15th October (Issue 218)
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.
OFFICE
Phoenix House, Dublin 8 TWM has brought Phoenix House, Dublin 8 to the market on behalf of Henley Bartra guiding €16 million (€440 psf). The five-storey office block is leased in its entirety to the OPW and has undergone significant refurbishment since Henley Bartra acquired it in April 2018 for €8.5 million. The lower-ground, ground and first floors (22,683 sq ft) are let under a new 10-year lease at €647,075 per annum, while the second and third floors (13,622 sq ft) are let under a 25-year lease from February 1999 at €365,000 per annum with a rent review outstanding. Phoenix House occupies a high-profile and highly-accessible city centre location opposite the Phoenix Park and adjacent to Heuston Train Station. The Irish Times, 9th October
Sandyford, Dublin 18 Singapore REIT Mapletree Investments has completed its purchase of the Nova Atria office campus at Sandyford in South Dublin extending to 320,000 sq ft in total for c.€167 million (€522 psf). The two office blocks – Nova Atria North and South were known previously as the Atrium and had been occupied by Microsoft. The closure of the deal brings Mapletree’s investment to date in the Irish office market to €407 million. The Irish Times, 9th October
Wilton Park, Dublin 2 The Irish Times understands that Linkedin is in discussions with Iput with a view to entering into a long-term lease for an additional 350,000 sq ft of office space set to be delivered by Iput between 2020 and 2023 at its Wilton Park scheme in Dublin 2. Linkedin has already agreed terms on 150,000 sq ft at One Wilton Park due for completion in late 2020. Iput secured planning permission for Two, Three and Four Wilton Park from An Bord Pleanála in July 2019 for the 350,000 sq ft office space in addition to a cafe, restaurant and retail facilities at ground-floor level (450,000 sq ft in total). The entire scheme is expected to cost c.€350 million to redevelop. The Irish Times, 12th October
Ballybrit, Galway Two office buildings on a 0.8-acre site at Ballybrit Business Park on the outskirts of Galway city are being offered for sale by TWM guiding in excess of €1.475m (€74 psf). The price reflects a NIY of 2.83% which could increase to more than 10% once fully let. The two detached office buildings extend to 19,880 sq ft in total. Unit 2 Ballybrit Business Park is 12,992 sq ft over two floors and Unit 2A extends to 6,889 sq ft over three floors. BT Communications Ireland Ltd occupies 2,891 sq ft under a 25-year lease on part of the first floor of Unit 2 paying rent of €45,900 per annum. The remainder of the buildings are vacant with TWM opining Market Rent of €12.50 – €15 psf for Unit 2 and €10 – €12 psf for Unit 2a. There are 55 car parking spaces on site. The Irish Independent, 10th October
Central Park, Sandyford, Dublin 18 Google is to increase its footprint in Dublin following an agreement to lease more than 75,000 sq ft of office space at Central Park in Sandyford, Dublin 18. It is understood Google has agreed rent of c.€30 psf on a lease of 10 years with a break option in the fifth year for six of the eight floors at the property. Ownership of Block I and the wider Central Park office complex will shortly pass to UK-headquartered property company, Henderson Park, as part of its overall acquisition for €1.34 billion of Green REIT. The Irish Times, 9th October
No. 70 St Stephen’s Green, Dublin 2 US pharmaceutical company Horizon Therapeutics is understood to have agreed rent in excess of €60 psf for the entire 62,000 sq ft of office space at No. 70 St Stephen’s Green. The building is currently being redeveloped on the site of the former Hainualt House and adjoins both the recently-developed Aercap House (formerly known as Canada House) and the Department of Justice. The delivery of No. 70 St Stephen’s Green is Irish Life’s first property development in the capital in 20 years. The Irish Times, 9th October
RETAIL
Gorey, Co Wexford French asset management company, Corum, has purchased the Tesco Extra supermarket in Gorey, Co Wexford for c.€21 million. Tesco occupies the property under a 25-year lease from January 2014 with the lease containing a break option in just over nine years. The current rent of €1.57 million per annum is Consumer Price Indexed with a yearly cap of 3.5% and a collar of -0.5%. The supermarket area extends to 887,289 sq ft (€23 psf) with 606 car parking spaces at surface level on a site area of 8.5 acres. The acquisition has increased Corum’s overall investment in Ireland and Northern Ireland to over €146 million. The Irish Times, 9th October
