Shopping Centre Cork, which is the 2nd largest shopping mall in Cork after Mahon Point, will be sold for “at least €86m” by Savills, the Irish Times reports. The Property is currently owned by investor York Capital (90%) and Paddy McKillen’s Clarendon Properties (10%) and was bought from NAMA in 2016 for reportedly €70m. The asking price is €76m for the current 121,632 sq.ft centre and €10m for the area covered by the conditional planning. Cork City Council have indicated that they are willing to grant planning for a 75,347 sq.ft retail, 190-bed hotel, offices and cinema along with a car park. The property generates net rental income of €5.54m per annum and tenants include Penneys, Eason, Specsavers and Boots. Tesco own their own store within the property. The Irish Times, 7th September

City East Retail Park, Limerick has been brought to market guiding €28m by Savills. The 178,764 sq.ft property is split into two detached blocks along with 525 car parking spaces. The property generates an annual rental income in excess of €2.3m from tenants comprising B&Q, Harvey Norman, Home Store and More, Halfords, EZ Living, Maxi Zoon and Home Savers. The property also has planning permission for an additional 15,360 sq.ft retail unit beside B&Q and also a 2,626 sq.ft coffee pod. The Irish Times, 5th September

Upper Baggot Street, Dublin 2 JLL have brought a mixed use retail and office building located at 15 & 17 Upper Baggot Street to market guiding €3.85m. The properties can be sold as one or two lots, €1.8m for number 15 and €2.05m for number 17. The two properties generate €211,697 per annum from seven separate tenancies including Eathos Café and Baggot Street Wines. The Irish Times, 5th September

22-23 Dawson Street, Dublin 2 has been brought to the market by Savills guiding €6.25m. The property comprises 6,500 sq.ft, five storey over basement, mid terraced building. It includes retail on the ground floors with four luxury apartments above and generates €323,000 per annum which would equate to an initial yield of 4.85%. Retail tenants include Amuse Restaurant, Tang and Sunglasses.ie and each apartment spans an entire floor along with a landscaped roof garden. The apartments are let to a single occupier on a recently agreed 5 year lease. The Irish Independent, 6th September



Crowe Report, Q3 2018 notes that their 2018 Ireland Hotel Industry Survey shows a seventh consecutive year of growth, across all regions, in turnover with record profit levels, occupancy levels and average room rates. There are currently 3,000 rooms under construction in the Dublin market alone. Tourism levels were 6.03m at the end of July 2018, an increase of 8% on the same period in 2017. STR European Hotel Review shows Dublin RevPar YTD July 2018 of €119.62 compared to €110.76 YTD July 2017. The average daily rate (ADR) in Dublin was €143.61 in July 2018, an increase of 6.7% on the previous year. All Ireland which includes Cork, Limerick, Galway, Dublin Waterford and Kilkenny has seen 1.4% occupancy increase to 76.4% and 14% ADR growth to €93.82

Dublin Airport Tifco and Arora Hotels have been shortlisted to design, build and run a 400 bed hotel linked to Dublin Airport’s terminal 2. Tifco owns or manages 24 hotels and is backed by Goldman Sachs. Arora operates three hotels at Heathrow airport and two hotels at Gatwick Airport. The planning for the 11 storey building at Dublin airport is due to expire in March 2019. The winning bidder will fund the hotel and operate it for 100 years. The Sunday Times, Irish Edition, 9th September



9.63 acres in Cabra with planning permission for 419 apartments, a house, commercial and community facilities has been brought to the market by Savills guiding €32m on behalf of Marlet Property Group. The site is 600m from Cabra’s Green Luas line station. The Irish Times, 5th September

12.5 acres Celbridge, Co Kildare Coonan Property have brought a 12.5 acre residential site to the market guiding €9.4m (€750,000 per acre). The site is zoned “new residential” and given the size of the site, it is anticipated that any planning application would be large enough to be “fast tracked” under the Strategic Housing Development Act. The Irish Times, 5th September

4.47 acres Bray, Co Wicklow a 4.47 acre residential site located on Putland Road has been brought to the market guiding €6m (€1.34m per acre) by CBRE. The site has recently been rezoned “high density residential”. There are currently two buildings on site one of which is a protected structure and will provide any potential purchaser with short-term rental income. The Irish Times, 4th September

36.4 acres Newbridge, Co Kildare Savills have brought a 36.4 acre site in Newbridge in Co Kildare to market guiding €12m (€330k per acre). The site has planning for 280 residential units, a 3,305 sq.ft crèche and 76,607 sq.ft nursing home. The residential units will comprise 180 houses, 56 duplexes and 44 apartments. The Irish Independent, 6th September

