18th May (Issue 297)
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.
HOSPITALITY
Becky Morgans, Dublin 2 Joint agents Bagnall Doyle MacMahon and CBRE have confirmed their instructions to offer Becky Morgan’s, a long-established pub on Grand Canal Street in Dublin 2, to the market for sale by private treaty. The agents are seeking offers in the region of €1.3 million. Becky Morgan’s occupies a prominent trading position at the intersection of Grand Canal Street and Macken Street and is close to Barrow Street and Grand Canal Dock, two of Ireland’s most coveted business locations in the city. The well-appointed, three-storey over basement property extends to c227 square metres. It comprises a ground floor lounge bar, first floor bar/function room and a second floor catering kitchen with dumb waiter. There are customer toilets at basement and second floor levels and a cold room and stores in the basement cellar. The Business Post, 16th May
Dublin Pubs Two well known Dublin pubs have come to the market with O’Neill’s in Dun Laoghaire and the Eagle House in Dundrum being out up for sale. Licensed premises property specialists Lisney (incorporating Morrissey’s) has been instructed to bring O’Neill’s pub in Dun Laoghaire to the market for sale by private treaty with a guide price of in excess of €800,000. The well-known and popular licensed premises is being offered on behalf of the O’Neill family, who have called time on the pub in order to focus on the development and remodelling of the family’s other premises, the Ramblers Rest in Ballybrack in south Dublin. Elsewhere in south Dublin, Lisney has been instructed to bring another well-known licensed premises to market for sale by Private Treaty, namely the Eagle House pub in Dundrum, for which the agent has place a guide price of in excess of €1.35 million. The Eagle occupies a high-profile corner trading position on the village’s central junction between its Main Street and Kilmacud Road Upper, opposite the well-known and popular Dundrum Town Centre.The Business Post, 16th May
Trinity Street Car Park One multi-storey car park in Dublin city centre is seeking to capitalise on the changed environment brought about by Covid-19 by transforming its rooftop section into an outdoor restaurant and open air cinema. Plans to alter the upper levels of the Trinity Street car park, which is located behind Dame Street, also include an “immersive art gallery” on the building’s 5th floor. Table 21 Restaurants, which is owned by chef, Niall Davidson, has applied for a temporary change of use up to a maximum of three years for the top two storeys of the multi-storey car park. Mr Davidson said he planned to operate the rooftop restaurant and raw bar serving seafood from July to October with opening times of midday to midnight. The owners of the Trinity Street car park said the proposed development “specifically addresses the restrictions of social distancing and indoor dining at a time of uncertainty and provides a unique attraction to combat the decline in visitor numbers witnessed over the past 18 months”. The Irish Examiner, 17th May
Morrison Hotel, Dublin Zetland Capital, a London-based private equity firm, has bought the Morrison hotel in Dublin. No price was disclosed but it was reported in March that the deal was expected to be worth more than €65 million. The 145-bedroom boutique hotel on Dublin’s quays was owned by Russian billionaire investor Elena Baturina, who bought it from Nama in 2012 for €22 million. Nama took control of the Morrison after it acquired the loans of its developer, the late Hugh O’Regan. The John Rocha-designed property was the first hotel sold by Nama after the crash. Ms Baturina is understood to have invested close to €10 million into a revamp of the property. The hotel currently operates as a Doubletree, a luxury four-star brand owned by Hilton. The Irish Times, 16th May
RETAIL
Ashbourne, Meath A new retail investment opportunity in Ashbourne has come to the market at a guide price of €11.5 million. Located at the heart of the busy town centre, the scheme takes in the entirety of Killegland Street and Desmond Street and is let to a range of well-known domestic and international retailers. Key tenants include McDonald’s, New Look, Lifestyle Sports, Boots, Card Factory, O’Brien’s fine wines and Euro Giant. The Health Service Executive’s Ashbourne Primary Care Centre anchors the scheme and is in occupation on a long-term lease until 2037. While the scheme is also anchored by Tesco, this unit is not included in the sale. The centre has a current occupancy rate of about 75 per cent and a weighted average unexpired lease term (Wault) of 7.8 years to break option and 9.4 years to expiry with a total passing rent of €1,642,388 per annum. There is significant asset management potential according to the selling agent to increase the rent and improve the net operating income with seven deals currently agreed and in legals along with negotiations ongoing on another unit. Should this deal be completed, it would increase the rent receivable to approximately €1,782,000 per annum and the occupancy rate to 83 per cent. The investment’s guide price of €11.5 million, exclusive of VAT, reflects a net initial yield of 12.99 per cent, assuming standard purchaser’s costs of 9.96 per cent. Should the units in legals and under offer complete in the coming months, the guide price would reflect a net initial yield of 14.09 per cent. The Irish Times, 12th May
If you are interested in purchasing this asset and require financing, please contact Origin Capital as we can arrange senior debt facilities of up to €8.5m for the purchase of this Asset.
