16th April (Issue 443)
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
Hatch Street Lower, Dublin 2 Savills, on behalf of a fund managed by Davy Real Estate, is seeking out buyers for 20 On Hatch with a guide price of €26.5m (NIY 8.07%). The 44,735 sq. ft multi-let property comprises six storeys and a basement level. MetLife is the scheme’s majority occupier, having taken five floors. In 2018, the company extended its existing lease term for 10 years, at an agreed rent in excess of €50 per sq. ft. Medtronic occupies the remaining floor of the building. React News, 11th April
Blackrock, South Dublin Receiver Kroll Advisory (Ireland) Ltd has appointed QRE Real Estate Advisers to sell Block 2 within the Blackrock Business Park in South Dublin for which it is guiding €10.25m (NIY 8.16%). Block 2 comprises a standalone three-storey modern office building extending to approx. 27,674 sq. ft together with 71 car parking spaces. Tenant line up includes Identigen and Becton Dickinson, providing a WAULT of approx. 4.24 years to break and 10.45 years to lease expiry with total contracted rent of €920k pa. The Business Post, 12th April
Citywest Business Campus, Dublin 24 Lisney is guiding a price of €6.2m (NIY 8.04%) for 3016-3018 Lake Drive at Dublin’s Citywest Business Campus. The asset is a two-storey office block of 22,965 sq. ft with 74 car-parking spaces comes to the market fully let to tenants including Pure Telecom, Schneider, and Aspen Pharma. It is generating a passing rent of €547.8k and has a WAULT of 5.85 years to break and 10.55 years to lease expiry. The Irish Times, 10th April
Ballsbridge, Dublin 4 Gresham House is to start construction at the Carrisbrook House site in Ballsbridge. The site was acquired with vacant possession through a fund sponsored by Orion Capital Managers in 2021. The Carrisbrook House redevelopment will replace an existing 30,000 sq. ft structure with a 10-storey, 100,000 sq. ft office building with a capacity of approx. 650 people. The building will be renamed One Pembroke, according to Gresham House. Bisnow, 11th April
RETAIL
O’Connell Street, Dublin 1 The developer of Clerys Quarter is seeking to refinance external debt on the landmark project. Accounts for OCES Property Holdings say that “a process is ongoing to consider the best course of action in regard to the refinance”. Lender Greenoak, due to be repaid last September, is owed €34.6m. The accounts state that the company agreed two six-month extensions with Greenoak and is now looking to refinance by September. The Sunday Times, 14th April
HOSPITALITY
Dean Hotel Group The sale of the Dean Hotel Group to British property group Lifestyle Hospitality Capital (LHC) and Elliott Investment Management has been completed. The deal values the hotels at approx. €355m and gives LHC and Elliott a stake of more than 70%. The deal comprises eight hotels and the businesses of a further two under development as opposed to the five venues that were included in the initial offering. The hotels include the Dean Dublin, the Mayson, the Devlin, the Dean Cork, the Dean Galway, Clarence Hotel on Wellington Quay, the Leinster Hotel on Lower Mount Street and the Glasson Lakehouse near Athlone in Co Westmeath. The Irish Times, 10th April
Ormond Quay Lower, Dublin 1 BDM Property is seeking proposals from food and beverage operators to provide food, beverage and coffee services under a long-term licence/management agreement with the hotel operator of the recently established Zanzibar Locke Aparthotel in Dublin city centre. Located at 34-37 Ormond Quay Lower, the food and beverage area occupies part of the ground floor and first floor of the original building and extends to 3,830 sq. ft. The Irish Times, 10th April
Restaurant Chain Closure The businessmen Colum and Ciarán Butler have moved to put Mao, their Asian restaurant chain, into liquidation. Creditors meetings for Orbit Wave and Maotham, two companies that operated Mao, have been called for 22nd April. Latest accounts for Orbit Wave for 2022 show it had debts of just under €1.82m falling due within one year. Maotham had debts of €1.86m. The Sunday Times, 14th April
Restaurant Closures Over 200 restaurants, cafés and other food-led business shut in Ireland in the first quarter, costing the state €288m, according to a report from the Restaurants Association of Ireland (RAI). 101 businesses in the hospitality sector closed in January, followed by 71 in February and 40 in March, according to Vision Net and sole trader figures compiled by the RAI. Aside from the VAT increase, restaurants have been hit badly by inflation. The Business Post, 16th April
Dublin Hotel Prices The expense of Dublin hotel rooms during big events is not unusual with cities across the world typically exhibiting similar pricing patterns, a report examining the potential for so-called price gouging in the sector has found. Commissioned by Fáilte Ireland, the study was undertaken by Crowe on the instruction of Minister for Tourism last year. During 2023′s high season, Dublin experienced a higher volume of “compression nights” than all the other comparative destinations. The report said any introduction of price controls could have unintended consequences such as market distortion, a reduction in the supply of rooms and disincentivising investment in hotel stock. The Irish Times, 16th April
INDUSTRIAL / LOGISTICS
Airways Industrial Estate, Dublin 9 Arrow Capital Partners has acquired an 88,000 sq. ft logistics asset in Dublin for €7.5m. The acquisition was made for Arrow’s €3bn Strategic Industrial Real Estate (SIRE) joint venture with Cerberus. The asset comprises two interconnecting units of 41,348 sq. ft and 46,621 sq. ft. Both units are let on a long-term lease to MM Fiber Packaging Ireland Limited. The asset is positioned within Airways Industrial Estate. The Irish Independent, 11th April
