12th July (Issue 355)
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.
OFFICE
Northumberland Road, Dublin 4 A private investor has acquired a period office building, 60 Northumberland Road, in Dublin 4, for €2.7m. Its price equates to a NIY 3.7%, increasing to 5.95% from January 2024. The redbrick semi-detached building, extending to 4,144 sq. ft., came with parking for 10 cars. It is fully let to a single tenant, I3PT Certification Ltd on a 20-year lease from January 2020. Its rent is stepped over the first five years from €100k a year to €176k for the fifth year. The Irish Independent, 7th July
Grand Parade, Dublin 6 Joint letting agents Cushman & Wakefield and Savills are quoting a rent of €52.50 per sq. ft. for the fourth-floor offices at One Grand Parade in Dublin 6. The accommodation comes to the market following a complete refurbishment and extends to 5,135 sq. ft. along with two car-parking spaces which are available for €4k per space pa. One Grand Parade briefly comprises a modern, high-profile six-storey office block of 31,534 sq. ft. in total and 15 basement car-parking spaces. It is occupied currently by a range of tenants including Zendesk and Wrike. One Grand Parade is owned by Quadoro Doric Real Estate. The German-headquartered fund acquired the building for €26m in 2017. The price paid provided the vendor, Credit Suisse, with a significant uplift on its original investment. The Swiss bank, for its part, had purchased One Grand Parade from Nama for €18.1m just two years earlier. The Irish Times, 9th July
George’s Quay, Dublin 2 JLL has recently launched a newly-refurbished part ground floor office suite at 1 George’s Quay Plaza in Dublin 2 to the market, by way of a direct new lease from the landlord, Henderson Park. The accommodation extends to 7,943 sq. ft., and benefits from seven secure basement car-parking spaces. No. 1 George’s Quay Plaza extends to c. 150,694 sq. ft. over 11 storeys and tenants within the building include Amundi Ireland, RBC, Vanguard, Allied World Assurance and Vistra. JLL is quoting €57.50 per sq. ft. and €4k per car space for this fully refurbished office premises. The Business Post, 8th July
Docklands, Dublin Deloitte Ireland has begun a search for as much as 210,000 sq. ft. of office space in Dublin, equating to up to 75% more room than its main occupied space in the city, as it looks to future growth of its workforce and a hybrid working environment. The firm currently has multiple leases in Dublin with the largest of these at Deloitte House on Earlsfort Terrace in Dublin 2, owned by property group Iput, and the adjacent Hardwicke House building, which belongs to Hibernia Reit. Leases on both of these expire at the end of 2026. Deloitte Ireland currently has c. 120,000 sq. ft. rented across various office locations in Dublin. The Irish Times, 9th July
CBRE Office Sector Report Activity in Dublin’s office market gathered pace in the second quarter of this year with 499,122 sq. ft. of transactions completed, making it the strongest Q2 since 2018, according to the latest figures from CBRE. It also brought take-up in the first half of the year to 988,460 sq. ft. In addition, more than 1.27m sq. ft. of Dublin office accommodation was reserved by prospective occupiers at the end of June. Consequently, prime Dublin office rents increased by 4% to €62.50 per sq. ft. and are expected to grow further during the rest of the year. Among the office premises to come available this week is a newly refurbished part ground floor office suite in 1 George’s Quay Plaza, near Tara Street station in Dublin 2. JLL are quoting €57.50 per sq. ft. and €4k per car space on behalf of the landlord, Henderson Park. The Irish Independent, 7th July
INDUSTRIAL / LOGISTICS
Greenogue Logistics Park, Dublin UK-headquartered real-estate investor Palm Capital has secured its second significant pre-let at Greenogue Logistics Park in Dublin. Fastway Couriers has signed a new long-term lease on Building 1A, which extends to 80,529 sq. ft. of grade-A logistics space. The agreement of the deal follows the recent decision by supply-chain specialist Tosca Services to occupy Building 1B. Building 1, totalling 166,587 sq. ft., is now fully let. Separately, Palm Capital has reached practical completion on Building 2 at Greenogue, which is available for immediate occupation. This unit is one of the largest logistics facilities ever constructed in Ireland and is available to let through the joint letting agents Savills and CBRE. Building 2 extends to 287,120 sq. ft. The Irish Times, 6th July
Fingal Logistics Park, North Co Dublin A self-contained 23-acre site at Fingal Logistics Park in north Co Dublin is being offered to the market by joint agents CBRE and JP & M Doyle at a guide price of €6.44m (€280k per acre). Zoned land only 15 minutes closer to the M50 motorway is currently changing hands at twice the price, according to the selling agents. The lands forms part of Fingal Logistics Park, an area of land zoned GE (general employment) under the current Fingal County Council Development Plan, which allows for industrial, logistics, warehousing and multiple other related uses. The Irish Times, 6th July