Grafton Street, Dublin 2 Tommy Hilfiger have announced that they will not be reopening its store on Grafton Street. Having remained closed since last Christmas due to Covid-19 restrictions, the US fashion retailer has decided to shut its flagship premises permanently. While the impact of the pandemic is believed to have influenced the move to a certain degree, it is understood that the company has decided to exercise the 15-year break option on its 25-year lease 12 months early. In handing back the keys to its landlord now, Tommy Hilfiger is believed to have paid the near €1.7 million rent due for that period. The retailer has occupied the premises at 13-14 Grafton Street since 2007. A spokeswoman for Tommy Hilfiger said: “In line with our strategic objective to further reach and engage with our consumers, we are focusing on next-generation retail experiences to stay ahead of continuously changing shopping behaviours. The US retailer continues to trade from its other Irish stores. The Irish Times, 13th May
OFFICE
HSE, Dublin 8 French asset-management company Corum has secured the HSE as a tenant at One Kilmainham Square in Dublin 8. The HSE has agreed to take the lower ground floor of the building (1,070sq m/11,522sq ft) on a 10-year lease at a rent in the region of €29 per sq ft along with 10 basement car-parking spaces for €2,500 each. The HSE joins a number of international occupiers in the building including Heineken, Parexel Pharma and Klas Telecoms. Developed in 2007, One Kilmainham Square was acquired by Corum from a joint venture partnership led by Avestus Capital Partners in 2020 alongside Classon House in Dundrum as part of its continued expansion in the Irish market. Corum is understood to have paid about €33 million to secure ownership of One Kilmainham Square, and a further €27 million in a separate off-market deal for Classon House. One Kilmainham Square is a five-storey Grade A office building extending to 6,967sq m (75,000sq ft). The property has a prominent location within Dublin 8, and is close to both Heuston station and Heuston South Quarter (HSQ). At 1,070sq m (11,522sq ft) the HSE letting at One Kilmainham Square is one of the largest office deals to have signed in the capital so far this year. The Irish Times, 12th May
Westland House, Dublin 12 Westland House, an office investment property on New Nangor Road, Dublin 12, is being offered for sale with a €4.5m guide price. Let to Actavo Group Ltd at €350,000 per annum, its price equates to a net initial yield of 7pc. The property extends to 23,336 sq ft over three floors and at its current passing rent this equates to €13.40 per sq ft. The building also comes with 58 on-site car parking spaces. The vendor, a private Irish syndicate, completed a deed of variation from October 2020 to provide a new 10-year lease term, with a break option in September 2028, and a revised rent of €350,000 per annum. Located just off the Naas Road and minutes from the M50 interchange at Junction 9, Westland House has relatively easy access to all arterial routes. Kylemore Luas Stop is about a 20-minute walk from the property. The Irish Independent, 13th May
Model Farm Road, Cork A period building, and an entire office block on a site with further scope, have come to the market in one of Cork city’s most prime addresses, the Model Farm Road, for sale as one lot. Fresh to the market is Bishopstown House, set opposite the IDA’s Cork Business and Technology Park, close to the CIT/MTU campus, Boston Scientific and adjacent to the Fás Training Centre, long-associated with Cork engineering firm JODA, who have relocated to a premises at Ballycurreen, off the south city ring road. The mix includes a 3,100 sq ft building, a protected structure in excellent order and currently let with an income of €60,000, plus a more modern c 20-year old compact, stand-alone 4,600 sq ft two-storey office/professional services building. JODA’s original building, now carrying the name Bishopstown House, is let to a medical devices company PMD Device Solutions Ltd, on a ten year lease from February 2016 at €60,000 pa. The separate 4,600 sq ft more modern building next to PDM-occupied Bishopstown House is available with vacant possession, and the site has good parking. The Irish Examiner, 13th May
RESIDENTIAL / LAND
Rathmines, Dublin 6 An attractive net initial yield of 7.1 per cent is on offer for the prospective purchaser of a fully-let pre-63 residential investment in the ever-popular rental location of Rathmines, Dublin 6. Situated just off Leinster Road and within a short walk of Rathmines village, number 15 Leinster Square is being offered to the market by joint agents Cushman & Wakefield and Martin Property at a guide price of €1.95 million (exclusive of VAT). The property comprises a three-storey over-basement terraced property with a two-storey over-basement return to the rear. The entire currently consists of 10 self-contained residential units. There are three studio units on the ground floor, two studios and a one-bedroom apartment on the first floor, and one studio and a one-bedroom apartment on the second floor. The building is fully occupied and producing an overall rental income of €144,720 per annum with what the selling agents describe as “limited management costs” The Irish Times, 12th May
