14th January (Issue 229)
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
Lucan, Co. Dublin Cairn Homes has sold more than 220 dwellings in Dublin to a company funded by US investment firm Angelo Gordon and managed by Irish business, Carysfort Capital for €78.75 million. Cairn Homes intends to complete all of the new homes, located in Lucan’s Shackleton Park and Gandon Park, which are part of an estate of more than 1,100 homes by the end of 2020. The Irish Times understands that it is Carysfort and Angelo Gordon’s intention to lease the properties. New York-based Angelo Gordon invests in property and other businesses, managing $36 billion for its clients. The Irish Times, 10th January
Whitehall, Dublin 9 Dublin City University (DCU) has been given the go-ahead to expand its student accommodation offering by close to 1,000 beds. The university had sought permission to demolish the existing 250-bed Larkfield building on its north Dublin campus and build a new multi-building complex with capacity for 1,240 beds. DCU currently has a portfolio of 1,400 beds across its three campuses, but the expansion approved by An Bord Pleanála would bring this up to 2,390 beds. The new units will be spread across seven blocks that range in height from five to ten storeys. The Sunday Business Post, 12th January
Castleknock, Dublin 15 An Bord Pleanála has approved the development of a 210-bed shared-living complex on the old Brady’s pub site near Castleknock in Dublin 15, despite an inspector for An Bord Pleanála recommending that planning be refused. The board judged the site to be close to the centre of Blanchardstown and a range of services and facilities including Connolly Hospital, Blanchardstown Town Centre and Castleknock Train Station. It also ruled, however, that Bartra must provide functional kitchens with cooking hobs in all bedrooms. After Bartra lodged its plans for the site, 90 objections were filed. The Sunday Business Post, 8th January
Stillorgan, Co. Dublin The Irish Times understands that a €100 million redevelopment plan for the Stillorgan Leisureplex in Dublin is being delayed by a refusal of the operators to vacate the premises. KW Investments Funds ICAV bought the premises in 2016 from the receivers for the previous owners Tenderbrook Ltd. KW has planning permission to build 232 “build-to-rent” apartments on the 3.29 acre site, involving the demolition of the Leisureplex. The Irish Times, 13th January
INDUSTRIAL
Take-up in the Dublin industrial & logistics sector reached c. 1.16 million sq.ft. in Q4 2019 – the highest volume of quarterly take-up achieved in the capital since Q4 2015. Total take-up in 2019 reached c.3.58 million sq.ft.- up c.9% on the previous year & 21% higher than the 10-year average. Lettings of industrial buildings accounted for 63% of industrial take-up in Dublin in Q4 and 68% of transactional activity for the year as a whole in 2019. In total, there were 50 industrial transactions signed in Dublin in Q4 2019 of which 35 comprised lettings and 15 comprised sales, bringing the total number of transactions in this sector in 2019 to 148 compared to 178 the previous year. Dublin Industrial and Logistics Marketview Q4 2019, CBRE
LAND
Limerick City The State-sponsored Land Development Agency (LDA) has outlined plans for the development of a €2 billion scheme with 10,000 homes in Limerick City. The body said it signed a memorandum of understanding with Limerick City and County Council, the HSE and CIÉ to create a master plan for the brownfield site located at Limerick’s Colbert train station. It is understood that the 123 acre site has the capacity for c.10,000 homes, most of which will be apartments, with an expected cost of c.€200,000 per unit. The design review process for the Limerick site is expected to begin in the coming weeks. The Irish Times, 10th January
HOTEL
CBRE Outlook 2020 The CBRE Outlook 2020 report noted a decrease in Cork city’s hotel perfomance during 2019, with one of the main challenges being the growth in purpose-built student accommodation, with an increase in summer letting offers of apartments to tourists. Cork has seen a strong increase in supply of new hotel beds, with 1,250 hotel rooms either approved for planning permission or under construction. Meanwhile, construction is also underway on 1,200 student beds in a number of cork city developments, with another 1,500 student beds in the pipeline or already through the planning process. The Irish Examiner, 14th January
OFFICE
