13th October (Issue 268)
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
Dublin 8 BNP Paribas Real Estate is guiding €3 million for 101 – 103 Francis Street in Dublin 8. Located in the Liberties, the property comprises 10 two-bedroom apartments (€300k per unit) located above the Anti-Social Bar. Seven of the units are fully let and producing a highly reversionary gross rental income of c.€98k per annum, with rents ranging from €920 – €1,800 a month. There is further immediate potential to add up to €75,000 in income per annum through the letting of the three vacant apartments which include a penthouse. The Irish Times, 7th October
If you are interested in purchasing this asset and require financing, please contact Origin Capital as we can arrange senior debt facilities of up to €2m for the purchase of this Asset.
Donnybrook, Dublin 4 Kouchin Holdings is seeking to abandon its planned Donnybrook hotel, now favouring a taller apartment block on the site. The property group had previously secured permission to build a six-storey, 78-room hotel adjacent to Donnybrook fire station. A new submission to Dublin City Council by Krescent Living Limited, owned by Kouchin Holdings, has sought permission to build an eight-storey build-to-rent block containing 49 apartments. If approved, the complex would be made up of 44 one-bed and five two-bed apartments, shared amenity areas, a ground-floor gym and a small retail space. The Business Post, 11th October
Cork City Round Hill Capital and NBK Capital have purchased a 412-bed student accommodation development on the Bandon Road in Cork, five minutes’ walk from University College Cork. The companies purchased the 1.5 acre freehold site for €10.3 million. Along with the planned 412 beds, there is additional opportunity for an adjoining site offering a further 142 beds, subject to planning permission. Round Hill Capital are reporting that the scheme will be ready for occupation in September 2022 and in time for the 2022/23 academic year. Nido student will manage the finished development. The Irish Independent, 12th October
Liffey Valley Shopping Centre The Business Post are reporting that Hines has lodged a number of submissions to the council regarding the new county development plan being prepared by South Dublin County Council. In the new development plan, which will cover the period 2022 to 2028, the US developer has asked for “residential uses to be permitted in principle” as part of any area zoned a “major retail centre“. The Business Post understands that between 500 and 1,000 apartments could be built on the Liffey Valley Shopping Centre lands if residential was permitted in the new local development plan. The Business Post, 11th October
Limerick City Savills, who is handling the sale on behalf of receiver KPMG, is guiding €3.8 million for lands at Clonconane, along the Old Cratloe Road and immediately adjacent to the proposed Limerick Northern Distributor Road (LNDR). The landholding comprises a greenfield site c.4km north west of the city centre and in its entirety, the land extends to c.49 acres (€77.5k per acre) and is made up of a number of smaller parcels of land. It is available to buy as a whole or in lots. The majority of the land is zoned for residential development and could accommodate up to 500 homes. There is a small portion zoned for open space and another small segment zoned for a neighbourhood centre. The Irish Examiner, 8th October
OFFICE
Tara St, Dublin 2 Ronan Group Real Estate’s application to put offices in place of the hotel planned for the 23-storey tower it is developing on Tara Street in Dublin 2 has been rejected by Dublin City Council. In explaining its decision, the council has told the developer that the replacement of the building’s proposed hotel with additional office space would “detrimentally impact on the dynamic mix of uses within the permitted Tara Street scheme and the local area and would negatively impact on the vitality of the inner city location, particularly outside office hours”. The Irish Times, 8th October
South Dublin The Irish Times understands that M7 Real Estate has agreed to purchase two separate Dublin office investments for a combined €28.5 million. Firstly, the company is understood to have paid c.€13.5 million for the long leasehold interest of five fully-let units at the Sandyford Business Centre in south Dublin. The portfolio’s office accommodation covers a combined area of 48,786 sq.ft. (€277 psf) and is producing annual rental income of €1,192,578 (€24.45 psf) with a weighted average unexpired lease term of 5.8 years, with breaks at 4.6 years. The second transaction, which is close to being finalised, will see M7 secure ownership of the Nutley and AIG buildings on Dublin’s Merrion Road for c.€15 million. The properties comprise two office blocks with an overall floor area of 43,235 sq.ft. (€347 psf) along with 83 under croft car parking spaces. The properties are currently generating a combined total rental income of €1,439,932 per annum (€33.30 psf). The Irish Times, 7th October
Dublin 1 Cushman & Wakefield is guiding €1.25 million for 56 Parnell Square West on Dublin’s northside. Located 100m from O’Connell Street Upper and opposite the entrance to the Rotunda Hospital, the subject property comprises a terraced two-bay, four-storey building extending to 3,050 sq.ft. (€410 psf) The property is currently owned by the trade union Unite. The Irish Times, 7th October