Malahide, Co. Dublin The State’s National Asset Management Agency (Nama) is close to signing off on the bulk sale of 69 apartments in Malahide, Co Dublin, to a UK-based investment fund. A deal has been reached in principle to sell the apartments at The Casino development in Malahide village to SeaPoint Capital, a serial block-buyer of apartments for the rental market. Some 34 apartments in the complex were sold to private buyers for an average price of €433,000 over the past 2½ years. Nama is selling the remaining unsold apartments in bulk. SeaPoint is the preferred bidder. The average market value of the remaining properties in the Malahide development is between €400,000 and €450,000, valuing the deal at up to €31 million. The Irish Times, 18th May
Ushers Island, Dublin City Centre Agent John Younge is guiding a price of €1.1 million for a redevelopment opportunity with full planning permission for 10 apartments in Dublin city centre. Located on the banks of the river Liffey and overlooking the landmark James Joyce bridge, number 14 Usher’s Island is a former four-storey building which today comprises a two-storey protected structure on a site of almost 5,000sq ft. The subject site also incorporates an enclosed rear void and double-height warehouse of 2,828sq ft, with vehicular access from Island Street, to the rear. While Dublin City Council granted planning permission in August 2020 (Reference: 4252/19) for the development of 15 apartments to include the creation of a new six-storey block and the remodelling of the existing protected building, this number has since been reduced to 10 units following discussions with the owner. The Irish Times, 12th May
Crumlin, Dublin 12 Michael Moran, one of the driving forces behind the Red Cow hotel in Dublin, has secured planning permission for 152 apartments in Crumlin in Dublin 12. Moran’s Seabren Developments got the green light for the €62.5 million fast-track Glebe development at St Agnes Road, Crumlin, from An Bord Pleaneála despite local opposition. The development, which will be fully owned by Circle Voluntary Housing Association when complete, involves two apartment blocks ranging in height from four to six storeys and linked by a pedestrian walkway at first floor level. Circle Housing was established in 2003 to provide social housing and operates on a not-for-profit basis. Seabren has worked with several approved housing bodies in the delivery of social housing schemes in the past and, in the Glebe scheme, 50 per cent of the homes will be cost rental while the other half will be available as social housing. Ninety-seven submissions were lodged concerning the proposal. Local residents expressed concern relating to overlooking, adverse impact on privacy on existing residents, noise pollution and potential anti-social behaviour. The Irish Times, 17th May
MIXED-USE
Glasthule, Co. Dublin Quinn Agnew is offering 23-27 Glasthule Road in Glasthule village in south Co Dublin for sale by tender on June 11. Located on the village’s main street in the heart of Glasthule between Dún Laoghaire and Dalkey, the retail/commercial property is adjacent to Cavistons Food Emporium and Seafood Restaurant. The property, a former petrol station, currently comprises a retail/commercial unit of some 100 square metres and large canopy on a site of about 0.05 of an acre (the equivalent of some 0.02 hectares). It operated as a temporary pop-up outdoor, takeaway food outlet during the Covid-19 related restrictions. The property under the Dún Laoghaire-Rathdown County Council Development Plan 2016-2021 is zoned Objective NC: “To protect, provide for and/or improve mixed-use neighbourhood centre facilities”. The agent is seeking offers in excess of €900,000 for the property. The Business Post, 16th May
OTHER
Social Housing The number of social housing units being leased to local authorities on a long-term basis has increased significantly this year despite criticism of the costs involved. Figures provided by Minister for Housing Darragh O’Brien, in response to a parliamentary question from Sinn Féin’s Eoin Ó Broin, show a total of 726 new social units were leased by local authorities in the first three months of 2021. This comprised 603 dwellings under long-term lease agreements and 123 under Part V lease agreements. The 726 total compares to just over 1,000 for last year as a whole. The average cost of all long-term leases approved in 2021 was €15,000, Mr O’Brien confirmed, which works out at €300,000 over a 20-year timeframe, the typical length of a lease. The average cost of the Part V lease units, which were mainly in Dublin, was put at €18,049, which works out at €360,980 over a 20-year term. The Irish Times, 17th May
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