15th May (Issue 146)
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.
LOAN / PORTFOLIO SALES
Ulster Bank Project Scariff: Ulster Bank has commenced a €1.6bn non-performing loan (NPL) book sale consisting of 3,600 mortgages with a par debt of €900m and 2,900 buy-to-let mortgages with debt of €700m. Ulster Bank currently has c. €4.3bn of NPL’s on a total loan book of c. €24bn, approx. 18%, and is under pressure to reduce this closer to the 5% normal industry rate sought by regulators. The Irish Examiner, 11thMay
AIB’s Project Redwood: The Irish Times reports that Cerberus are expected to this week be announced as the preferred bidder on AIB’s Project Redwood loan sale. Project Redwood, which initially contained c. €3.8bn of non-performing loans, is expected to be sold with only c. €1bn of par debt. The size of the portfolio has shrunk significantly as a number of loans that were originally in the portfolio have since been restructured or Borrowers have re-engaged. Cerberus, Goldman Sachs and Lone Star were the parties remaining in the bidding process. The Irish Times, 12thMay
RETAIL
Northside Shopping Centre: Joint agents Savills and HWBC are preparing to launch the sale of the Northside Shopping Centre in Coolock, Dublin 17, for close to €60m (€333 psf). Northside, built in 1970, was one of the earliest shopping centres in Ireland and features a swimming pool on the upper floor, extends to 180k sq. ft. and is 90% occupied producing a gross rent of c. €4m, equating to a gross yield of 6%. The Irish Times, 9thMay
MacDonagh Junction Shopping Centre, Kilkenny: A Davy Real Estate fund has obtained full ownership of the MacDonagh Junction Shopping Centre in Kilkenny after purchasing the remaining 50% shareholding from US investment fund Davidson Kempner for c. €20m. Davy purchased its original 50% stake in 2007 for €55m – €60m. The shopping centre extends to 270k sq. ft., is 98% occupied, produces a rent roll of c. €3m and had a total footfall of 3.2m in 2017. The Irish Times, 9thMay
22 Upper Baggot Street: Colliers International have sold an investment property with restaurant at ground floor and overhead offices at 22 Upper Baggot Street, Dublin 2, for €2.2m (€614 psf). The property which houses Thai Restaurant Saba on the ground floor, produces a total rental income of €110k (€30 psf), showing an initial yield of 4.62%. The Irish Times, 9thMay
OFFICE
Golden Lane, Dublin 2: Irish property investment group MM Capital has sold an office block in Golden Lane, Dublin 2, to German investment fund KGAL, for c. €25.5m, having only purchased the building in June 2017 for c. €17m. The 31,000 sq. ft. office block was pre-let to US software analytics company, New Relic International, at a rent of €1.455m, showing a net yield of 5.25% for the new owner.. The Irish Times, 9thMay
Navan IDA Business Park: Agent TWM has brought a 26,000 sq. ft. office building at Navan IDA Business Park to the market guiding €5.5m (€211 psf). The building is let to Generali International Ltd on a 20-year FRI lease from August 2011 at €505k (€19.42 psf), with a fixed increase to €556k in 2021, equating to an initial yield of 8.5% increasing to 9.32% in 2021. There is a break option in 2026, providing over 8 years of a certain term. The Sunday Business Post, 13thMay
Hanover Quay, Dublin Docklands: Joint agents Savills and Cushman & Wakefield have agreed to lease 60,000 sq. ft. of office space at 5 Hanover Quay, in Dublin’s south docklands, at a rent of c. €3.5m (€58 psf), to the vehicle-technology company Aptiv. The office building is designed by RKD Architects and developed by Targeted Investment Opportunities plc, a joint venture between Oaktree Capital, Bennett Developments and Nama, and has c. 100k sq. ft. of floor space remaining. The Irish Times, 9thMay
Athlone, Co. Westmeath: Agent Knight Frank is guiding €3.4m (€168 psf) for a 20,000 sq. ft. office block in Athlone, Co. Westmeath. The property is let to the Commissioners of Public Works on a 20-year FRI lease from September 2008 at a rent of €360k (€18 psf), with a tenant break option in year 15, giving 5 years of secured income. The Irish Independent, 14thMay
19 Eyre Square, Galway: Agent Lambert Smith Hampton has brought a landmark period building on Eyre Square in Galway to the market guiding €3m (€612 psf). The 4,902 sq. ft. three-storey building will be offered with vacant possession, with current tenants Bank of Ireland, Ernst & Young and Lambert Smith Hampton expected to vacate shortly. The 2,600 sq. ft. ground floor has planning approval to be used as a café or restaurant. The Irish Times, 9thMay
RESIDENTIAL / LAND
Dublin Docklands Site: Joint agents Cushman & Wakefield and Savills have brought one of the last remaining development sites in Dublin’s docklands to the market, guiding €110m (€18.6m per acre) for the 5.91 acre site with planning permission for 347 apartments and office developments extending to 332k sq. ft. The docklands site was originally assembled by the developer Liam Carroll in the early 2000’s, however was placed into receivership following the property collapse. The Irish Times, 9thMay
