15th March (Issue 338)

Eastpoint Business Park, Dublin 3 Block H at Dublin’s Eastpoint Business Park, which comprises 22,260 sq. ft. of office space across three floors at present, is being offered to the market by HWBC at a guide price of €6.25m. The building sits on a plot of 0.69 acres and comes with full vacant possession and 60 surface car parking spaces. There is currently over 1.3m sq. ft. of prime office space leased in East Point. The Irish Times, 9^th March

For lending terms on this asset please contact rossmetcalfe@origincapital.ie

Albert Quay, Cork Planning permission has been granted for Cork City’s tallest office block, a €100m building of 16-storeys facing the River Lee on Albert Quay and Albert Street. The approval comes after the developers, the JCD Group, last year switched plans to offices, from a proposed €125m 25-storey BTR apartment tower with 200 apartments, citing the financial non-viability of apartments on the site which would need rents of €2.8k per month to work. Much of the site has been cleared in advance of any building works starting, with the Sextant bar – which was not a protected structure – demolished in August of last year. The Irish Examiner, 10^th March

Dublin Ireland’s National Transport Authority (NTA) is currently compiling a shortlist for a new head office in Dublin of up to 100,000 sq. ft. Avison Young is working on behalf of NTA and is searching around Dublin city centre and is focused on the sustainability credentials of potential options. The requirement has a preference for an ‘own-door’ building that is available for occupation by Q4 2023 – Q1 2024. The National Transport Authority plans to bring all their staff, currently based in four different locations, under one roof. It has an office at Iveagh Court on Harcourt Lane and also leases space from WeWork in the city. React News, 14^th March

RETAIL

Cobalt Collection US investment group Davidson Kempner has brought the “Cobalt Collection”, which comprises Letterkenny Retail Park in Donegal, Tullamore Retail Park in Co Offaly, and Deerpark Retail Park in Killarney, Co Kerry, to the market. CBRE has been instructed to sell the portfolio of three retail parks. The guide price for the portfolio of €67.5m equates to a blended NIY of 8.72%, although Davidson Kempner will also entertain offers for individual assets. The portfolio generates a rent roll of €6.47m pa (NOI), with an overall WAULT of eight years to expiry. The tenant mix is diversified and includes brands such as Woodies DIY, TK Maxx, Homebase and M&S. React News, 8^th March

For lending terms on this asset please contact rossmetcalfe@origincapital.ie

Bettystown, Co Meath A retail investment property with potential for a 6.74% yield has come to the market in Bettystown, Co Meath. Artis Real Estate is guiding €1.35m for the property let to Mr. Price on a 20-year FRI lease under an initial stepped rent that will rise to €100k pa in September. While the NIY is currently at 4.72%, it will rise in September to 6.74% and provides opportunities to grow at further rent review. Extending to 10,535 sq. ft., it is located on the ground floor of an apartment block. The Irish Independent, 10^th March

MIXED-USE

AIB Branches, Ireland Browne Corrigan Chartered Surveyors has been instructed by the bank to find buyers for four of its former premises in Dublin, Galway and Limerick. The properties are being offered for sale with vacant possession.
Guiding at a price of €3.75m, 37/38 O’Connell Street comprises 14,500 sq. ft. over five floors. 69/70 Morehampton Road, Donnybrook, Dublin 4, which is guiding at a price of €2.5m, extends to 3,930 sq. ft. over ground and first floors.
The former AIB branch at Newcastle Road in Galway city is a two-storey property with on-site car parking and extends to 6,850 sq. ft. It is being offered for sale for €1.75m.
The former AIB bank branch at Northtown Shopping Centre on Limerick’s Ennis Road meanwhile is guiding €300k. The unit comprises 2,450 sq. ft. on the ground-floor level of the centre. The Irish Times, 9^th March

Stephen’s Green, Dublin 6-7 St Stephen’s Green in Dublin, a mixed-use building has been put on sale for €17.25m. BNP Paribas RE and Savills have been appointed to market the property, which covers 26,716 sq. ft. with three floors in retail use and three floors of self-contained offices overhead. The agents are also open to leasing just the retail section of the building for €875k per year. It extends to 22,271 sq. ft. and until recently was Topshop’s flagship outlet in Ireland. The overhead offices cover 4,434 sq. ft., with the second floor currently vacant and the third and fourth floors let to Cundall (Ireland) on a short-term lease which expires in August 2024 at an annual rent of €89.37k pa. The Irish Times, 9^th March

