Cornerstone Portfolio: Davidson Kempner have completed the purchase of the Cornerstone Portfolio for c. €118m. The portfolio consists of 150 apartments in Athlone and six shopping centres. The key shopping centre assets are Athlone Towncentre in Westmeath and a significant shareholding in MacDonagh Junction in Kilkenny. With the portfolio generating rental income of c. €8.8m p.a., the sale provides a net initial yield of c. 7.4%. Deutsche Bank are believed to have financed the transaction. The Irish Independent, 8th October
Tallaght Cross West: NAMA have appointed DTZ to handle the sale of a mixed use retail and multi-family apartment development at Tallaght Cross West in Dublin 24. DTZ expect the complex, which has a price tag of over €80m, to be generating rental income of €6.8m p.a. by the time the sale is completed. There are 442 apartments included in the sale, for which rent starts at €1,000 p.m. for a one bed. Aldi are currently occupying one of the retail units at c. €625k p.a., with a further 22 retail units to be made available for letting in due course. The complex was built by Liam Carroll of Zoe Developments in 2008. The Irish Times, 7th October
Apex Collection: HWBC have been chosen by a client of Irish Life to handle the sale of the Apex Collection, an office and industrial portfolio with a guide price of €19.7m. The prized element of the portfolio is two office blocks opposite the Ashtown Gate of the Phoenix Park, on the Navan Road in Dublin 15, priced at €9m. The properties have a floor area of c. 28,050 sq. ft., offer gross income of c. €689k p.a. and a WAULT of almost six years. Other office properties in the portfolio include two additional offices at 3 and 4 Richview Office Park in Clonskeagh, Dublin 14 priced at €2.1m. The industrial element of the portfolio comprises c. 181,500 sq. ft. of space at Westlink Industrial Estate near the Red Cow Junction and the M50, which has a guide price of €6.5m. The Irish Times, 7th October
SW3 Acquisition: SW3 Capital have paid over €30m for Eir’s offices and network management centre at Citywest Business Campus in west Dublin. Eir occupy the property, which includes c. 85,000 sq. ft. of office space, on a 25 year FRI lease from 2010, with no breaks. The lease includes upward only rent reviews every five years, based on an increase of 2.85% compounded annually. The current annual rent for the property is €1.933m. Prior to the acquisition, SW3 Capital had already spent more than €50m on investments in the Dublin market. The Irish Times, 7th October
An Bord Pleanála HQ: Joint agents DTZ and Finnegan Menton believe there will be significant demand for the HQ of An Bord Pleanála on Marlborough Street in Dublin 1. Offers in excess of €18m are being sought for the property. The 36,856 sq. ft. seven storey office block is fully occupied by the State tenant on a 25 year FRI lease from 2002. The current rent is c. €1,271k (€34 psf) p.a. and is subject to five yearly rent reviews. The property also contains 22 car spaces underground. The Irish Times, 7th October
South Mall: An office property at 89 – 90 South Mall in Cork is expected to sell for a minimum of €4.25m after being brought to the market through Savills. The 34,164 sq. ft. property is located in Cork’s Central Business District and has an annual rent roll of c. €338k. Tenants include KPMG, Fujitsu and James Riordan and Partners. There is also c. 5,189 sq. ft. of vacant office space, which should let for c. €15 psf if refurbished. The Irish Times, 7th October
Clarion Hotel: Dalata have completed the purchase of the Clarion Hotel in Cork City for €35.1m, significantly above the €30m guide price. The transaction will be viewed as an investment deal as the hotel will continue to be run by its existing operator, Choice Hotels, under a long term lease. The 191 bed, four star hotel was opened in 2005 and enjoys a prime location on the waterfront at Lapp’s Quay. The Irish Times, 13th October
Diamond Coast Hotel: Receiver David Hughes of EY has appointed Savills to sell the four star Diamond Coast Hotel in Co. Sligo, with a guide price of €3m. The 94 bed hotel is trading profitably and can be purchased without the existing management agreement. Savills advise that the hotel has become an attractive choice for weddings, partly due to its ability to cater for up to 450 guests. The hotel was only opened in 2007 and enjoys a prime waterfront location on Killala Bay. The Irish Independent, 8th October
Paramount Hotel: CBRE are guiding in excess of €15m for the lucrative Paramount Hotel and Turks Head in Dublin’s Temple Bar area. The three star hotel has 66 bedrooms as well as a very profitable bar and restaurant business. With the c. 40,902 sq. ft. hotel based on ten interconnecting four, five and six storey buildings on Parliament Street, there is significant potential to develop more bedrooms (subject to planning permission). Two floors of the hotel are used as a bar, restaurant and music venue. The Irish Times, 7th October
Drogheda Development: Laurence Goodman, son of Larry Goodman, has commenced the construction of 178 apartments in Drogheda, County Louth. The development consists of 113 two-beds, 40 three-beds and 25 one-bed apartments spread over eight blocks. A crèche and underground car park are also being constructed as parted of the development. NAMA Wine Lake, 11th October
Dalkey Site: Selling agents DTZ are to handle the sale of a prime c. 3.14 acre development site in Dalkey, south Dublin, which has a guide price of €5.75m. The site shares an access point with Castle Park School and is within walking distance of Dalkey and Glasthule villages. Rory Breen of DTZ advises the site could accommodate up to 50 apartments spread over two blocks. The site is located in an area whose primary zoning use is residential, however commercial uses are also possible. The Irish Times, 7th October
Xavier Court: Knight Frank have set an asking price of €7.8m on a block of 41 apartments known as Xavier Court in Dublin 1. The apartments are fully let and generating annual rental income of c. €626k. The average rents are €1,085 p.m. for a one-bed and €1,300 p.m. for a two-bed. With Knight Frank citing comparable market rates of €1,150 p.m. for a one-bed and €1,550 p.m. for a two-bed, there is scope to increase income in the short term in line with market rates. The Irish Times, 7th October
Adelaide House: Lisney are guiding in excess of €5m for the mixed-use Adelaide House development in Dun Laoghaire, South County Dublin. The fully let four storey property consists of 18 apartments and two office units on the ground floor. With a current rent roll of €310k p.a., there is potential to increase the rent in the short term through active management. The sales price also reflects a c. 20% discount on the cumulative value of the apartments if they were to be sold individually. The Sunday Business Post, 11th October
Housing Incentives: The Irish Independent reports that Environment Minister Alan Kelly is close to announcing a number of legislative changes aimed at aiding tenants and first time buyers. Under the new legislation, landlords will be required to give three months’ notice before a tenant is evicted while allowances will be offered to landlords who provide long term leases. Minister Kelly is also seeking to have up to 8,650 affordable homes completed in Dublin and Cork by the end of 2017, which would cost the taxpayer c. €180m. Under the scheme the government will target developers with land banks which can facilitate at least 50 new homes. Concessions will be provided to developers who provide increased volumes of homes at affordable prices. The Irish Independent, 8th October
NAMA Redevelopment: NAMA have sought planning permission to develop a new street in Dublin’s north docks, in a move which would pave the way for residential and commercial development. The proposed c. 330m street would link North Wall Quay with Sheriff Street Upper, turning Point Village into a separate block in the process. The application was submitted by the receivers to Wintertide, whom NAMA appointed in 2012. The proposed development is within Dublin’s Strategic Development Zone, therefore it can avail of the fast-track planning process. The Sunday Times, 11th October
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Project Clear: Ulster Bank is set to launch the sale of Project Clear, a loan portfolio secured by land banks which have a value in excess of €500m. The land banks are spread across Ireland and include sites in Dublin, Cork and Galway. The portfolio is to be sold in three tranches and prospective buyers will not be able to bid for the portfolio as one transaction in its entirety. The deadline for bids is expected to be before the end of October. The Sunday Business Post, 4th October
The Spire Portfolio: D2 Private, who earlier this year purchased Clerys department store in Dublin city centre, is believed to have been chosen as the preferred bidder for The Spire Portfolio. The portfolio has a guide price of €10m and consists of a mix of properties on O’Connell Street and Abbey Street. The mixed use properties have a total floor space of 40,000 sq. ft., with tenants including Ladbrokes and Londis. The properties are owned by Markland Holdings, whose debts are controlled by NAMA. The properties however, are not in receivership and the sale is being conducted on a consensual basis. The Sunday Times, 4th October
Cumberland House: Twitter are to move into Cumberland House in Dublin 2 after agreeing terms on a 20 year lease (break options in years 12 & 15) with Hibernia REIT. Twitter will occupy 85,000 sq. ft. of the 112,000 sq. ft. property while also leasing c. 140 car spaces. The total rent will be c. €4.6m p.a., with the office space being let at c. €50 psf. Hibernia acquired Cumberland House for c. €49m earlier this year and will spend up to €27m renovating the property before Twitter’s lease commences in H2 2016. The Irish Times, 1st October
