17th May (Issue 46)

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.




Project Tolka: NAMA has asked Eastdil Secured to recommence the sale of Project Tolka, a loan portfolio with a par value of c. €1.5bn. The loans in the portfolio are linked to Paddy Kelly, John Flynn and the McCormack family, who own Alanis Capital. NAMA had intended on selling the portfolio in 2015 however they postponed the sale while Mr Flynn tried to refinance his borrowings with the agency. The Irish Times, 11th May

Musgrave: Musgrave has purchased distressed loans secured on 14 Centra and SuperValu stores across Ireland from Sankaty.  The loans were originally acquired by Sankaty, who was backed by Bain Capital, out of an Ulster Bank loan sale. Musgrave has not commented on how much it has paid for the portfolio. The Sunday Business Post, 15th May



Airside Retail Park: JLL Retail on behalf of IPUT and Irish Life has let a retail unit in Airside Retail Park in Swords, Co Dublin, to Michael Murphy Home Furnishings.  The company has agreed a rent of €25 psf for the unit which has 22,800 sq ft at ground and mezzanine level.  The Irish Times, 11th May

IKEA Carrickmines: Ikea is due to open its second outlet in Dublin this summer after agreeing a 10-year lease with Irish property group IPUT plc for a store at The Park in Carrickmines.  It is understood that the agreed rent is c. €40 psf for 15,000 sq ft, which equates to €600k annually.  It will be a scaled-down version of the Swedish home furnishings superstore in Ballymun, North Dublin and will act primarily as a planning studio where customers will be able to speak with staff and ask for advice.  Customers will have the opportunity to test the product range and to collect orders made online or in the store.  The store will also include a café and a limited range of products to purchase.  The Irish Times, 16th May



24 Earlsfort Terrace: Tavistock Holdings Limited has applied for planning permission for a change of use (from Club to Office) for 24 Earlsfort Terrace in Dublin 2, which it acquired from receivers acting for NAMA in 2015. The application also includes a 1,100 sq ft extension at the rear of the property, resulting in a new 5,500 sq ft office building.  According to NAMA Wine Lake, the property might be worth c. €2.8m after a change of use and the extension.  NAMA Wine Lake, 15th May

Block B Bray: JLL is guiding €11m for Block B of the Bray Civic Centre in Co. Wicklow. Block B consists of a mix of offices and a health centre, both of which are let to the HSE under a long term FRI lease. The HSE occupy the 37,000 sq ft block under a 25 year lease which has 12 years remaining. The HSE is paying an annual rent of c. €917k under the lease, which is subject to upward only rent reviews every five years. 65 car spaces are available with the block. Bray Civic Centre was developed in 2002. The Irish Times, 11th May

Microsoft Leopardstown: Green Property has retained Colliers International to manage the sale of an office block occupied by Microsoft in the South County Business Park, Leopardstown, Dublin 18. The 87,305 sq. ft. block is 20 years old and has a guide price of over €22m (c. €242 psf). The block sits on a c. 5.9 acre site (c. €3.730m per acre) and there are 283 car spaces included. Colliers has advised that there is scope to either extend the existing block or else develop a new block for additional floor space of 215,276 sq ft. As Microsoft is currently paying an annual rent of €1.97m under a lease which expires in January 2020, the property offers an initial yield above 8.5%. There are a number of break options in the lease, with Microsoft able to vacate if they decide to relocate to a new property constructed within the business park. The €1.97m of rent equates to a rate of €19.50 psf for the office space and €950 for the car spaces. The Irish Times, 11th May

14 & 15 Herbert Place: A mixed use Georgian investment in Dublin 2 has been placed on the market through Colliers with an asking price of €2.4m. 14 & 15 Herbert Place comprises two mid terrace, three storey over garden level Georgian buildings with a mews and parking to the rear. The building at number 14 is made up of three refurbished apartments. The upper floors of No. 15 are in office use and held under two separate leases. The accommodation also includes a crèche on the garden level of both buildings. The property is producing rental income of €150,405 per annum equating to a net initial yield of c. 6%, and provides a weighted average unexpired lease term of 7.27 years. The Irish Independent, 12th May



St. Stephen’s Green Aparthotel: The Marlin group is close to completing the purchase of land which adjoins a site they already own behind St Stephen’s Green Shopping Centre in Dublin 2. The group has planning permission for a 195-unit budget aparthotel on the site they own, which was obtained earlier this year. Should the group be able to complete the purchase of the adjoining land, it is believed that they will seek approval for an increased number of beds for the aparthotel. The estimated cost of the aparthotel is €60m. The Irish Independent, 12th May