For lending terms on this asset please contact rossmetcalfe@origincapital.ie

Dawson Street, Dublin 2 Dawson House which is located at 29-30 Dawson Street is being offered to the market by Colliers at a guide price of €3.8m. The investment is fully let and producing total rental income of €263k pa, resulting in a NIY of 6.29%. The WAULT is 6.3 years to the earliest break option. Caffé Nero pays a rent of €150k pa, occupying the ground floor and basement, under a 35-year lease, expiring in August 2030. The lease allows for upwards-only rent review provisions. The first, second and third floors are in office use and held under three separate leases. The total passing rent here is €100k pa. Bagnall Doyle McMahon occupies the first floor on a 15-year lease from January 2018 with a tenant break option in December 2023. BPL Management Ltd occupies the second floor under a 10-year lease from October 2016 with a tenant break option in October 2022. Coast Adventures, occupies the third floor under a 10-year lease, expiring in June 2027. The penthouse floor comprises a spacious apartment, producing €13k pa. The five-storey, over-basement property extends to 6,434 sq. ft. . The Irish Times, 9^th March

For lending terms on this asset please contact rossmetcalfe@origincapital.ie

Cherrywood, South Dublin A High Court dispute relating to a demand for €31.5m in public infrastructure contributions for a new town centre in Cherrywood, south Dublin, has been settled. Hines Cherrywood Development Fund ICAV brought the case against Dún Laoghaire Rathdown County Council claiming there was no lawful basis for the demand because it had an express understanding and legitimate expectation it could offset the c. €57m costs of certain works done to date against development contributions due. In 2018, it obtained permission for construction of a new town centre development, including 15 blocks comprising 1,269 residential units, retail use, high intensity employment uses, non-retail uses, community uses and all associated roads, streets and public spaces and services. The Irish Times, 9^th March

Howth, Co Dublin A planned €10m redevelopment of Howth Castle in Co Dublin to transform it into a retail, food and tourist destination is facing opposition, including from the local Church of Ireland. The focus of the objectors’ attention is a new road to serve the redevelopment plan by Tetrarch Capital and the Michael J Wright hospitality group. The joint venture last month lodged plans with Fingal County Council that include a new 150-seat restaurant built in a glass-covered pavilion within the castle’s stable yard. The church claims the roadway seems to be intended to open substantial parts of the Howth Estate lands. A decision is due on the application later this month. The Irish Times, 11^th March

HOSPITALITY

Hook Peninsula, Co Wexford Oakmount, a vehicle of Paddy McKillen Jr and Matt Ryan, has emerged as the buyer of Loftus Hall on the Hook peninsula. The 22-bedroom mansion was put on the market for €2.5m in July 2020 and was sold the following year. Its previous owners bought it in 2011 for €625k. Oakmount says it will bring the Co Wexford property “back to life under new ownership as a luxury destination hotel”. The venue will be operated by Press Up group. The group is reportedly set to spend €7m transforming the property. The Sunday Times, 13^th March

STUDENT ACCOMMODATION

Student Accommodation, Dublin and Galway Bain Capital has sold a portfolio of student accommodation in Dublin and Galway to Ares Real Estate Group for €145m. The portfolio, consisting of three separate student blocks, with a total of 813 beds, was put on the market late last year. Ares, a US fund, beat rival bidders KKR and Round Hill to secure the portfolio. The purchase price represents an investment yield of below 5%. Bain purchased the student projects in 2018 alongside Carrowmore Property from Cairn Homes. They paid €45m to buy the completed 112-bed student scheme at Blackhall Place in Dublin, as well as development sites at Cork Street in Dublin and Eyre Square in Galway. The Sunday Times, 13^th March

RESIDENTIAL / DEVELOPMENT

Clongriffin, Dublin 13 European property firm the LRC Group paid c. €3.1m (€194k per unit) for 16 apartments at the Station Point scheme in Clongriffin, Dublin 13. The sale of the portfolio was handled by Hooke & MacDonald. 16 designated car-parking spaces were included in the sale. The Station Point scheme, completed in 2008, is on Main Street in Clongriffin. The Irish Times, 9^th March

Naas, Co Kildare Coonan Property is guiding €6m for a land bank on the outskirts of Naas Town Centre in Co Kildare. The Knocks, as it is known, comprises 57 acres of land, which offers an opportunity to develop a “sustainable urban district and decarbonised zone” near the town. The lands have two objectives listed in the Naas Local Area Plan 2021-2027. 43.84 acres have been designated as “Strategic Reserve” and are slated for future development in line with the expansion of Naas town. A further 13.2 acres are to be used as open space and amenity. The Irish Times, 9^th March