Wilton Park, Dublin 2 LinkedIn is set to establish a major European headquarters campus in Dublin city centre after agreeing a deal to pre-let the remaining 430,000 sq.ft. of office space being developed by Iput at its Wilton Park scheme. Iput have pre-let Two, Three and Four Wilton Park to LinkedIn on a 25-year lease with a term certain of 12 years. Construction of the three blocks will begin this year and is targeted for delivery in 2023. The development of One Wilton Park, a 150,000 sq.ft. building which was fully pre-let to LinkedIn in 2018, is already under way and scheduled for completion towards the end of 2020. The Irish Times, 9th January
Dublin Office Market Office take-up in Dublin during Q4 2019 reached almost 1.18 million sq.ft, bringing total take-up in 2019 to 3.257 million sq.ft. In total, there were 63 office transactions signed in Dublin during Q4 bringing the total number of office deals signed in the capital during 2019 to 199, compared to 239 in 2018. There was a large carryover of transactional activity into the first quarter of 2020 with almost c.1.3 million sq.ft. of accommodation reserved and due to sign over the coming months. The overall rate of vacancy in Dublin at the end of Q4 was 5.05%, down from 5.32% the previous quarter while the city centre vacancy rate stood at 4.19% at year-end. Prime headline rents remain stable at €65 psf at the end of 2019 while prime yields remained steady at 4%. Dublin Office Marketview Q4 2019, CBRE
RETAIL
Cork City The Irish Examiner is reporting that Clarendon Properties are planning to convert the Savoy Centre in Cork into a boutique 250-seat cinema, and a small number of residential units. In previous years the complex was in use as a retail, restaurant and entertainment venue. At present, there is significant redevelopment underway at the Savoy, to include a new, enlarged 9,000 sq.ft. JD Sports in the former A-Wear unit, it is also creating two other retail spaces targeted at fashion occupiers— one in the Savoy itself, and another of c.1,000 sq.ft. at ground level at the adjoining Quills building. Due to the current redevelopment work being undertaken at the Savoy’s main mall and Quills, access to the Savoy’s upper levels for cinema/residential may be through Little William St. The Irish Examiner, 8th January
OTHER
Commercial Property, Ireland A research report from CBRE has highlighted that the level of investment in the Republic’s commercial property market hit a new record of €7.2 billion in 2019, despite a reduction in the overall volume of investment deals when compared to 2018. The figure of €7.2 billion was aided by a number of “mega deals” including the €1.34 billion sale of Green Reit. Further analysis indicates that 74% of investment spend in the year came from overseas investors. The €7.2 billion figure recorded for 2019 represents an increase of nearly 64% on the previous €4.6 billion record spend by investors on commercial property in 2014. The Irish Times, 8th January
Kildare St & Nassau St, Dublin 2 The Department of Culture has strongly objected to plans by Ternary Ltd to demolish a group of historic buildings at 47, 48 and 49 Kildare Street and 1 Nassau Street in Dublin city centre to make way for a new office development. The department raised concerns that “the proposed use for this building will significantly undermine its cultural heritage significance in the city”. In planning documentation lodged with the application, the architects for the scheme, Henry J Lyons, told Dublin City Council that the development sought to sensitively introduce a contemporary commercial building into the historic streetscape of Kildare Street while protecting the fabric of the protected structure at 2 Nassau Street. The Irish Times, 8th January
CBRE Outlook 2020 The CBRE Outlook 2020 report has highlighted that the prospects for the Irish commercial property market remain encouraging for the year ahead. The report indicates investment returns are likely to stabilise further over the course of 2020 in line with an easing in global growth expectations, but real estate will remain highly desired by investors. Against this backdrop, Ireland’s stable economic outlook and healthy occupational story bode well for another strong year ahead for Ireland’s real estate sector. CBRE Real Estate Market Outlook 2020 Report
The monthly Ulster Bank Purchasing Managers’ Index (PMI) finds that combined activity across three sectors – housing, commercial and civil engineering – rose in December to 52 from 48.2 previously indicating that construction is growing again for the first time since August 2019. The PMI registers growth above 50; the higher the number, the stronger the growth. The Irish Independent, 13th 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