OTHER / MIXED-USE
33-34 Essex Street, Temple Bar, Dublin 2 CBRE is guiding €2.5 million for a restaurant investment opportunity in Dublin’s Temple Bar. 33-34 Essex Street comprising of 1,786 sq ft (€1,399 psf) over ground and first-floor levels above basement has recently been refurbished with its original Victorian features restored. The restaurant was let in May 2019 on a 15-year lease at €160,000 per annum (NIY 5.9%). It is reported that there is an opportunity to extend into the basement to create income-chargeable space, which has already been granted planning permission. The Irish Times, 9th October
No. 4 North Earl Street, Dublin 1 is being offered for sale with vacant possession by agent Arthur Ryan guiding €1.85 million. The building comprises 5,250 sq ft (€352 psf) across four storeys and basement level. Located three doors down from North Earl Street’s intersection with O’Connell Street, the property was in retail use previously at ground and first-floor levels, with ancillary stores and staff areas on the remaining levels. The vendor has secured planning permission to demolish the second floor annexe and stair enclosure to the rear of the property and to construct a new extension, replace the shop front and external signage. The Irish Times, 9th October
BidX1 Auctions to be held on 23rd and 24th October are offering 170 lots for sale with a combined total estimated value of c.€25 million. The highest asking price lot is for a development site at Bective Street, Kells, Co. Meath guiding €1.2 million. The town centre development site extends to 1.11 acres (€1.09 million per acre) and has planning permission for 15 two-bedroom apartments and 15 three-bedroom apartments in three blocks with ancillary car parking. The Irish Independent, 10th October
RESIDENTIAL / LAND
Naas, Co. Kildare Cushman & Wakefield is guiding a price of €4.8 million for the 44-unit Naas Shopping Centre along with four existing retail properties fronting on to Naas Main Street. The shopping centre was completed to shell and core status in 2009. The standing structure of the shopping centre complex extends to 245,000 sq ft which incorporates two levels of commercial space with parking for 747 cars over basement and two upper levels. The additional properties include; The Former Tully’s Bookmakers and Sarah Flood site which is a brownfield site extending to 0.12 acres with a seven-day publican’s licence attached to it. The Five Lamps is a licensed property located on the Main Street. 50 Main Street comprises a two-storey former office premises located directly adjacent to The Five Lamps. The Forge Inn also comprises a licensed property which is located adjacent to Bank of Ireland. The Irish Times, 9th October
The Irish Glass Bottle Site The Irish Times understands that NAMA has secured a number of first round bids for an 80% stake in the Irish Glass Bottle site in Ringsend with some of these bids for the 37 acre site in excess of €130 million. The two sites, secured by Nama have the potential to deliver 3,500 homes for 8,000 people, 10% of which would comprise social housing and a further 15% affordable housing, according to the agency. Up to one million sq ft of commercial space in addition to school sites and community areas are also envisaged. The Irish Times, 11th October
Bray, Co Wicklow Agent McGovern Estates is guiding €1.7 million for a residential development opportunity in Bray, Co Wicklow. Located at 14 Sidmonton Road, “San Remo” recently operated as a nursing home. Extending to 10,329 sq ft (€164 psf), the property currently comprises 20 bedrooms and 10 bathrooms. The maximum density proposed in a feasibility study prepared by Reddy Architecture & Urbanism suggests the apartment mix would be made up of six one-bed units of 516 sq ft and 15 two-bed units of 839 sq ft. An alternative option suggests the refurbishment of the two original houses alongside the development of four three-storey terraced residential homes of 1,980 sq ft. The Irish Times, 9th October
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