Harcourt Street, Dublin 2 A vacant Georgian property at 26 Harcourt Street, Dublin 2, has been brought to the market with a €1.3m guide price. QRE says the property comprises a mid-terrace four-storey over basement building extending to c. 3,900 sq. ft. NIA, with a small yard to the rear. The building benefits from educational use following a change of use from offices in 2009 and has recently been used as a language school. A protected structure, the property is zoned ‘Z8’ and is suitable for a variety of uses including hotel, medical, office and residential. The Irish Independent, 10^th March

Rialto, Dublin 12 More than 60 parties are opposing a planned 137 BTR unit apartment scheme for Herberton Road in Rialto, Dublin 12. Herberton Road Developments Ltd had lodged “fast-track” plans for the scheme which comprises six apartment blocks, with one rising to eight storeys, at the former G4S property on Herberton Road. The company bought the site in November 2019. A planning report lodged with the scheme claims the redevelopment of the existing site, which houses vacant buildings in a state of disrepair, will greatly enhance the character and appearance of the Grand Canal Conservation Area. Opposition to the scheme has been boosted by Dublin City Council recommending a refusal to An Bord Pleanála. The Irish Times, 10^th March

Housing Supply According to Glenveagh, Ireland needs 400,000 new units – including apartments, social and affordable homes and student rentals – over the next decade, which works out at more than 35,000 new builds a year. Figures from the Banking and Payments Federation of Ireland show there were 20,433 completions in 2021, down slightly on the previous year, due to Covid and a 13-week construction sector shutdown. The Government says housing commencements passed the 30,000 mark last year, with the BPFI expecting 50,000 new homes to be built between now and the end of 2023. Glenveagh expects to deliver 1,400 suburban units this year, on top of its apartment developments and commercial businesses. It is aiming for 3,000 a year in the medium term. The developer closed 1,150 home sales in 2021, up 64% on 2020 and up 36% on 2019. It has also managed to reduce the average cost of a suburban home from €311k in 2020 to €308k (net of VAT) last year, despite a 6% rise in construction costs. Glenveagh said revenues doubled in 2021 to €476m from €232m in 2020, driven by an increase in sales. The group reported a core gross margin of 19.6%, with core gross profit of €78.7m, up 164% on 2020. The Irish Independent, 9^th March

Blackrock, South Dublin Dún Laoghaire Rathdown County Council has recommended that “fast-track” plans by co-owners of the Press Up Hospitality group for a €200m 493-unit apartment scheme near Blackrock be rejected. The scheme comprises 11 apartment blocks, with one block rising to 10 storeys, on lands at St Teresa’s, Temple Hill. As part of its report, Dún Laoghaire Rathdown County Council states that the site is ideally suited to a higher-density scheme. Mr. McKillen’s Oval Target previously secured planning permission for 291 residential units in June 2019 on the same site and that permission remains in place. In total, 41 objections have been lodged with An Bord Pleanála against the new scheme. The Irish Times, 9^th March

Glenageary, South Dublin In a report lodged with An Bord Pleanála, Dún Laoghaire Rathdown County Council is recommending refusal for a “fast-track” scheme by Keith Craddock’s Red Rock Glenageary Ltd for a 147-unit BTR apartment scheme for Glenageary. Refusal of permission is recommended because it constitutes overdevelopment due to its scale, height, massing and layout. More than 80 objections have been lodged against the scheme for a site at the junction of Sallynoggin Road Lower and Glenageary Avenue. The Irish Times, 9^th March

Smithfield Market, Dublin 7 A multi-family investment of 19 apartments at Smithfield Market in Dublin 7 is guiding €8.5m (€447k per apartment), handled by Hooke & MacDonald. The development is directly beside the Maldron Hotel overlooking Smithfield Market. The sale comprises 19 apartments containing seven one-bedroom and 12 two-bedroom units located on and taking up the entire fourth, fifth and sixth floors. Five of the apartments are located at penthouse level. There is direct access via two lifts to 19 car spaces in the basement car park. The apartments are occupied on standard residential tenancies and are being sold with tenants in situ who will not be affected by the sale. The Business Post, 13^th March

For lending terms on this asset please contact rossmetcalfe@origincapital.ie

Terryland, Galway O’Donnellan & Joyce is handling the sale of a city development opportunity consisting of c. 5.38 acres of zoned residential lands in the townland of Terryland, c. 1km from Galway city centre. The lands are currently zoned “Residential” under the Galway City Development Plan 2017-2023 and are within 200 metres of the Dyke Road which leads to Galway city centre. Due to the lack of availability of high-density landbanks in such a central location, demand for the 5.38 acres is anticipated to be competitive. The Business Post, 13^th March

