13th January(Issue 527)
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.
INDUSTRIAL
Swords, Co. Dublin GIC, working with operating partner Valor Real Estate, is in exclusive talks to buy Horizon Logistics Park from Henderson Park for approx. €500m. Green Street News reported the potential purchase price would be the largest logistics deal in Ireland’s history and would equate to a net initial yield in the region of 5% for the income-producing component of the sale, although the site also includes significant development opportunities. Henderson Park was prepared initially for a sale or recapitalisation, with Eastdil Secured and JLL mandated in August to line up options for Horizon Logistics Park. GIC fought off KKR and Aermont Capital to land the trophy campus, and the sale attracted a wide array of interest. Other investors that showed initial interest included EQT, Deka Immobilien and Kennedy Wilson. Alongside the 1.7m sq. ft of constructed logistics space at Horizon, there is 2m sq. ft of consented development land that is capable of offering built-to-suit units of 20k sq ft to 1m sq ft. Horizon Logistics Park comprises around 300 acres of zoned industrial land where several distribution facilities have already been developed and are occupied. BisNow, 12th January
Blanchardstown, Dublin 15 Clyde Real Estate is currently seeking a tenant for Clyde House at the IDA Business and Technology Park in Blanchardstown. With its approx. 63,000 sq. ft of industrial and logistics space Clyde House is expected to appeal to a range of potential occupiers. Standing on a 6.5 acre site that includes corporate offices and extensive car parking, Clyde House benefits from two dock levellers for loading trucks and lorries as well as its own dedicated entrance which leads to a secure and gated service yard extending to a depth of 35 metres. Cushman & Wakefield, who is handling the letting, is quoting €9 psf for the property. The Business Post, 11thJanuary
HOSPITALITY
Johnson Place, Dublin 2 Grafton Residence ULC, owned by Sretaw Hotel Group, has been granted planning permission to build an eight-storey, 71-bed extension to the Grafton Hotel, across the road from the existing four-star hotel. The new hotel development will be affiliated and managed by The Grafton Hotel, it is noted in the application. Following the demolition of the existing buildings at 3 to 5 Johnson’s Place, which currently house a number of retail units, an eight-storey, mixed-use development will be constructed. The ground floor is set to be comprised of the hotel lobby, a restaurant and bar in addition to retail units. The seven levels above ground will be made up of 73 ensuite hotel bedrooms and a gym. The company has sought planning permission from Dublin City Council (“DCC”) for similar developments at the site on two occasions previously. Previous applications which were granted permission by DCC were subsequently appealed to An Coimisiún Pleanála by local business owners. The Irish Times, 12th January
Temple Bar, Dublin 2 Colliers and John P. Younge are guiding €2m for The Vintage Cocktail Club in Crown Alley. The three-storey over part basement building, extending to approximately 2,712 sq. ft, is fully let to The Workmans Club Limited for €225k pa under a 20-year lease from 2012. The ground and first floors feature stylish boutique-style bar and lounge areas, complemented by a fully equipped commercial kitchen at ground level. The second floor boasts a covered terrace while the basement provides additional storage and WC facilities. Colliers Press Release, 13th January
OFFICE
St Stephen’s Green, Dublin 2 Maples Group, which owns the law firm Maples and Calder and the financial services company MaplesFS, is planning to relocate all its Irish staff to 75 St Stephen’s Green following a multi-million euro renovation. The law business currently operates from the building, but the financial services division was moved following rapid expansion and currently operates from 32 Molesworth street. Maples has 550 employees in Ireland, its second largest office globally. The redevelopment was part of a deal struck by Blackstone in December which saw it retain the property. The giant American fund agreed the deal with Starwood Capital Group, which saw it take on a loan behind three assets including the Iveagh Court and 75 St Stephen’s Green. Blackstone acquired five Dublin office properties in 2019, funding part of the purchase through a loan held by Starwood. The Business Post, 12th January
Barrow Street, Dublin 4 Mason Hayes & Curran has started the search for new offices in Dublin. The Sunday Times understands that the firm has hired Savills to look for up to 110,000 sq. ft. It has a staff exceeding 700, including partners. A move would see the firm leave its Barrow Street base, in the heart of the capital’s Silicon Docks, which it has occupied since 2006. A spokeswoman for the firm said the company was reviewing its office space requirements “to support the continued growth of the firm”. The company’s current offices comprise just under 65,000 sq. ft. Google Ireland bought the building and another on the street in 2018 from Kennedy Wilson. The tech giant owns most of the street, where it employs thousands of people at a sprawling campus. The Sunday Times, 11th January
RETAIL