Lyrath Estate: Irish hotel operator Tifco and Davy Real Estate are among the bidders for Lyrath Estate hotel in Kilkenny, which is being sold by Bank of Scotland (Ireland) appointed receivers with a guide price of €20m.  The five star hotel, which has 139 bedrooms and suites and a 1,800 seat wedding and function venue, has recently returned to profitability.  The Sunday Business Post, 15th May



Robin Hill Development: Joint agents Lisney and Hooke & MacDonald are inviting offers of €14m for a block of 51 apartments on the Sandyford Road in Dundrum, Dublin 14. The Robin Hill development is a crescent-shaped block consisting of 47 two-beds, 2 one-beds and 2 three-beds. Fifteen of the units will need to be furnished by the new owner before they can be let. Once fully let, the block is expected to generate rental income of c. €995k p.a. The block was developed in 2007 by Thomas McEvaddy, who paid €12m for the site. The sale is being conducted under the instruction of the receiver Grant Thornton, who was appointed by AIB. The Irish Times, 11th May

30-32 Sir John Rogerson’s Quay: JLL has been retained by U2 to sell 30-32 Sir John Rogerson’s Quay in Dublin 2. The property consists of a two storey warehouse which is a listed building, while there is also a site to the rear which could facilitate an office or residential development. John Spain Associates and Core Architects has completed a feasibility study on the site to the rear and estimate that it could accommodate an office block extending to 55,418 sq. ft. The site is located within a Strategic Development Zone, which reduces the time involved for in the planning process. While a guide price has not yet been determined, it is expected that the warehouse will sell for c. €12m – €15m. The Irish Times, 11th May

Custom House Quay: Port of Cork has retained DTZ to sell their headquarters on Custom House Quay in Cork City. DTZ is guiding €7m for the three acre site (€2.33m per acre). The site consists of a number of listed buildings and includes Cork Custom House, which dates back to 1819. While there is potential for office space on the site, DTZ believe that the site is most suited to leisure and cultural occupancy, citing the examples of CHQ and the Guinness Storehouse in Dublin. The Irish Times, 11th May

IRES REIT Elm Park: IRES REIT looks set to add to its portfolio following the announcement that they are to acquire 201 apartments in Elm Park, Dublin 4, for c. €59m. The apartments consist of 101 one-beds, 96 two-beds and 4 four-bed duplexes. 203 car spaces are also included in the sale. The development was completed in 2006 and the current annual rental income is c. €3.2m, with the development 92.5% occupied. Upon achieving 100% occupancy, the development should provide a yield of c. 5.9%. IRES REIT hope to complete the transaction by the end of the month. The apartments are being sold by Starwood, who look set to make a c. 13.6% gross return on them after purchasing them three months ago. According to The Sunday Independent and the Property Price Register, Starwood paid €51.9m for two blocks; €39m for The Links and €12m for The Bay. The Elm Park deal means IRES REIT now controls 2,288 apartments in Ireland. The Irish Times, 13th May / The Sunday Independent, 15th May



Loreto Hall: DTZ has set an asking price of €5.75m for Loreto Hall at 77 St Stephen’s Green in Dublin 2. The four-storey over basement Georgian has a floor area of 20,451 sq. ft. and has been owned by the Loreto Order since 1911. The potential uses for the property include office, residential and hotel. For the last 15 years the property has been used to facilitate the Loreto community. The Irish Times, 11th May

Orlagh Rathfarnham: Bids of €2.5m are being sought by agents GVA Donal O Buachalla for a retreat centre situated on 98.94 acres at Old Court Road in Rathfarnham, Dublin 16. Orlagh is a 17,308 sq. ft. Georgian with 31 bedrooms and it offers spectacular views of Dublin city. The property has been owned by the Augustinian order since 1872. The order has used the property as a retreat centre since 1997. Subject to planning permission, the property’s potential alternative uses include a hotel or a healthcare facility. The Irish Times, 11th May

Microsoft Data Centres: Microsoft has obtained planning permission to develop four data centres at Grange Castle in Condalkin, west Dublin, which could require an investment of up to €900m. The construction of the data centres will create 1,800 construction jobs and upon completion, 140 full-time jobs. Microsoft already has four data centres at Grange Castle, the first of which was completed in 2008. Microsoft cited Ireland’s temperate climate as one of the key reasons for locating data centres here. The Irish Independent, 13th May


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