18th June (Issue 201)
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.
INDUSTRIAL
Phase 1 Facility, St Margaret’s, North Dublin Lambert Smith Hampton is guiding €12m (6.43% NIY) for the sale and leaseback investment of a cold storage facility at the Food Central scheme in St Margaret’s. The property, built in 2018, extends to 28,793 sq.ft. with full planning in place for an additional 20,099 sq.ft. which is due for completion in October 2019 (Phase 1). Kool4Logistics will lease back the property with a 15 year guarantee from their UK parent company Oakland International and a tenant only option agreement for an additional 10-year lease extension. Kool4Logistics are in advance discussions for the construction of an additional 32,800 sq.ft. of space subject to planning, which if approved, will be completed by 2020 (Phase 2). Bids are being requested for the entire lot. Phase 1 rental income will generate €501k pa increasing to €837k upon the completion of Phase 2. The Irish Times, 12th June
Airport Logistics Park Rohan Holdings has secured Harvey Norman and airline catering specialists, Gate Gourmet, for 110,000 sq.ft. of speculatively-built warehouses in their flagship Dublin Airport Logistics Park. It is thought the long term leases will be between €9.25 and €9.50 psf. To date blue chip operators such as DHL, Holland & Barrett and Gilead have been secured for 750,000 sq.ft. of space at the scheme. The Irish Times, 12th June
Industrial Rents Prime industrial rents increased in Q1 2019 but agents differ on how much they have increased. Cushman & Wakefield note that prime rents were €9.29 psf, an increase of 9.9% YoY and forecasts increases to €10.03 psf by year end 2019 and €10.22 psf by 2020. Savills notes that the rise is 5% to €9.75 psf. CBRE note prime rents are €9.85 psf and expects those to increase by 6.5% to €10.50 psf by year end. The Sunday Business Post, 16th June
RESIDENTIAL
XVI Portfolio A portfolio comprising 815 homes has been purchased by Ires Reit for €285m. The assets are spread across 16 developments with all but one development located in Dublin. The portfolio includes 142 homes in Santry, 101 at Beechwood Court Stillorgan, 128 in Northern Cross, Malahide Road and 50 in Harty’s Quay in Cork. Almost all homes are leased to tenants. The Irish Independent, 13th June
Citywest Quarter Scheme Urbeo Residential is reported to be “closing in” on a deal to purchase a scheme of 282 apartments being developed by Cairn Homes at Citywest in Dublin. It is reported that the portfolio will be purchased for more than the guide price of €90m (€319k price per unit) as advertised by joint agents Savills and Hooke & MacDonald in April this year. Cairns are anticipated to deliver the first apartment block by Q4 2020 with final delivery expected by Q3 2021. Urbeo are an Irish residential investment platform backed by Starwood Capital Group and Ireland Strategic Investment Fund. The Irish Times, 12th June
44 Apartments, Shannon, Co. Clare A portfolio of 44 apartments at Bru Na Sionna in Shannon, Co. Clare will be auctioned online with BidX1 on June 19th with a guide price of €2.65m (€60.2k per unit). Two units are vacant with the remaining 42 generating €395.4k pa. The portfolio comprises 26 two-bed, 17 three-bed and one four bed unit. The portfolio is being auctioned on its own rather than in a bumper auction. The Irish Independent, 13th June
Blackrock, Co Dublin An Bord Pleanála has approved Paddy McKillen Jnr’s Oakmount’s plans to deliver 291 apartments on a 4 acre site on Temple Hill in Blackrock. 284 units will be across 13 blocks ranging in height from one to eight storeys while six units will be within the protected structure of St Teresa’s House and one final unit in the protected St Teresa’s Lodge. Oakmount acquired the site for €30m in 2017. The development was applied for under the “fast-track” planning system. The Irish Times, 12th June
24 Apartments Fairview Close, Richmond Avenue, Dublin 3 Hooke & MacDonald is guiding €6.3m (5.96% GIY) for a portfolio of 24 apartments being sold on behalf of Receivers Duff & Phelps. The portfolio comprises one to three bed apartments. Seven of the 24 units are vacant. The 17 let generate €251k which could increase to €375k pa if re-let at market rents. The Irish Times, 12th June
10 Hillfield, Rathmichael, Co Dublin Sherry Fitzgerald Foxrock are guiding €1.45m (€377 psf) for a 3,843 sq.ft. five bedroomed detached house. The property is located within a development of 11 houses. The Sunday Business Post, 16th June
Capital Dock Development Kennedy Wilson has increased their stake in the Capital Dock Development to 50% following a buy out of Nama’s share in the scheme. Kennedy Wilson and Axa are now the sole shareholders. The development comprises 690,000 sq.ft. of offices commercial and residential units. The Irish Independent, 13th June
RETAIL
J&M Orwell Shopping Centre, Templeogue, Dublin 6W An Irish investor has purchased the 23,853 sq.ft. Orwell Shopping centre for €7.8m (6.9% GIY), €300k above CBRE’s guide price. The property is fully let, anchored by SuperValu and generates €537k pa with a WAULT of 9.2 years. The property also includes 95 surface car parking spaces. The Irish Independent, 13th June
OFFICE
Sorting Office, Dublin Docklands Mapletree Investments, a Singapore real-estate investment trust, has completed its purchase of the Sorting Office, a 210,000 sq.ft. office scheme being developed on the corner of Cardiff Lane and Hanover Street East, opposite the Bord Gáis Energy Theatre. The acquisition represents Mapletree’s first office acquisition in Ireland and eighth investment in Europe. The Irish Times, 12th June
RETAIL
Ashleaf Shopping Centre, Crumlin has been brought to the market by CBRE for €10.75 million. The Centre produces annual rental income of €1.18m per annum however there is significant scope for an increase with nine vacant retail units extending across 39,424 sq.ft. and 12,450 sq.ft. of office space respectively. CBRE believe that there is potential to grow the rental income by €410,000. The Irish Times, 5th June
LAND
3.2 Acre Site, Blackrock, Co Dublin Savills is guiding €6m (€1.875m per acre) for a 3.2 acre site located on Newtownpark Avenue in Blackrock. The site has full planning permission for 16 houses and 30 apartments (€130k per site). The Irish Times, 12th June
9.7 Acre Site, Citywest Business Campus Savills are guiding €5.6m (€577k per acre) in one or two lots for a site at Citywest Business Campus. Lot 1 is 5 acres and Lot 2 is 4.7 acres. The site is zoned Objective EE with an aim “to provide for enterprise- and employment – related uses”. The site has accress from Junction 3 on the N7 Naas Road with 152m of dual-carriageway frontage. The Irish Times, 12th June
19 Acres, Drumcondra Ballymore, Hines, Sean Reilly and Chartered Land are thought to be amongst the shortlist of bidders on a 19 acre site in Drumcondra, which is on the market for c €100m (€5.2m per acre) The Irish Times, 15th June
22.91 acres Clonee, Co Meath McPeake Auctioneers are guiding €2.291m (€100k per acre) for 22.91 acres of zoned E2 / E3 lands. The site is adjacent to Facebook’s 925,696 sq.ft. facility, on the periphery of the Dublin Enterprise Zone. The site includes a 1,722 sq.ft three bed bungalow, 21 loose boxes and a large yard. The Sunday Business Post, 16th June
STUDENT ACCOMMODATION
Copley Street, Cork City A 265-room student accommodation is set to open this week in Cork following a €25m upgrade. Hatch Student Living and Elkstone acquired the property in 2018 and have upgraded the property from 137 bedrooms. The Irish Times, 17th June
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