Great Connell, Co Kildare Situated on the Baroda Road with frontage to both the Baroda and Old Connell roads, a site comprising 23.6 acres of land zoned Objective H1 — “Industrial & Warehousing” within the Newbridge Local Area Plan 2013 – 2021 is being offered for sale by way of tender on July 27th next by Jordan Auctioneers at a guide price of €4.72m (€200k per acre). The Irish Times, 6th July
Celbridge, Co Kildare Cushman & Wakefield is guiding a price of €5m for “significant landholding” with “future development potential” in Celbridge, Co Kildare. The “Castletown lands” extend to 235 acres and are predominantly zoned Objective F — Open Space & Amenity under the Celbridge Local Area Plan 2017 – 2023. The remaining portion of the site is zoned GB — Green Belt. The lands are designated within a Historical Landscape Area and have mostly been in agricultural use for several years. The Irish Times, 6th July
RETAIL
Corrib Shopping Centre, Galway Mike Ashley’s Fraser Group has completed its purchase for €18.25m of Galway city’s Corrib Shopping Centre from US private-equity giant Marathon Asset Management. The price paid equates to a NIY of 8.38% based on the centre’s current rent roll of €1.68m pa. The Fraser Group’s acquisition of the Galway city scheme comes just over one year after its Sports Direct brand agreed a new 10-year lease on the 65,000 sq. ft. anchor unit occupied formerly by Debenhams. The Corrib Shopping Centre’s other anchor is Marks & Spencer, while other tenants include Carraig Donn, Peter Mark, Walsh’s Pharmacy and Meteor. The scheme comprises c. 100,000 sq. ft. of lettable retail space. The centre has a current occupancy rate of 99% with a WAULT of 6.28 years to break option and 6.35 years to expiry. The Irish Times, 6th July
Grafton Street, Dublin 2 Skechers is set to open a standalone store in the premises formerly occupied by Tommy Hilfiger. The international footwear giant is understood to have signed a new long-term lease on all 9,500 sq. ft. of space at 13-14 Grafton Street with a view to opening for business in the autumn. According to market sources, Skechers has agreed to pay a rent of €900k pa. The figure represents a reduction of 47% on the near €1.7m rent Tommy Hilfiger had been paying before it exited the property in May of last year. While the impact of the Covid-19 pandemic is believed to have influenced the US retailer’s move to a certain degree, it is understood that the company decided to exercise the 15-year break option on its 25-year lease 12 months early. Tommy Hilfiger is believed to have paid the near €1.7m rent due for that period. Additionally, Lego is due to open its first standalone Irish store at no. 41 on August 18th, while luxury footwear and handbag retailer Russell & Bromley has recently signed a lease at no. 76. The Irish Times, 6th July
MIXED-USE
Irish Infrastructure Fund (IIF) AMP Capital, an Australian investment fund manager, is preparing the sale of the €1bn-plus Irish Infrastructure Fund (IIF). Ireland Strategic Investment Fund (Isif) is the largest of c. 30 investors in the fund, having committed €250m. Co-managed by Irish Life Investment Managers, the IIF was set up in 2012 and consists of four assets: the Convention Centre Dublin; Speed Fibre Group, which includes Enet; Valley Healthcare; and Towercom, a nationwide portfolio of more than 400 telecom towers. The fund generates earnings of between €60m and €80m a year with much of that underpinned by long-term government contracts. The Convention Centre Dublin has a 25-year concession to operate the country’s largest conference venue, running to 2035. Enet’s contract with the government to manage the 88 metropolitan area networks runs to 2030. Valley Healthcare owns 20 operational primary care centres with a further six in development. The centres have leases of up to 30 years with the HSE and a very high proportion of its rents are believed to be guaranteed by the state and are inflation-linked. The Sunday Times, 10th July
Moore Street, Dublin 1 A Moore Street butcher has stalled the final phase of Hammerson’s €500m transformation plan for Dublin City Centre. The latest phase involves the demolition of buildings and structures on site to accommodate the construction of a new public plaza along with a mixed-use scheme in a six-storey building. The Irish Independent, 6th July
Douglas Road, Cork A €2.6m mixed-use property called Ardfallen Mall, on the main Douglas Road has gone up for sale. The subject property comprises Units 1, 2 and 3 which are fully let and currently produce just under €270k pa, with an average WAULT of 5.2 years on the leases and showing a NIY of 9.4%. The trio, running to over 9,500 sq. ft. with basement stores under two, are part of a larger mixed-use development on the former car dealership site which also includes medical consulting rooms and a creche, which do not form part of the sale. Highest rent is from Unit 1, c. 6,000 sq. ft. and let to Iceland and earning €170k on a 25-year lease from 2003, with expiry date of 2028 and upward only review due in May 2023. Unit 2 is let to Ardfallen Pharmacy and earns €52k pa, with a review in October 2023 and expiry in 2028, and Unit 3 is let to Boyle Sports at €47k pa. The Irish Examiner, 7th July
