13th March (Issue 137)

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.



Glenveagh Properties PLC: Glenveagh Properties has acquired two land portfolios which are capable of delivering 2,235 residential units for €106m. The portfolios include development sites in Tallaght and Donabate in Co. Dublin, Bray in Co. Wicklow, Dunboyne and Stamullen in Co. Meath and Galway city. Glenveagh Properties listed on the Irish Stock Exchange in October 2017 and raised €550m to fund land acquisitions and housebuilding. For the five month period from August 2017 to end of December 2017, the company generated revenue of €1.4m, recording a gross profit of €524k but a pre-exceptional loss of €3.3m.  The Irish Independent, 13th March 2018

Cairn Homes PLC: Listed homebuilder Cairn Homes FY 2017 results shows revenue grew to c. €150m from €41m in 2016 with 2018 revenue expected to top €350m. It disposed of non cores sites worth c. €16m in 2017 and plans to sell non-core sites with capacity for 40 – 60 units from its land bank in 2018 preferring to build on its larger sites. The Irish Independent, 11th March 2018

3 Ardee Road: Quinn Agnew is guiding in excess of €2.25m via tender for a residential development opportunity located at 3 Ardee Road, Rathmines in Dublin 6. The existing property comprises of an office/stores building of 6,727 sq. ft. on a rectangular shape site extending to 0.19 acres which has Z4 zoning allowing for residential development. The Irish Independent, 8th March 2018

Foxrock: QRE is guiding €2.85m (€142k per unit) for a 0.62 acre site with full planning permission for 16 two-bed luxury apartments and four duplexes in Foxrock, south county Dublin. Hunters Estates Agents believe the apartments and duplexes could command prices of €550,000 and €650,000 respectively.  The Irish Independent, 12th March 2018



Dublin Central Inn Hotel: CBRE has brought the Dublin Central Inn Hotel at 95-98 Talbot Street in Dublin 1 to the market guiding €10.5m. The Hotel incorporates 60 well-presented bedrooms with potential to extend, subject to planning permission. There are also a number of other projects planned for the area within the next few years, including the 5.3-acre Dublin Central Scheme of high-density retail, commercial, residential and leisure outlets on O’Connell Street and the former Clery’s department store on O’Connell Street, which is to be redeveloped with high-end shops, a rooftop bar and restaurant, office space and hotel accommodation. The Sunday Business Post, 11th March



Morrissey’s Review 2017, Outlook 2018 Report: 31 licensed premises in Dublin were sold in 2017 with an aggregate value of €36.6m and an average price of €1.18m. 2017 levels represent a decrease of four transactions and a reduction from €67.17m in total value from 2016. 28 of the pubs sold in 2017 had values sub €2m and the remaining had values between €2m and €4m. Morrissey’s expects demand to continue in 2018 and particularly for units well located in Dublin City Centre and suburban locations but opines “supply will continue to be an issue with many operators nominating to defer sale or retirement due to the uplift in turnover, profit and capital value experienced off the back of a stronger economy with improved consumer discretionary spend.” Sales activity was mainly low-value units in small towns or peripheral rural locations outside of the Dublin Market in 2017. The report states for 2017 transactions “adjusted average capitalising ratios in respect of net wet on-sales at the close of the year were ranging between 0.5 times and 2.5 times net turnover whilst price earnings ratios applicable to sustainable EBITDA were ranging between five and nine times. The ratios varied considering location, make-up of trade, volume of business, margins, profitability, competition and demand for the particular asset.” The Irish Independent, 8th March 2018



9-12 Dawson Street: New Ireland Assurance headquarters (48,018 sq. ft. in two interlinking five and six storey office blocks dating from 1960s and 1970s) at 9-12 Dawson Street, Dublin 2 is being offered for sale by Savills Ireland with vacant possession for in excess of €35m (€728 psf). A feasibility study by Henry J Lyons Architects suggests there is substantial scope to redevelop and extend the building to bring the overall floor area to 6,219sq m (66,941 sq. ft.). The Irish Times, 7th March 2018

Hynes Building: CBRE is seeking over €14m (€248 psf) for the newly refurbished Hynes Building, Galway City Centre which is mainly occupied by the insurance company, MetLife. The three storey building overlooking St Augustine Street is located a few hundred yards off Shop Street, Galway’s main shopping area. The building produces an annual rent of c. €708k (€12.46 psf) with a weighted average unexpired lease term of 7.5 years from three tenants MetLife, Galway County Council and the industrial distributor CK Electricians. Met Life is on a 10 year lease since Q4 2017 at €540k p.a. (€12.56 psf) with a break option in year seven. Galway County Council’s lease of €152k p.a. (€16 psf) for 9,500 sq. ft. expires in 2029.  CK Electricians occupies an office suite of 700 sq. ft. at €12k p.a. in addition to vacant space of 3,200 sq. ft. Net initial yield of 4.66% is achieved on the current total passing rent of c. €708k p.a. on €14m sales price after standard purchaser costs of 8.46%.  The Irish Times, 7th March 2018

