12th June (Issue 150)
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.
LOAN / PORTFOLIO SALES
Project Glas: Permanent TSB has set a deadline of 19thJuly for final bids on the €2.2bn portfolio of non-performing loans known as Project Glas. The portfolio, which consists of c. 11,200 assets in total is sub-divided into Project Nepal, mainly buy-to-let mortgages, and Project Tibet, comprising private dwelling homes deep in arrears. Lone Star and Cerberus are understood to be among the front runners for the loan book, which makes up 11% of PTSB’s non-performing loans. The Irish Times, 7th June
OFFICE
The Sharp Building, Dublin 2: Leading global healthcare supplier Perrigo, has agreed to rent a new 45,000 sq. ft. office development at Hogan Place, Dublin 2, to be known as the Sharp Building. Perrigo will pay an annual rent of €2.475m (€55 psf) on a 12-year lease with five-year rent reviews and the option to extend for an additional 10 years. The building was developed by the McGarrell Reilly Group. The Irish Times, 6th June
Three Park Place, Dublin 2: IDA Ireland is set to become the third and final tenant at the newly developed Three Park Place on Hatch Street, Dublin 2. The State body will be joined by Science Foundation Ireland and the Sustainable Energy Authority of Ireland in the new nine-storey 170,000 sq. ft. office building developed by the Clancourt Group. The IDA is set to rent six of the floors at €60 psf and €4,000 per car space. The Irish Times, 6th June
Central Plaza, Dublin: Planning permission has been granted for the redevelopment of the former Central Bank HQ on Dame Street in Dublin city centre. When complete, the Central Plaza will consist of 33,000 sq. ft. of retail, restaurant and cafes at street and basement level, and 73,000 sq. ft. of office space across eight overhead floors. BNP Paribas have been engaged as letting agents of the retail and hospitality offering for Central Plaza while Knight Frank are the office agents for the project. The Irish Independent, 5th June
Citywest Business Park: Agent JLL has brought a multi-let office investment at Citywest Business Park to the market guiding €5.4m (€224 psf). The eight office units with a combined size of 24,085 sq. ft. produces an annual rent of €410,342 (€17 psf), reflecting a net initial yield of 7%, which will rise to 7.8% if the one vacant unit is let. The Irish Times, 5th June
RESIDENTIAL / LAND
Mixed-Use Enniskerry Site: Agent Cushman & Wakefield has brought a 55 acre site with superb views of the Wicklow coastline, Bray Head and the Sugar Loaf Mountain, to the market guiding €23m (€418k per acre). The site in Enniskerry Co. Wicklow comprises of 20 acres zoned for housing, 2.5 acres for enterprise purposes, 3 acres for a school with the remaining 26 acres are un-zoned. It is expected the residential site could accommodate a minimum of 185 homes and NAMA are offering the sale by way of license agreement, which will allow the successful developer to pay a deposit on house sites and stagger the remaining payments until the dwellings have been completed and sold. The Irish Times, 6th June
Cherrywood Town Centre: Dún Laoghaire Rathdown County Council’s subsidiary DLR Properties (DLRP) is reported to be looking for developers to take on a 13-acre site at Cherrywood, Co Dublin adjacent to the site where Hines is leading the development of the town centre. DLRP’s site offers an opportunity to get fast-track planning permission for c. 800k sq. ft. of offices, 360 apartments and c. 140k sq. ft. of retail and community services accommodation. The Sunday Business Post, 10th June
Fairview Cinema: Agent Lisney has brought a five-storey cinema and car park with redevelopment potential on a 0.5 acre site in Fairview to the market with a guide price of €2.75m. The property is zoned Z4 “to provide for and improve mixed-services facilities” and planning permission was previously granted for 23 apartments and two retail units in a four-storey over-basement car park. The former cinema and car park could accommodate a larger mixed-use scheme, subject to planning permission. The Irish Times, 6th June
INDUSTRIAL
Rosemount Business Park, Dublin 11: Agent CBRE has brought a prime logistics facility extending to 25,000 sq. ft. on a 1.26 acre site at Rosemount Business Park in Ballycoolin, Dublin 11, to the market guiding €2.25m (€90 psf).The facility is let to Hytech Logistics Ltd at a rent of €160,000 (€6.40 psf) until February 2019, equating to an initial yield of 7.7%. The Irish Independent, 11th June
HOTEL
Gardiner Street, Dublin 1: Agent CBRE has brought four adjoining properties with hotel redevelopment potential on Gardiner Street Lower, Dublin 1, to the market for €4m (€362 psf). The properties which extend to 11,030 sq. ft. are currently in office use producing an annual rent of €190,000 (€17 psf), and subject to planning permission could accommodate a 31-bedroom hotel/aparthotel. The Irish Times, 6th June
Athlone Springs Hotel: Supermac’s founder and owner, Pat McDonagh, has completed the purchase of the four-star 68-bedroom Athlone Springs Hotel for c. €4m (€59k per key). Selling agent CBRE, stated the hotel was trading profitably and includes a leisure centre and swimming pool, as well as conference and function rooms. The hotel becomes the fifth hotel in Mr. McDonagh’s hotel portfolio, having previously purchased the Castletroy Park Hotel in Limerick, the Loughrea Hotel and Spa in Galway, the Killeshin in Portloaise and Charleville Park in Cork. The Sunday Times, 10th June
Portobello Hotel: Dublin city council has granted planning permission for the €40m development of a 149-bedroom hotel next to the Grand Canal at Portobello in Dublin. An appeal to An Bord Pleanala is likely as there was significant opposition to the proposal on grounds the hotel would encroach on the public plaza and have negative impacts on traffic and noise in the surrounding area. The joint developers, MKN Property Group and Tifco Hotel Group, had sought permission for a six-storey building, but council planners made it a condition of approval that its height would be reduced to five storeys. The Times, Irish Edition, 5th June
OTHERS
Dublin Crane Count: There were 72 construction cranes visible over the centre of Dublin on June 1st, a drop of 6 on the previous months total and 8 less than the 80 recorded on December 1st2017, the highest amount registered to date. This month’s total is significantly more than the 31 recorded on February 1st2016, when The Irish Times began their survey. There were 50 cranes visible on the Southside, a drop of 8 from May, with 22 on the Northside, an increase of 2 on the previous month. The Irish Times, 11th June
Student Accommodation Market: Research from commercial property firm Cushman & Wakefield has shown that there are 6,180 student beds currently under construction in Dublin with c. 2,850 beds expected to open this year. In total there are currently 11,340 purpose built student bed spaces in Dublin, with 4,440 having received planning permission and another 3,385 in the pre-planning stage. While development activity is primarily concentrated in Dublin, there are 603 beds being built in Cork and 429 bed spaces are under construction in Galway. Across Cork, Galway, Limerick and Kildare, there are c. 2,900 bed spaces with planning permission, and another 1,950 in the preplanning stage. The Irish Times, 7th June
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