13th August (Issue 209)
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
5 Hanover Quay, Dublin Docklands A German based fund manager, Union Investment, has purchased 5 Hanover Quay for over €190m (4.25% NIY). The fund already owns 4 and 5 Grand Canal Square. The property comprises 160,000 sq.ft. over seven floors and is fully let generating €8.75m per annum from Docusign and Aptiv. The property was brought to market in May this year by joint agents JLL and London-based Eastdil Secured. The Irish Times, 12thAugust
Salesforce Tower, Dublin Docklands, Dublin 1Dublin City Council has rejected Johnny Ronan’s second application to increase the height of Salesforce’s new European headquarters. Spencer Place Development Company had sought to add two further floors to the scheme under the Strategic Development Zone (SDZ) guidelines. The council noted that the additional storeys “would not be consistent with the provisions of the North Lotts and Grand Canal Dock SDZ planning scheme and would be unduly dominant and visually incongruous when viewed in the context of the existing quayscape on North Wally Quay, a conservation area, and the surrounding built environment”. The Irish Times, 6th August
LAND
19 Acre Site, Drumcondra The Irish Times reports that US commercial property group Hines is the preferred bidder for the 19 acre residential development site in Drumcondra. The site forms part of a larger site which is being sold by the Catholic Archdiocese of Dublin to the GAA for a reported €95m. The GAA will sell the 19 acre section for a reported €105m. The Irish Times, 8th August
RESIDENTIAL
Q2 2019 House Building Homes completed in Q2 2019 increased 12% YoY. The Central Statistics Office noted that 4,920 new homes were completed between April and June. There was a 17% increase in number of houses built in the first half of 2019 YoY with 9,185 completions compared to 7,867 last year. Apartments were the fastest growing category rising 55% from 487 in Q2 2018 to 758 in Q2 2019. One-off houses rose by 15%. Scheme dwellings, comprising more than one home, increased by 3%. The Times, Irish Edition, 9th August
Ires Reit Interim Report ResultsIres Reit, the largest landlord in Ireland, recorded profits which have more than halved in the first half of 2019. Profits fell to €34.1m from €69.5m YoY despite a 17.6% increase in rental income. The drop in profit can be attributed to the net movement in fair value of the investment properties which increased by €22.5m due to revaluation but this figure was down on the €57m increase the year before. Ires Reit, established in 2007, has a portfolio of 2,771 residential units with a further 298 units contracted under pre-purchase contracts and development. Those combined with the recently announced acquisition of the Marathon Portfolio of 815 units, increases the overall portfolio to 3,884 units, a 45% growth since December 2018. The Irish Times, 9th August
OTHER
Green Reit Sale The Irish Times reports that Henderson Park, the UK property company, is set to agree to acquire Green Reit this week. Green Reit, the offices and warehouse group has a rent roll of €73m pa and the market value of the Reit has increased to €1.3bn since it was put on the market for sale four months ago. Green Reit’s share price has increased by 21.5% to €1.86 since being put up for sale. Green Reit was the first real-estate investment trust to float on the Irish stock market in 2013 and has acquired €1.48bn portfolio of office, logistics and development assets. The Irish Times, 13th August
Cathal Brugha College, Dublin 1 The Department of Education paid €24m for the Cathal Brugha College to help deliver a new secondary school for 1,000 pupils in the area. DIT had dropped the original asking price from €15m to €12m to pay for the Grangegorman campus which the department is also funding. The department has identified the need for an extra 1,630 secondary school places in the Drumcondra-Marino school planning area by 2029. A private sector bidder had offered €24m before the department expressed an interest. DIT cancelled the sales process and obtained a value of €24m for the site from the Valuation Office. The Sunday Business Post, 11th August
Fast Track Planning The Sunday Independent reports that An Bord Pleanála have turned down almost a third of applications filed through the fast-track system in 2018. Developers building out sites with 100 or more housing units or 200+ student beds or shared living beds can apply for planning straight from An Bord Pleanála with a decision available within 16 weeks. 39 applications were submitted in 2018 and permission was granted to 27 proposals which will deliver 3,284 houses, 3,818 apartments and 4,479 student beds. 97 valid requests for pre-application consultation relating to large-scale developments were received by the planning body, of which 63 opinions have been offered with the remainder to be offered in 2019. The Sunday Independent, 11th August
Core Reit A US investment fund, Pramerica Real Estate Capital (PRECap) has financed, York Capital, an American Hedge fund out of Core Reit, making PRECap the controlling party. Core Reit is the property fund which came within days of floating on the Dublin and London stock market last year. Core Reit’s portfolio comprise 106 industrial buildings and 167 acres of land of which 35 acres is zoned for development. The Times, Irish Edition, 11th August
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