RETAIL
Prussia Street, Dublin 7 Plans have been lodged for a €33m student accommodation development at the former IDA Centre on Prussia Street. The development for Lyonshall will see the demolition of four existing warehouse structures to make way for a 373-bedroom PBSA development. It is expected to have a planning decision made in Q4 2024. The Business Post CIS Round-up, 12th April
RESIDENTIAL / DEVELOPMENT
Williamstown, Co Waterford Planning permission has been sought by Noel Frisby Construction for a €15.2m apartment development in Deerpark, Williamstown. The project incorporates building 78 apartments in a mix of one-, two- and three-bedroom units and an external store associated with a crèche. The Business Post CIS Round-up, 12th April
Clane, Co Kildare Kildare County Council has granted planning permission to Debussy Properties for a €41m large residential development application in Clane, which will see the construction of 191 residential units in a mix of apartments and houses. Works are expected to commence on site in spring/summer 2024. The Business Post CIS Round-up, 12th April
Bray, Co Wicklow Plans have been approved by Wicklow County Council at a site at Vevay Road and Boghall Road (the former Dell site) in Bray. The project will see the construction of 178 apartments. Works are expected to commence on site in Q2/Q3 2024. The Business Post CIS Round-up, 12th April
Glanmire, Co Cork Works have begun on O’Flynn Construction’s €27m LRD in Ballinglanna in Glanmire, where approx. 130 residential units in a mix of houses and apartments will be built by late 2027/early 2028. The Business Post CIS Round-up, 12th April
Naas, Co Kildare Westar Investments will begin works on its €23m residential scheme in Finlay Park, Naas. The 134-apartment unit scheme includes a commercial/health/medical unit and public open space. Works are expected to complete on site late 2027/early 2028. The Business Post CIS Round-up, 12th April
Southgreen, Kildare A ready-to-go site with planning for 168 housing units at Southgreen is being offered for sale by Tender by Coonan Property. The development opportunity comprises approx. 12.35 acres with full planning permission for 168 units. The tender date is May 15th. The lands were granted planning permission from An Bord Pleanála in February 2024 for the residential development of 168 units in a mixture of houses, duplex units and apartments. The Business Post, 12th April
BNP Paribas Report Activity in the construction sector returned to growth in March, the first time since June 2023. The real estate giant’s March PMI showed seasonally adjusted total activity was 51.6, surpassing the 50.0 no change mark to signify expansion and up from 47.4 in February. Activity increased in both housing and commercial activity, with residential projects increasing the fastest since May 2022 at 54.3 and commercial activity turning around to 53.9 after four-months of decline. BNP Paribas Real Estate Ireland Report, 15th April
Caragh, Co Kildare Kildare Co Council has granted planning permission to O’Flynn Construction (Dublin) Ltd to proceed with the construction of 36 residential homes and two office/retail units on lands to the north of Caragh village. The Council decision reverses a planning refusal it issued in April of last year to the firm for a housing development at the site. The Irish Examiner, 12th April
First Home Scheme More than 4,000 buyers have availed of the Government’s First Home Scheme, designed to aid first-time purchasers. There has been an increase of 118% in homes bought under the scheme in the first quarter of the year. The €400m scheme has provided more than €100m in supports for the completed purchase thus far of over 1,500 homes since it was set up. The average purchase price for houses under the scheme is €379k, with approx. €67k, or 17%, expected to be provided by the scheme, on average. The Irish Times, 10th April
Drumcondra, Dublin 9 A developer’s bid to save its planning permission for 1,593 rental apartments in north Dublin’s inner suburbs has been rejected by the Supreme Court. A partner fund of developer Hines received fast-track approval in November 2021 for the €602m scheme of 12 blocks, including one of 18 storeys, on the site of the former Holy Cross seminary on Clonliffe Road in Drumcondra. The Supreme Court on Thursday upheld the High Court’s decision to strike down the approval. The Irish Times, 11th April
LDA Many private landowners are sitting on “overpriced” sites with “unimplementable” planning permissions, the head of property at the LDA has said. Phelim O’Neill said the body got good value for money at approx. €20k per plot for the 32.6-acre site in Clongriffin as the land had capacity for approx. 2,300 homes. O’Neill said the price the LDA is willing to pay for sites is informed by location, scale and cost. The Business Post, 14th April
Ashford, Co Wicklow Declan de Lacy of Azets has been appointed as liquidator to the company behind a proposed assisted living facility in Ashford backed by Chinese investors. Clonmannon House Retirement Village Ltd is insolvent with debts of approx. €2m. The firm’s main asset is an interest in the period property Clonmannon House in Ashford and 44 bungalow units on the lands. The liquidator was appointed over concerns that the company’s interest in Clonmannon Village could be forfeited due to its failure to complete a €2.15m contract for sale from March 2019. The Currency, 15th April
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