12th May (Issue 246)
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.
RESIDENTIAL / LAND
Dalkey, South Dublin Twinlite has received fast-track approval to build 101 apartments beside the Castle Park School in Dalkey – three years after councillors blocked smaller plans. The approved plan calls for 64 two-bed, 26 one-bed and 11 studio apartments – all with balconies or terraces – to be built within the 3.1 acre site on Castle Park Road. They will be will arranged in seven pavilion-style blocks in a curved layout. The plan also includes a children’s playground as well as 80 car parking spaces and space for 156 bicycles. The Irish Independent, 8th May
Dublin 22 South Dublin County Council has agreed to sell 48 acres of land for €26.4 million to a company that plans to build the State’s largest film and TV studios. The deal will see land at Grange Castle Business Park in Dublin 22 sold to a company called Lens Media Ltd, which intends to develop a media park with 12 sound stages, 100,000 sq.ft. of workshop space and another 100,000 sq.ft. of offices. The Irish Times, 12th May
Development Land Market The development land market in the greater Dublin area saw almost €80 million worth of land sold across 14 transactions in Q1 2020. This level of market turnover was significantly lower compared to Q1 2019. Most of the sites coming to the market and transacting comprised smaller-sized infill sites. Demand for such sites came mainly from domestic developers. 11 of the 14 transactions (79%) were of parcels of land achieving a sales price of less than €5m. The remaining 3 sales (21%) were above €10m but accounted for 71% of all turnover. Lisney, Q1 2020 Development Land Report
OFFICE
Dublin Landings The Irish Times understands that Microsoft is closing in on an agreement to rent up to 47,000 sq.ft. of space at No 3 Dublin Landings from Irish property company, Iput. The proposed deal will give Microsoft capacity to grow its existing 1,800-strong Irish-based workforce by an additional 400 workers. It is understood that Microsoft will occupy the space on the lower ground, ground and first floors, leaving a further 72,000 sq.ft. available across the five remaining floors to other prospective tenants. The Irish Times, 6th May
Sandyford, South Dublin French asset management company Corum has agreed to purchase Blackthorn House in Sandyford in south Dublin from Irish Life, for c.€18 million. Located at the junction of Blackthorn Road and Bracken Road in the Sandyford Business District, Blackthorn House comprises approximately 46,000 sq.ft of office space distributed over four floors (€391 psf). The building has been let in its entirety to Google since 2017. It is understood the US-headquartered tech giant has approximately four years remaining on its lease. The completion of the deal will bring Corum’s overall investment in the Republic and Northern Ireland to more than €229 million. The Irish Times, 6th May
Kevin St, Dublin 2 The Sunday Times understands that Westridge Real Estate has finalised plans for a development of five blocks that would include more than 538,000 sq.ft. of office space and 299 build-to-rent apartments at the former DIT site on Kevin Street. Under the plans, two office blocks of up to 11 storeys would front on to Kevin Street. The apartments would be in blocks rising to 14 storeys. Westridge purchased the site last year for €140 million, 40% above the €100 million guide price. The Sunday Times, 10th May
Cork Office Market The opening quarter of 2020 saw take up total 36,597 sq.ft. across nine deals in the Cork Office Market, bringing activity in the 12 months to the end of March to 268,021 sq.ft. The city centre accounted for 80% of take up, and Grade A space accounts for 75% of leasing activity. The largest occupation in the quarter was by Clearstream who moved into their Grade A space of approximately 19,375 sq.ft. at Block 1, Navigation Square on Albert Quay. Cushman & Wakefield, Q1 2020 Cork Office Market
Dublin Office Market Approximately 485,990 sq.ft. of space was taken up, while a further 915,470 sq.ft. was signed in the first quarter of 2020 in Dublin. This activity continues to be driven by key sectors such as tech, professional services, finance and co-working occupiers. These four sectors accounted for 87% of total take up in the opening quarter, or 94% of take up in the CBD. A total of 6.2 million sq.ft. was under construction at the end of March 2020, however 54% was signed or reserved. Despite the high volume of space under construction, completions in the quarter totalled just 181,371 sq.ft. Cushman & Wakefield, Q1 2020 Dublin Office Market
Galway Office Market The opening months of 2020 saw occupier activity in the Galway office market total 18,837 sq.ft, across five deals. This brings activity in the twelve months to the end of March to 54,357 sq.ft, significantly below the long run annual average. Market intelligence suggests that this is in part due to a lack of modern product. At the end of the first quarter, there are approximately 254,566 sq.ft. under construction in the Galway office market. Approximately 129,100 sq.ft. of this is in the city centre, at the Bonham Quay development. Cushman & Wakefield, Q1 2020 Galway Office Market
INDUSTRIAL
Ballycoolin, Dublin 15 Agent Harvey has completed the sale of unit 509 Northwest Business Park, Dublin 15. Located on a site of 1.1 acres, the property comprises 16,243 sq.ft, and is situated next door to the Java Republic roastery and restaurant. The unit is understood to have been sold for in excess of the €1.95 million guide price. Unit 509 Northwest Business Park has a warehouse area of 11,937 sq.ft and benefits from a clear internal height of 39ft with loading access via one full-height level access door and one dock leveller. Two-storey offices and staff facilities comprising 4,306 sq.ft. are situated to the front of the building. There is also parking for 24 cars. The Irish Times, 6th May
Cork Industrial Market The Cork industrial market recorded a strong start to 2020. Take up totalled 227,656 sq.ft, across 13 deals, making it the strongest opening quarter on record. In contrast to historical trends, owner occupiers dominated transaction activity in the first quarter, accounting for 73%. In line with the strong levels of take up activity in the opening quarter of 2020, availability in the Cork industrial market has fallen to its lowest level in over a decade. Availability stood at 68,889 sq.ft. at the end of March, with the vacancy rate falling to 5%. Cushman & Wakefield, Q1 2020 Cork Industrial Market
OTHER
Irish Investment Market The Irish investment market in Q1 2020 recorded turnover of c.€675m. The office sector accounted for just over 54% of investment spend, while off market transactions accounted for 53% of activity. Notably, 82% of investment turnover originated from overseas investors across 16 transactions, including the ten largest transactions of the quarter. In Q1, Dublin led activity in terms of location, making up 95% of turnover, €638.5m. At the end of Q1 2020, there was c.€1.15 billion worth of assets on the market. Of this, over €654m was either sale agreed or under negotiation. Prime equivalent yields remain below long-term averages across each sector. During the quarter there was a softening of prime retail yields moving from 3.50% to 3.75%. Lisney, Q1 2020 Investment Property Report
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