4/5 Dawson Street: A five storey, over basement property totalling 10,709 sq. ft. which dates from the 1970s at 4/5 Dawson Street, Dublin 2 is being offered for sale by Cushman & Wakefield with offers in excess of €7.75m sought (€723 psf). Trailfinders is overholding on the ground floor and basement plus five car parking spaces at €278.5k p.a. as its 20 year lease expired in 2016. Two other office tenants occupy the top floors on short term leases at c. €87k p.a. in addition to a two bedroom penthouse producing c. €33.6k p.a. Total rental income is c. €399k p.a. equating to net initial yield of 4.75% on €7.75m after standard purchaser costs of 8.46%.  The Irish Times, 7th March 2018

2B Clonskeagh Square: Cushman & Wakefield has launched a fully-let two storey semi-detached office building at 2B Clonskeagh Square, Clonskeagh, Dublin 14 (8,290 sq. ft. plus 33 surface car parking spaces) on the market for sale quoting in excess of €2.8 million (€377 psf). The property is fully let at €215k p.a. (€26 psf) subject to an upwards only rent review in Q4 2018 to Life Assurance Company Limited (Bank of Ireland) on a 35-year lease from November 1988 equating to an unexpired lease term of 5.71 years. Net initial yield is 7.08% on the current passing rent of €215k and a sales price of €2.8m after standard purchaser costs of 8.46%. The Irish Times, 7th March 2018

62 Lower Mount Street: Joint agents Lisney and Savills are seeking offers in the region of €1.25m (€449 psf) for no. 62 Lower Mount Street, Dublin 2. The property is a four storey over basement level Georgian office building (2,780 sq. ft.) with a single storey garden and small yard to the rear. It is fully let to four occupiers producing €70k p.a. (€25 psf) equating to net Initial yield of 5.16% on €1.25m after standard purchaser costs of 8.46%. The Irish Independent, 8th March 2018



Core Industrial REIT: Core Industrial, an Irish logistics and industrial property company backed by US hedge fund York Capital last week pulled its planned €225 million initial public offering citing prevailing market conditions. York Capital had planned to place Irish industrial units valued at c. €83m into Core Industrial and sell c. €18m of its shares as part of the IPO, leaving it with c. 9.9% stake in the business.  The Irish Times, 8th March 2018

Dublin 22: Joint agents CBRE and Knight Frank have commenced the marketing campaign to let units at the largest speculative logistics development currently under construction in Ireland at Mountpark, Baldonnell, Dublin 22. Mountpark Baldonnell is a joint venture between UK-based Mountpark Logistics and USAA RealCo Europe and the scheme is expected to cost c. €40m to deliver. Rent is being quoted at €9.25 psf for Unit A to extend to a total gross external floor area of 118,891 sq. ft. including 4,219 sq. ft. of two-storey office accommodation to the front elevation. Phase 2 will comprise two adjoining units, Units B and C, each extending to a total gross external floor area of approx. 120,333 sq. ft. including 4,467 sq. ft. of two-storey office accommodation to the front elevation.  The Irish Independent, 8th March 2018

Dublin 15: Industrial agent William Harvey is guiding €3.75m (€39 psf) for two industrial units totalling 96,163 sq. ft. with 96 car parking spaces in Mulhuddart, Dublin 15 on a 6.1 acre site with vacant possession. There is redevelopment potential with the zoning allowing for enterprise and employment uses including manufacturing, distribution, warehousing and general employment. The Irish Times, 6th March 2018

Purcellsinch IDA Business Park Kilkenny: Joint selling agents CBRE and Purcell Properties are guiding a price of €1.85m (€43 psf) for a c. 43,000 sq. ft. modern industrial unit at Purcellsinch IDA Business Park in Kilkenny. The former Koverto Envelopes facility was built in 2004 (at a cost of €200 psf) on a site of c. 2.25 acres and is located five minutes from Kilkenny city centre. The building was named the winner of a 2007 LAMA award for ‘Best Commercial Building’ and is located 15 minutes from the M9 motorway Junction 8 and 70 minutes from the M50 motorway/N7 Junction 9. The Irish Independent, 13th March


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

Origin Capital funds senior debt transactions in the CRE investment sector, typically in the €3m – €15m range. If you would like to discuss how Origin Capital can help with your funding requirements, please contact us on 01 662 9264.

Origin Capital is a wholly owned subsidiary of LeBruin, a leading provider of corporate finance and debt advisory solutions.