Fernbank Scheme, Churchtown: Irish Life Investment Managers (ILIM) has paid more than €100m (€381k per apartment) to Park Developments for 262 apartments in south Dublin that had over 1,000 people registered to purchase individual units. The scheme comprises 56 one-bedroom units, 188 two-beds and 17 three-bed apartments and will generate a gross rental income of c. €6.2m when fully rented, equating to a gross yield of c. 6%. Park Developments purchased the Churchtown site in 2005 for €30m. The Irish Times, 12thMay
Ranelagh Village Site: Agent Finnegan Menton has sold a 1.25 acre site close to Ranelagh village for €8.7m, a full €3.8m above the guide price of €4.9m following a competitive private auction involving six bidders. The site comes with Z1 residential zoning and development options including 20 semi-detached and terraced houses, or up to 45 two and three-bedroom apartments. The site was purchased by a company led by Michael Moran, of the Red Cow Inn. The Irish Times, 9thMay
Fortunestown Site, Citywest: Agent Knight Frank is guiding €4.75m (€709k per acre) for a 6.7 acre site with planning permission for 128 residential units, three retail units and a crèche at Fortunestown Lane in Citywest, Dublin 24. The site is surrounded by undeveloped lands to the north and west and by the Red Luas line to the south and east. The Irish Times, 9thMay
Hickeys Site, Dublin 8: Agent Finnegan Menton is understood to be inviting offers in excess of €20m (€12m per acre) for the landmark 1.65 acre Hickeys Site at Parkgate Street in Dublin 8. The site which is located immediately adjacent to Heuston Station on the Dublin quays represents an opportunity to deliver a high profile development subject to necessary planning permission being obtained. The Irish Independent, 10thMay
HOTELS
8–10 Waterloo Road, Ballsbridge: Agent Knight Frank has brought a stylish guesthouse at 8-10 Waterloo Road in Ballsbridge to the market guiding €5.5m (€262k per bed). The interconnected houses come with 21 en suite bedrooms, a lift to all floors, a guest lounge, a breakfast room linking through to a conservatory, ample parking and a secluded garden. The business has been in operation for 20 years. The Irish Times, 9thMay
Connemara Coast Hotel, Galway: Austrian investor Thomas Roeggla has completed the purchase of the four-star 141-bedroom Connemara Coast Hotel in Galway for over €12m. The sale of the hotel, which is located along the Wild Atlantic Way, was cleared by the Competition and Consumer Protection Commission last week. Roeggla has emerged as a prominent buyer of Irish hotels in recent years through his Strategic Capital Investment Fund. To date the fund has purchased Mount Wolseley in Co Carlow, Farnham estate in Co Cavan, the McWilliam Park Hotel in Co Mayo, as well as investing in residential and commercial properties in Dublin. The Times, Irish Edition, 13thMay
OTHERS
Tetrarch Capital IPO:The Irish Times reports that Irish Investment Group Tetrarch Capital is seeking advice on an initial public offering of shares in the autumn. Tetrarch are seeking to raise between €200m and €300m on the Dublin and London stock exchanges to pursue new projects while also offering a potential exit event for investors. Tetrarch co-owns and manages a broad range of assets, including the Mount Juliet hotel and golf resort in Co Kilkenny, the Powerscourt hotel in Enniskerry, the five-star Marker in Dublin’s Grand Canal Dock, and the four-star Killashee hotel and spa near Naas, Co Kildare. In addition, it has a number of development projects on its books, including a large site in Dublin’s south city centre, where it is planning an €80m mixed-use scheme. The Irish Times, 12thMay
Dublin Crane Count: There were 78 construction cranes visible over the centre of Dublin on May 1st, a rise of 7 on the previous months total and just two less than the 80 recorded on December 1st2017, the highest amount registered to date. This month’s total is significantly more than the 31 recorded on February 1st2016, when The Irish Times began their survey. There were 58 cranes visible on the Southside, an increase of five from April, with 20 on the Northside, an increase of two on the previous month. The Irish Times, 9thMay
Bid X1 May/June Auctions: Bid X1 are preparing to sell over 380 properties on online auctions across three consecutive days commencing on May 30th. The first two days consist of residential auctions with two Victorian properties at Grosvenor Square in Dublin 6 the pick of the catalogue, while more than a quarter of the entire catalogue comprises apartments. A retail investment on Cork City’s premier thoroughfare headlines the commercial offering. Number 122 St Patrick’s Street has a guide of €1.65m, and is generating €180k in annual rental income from international footwear retailer, Schuh. The Irish Independent, 14thMay
Obel Tower, Belfast: Agent Lisney has brought 52,000 sq. ft. of Grade A office space in the Obel Tower development in Belfast to the market guiding £15m (£288 psf). The entirety of the office space is currently let to international law firm Allen & Overy until 2031. The Obel Tower, is the tallest building on the island of Ireland at a height of 85m, is within a short walk of Belfast city centre. The Irish Independent, 10thMay
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