14th July (Issue 255)
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
Shanganagh, Co Dublin Dún Laoghaire-Rathdown County Council and the State-sponsored Land Development Agency have received permission for the development of 597 new homes at Shanganagh, Co Dublin. The development is currently the Republic’s largest proposed social and affordable scheme to receive planning permission. Two-thirds of the development will be allocated as affordable homes to rent or purchase while the remainder will be used for social housing purposes. The affordable rental homes will be provided through a cost rental model with long-term security of tenure. The site, which sits on c.22 acres will be a 10 minute walk from a proposed Dart station at Woodbrook and will have 546 apartments and 51 houses. There will be space to park 365 cars and more than 1,300 bicycles. The Irish Times, 13th July
North Docklands, Dublin The Irish Times understands that Savills have been engaged to advise on a sales process for Merchant’s Gate in Dublin’s north docklands. The 9 acre site which is zoned for the delivery of a major mixed-use scheme is located almost immediately opposite the entrance to the Dublin Port Tunnel and within close proximity to the 3 Arena, Point Square and the Eastlink Bridge. In 2004 the site’s owners submitted a planning application for a development which was to have included 721 apartments, a four-star hotel with 200 bedrooms, a 20-suite boutique hotel, 409,000 sq.ft. of mainly offices, social and affordable housing, a gym, swimming pool, shops, a community care centre and crèche. The 1,100,000 sq.ft. development also included a proposal for a 19-storey tower block as its centre piece. It is understood the site will be offered to the market at a guide price of up to €100 million. The Irish Times, 8th July
South Dublin BidX1 is to hold a standalone auction next Wednesday for two red-brick period properties. The first property is guiding €1.5 million and is located at 13 Raglan Road in Ballsbridge, Dublin 4. This mid-terrace property is sub-divided into 14 one-bedroom apartments. Five of the units are tenanted currently and are delivering a combined annual rental income of €42,240. The second property, 65 Grosvenor Road in Rathmines, Dublin 6, is guiding €1.35 million. This building is also divided into 14 apartments. Five of the Grosvenor Road units are also tenanted, delivering a combined annual rental income of €41,520. The Irish Times, 8th July
Waterford City REA O’Shea O’Toole is guiding €2.5 million for a commercial and industrial development site in Waterford city. It is located on the Old Kilmeaden Road, next door to the main IDA Industrial Park, and extends to 28.26 acres. Six acres are zoned for technology-based industry. The other 22.26 acres are zoned for C6 mixed/general, commercial/industrial/enterprise use in the Waterford City Development Plan 2013-2021. It benefits from 150 metres frontage onto the old Kilmeaden Road, about 0.5km east of the Outer Ring Road which links with the N25 Euroroute. The Irish Independent, 9th July
Islandbridge, Dublin 8 Kennedy Wilson have just completed 246 new apartments in the third and final phase of the Clancy Quay development in Islandbridge. The delivery of the units marks the conclusion of a seven-year development programme involving the construction of a total of 422 units alongside the restoration and conservation of the former Clancy Barracks. Kennedy Wilson acquired the Dublin 8 development in a partially-completed state in 2013, paying just over €80 million for the scheme’s first phase of 420 apartments and commercial space, and 8.46 acres of undeveloped land set aside for the delivery of residential units in phases two and three. Clancy Quay is now the largest private rented sector (PRS) development in Ireland with 845 units offering capacity for more than 1,800 residents. Kennedy Wilson owns a 50% interest in the scheme, while the remaining interest is owned by Axa Investment Managers. The Irish Times, 8th July
Residential Property Newly listed rent prices have remained stable over the past year, despite a more than 3% fall in asking prices for homes, a Daft.ie study has found. The average listed sales price in Ireland last month was €253,868, a decrease of 3.3% compared with last year. Asking prices for homes dropped by 5.5% between March and April, with sellers said to be nervous about the effects of the Covid-19 outbreak. Daft.ie said that while selling activity picked up last month, it was still lower than normal. By contrast, rent prices have remained effectively the same. The average rent for a property listed on Daft.ie during June was €1,402 per month, up by 0.2% compared with last year. In the first half of 2020, there were almost 15,500 homes put up for rent in Dublin, up 3,000 on the same six months in 2019. The Times Ireland, 8th July
Donnybrook, Dublin 4 19 objections have been lodged to Cairn Homes’ development plan on almost 9 acres of land that it acquired in Donnybrook from RTÉ three years ago. The Project Montrose proposal for the site- purchased for €107.5 million – includes 611 apartments across nine buildings ranging from four to 10 storeys in height. Some of the objections highlighted that the height of the buildings would be unsuitable for the area. A decision on the planning application is due in September. The Irish Times, 13th July
OFFICE
Dublin Office Sector Office take-up in Dublin during Q2 2020 was the lowest ever recorded at under 10,000 square metres due to activity stalling during the Covid-19 lockdown. Several office occupier requirements were put on hold in recent months with demand down 37% since the beginning of the year. The overall rate of vacancy increased quarter-on-quarter to 6.65%. On a positive note, 70% of new office stock due for delivery in Dublin in 2021 has already been pre-let. CBRE Q2 2020 Marketview Report
INDUSTRIAL
Rathcoole, Co Dublin Agent Harvey is guiding €2.25 million for Unit J at Aerodrome Business Park. The building is detached and extends to 19,386 sq.ft. (€116 psf) and sits on a site of 1.09 acres. The property is a HQ showroom, office and warehouse, on a self-contained and gated site. There are also 28 car parking spaces. The showroom extends to 1,227 sq.ft. There are two-storey offices and staff facilities to the rear of the showroom and these extend to 5,630 sq.ft. These are fully-fitted and include a passenger lift. There is also a first-floor storage area of 1,475 sq.ft. The main warehouse area extends to 11,055 sq.ft. Aerodrome Business Park is a well-connected, prime, established development in southwest Dublin. Situated just a one-minute drive from the N7 (Naas Road), the scheme offers excellent access to the national roads network via the N7’s links from Dublin to Cork, Limerick and Waterford. The Irish Times, 8th July
Dublin Industrial & Logistics Sector Transactional activity in the Dublin industrial & logistics market in Q2 was supported by a number of short-term Covid-19-related transactions and requirements from Ecommerce & final mile delivery operators. 47,852 square metres of take-up was achieved in the industrial & logistics sector in Q2 2020 – down 45% on the strong volume of activity recorded in the first three months of the year. A shortage of modern accommodation remains the biggest challenge in the industrial & logistics sector, which in turn will support rents in this sector. CBRE Q2 2020 Marketview Report
OTHER
Hibernia REIT have reported that unpaid commercial property rent stood at 5.5% for the three months to September 30th 2020. Of the 5.5%, 0.5% has been waived. Commercial rent represents c.90% of the group’s contracted rent. The company’s buildings remain open, and it is seeing early signs of growing occupancy as tenant staff begin to return to the office. Hibernia has collected 95% of its residential rent for the month of July, while 99% of rent for May and June has been collected. The Irish Independent, 9th July
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