Artane, Dublin 5 QRE Real Estate Advisers are seeking €3.75m for a portfolio of 14 apartments in the Brookwood Abbey scheme in Artane, Dublin 5. The apartments are located within a 40 apartment scheme and generate €213,600 per annum. There are three two bed apartments currently vacant. Based on the asking price, and a fully let portfolio with an estimated rental value of €275,000 per annum, a purchaser will secure a gross yield of 7.3%. The portfolio comprises 11 two-bed, one three-bed and two one-bed apartments. Irish Independent, 6th September

Glasnevin, Dublin 9 Sanderly Holdings Limited has applied to Dublin City Council to demolish buildings at Glasnevin Motors site in Dublin 9 and to construct 74 apartments across two 5-6 storey blocks. The 100,000 sq.ft development will also include small retail units and a communal area. NWL Issue 274

Sandford Road, Ranelagh Agar Property Consultants are seeking offers in excess of €2m for 0.3 acres on Sandford Road, Dublin 6. The site comes with a Z2 residential zoning and a feasibility study shows there is potential for 12 homes, comprising six 2-bed duplex apartments and six 2-bed apartments. Agar Commercial Property Consultants, 7th September

Irish Housing The Irish Times reports that while new home completions have increased 34% year on year with 3,526 completed in Q1 and 4,419 in Q2, it still falls short of the 35,000 required to meet demand. The majority of new homes completed in 2017 were in Dublin and the commuters counties Kildare and Meath. Despite house prices increasing 76% since 2012, remuneration has only increased by 7.3% in the same period. Property prices in Dublin have increased 3.3% in the year to date compared with 4.7% during the same period in 2017. It is anticipated that prices will finish 6-7% higher by the end of the year compared to 8.8% in 2017. The Irish Times, 6th September

Building Costs According to Linesight (formerly Bruce Shaw), the cost of building a family home has risen 7.5% in the last year. The surveyor firm’s figures show the pure construction cost of an average estate home now runs at between €1,260 a sq m (€117 per sq.ft) to €1,610 a sq m (€149.58 per sq.ft). Linesight bases its calculation on a 100sq m (1,076 sq.ft) dwelling, implying a total building cost of €126,000 to €161,000 for the average family home. Linesight also estimates that the construction industry will be worth €21 billion to the economy this year. The Irish Times, 11th September



Galway Docks An Bord Pleanála has approved Gerry Barrett’s €100m development comprising 279,850 sq.ft office, 21,581 sq.ft retail and 350 student beds located at Queen Street, overlooking Galway docks. Mr Barrett was also recently awarded the contract by CIE to develop 8.2 acres beside Ceannt Railway Station in Galway city centre including a 200 bed hotel, 400 apartments, retail centre and transport hub. Patricia Staunton of Cushman & Wakefield has been engaged to manage the office lettings. The Irish Times, 5th September

13/14 Aungier Street,D2 has been brought to the market by Savills guiding €15m (€532 per sq.ft / 4% yield). The 28,180 sq.ft property is let on a long lease to Dublin Business School at €675,000 per annum. There is 10.3 years remaining with no breaks. The rent will be reviewed next December and is subject to upwards-only reviews. The Irish Times, 5th September

J5 Plaza, North Road, Dublin 11 has been brought to the market by Savills guiding €11.25m. The 62,221 sq.ft office building is fully let. The HSE let the majority of the property at €11 per sq.ft. The final floor has since been let at €18-€19.50 per sq.ft by three separate tenants including a company responsible for the Exam Centre. The property was previously sold by NAMA in 2013 for €6.5m. Savills are handling the sale for SW3, an investment group comprising Ned Truman, Adam Room and Tom O’Mahony who are the same consortium who are seeking to sell 13/14 Aungier Street. The Irish Times, 5th September



Hewlett Packard (HP) Campus, Leixlip, Co Kildare has been acquired by Michael O’Flynn and BlackRock Real Estate Assets for a reported €51m. This deal represents one of the largest industrial transactions to have taken place in Ireland. The campus comprises 1.47 million sq.ft across nine buildings on 195 acres. Occupiers include Hewlett Packard Enterprise, MGS, Global Enserv Solutions and Celestica. 600,000 sq.ft of the campus is currently vacant. The new owners intend to rebrand the campus to Liffey Business Park. The Irish Independent 6th September


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