Marks & Spencer Results Costs associated with the closure of two Marks & Spencer outlets, in Drogheda and on Clarion Quay in Dublin’s docklands, contributed to the Irish arm of the retailer recording pre-tax losses of €8.85m in the 12 months to the end of March 2024. New accounts filed show that the Retailer recorded the pre-tax loss as revenues rose by 2.4% to €372m and operating profit before exceptional items rose by 68% to €35.5m. The pre-tax loss was incurred after exceptional costs of €42.3m. The bulk of the exceptional costs concern a non-cash impairment charge of €35.8m relating to the company’s investment in Marks & Spencer Turkey Clothing Textile LLC. The directors stated that other exceptional charges of €6.5m relate to closure costs associated with the closure of Drogheda and Clarion Quay in March 2024 and redundancy costs relating to certain roles which were made redundant at a Dublin support centre. The Irish Independent, 8th January
MIXED USE
Glass Bottle Site Deutsche Bank has agreed a financing deal worth €415m for the former Irish Glass Bottle site being developed by Pembroke Beach DAC, a joint venture of Lioncor, Oaktree Capital Management and Ronan Group Real Estate. Lioncor said the new financing package would replace the existing one and provides stabilised financing for the residential phases now being completed and leased, and facilitates progression to the next phases of the residential development program. In November, Glass Bottle’s first residential building, Lime House, achieved “practical completion” and welcomed the first tenants to the site, which consists of 212 homes. The company said that the next 180 homes would be delivered in the first quarter of this year. In total, Glass Bottle is expected to deliver almost 900 new homes in Dublin across its first four residential buildings. The Business Post, 8th January
RESIDENTIAL/DEVELOPMENT
Milltown, Dublin 6 Sandford Living Limited, an Ardstone subsidiary, is making a renewed bid to secure planning permission for a €356m apartment scheme at the corner of Sandford Road and Milltown Road. Two previous plans for up to 667 homes on the site were challenged in the courts after securing permission from ABP and have yet to reach a conclusion. As part of its Part V social housing requirements, Sandford Living is proposing to sell 56 of the planned 562 apartments to the city council for social housing and has put a price tag of €1.03m on the largest three-bedroom apartment that would be made available under that scheme. In total, Sandford Living has put a price tag of €35.54m on the 56 apartments it is offering the council. In all, the apartments earmarked for social housing include five three-bed units, 27 two-bed units, 14 studios and 10 one-bed apartments. A final price will be reached between the developers and the council after planning permission has been secured. Advancing the case for the new scheme, the Thornton O’Connor report notes the development has been reduced from 636 apartments to 562 and a 10-storey apartment block has been reduced to eight storeys. The existing buildings and lands on the site were formerly used by the Jesuit order which vacated the site in 2019 and sold it to the applicants in the same year. The Irish Times, 6th January
Planning Permission Landowners struggling to develop their residentially zoned sites in Dublin, with or without planning permission, are being sought by DCC to provide large scale social housing schemes. The council has identified 113 “inactive” development sites in the city with planning permission granted but no construction started. These sites had the potential to provide 13,000 homes. However, it said it will also “seek out” landowners who have not secured planning permission for zoned lands that could accommodate at least 100 social homes. The Government’s new housing plan, entitled Delivering Homes, Building Communities and published last November, set a target of delivering 72,000 social homes and 90,000 affordable homes Statewide by 2030. The council said notification from the Department of Housing of its specific targets “is imminent”. The council’s current projections for delivery of housing on its lands is for 7,777 homes to be completed by 2030, more than half of which will be social housing, 35% cost-rental, just over 10% affordable housing, and 3% private housing. The Irish Times, 9th January
OTHER
Dublin Airport Fingal County Council has rejected plans by Desmond and Ulick McEvaddy’s DA Terminal 3 Ltd for a new cargo development for their lands on the western campus of Dublin Airport. In the plans lodged with the council, DA Terminal 3 Ltd was seeking planning permission for four aviation related cargo handling units to operate on a 24-hour, seven-days-a-week basis and ancillary office space on a 30-acre site at Huntstown, Swords. The units have an overall combined total gross floor area of 375,000 sq. ft and the scheme when operational would employ 350 people. A planning report lodged by CWPA Planning & Architecture said that the application is the first phase of a 123.5 acre site owned by DA Terminal 3 Ltd to be developed by the company. However, the council has refused planning permission to the cargo scheme on five grounds. The council pointed out that the development site is proximate to lands west of runway 16/34 indicated in the Dublin Airport Local Area Plan as a potential location for a third terminal (T3). The council said it was not satisfied that the proposed development would not prejudice the orderly operation and continued growth of the airport, including the provision of T3 and the provision of a western access route to Dublin Airport. The Irish Times, 12th January
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie