1st February (Issue 332)
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
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St Stephen’s Green House, Dublin Once the headquarters of the Irish Sugar Company, St Stephen’s Green House at the corner of Leeson Street and Earlsfort Terrace, is coming to the market for €50m.
Tenants at the seven-storey building include property consultants Lisney, the OPW and US food services company Aramark. State Street Global Advisors are selling the building which was constructed in the 1960’s. Savills and Knight Frank have been appointed as selling agents. The Sunday Times, 30th January
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Liberties, Dublin 8 Valorem Investment Partners and Revelate Capital have secured the first two lettings at the Eight Building, their new office and retail development at Newmarket Square in Dublin’s Liberties. Banach Technology has agreed to lease the scheme’s 8,000 sq. ft. penthouse, while the fourth floor, which extends to 13,250 sq. ft. has been let to multinational Infineon on a 15-year lease. The Eight Building comprises a total of 75,000 sq. ft. of grade A office accommodation, along with several artists’ studios, and 6,500 sq. ft. of food market space. The joint letting agents CBRE and Cushman & Wakefield are now actively marketing floors 1-3 at the Eight Building with leasing opportunities available ranging from 3,000 sq. ft. to 5,000 sq. ft., to 52,000 sq. ft. The Irish Times, 26th January
INDUSTRIAL / WAREHOUSE
Clondara, Co Longford A significant warehouse development, ideal for logistics, warehousing, data centre and energy uses, has come to the lettings market in Co Longford, with the potential for one or more occupiers. Fisherstown in Clondara, Co Longford, is a 330,000 sq. ft. warehouse development. The property, which sits on the banks of the river Shannon, comprises a detached industrial unit which includes industrial workspace and ancillary offices. The site extends to c. 75 acres. The land was recently acquired by the Mashup Group, an Irish-owned entrepreneurial concern whose projects include Schoolbooks.ie and BusterBox.com. The site dynamics include a grid connection with planning permission for a solar farm, while its proximity to water will likely enhance its attractiveness as a data centre location. A development team is being appointed to prepare a master plan for the site, with consultations underway with Longford County Council. Sherry FitzGerald has been appointed to lease the development, with rents expected in the range of €4-€5 per sq. ft., depending on occupier requirements. The Irish Times, 26th January
Malahide, Co Dublin A significant commercial investment opportunity in Malahide in north Co Dublin, with secure, annual rental income of €167.3k and a net initial yield of 7.69%, has been brought to market by REA Grimes. Located in the heart of Malahide village, Kilronan House is home to eight businesses and goes to market with an asking price of €2m. The property measures about 6,700 sq. ft., comes with six parking spaces at the rear. The eight units are fully occupied by businesses including a barber shop, chiropodist, tanning salon, Malahide Medical Centre and takeaway. Three of the ground-floor businesses have their own external doors. Commercial rates are paid by tenants who are not affected by the sale. The Business Post, 30th January
St. Patrick’s Street, Cork Irish bookseller and stationers Eason is set to ink a deal on its new premises in the heart of Cork city. Eason is securing its new footprint on the ground floor of the historic former Victoria Hotel, No. 36, right next to the Penneys/Primark building, itself due a multi-million euro expansion. Eason is preparing to relocate by Spring to the middle of St. Patrick’s Street by Cook Street, opposite Opera Lane. Eason is in final negotiations to take the entire reconfigured ground floor of c. 5,000 sq. ft. in the 1810-built building from landlord Joe Donnelly, who is actively upgrading having secured the full building five years ago after it ceased trading as a hotel on its upper levels. The Irish Examiner, 26th January
St. Patrick’s Street, Cork Primark’s plans to expand its Penneys store on St. Patrick’s Street in Cork city has received a setback, as Cork City Council has requested further information before casting its final say on the project. The retail giant is seeking planning permission for a major increase in space at its city centre shop, adding 17,000 sq. ft. to its existing 37,000 sq. ft. In its most recent correspondence with Penneys, Cork City Council said the retailer hasn’t yet sufficiently addressed the concerns it has regarding the impact of the development on the built heritage in the area. In response, Penneys said that approving its application would help to reduce the number of vacant premises in Cork city centre. Penneys said the development would also help to attract more visitors to the city centre. It also included a report from estate agents Lisneys, which said there is an adequate mix to satisfy the demand for shopping and restaurants in the city centre and that the Penneys development would have no material impact on the diversity of units in the city. The Irish Examiner, 25th January
HOSPITALITY
Dame Street, Dublin 37 Dame St, which has full planning permission for a new pub is quoting €2.8m and extends to 6,818 sq. ft. It comprises a two-bay five-storey former house over a concealed basement. In March 2019 it was granted planning permission for a new bar over basement, ground and first floor levels extending to 4,000 sq. ft. with office accommodation overhead. The Irish Independent, 27th January
Lower Leeson Street, Dublin 2 The Stone Leaf gastropub, at 67 Lower Leeson Street, Dublin 2, formerly home to Buck Whaley’s nightclub has been brought to the market by Bagnall Doyle MacMahon quoting €2.75m together with the rear of 68 Lower Leeson Street which comprise a mews building and a terrace garden area. Number 67 includes an entrance hall bar, first-floor bar and smoking terrace; second-floor kitchen and offices while on the third floor there is a two-bed apartment. The entire premises extends to 9,240 sq. ft. and requires refurbishment. The Stone Leaf has not traded for about two years. The Irish Independent, 27th January
STUDENT ACCOMMODATION
Technology University of the Shannon A major multimillion-euro student campus to service Ireland’s newest university, the Technological University of the Shannon: Midlands Midwest Athlone Campus, was submitted to An Bord Pleanála last week. Avenir Homes Limited has lodged plans for the student complex, which is part of a large-scale development that was formally tabled with the independent planning appeals. The venture, which is proposed by Longford developer and former Athlone IT graduate Mark Cunningham, comprises 283 student beds along with 122 residential dwellings at Cartrontroy, Kilnafaddoge, Lissywollen and Ardnaglug (townlands), in Athlone, Co Westmeath. Cunningham has lodged the plans through the SHD applications process. A decision on the development is due in the coming months. The Business Post, 30th January
Dún Laoghaire, Co. Dublin An Bord Pleanála has given the green light to plans for a 276-unit student accommodation scheme for Dún Laoghaire. The appeals board has granted planning permission for a six-storey development at Baker’s Corner, despite the strong recommendation of Dún Laoghaire Rathdown County Council to refuse planning permission.
The scheme, which has the formal support of the Dún Laoghaire Institute of Art, Design and Technology, involves the demolition of the well-known Baker’s Corner pub and the construction of a replacement pub and two commercial units along with the 276 student bed spaces. The scheme faced opposition from residents, a nearby nursing home, An Taisce and local TD Richard Boyd Barrett.
Council planners recommended refusal to An Bord Pleanála after concluding that the scheme would adversely impact on the amenities of adjacent properties due to its overall scale and massing. However, the board concluded that the scheme was strategic and part of a cumulative response to an issue of national importance: the provision of housing. The Irish Times, 31st January
RESIDENTIAL / DEVELOPMENT
Monkstown, South Dublin Greystar is closing in on the purchase of Dalguise House near the south Dublin village of Monkstown for c€30m. Upon completion of the deal, the US-headquartered real estate giant is expected to pursue a plan to develop several hundred apartments aimed towards the upper end of the capital’s PRS market on the nine-acre site. While the property’s current owners secured planning permission from An Bord Pleanála in August 2020 for the construction of a 290-unit residential scheme, this remains the subject of judicial review proceedings being led by the Monkstown Road Residents Association. It is unclear at this point whether Greystar will look to deliver on the existing plan in the event that the High Court upholds An Bord Pleanála’s original decision. The development of the land at Dalguise House will represent Greystar’s first ground-up project in the Irish market. The Irish Times, 26th January
South Docklands, A tranche of seven apartments in the Park House complex in Dublin’s south docklands are close to being sold for €3m by BidX1. They comprise two-bedroom units 1, 3, 5, 7, 9, 17 and 20 along with seven parking spaces. Located on Benson Street, Dublin 2, which connects Grand Canal Dock with the River Liffey quays, they are let to City Break Apartments Ltd for €200,000 per annum with CPI-linked rent reviews every five years. The lease runs up to 2034.That rent equates to an average of €2,380 per month and a gross yield of 6.66pc. The units range in size from 55 to 82 sqm. Its location is also convenient to Bord Gáis Theatre, 3 Arena, National Conference Centre and Aviva Stadium. The Irish Independent, 27th January
Mortgage Drawdowns, Ireland Some €10.5bn worth of home loans was drawn down by borrowers in 2021, the highest level since the financial crash more than a decade ago, latest figures from the Banking and Payments Federation Ireland (BPFI) show. In total, 43,494 mortgages were drawn down in 2021, the highest number since 2009. Drawdown volumes rose by 22.1% on the previous year, while values rose by 25.1%. The number of loan approvals hit 53,335 in 2021, up 23.6% on 2020 while the value of those approvals jumped by 30% to €13.4bn. There was an increase of 9.4% in the volume and 12.3% in the value of mortgages drawn down in the final quarter of 2021 when compared with the same period a year earlier. Some 13,299 new mortgages to the value of €3.3bn were drawn down by borrowers during the fourth quarter. A comparison with the previous quarter shows an increase of 15.9% in volume and 19% in value. First-time buyers (FTBs) remained the single largest segment by volume (54.4%) and by value (54.2%). A total of 3,856 mortgages were approved in December 2021 – some 2,096 were for FTBs (54.4%) while mover purchasers accounted for 891 (23.1%). The number of mortgages approved in December fell by 22.2% MoM and by 3.6% YoY. The Irish Times, 26th January
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