Residential Development, Ireland Based on a review of more than 67,000 homes granted planning permission through the SHD process since 2017, 17,850 one-bed and 28,400 two-bed apartments have been approved. These two housing types alone make up 68% of all the homes in line to be built. Traditional three-bed homes only make up 13.6% of permitted homes. Only 6.7% of apartments in the pipeline are three-beds. The analysis is based on examination of 219 applications approved under the SHD system. The dataset shows 90.2% of the units approved in Dublin are apartments. Further research published by Irish Institutional Property has found a two-bed apartment in Dublin that costs €400k to develop would require a monthly rent of €1.62k to allow the developer break even. That would mean a married couple would need a gross annual income of €100k to afford rental payments. Only 14% of Irish households earn in excess of €100k, according to the CSO. The Business Post, 13^th March

Dublin, Ireland A team of developers led by Ronan Group Real Estate (RGRE) has applied for permission to build additional apartments at the former Irish Glass Bottle site in Dublin 4. The consortium of RGRE, Lioncor Developments and Oaktree Capital Management has lodged planning permission for more than 350 units on top of a separate application for c. 600 units currently being considered by Dublin City Council. Developer Johnny Ronan and Oaktree Capital bought an 80% stake in the lands in 2020 for c. €200m with NAMA retaining a 20% stake. According to the planning application, the developers propose to build 356 apartments, 55 of which would be sold for affordable housing and 37 social units, ranging in height from five to 18 storeys. Separately, the consortium announced the first phase of the development last July after it applied to build 570 units at Poolbeg. A decision on this application is expected later this month. The Business Post, 11^th March

The Hooke & MacDonald Residential Investment Report Property agent Hooke & MacDonald’s latest half-year investment report on residential investment in the GDA shows that the multi-family/PRS has been the most active investment asset class in Ireland for the past three years. The report, a comprehensive analysis and review of all aspects of the multi-family investment sector, notes that in the past five years, the multi-family/PRS sector has attracted more than €7bn in investment and is facilitating the construction of more than 12,000 new homes which will house more than 25,000 people. Some of the key findings of the report show that the ‘living sector’, which includes multi-family properties as well as logistics and life sciences, continues to attract increased allocations of funding from international capital markets. The report cited 4,670 multi-family properties as selling in Dublin last year across 36 main transactions of over €2bn. The agent also highlighted a disconnect between local council aspirations for development, national policy and market realities which could put the future of the apartment construction and rental sectors at risk. Hooke & MacDonald, 10^th March

Dalkey, Co Dublin A 0.2-acre site with full planning permission for 3 large luxury residential homes at Ard Mhuire, Dalkey, Co Dublin has been acquired by Crowley Residential. The site was acquired off-market for a price thought to be in the region of €1.6m (€533k per site). The property obtained approval by An Bord Pleanála for the construction of three high spec luxury residential homes. Crowley Residential, 8^th March

Goatstown, Dublin 14 An Bord Pleanála has given the green light to fast-track plans for 227 apartments at Knockrabo at Mount Anville Road, Goatstown, Dublin 14. The appeals board has granted planning permission to Knockrabo Investments DAC for the four-apartment block scheme rising to eight storeys despite local opposition and strong recommendation of Dún Laoghaire Rathdown County Council that permission should be refused. The site already had planning permission for 93 units. The scheme will comprise 76 one-bed units, 145 two-bed and six three-bed. The Irish Times, 14^th March

OTHER

Ronan Group Real Estate (RGRE) Developer Johnny Ronan’s RGRE is looking for six months’ grace to refinance €142m of loans attached to 12 properties after receivers were appointed last week over the assets. Grant Thornton was appointed as receiver over the properties by UK-based M&G Investments. The loans, which were due to be repaid at the end of January, stem from the investment group’s backing of RGRE’s refinancing of Nama loans in 2015, which allowed the developer to exit Nama. The portfolio includes office building Connaught House on Burlington Road in Dublin 4, a stake in a nearby Percy Place property that is majority-owned by a Davy property fund, the Bewley’s Café property on Grafton Street, and a mansion in Paris. It is understood that New York-based Fortress Investment Group is a junior lender to the 12-property portfolio. The Irish Times, 15^th 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 excess of €3m, and has lent over €200m to clients since April 2015.

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

If you would like to discuss how Origin Capital can help with your funding requirements, please contact us on 01 662 9264.