14th April (Issue 242)
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
Harold’s Cross, Dublin 6W The German fund, Patrizia AG, has completed its acquisition for €93 million of 166 apartments being developed by the Marlet Property Group at Mount Argus in Harold’s Cross, Dublin 6W (€560,240 per unit). Located next to Mount Argus Park and within close proximity to Rathmines and Rathgar, the Mount Argus scheme extends to 156,076 sq.ft. and comprises a mix of one, two and three bedroom apartments, as well as amenities including a gym, residents lounge, cinema, games area and concierge service. The development also includes a 201-space basement car park. The Irish Times, 8th April
Maynooth, Co Kildare An Bord Pleanála has refused planning permission to the Comer Group for a fast-track application for 120 apartments in Maynooth. In the ruling, the appeals board refused planning to the Comer Group’s Ladas Property Company Unlimited for the 120 apartments on land to the rear of St Mary’s Church, Mill Street, Maynooth, due to potential flooding concerns. The appeals board also refused planning permission after stating that it was not satisfied the plan would not adversely affect the integrity of the EU-protected site, the Rye Water Valley/Carton Special Area of Conservation. The Comer Group was proposing to locate the apartments in four blocks, ranging from three to six storeys. The Irish Independent, 8th April
OFFICE
Cumberland Place, Dublin 2 The Irish Independent understands that Hibernia Reit has pre-let three floors of its 2 Cumberland Place development comprising 24,000 sq.ft. to 3M Digital Science Community. In the first three months of this year, Hibernia secured three new office lettings covering 56,000 sq.ft, adding €3.3 million to its contracted annual rent. The new lettings have reduced the company’s vacancy rate in the in-place office portfolio to 7%, down from 12%. The company’s annual contracted rent now exceeds €66 million, with approximately 90% coming from offices, and the majority of the balance coming from residential properties. It collected 87% of its rent within seven days of its latest quarterly payment date. The Irish Independent, 10th April
Dublin Office Market Office take-up in Dublin during Q1 2020 reached almost 1.07 million sq.ft, the second highest volume of Q1 leasing activity in 10 years. However, some occupier requirements are now being put on hold in light of Covid-19 uncertainty. The report states that it will be Q2 before any material impact becomes evident. 31 office transactions signed in Dublin during Q1 of which 19 occurred in the Dublin 2/4 district. 5 leasing transactions of more than 100,000 sq.ft. were signed during Q1. CBRE Report, Q1 2020
RETAIL
In an opinion piece in the Irish Times, Karl Stewart of Cushman & Wakefield believes that the Covid-19 pandemic may lead to some long-lasting changes in people’s consumer behaviour. Those previously not accustomed to online shopping have, through necessity, shifted to this platform, which could see some areas of retail experiencing a greater shift into ecommerce than before. A recent data study from digital marketing agency Wolfgang Digital found that online transactions rose 44% in March compared with February. However, it is important to note that actual online traffic was much the same, albeit with a move away from higher-value purchases such as travel towards items such as laptops and video games as consumers prepared for the restriction of their movements. In terms of the retail sector and the ongoing debate in relation to online retail, Karl believes that the current lockdown shows us the value of the high street experience, indicating that retailers will ensure there is a deeper integration of their offline and online services to guarantee a more robust business model. The Irish Times, 8th April
INDUSTRIAL
Dublin Industrial & Logistics Market Take-up in the Dublin industrial & logistics sector reached c.932,768 sq.ft. in Q1 2020, despite the Covid-19 crisis that developed during March. Total take-up in the first quarter of the year is down 9% on the same quarter last year but 17% higher than the 5-year average. Lettings of industrial buildings accounted for 89% of industrial take-up in Dublin in Q1 with 24 individual letting transactions signed in the quarter. There were 12 sales completed in the first three months of the year, but most were relatively small with sales only accounting for 11% of total take-up in this sector during Q1. Despite the Covid-19 uncertainty that materialised during March, demand for industrial & logistics accommodation increased quarter-on-quarter, with demand for more than 1.45 million sq.ft. of industrial accommodation prevailing at the end of Q1. 8 industrial investment transactions extending to more than €1 million completed in the Irish market during Q1 2020 totalling almost €35 million between them. CBRE Report, Q1 2020
The Sunday Business Post understands that Iput, the Irish property company, is preparing to invest significantly in its logistics portfolio this year after posting profits of more than €100 million. Iput plans to continue the expansion of its Dublin logistics portfolio in 2020. Last year, the firm acquired 47 acres of land, which it said had “attractive growth potential”. The expansion would involve development of an additional 900,000 sq.ft. of space for Iput’s logistics portfolio. Some 280,000 sq.ft. of this space is already in the pipeline. Iput has 2.4 million sq.ft. of logistics space after it acquired 202,000 sq.ft. in 2019. It is the largest owner of logistics assets in Dublin. Iput’s overall net rental income was up 10.4% to €118.2 million last year, compared with €107.1 million in 2018. The Sunday Business Post, 7th April
OTHER
Celbridge, Co Kildare Rye River Brewing Company has secured €3.33 million from the sale of its headquarters and production facility in Celbridge, Co Kildare. The property is on a 4.9-acre site (€680k per acre) and comprises a 61,000 sq.ft. (€54.59 psf) detached light industrial building with two-storey office accommodation to the front and a substantial warehouse to the rear where the brewery is located. Two leases are in place. Rye River Brewing Company operates its brewery from the premises and occupies the ground-floor offices and warehouse by way of a nine-year internal repairing and insuring lease from October 2019 at a rent of €176,000 per annum. VWS (Ireland), trading as Veolia Water Technologies, occupies offices on the first floor by way of a 10-year lease from January 2018, at a rent of € 84,000 per annum. The lease provides for an open-market rent review at year six and the tenant has the benefit of a break option at the end of years five and seven, subject to six months’ written notice. The Irish Times, 8th April
Covid-19 impact on Ireland A NTMA report on the impact of Covid-19 in Ireland has highlighted that house prices had plateaued in Ireland prior to the arrival of the virus, stabilising 20% below their peak in 2007. The report has also highlighted that although housing supply was below demand, there was evidence that supply was catching up pre Covid-19 with housing completions above 25,000 in 2019. NTMA Report, April 2020
Cork Investment Market Irish and international investors have pumped just over €1 billion into property investment in Cork over the past five years. A CBRE report has found that there were over 90 individual transactions in Cork, or over 17 per year on average over the five year period worth in excess of €1 million. €269 million was invested in the same time span in Galway and €252 million in Limerick between 2015 and end 2019 further highlighting Cork as the top Irish city outside of the capital for funds. According to CBRE, investment volumes for Cork for the year to end 2019 topped €300 million, a 21% year-on-year increase, predominantly led by office and retail transactions, such as the €56 million sale of Mahon Retail Park. The Irish Examiner, 9th April
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