HEALTHCARE / NURSING HOMES
Co Cork, Co Meath and Co Louth Silver Stream Healthcare, the Meath-based nursing home group, has launched three additional facilities, which will double its current capacity to 750 beds and increase the number of homes it operates to 11. According to market sources, the three new nursing homes comprised an investment of €65m. They are located in Riverstick in Co Cork, Duleek in Co Meath and Dundalk in Co Louth, and will provide 340 additional beds between them. Silver Stream said they will also support the creation of more than 500 full-time permanent jobs within the group. The three new facilities being opened by Silver Stream will join its existing network of eight nursing homes, which are located in Cork, Dublin, Wicklow, Meath and Tipperary. The Business Post, 9th July
RESIDENTIAL / DEVELOPMENT
Naas, Co Kildare An Bord Pleanála has recently allowed the number of apartments at Rathvoy Park residential development to be increased from 152 to 171. The project is being developed by McGrath Group Properties and it is the group’s intention to retain ownership of the development for letting out. The first two blocks will be completed and available for occupation in September, with the rest of the blocks being delivered in subsequent phases. The full development will reach completion by the summer of next year. Based on recent rents achieved per sq. ft., rents could range between €1.6k for one-bedroom units up to €2.2k for three-bedroom apartments. The latter range in size up to 1,500 sq. ft., which is bigger than a standard new three-bedroom house. A recent search of Daft.ie showed only three houses available for rent in Naas. The Irish Independent, 7th July
Development Land Activity, Ireland The volume of development lands sold in Ireland increased “significantly” between April and June after a “subdued” start to 2022, Savills has said. In a new report, the property dealer said that 25 assets worth a total of €193m changed hands in the second quarter of the year, bringing half-year development land volumes to €275m. Two deals worth over €110m topped the quarter, representing 58% of market turnover: Glenveagh’s sale of 5.2 acres at East Road in Dublin’s docklands to Eagle Street for over €60m and Iput Real Estate’s acquisition of 118 acres at Killamonan Business Park in north Dublin for over €50m. The Irish Times, 11th July
Carrigaline, Co Cork Reside Investments Limited has submitted a Strategic Housing application to build a residential development at Kilmoney in Carrigaline, Co Cork. The development will comprise 22 houses, 202 apartment units, shops and a creche. The total floor area of the development measures 279,000 sq. ft. and has an estimated cost of €48.9m. The Business Post, 8th July
Crumlin, Dublin 12 Seabren Developments and Circle VHA CLG has lodged an application with An Bord Pleanála for the construction of a €33m development to include 150 apartments and a creche at St Agnes Road in Crumlin, Dublin 12. The development comprises 74 one-bedroom, 72 two-bedroom and four three-bedroom apartment units. The total floor area of the proposed development is 169,714 sq. ft. Seabren had a similar application overturned by the High Court in February 2022. The Business Post, 8th July
Firhouse Road, Dublin 24 Bluemont Developments Limited has lodged an application to build a €24m development which includes 100 apartment units, shops and a creche at Firhouse Road in Dublin 24. The development includes 49 one-bedroom, 46 two-bedroom and five three-bedroom units. The total floor area of proposed development measures 125,270 sq. ft. The Business Post, 8th July
Kinsale Road, Co Cork Watfore, the property management and development subsidiary of Dairygold, has been granted planning for a development valued at c. €112m at its former CMP dairy site, known as Creamfields, on the Kinsale Road and Tramore Road, in Co Cork for a scheme comprising 609 residential dwellings. That includes c. 561 apartments and 48 townhouse apartments.The Business Post, 8th July
Tallaght, Dublin 24 Glenbrier Construction has begun works on site on the construction of two new apartment blocks at the busy junction of Airton Road and Belgard Road in Tallaght in Dublin 24. The €72m development consists of 328 residential units, ancillary residential support facilities and commercial units, over a basement car park. The Business Post, 8th July
Celbridge, Co Kildare HWBC has submitted a fast-track application to build a 344 residential unit development at Ballyoulster in Celbridge, Co Kildare. The scheme comprises 80 three-bed and 50 four-bed houses, 54 one-bed, 30 two-bed and 130 three-bed apartments and a creche. The development has a total floor area of 424,571 sq. ft. and has an estimated cost of €77m. The Business Post, 8th July
Newcastle, West Dublin Cairn Homes is seeking planning permission for a €61m development of 280 residential units and a creche at Newcastle in West Dublin. The development comprises eight two-bed, 94 three-bed and 26 four-bed houses and 54 one-bed, 80 two-bed and 18 three-bed apartment units. The Business Post, 8th July