Dublin Office Market Office take-up in Dublin during Q3 2020 reached 238,894 sq.ft. bringing total take-up in Dublin in the first nine months of this year to 1,412,903 sq.ft. This is more than double the volume of lettings achieved in Q2 2020. However, take-up year-to-date is down 32% on the same period last year. 29 office leasing transactions completed in Dublin during Q3 bringing the total number of transactions in the year-to-date to 75, compared to 136 in the same period last year. The overall rate of vacancy in Dublin at the end of Q3 2020 rose to 8.64% while the city centre vacancy rate rose to 8.49%. Prime Dublin headline rents declined 4% quarter on quarter to €62.50 psf. CBRE, Dublin Office Marketview Q3 2020
HOSPITALITY
Dublin 2 QRE is guiding €1.95 million for No’s 5 and 6 Molesworth Place and 1 Schoolhouse Lane. The property is being offered for sale with the award-winning One Pico restaurant in place as tenant. The subject property comprises a prominent two-storey corner site and extends to 2,994 sq.ft. gross internal area (€651 psf). The ground floor includes the main restaurant area, reception, kitchen and stores. The first floor comprises a private dining room, an office, staff changing and WC facilities together with customer WCs. Frossway Ltd, t/a One Pico Restaurant, is over-holding on an occupational FRI lease which expired in 2008 with a current contracted rent of €110,000 per annum. The lease covers number 4A Molesworth Place, the freehold interest of which is not included in the sale. The net rent receivable for 5 and 6 Molesworth Place and 1 Schoolhouse Lane is €99,000 per annum. The Irish Times, 7th October
INDUSTRIAL
Dublin Industrial & Logistics Market Take-up in the Dublin industrial & logistics sector reached 770,717 sq.ft. in Q3 2020 which is up 50% on the volume achieved in Q2 2020. Total take-up in the first nine months of the year has now reached 2,218,560 sq.ft, which is broadly in line with the volume achieved in the same period in 2019. Lettings of industrial buildings accounted for 70% of industrial take-up in Dublin in Q3 with 31 individual letting transactions signed in the quarter. In contrast, there were 13 sales of industrial buildings completed in the Dublin market during Q3. Demand for industrial & logistics accommodation increased 21% quarter-on-quarter, with demand for almost 1.5m sq.ft. prevailing at the end of Q3 of which more than 70% emanates from logistics & storage providers. CBRE, Dublin Industrial and Logistics MarketView Q3 2020
HOTEL
Dublin 4 Planning has been approved for the construction of a €50 million five-star hotel on the site of a former seminary in Donnybrook, Dublin 4 following a successful appeal to An Bord Pleanála. The board reversed a decision of Dublin City Council to refuse planning permission for a new 169-bedroom hotel on the site of the former St Mary’s College on Bloomfield Avenue in Donnybrook. The Irish Times, 8th October
OTHER
Commercial Property Transactions Cushman & Wakefield are reporting that commercial property sales in the Irish market have dropped by over 50% as a result of Covid-19. In the nine months to the end of September, direct investment sales totalled €1.15 billion, representing a significant decline on the same period in 2019 where €2.4 billion was recorded. The report also highlights that a total of €251 million in direct investment sales were transacted in the Irish commercial property market in quarter three. Office assets accounted for nearly 70% of the transactions in the nine months to September. The Irish Times, 8th October
Commercial Property Construction According to the Construction Information Services (CIS), commercial property projects which will cost more than €181 million to build commenced construction during the two months of August and September. The largest project is Henderson Park’s development of Block N1, Central Park, Sandyford, Dublin 18. It will complete in early 2023 and will comprise 200,000 sq.ft. The total cost of building the N1 offices and the basement is in the order of €100 million. The €181 million is split between 15 projects. The Irish Independent, 8th October
Q4 Rent Collections Yew Grove are reporting that rent collections for the fourth quarter 2020 are at 99.95% to date. This compares with collections of 97% and 98% for the second and third quarters respectively. The Reit owns a diversified portfolio of Irish commercial property assets, with a particular focus on office and industrial assets outside of Dublin’s central business district. Properties include six office buildings at Millennium Park, Naas, Co Kildare. The Irish Times, 12th October
Q4 Rent Collections Hibernia Reit are reporting that 97% of rent for the quarter ending December 31st 2020 has been received or is on agreed monthly payment plans. The proportion of rent received within seven days of the due date is similar to the previous two quarters. On residential rent, at close of business on 8th October, 98% of contracted rent for the month had been received and the occupancy rate of its residential units was 95%. At the same point in August and September, respectively, 94% and 96% of that month’s contracted rent had been received and the occupancy rate was 95% in both cases. The company has now received more than 98% of August rent and in excess of 99% of September rent. The Irish Times, 9th October
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