Cherrywood, South Co Dublin William Byrne & Company has completed the construction of c. 202 apartment units at Block C1 as part of Phase 1 at Cherrywood for Hines Ireland. The units are part of the €500m Town Centre Development at Cherrywood Town Centre lands, which span c. 42 acres in the townlands of Cherrywood, Laughanstown, Brennanstown, Loughlinstown and Glebe in south Co Dublin. The Business Post, 8th July
Raheen, Limerick A new housing development in Limerick, which would see c. 400 units built, has been approved by An Bord Pleanála. The plans will see 202 houses and 182 apartments and duplexes on a greenfield site in Raheen, close to Limerick City. The project comes from DW Raheen Developments Ltd, with the development understood to include a new childcare facility, a playground, substantial open space within the site, and storage for over 300 bikes. The Irish Examiner, 5th July
Rezoning Church Lands A bid by the Catholic Archdiocese of Dublin to have large numbers of church sites zoned for housing has been rejected by Dublin city councillors. The archdiocese earlier this year made submissions on the city development plan in relation to the zoning of more than 30 churches across the city. Many of the churches involved are among Dublin’s largest, built in the mid-20th century to serve growing populations in suburbs such as Cabra, Marino and Finglas, where congregations have since declined. The Irish Times, 7th July
OTHER
Dublin Airport The former Quickpark car park, which is the only privately-owned car park permitted by Fingal County Council to provide parking for the airport, is being offered to the market on behalf of Gerard Gannon Properties by joint agents Knight Frank and Colliers at a guide price of €70m. The former Quickpark facility comprises an L-shaped land holding which extends to a site area of 41.76 acres. Full planning permission has been granted for the construction of a new entrance building with office space for staff and 6,122 long-stay car-parking spaces. Currently, there is a single access point controlled by six automated barriers. The 6,122 spaces account for 23% of the 26,800 spaces allowed for by Fingal County Council in its assessment of the parking needs of Terminal 2. The Dublin Airport Authority provides the remainder of this overall car parking provision. The Irish Times, 6th July
Construction Activity, Ireland Activity in Ireland’s construction sector fell in June, the first contraction since April 2021 when the sector was constrained by public health restrictions. BNP Paribas Real Estate’s June purchasing managers’ index (PMI) for the construction sector suggests that new orders fell “at a sharp and accelerated pace for the third consecutive month with “price pressures” leading to a drop-off in enquiries. The drop-off was more notable in commercial than residential construction where the decline was “only marginal”. With new orders declining, survey respondents said they had scaled back their own purchasing activity. 64% of respondents signalled that their input prices had increased in June. The Irish Times, 11th July
A tax on vacant properties will be introduced in the budget to encourage people to increase supply in the housing market, the finance minister has said. Paschal Donohoe said preliminary analysis by Revenue indicated that vacancy among local property tax (LPT) liable homes was low across all counties and lies “within the range” of a “functioning housing market”. Revenue data indicates there are 57,206 vacant properties, significantly lower than the 166,752 previously estimated by the CSO using census data. Donohoe said the disparity was because Revenue only included habitable homes, while the CSO also included derelict properties. The Revenue figures also rely on self-declaration regarding the state of a house. Empty houses which are not fit to live in are considered derelict and owners could be required to pay a levy under the Derelict Sites Act 1990. The Sunday Times, 7th July
Shared Equity Scheme First-time buyers who cannot afford newly built homes or apartments can apply for the Government’s €400m shared equity scheme. Minister for Housing Darragh O’Brien is to announce the First Home scheme, which the Coalition believes will fund up to 8k homes over four years. The scheme will be open to buyers of newly built houses and apartments in private developments anywhere in Ireland. The scheme will provide part of the purchase price to buyers to add to their mortgage and deposit. The State will pay up to 30% of the cost of the new home in return for an equivalent stake in the property. It is understood that buyers will have the option, but not the obligation, to buy out some or all of the First Home scheme equity stake at any time. A small servicing fee will be payable on the equity after year six. The scheme would be “carefully targeted and calibrated with price caps for houses ranging from €250k to €450k”. The €400m figure is split 50:50 between an investment from the State and the participating banks. The Irish Times, 7th July
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