New NTMA Offices: The NTMA have reportedly chosen to vacate their existing offices on Grand Canal Street in favour of the Project Wave site on Dublin’s North Wall Quay. Singaporean real estate firm Oxley and Sean Mulryan’s Ballymore Properties purchased the Project Wave site from NAMA in 2014. The new owners have recently lodged a planning application for c. 538,000 sq. ft. of office and commercial space as well as 250 apartments. The NTMA are expected to commence talks with the owners shortly and hope to move in late 2018 if a deal can be agreed. The Irish Times, 1st October
1 Grant’s Row: Aviva Life & Pensions have been chosen as the preferred bidder for a multi-let office building at 1 Grant’s Row off Lower Mount Street in Dublin city centre. The property fund are to pay c. €8.3m for the 15,244 sq. ft. property which is currently producing an annual rental income of c. €482k. There are currently four tenants in situ and the next rent review is in 2016. The property was sold by JLL under the instructions of receiver Ken Tyrrell of PwC. The Irish Times, 30th September
Radisson Athlone: CBRE are handling the sale of the four star, 128-bed Radisson Blu Hotel in Athlone on behalf of the receiver Kieran Wallace. While CBRE have not put a guide price on the hotel, industry sources believe the hotel will sell for c. €6.5m. The hotel was developed in 2004 and is in a prime location opposite Athlone Castle in the town centre. Trading has been strong for the hotel which has been kept in good condition in recent years. The Irish Times, 30th September
Clyde Court Hotel: The Clyde Court Hotel in Ballsbridge is to close at the end of the year after the owners, Chartered Land and the Abu Dhabi Investment Authority, exercised their break option in the lease. The hotel is to be replaced by 190 apartments, for which construction is to begin in early 2016 with the apartments available to purchase from 2017. The nearby Ballsbridge Hotel, which Chartered Land and the ADIA also own, will remain open until at least April 2018 after its operator, Dalata, extended the lease. The Irish Times, 30th September
Hotel Extensions: The five star Dylan hotel on Eastmoreland Place in Dublin 4 has sought planning permission for a 26 room extension, which would bring the total number of rooms to 70. The hotel was developed by Seamus Ross of Menolly Homes and the application was submitted by the operator of the hotel, Lyndonmount. Nearby The Fitzwilliam Hotel on St Stephen’s Green has also sought an extension to a previous planning application, which approved a 34 room extension of the hotel. The Sunday Times, 4th October
Whitewater Shopping Centre: Joint agents Savills and Coady Supple have been chosen to manage the sale of the Whitewater Shopping Centre in Newbridge, Co. Kildare. The c. 296,000 sq. ft. shopping centre, currently owned by Ballymore Properties and Elm Holdings, is expected to sell for over €150m. A sales price of €150m would reflect a net initial yield of c. 7.5%. The centre opened in 2006 and boasts more than 70 tenants, including Debenhams and Marks & Spencer.The Irish Times, 6th October
Irish Life: Irish Life has spent c. €19.2m acquiring two amalgamated shops at 57 / 58 Grafton Street in Dublin. Life Style Sports currently occupy the property and are paying rent of €675k p.a., which is guaranteed by the retailer’s parent company, Stafford Holdings Ltd. The investment will offer an initial yield of c. 3.4% once purchasing costs have been deducted. The four storey over basement building comprises 12,400 sq. ft. of floor space, of which over half is suitable for retail use. Irish Life has now spent c. €650m on Irish property over the past two years. The Irish Times, 30th September
Daft.ie Property Report: The latest house price report from Daft.ie shows the different trends in the Irish market over the past quarter. In Q3 2015, the average asking price in Dublin fell by 1.4%, while outside of Dublin the average asking price rose by 3.9%. The largest increases were recorded in Limerick city (7.7%) and Cork (6.8%). Daft.ie economist Ronan Lyons believes that the decrease in prices in the most expensive areas is reflective of the introduction of the Central Bank’s new mortgage lending criteria. The Irish Times, 6th October
11 Shrewsbury Road: Knight Frank are guiding €10.5m for Fintragh, 11 Shrewsbury Road. The 5,700 sq. ft. residential property is located on a c. 0.7 acre site and boasts an outdoor swimming pool and tennis court amongst its key features. With seven bedrooms upstairs, Fintragh would be attractive as a family home whilst also offering embassy potential. The Assaf family own the property through an investment vehicle, Pennyvale Property, having purchased Fintragh in 1987. The Irish Times, 1st October
CSO Property Prices: New figures from the CSO reveal that national residential property prices rose by 2.3% in August, representing the largest jump in a calendar month since last October. On a national level, residential prices have now risen by 9.5% in the past year. Property prices outside of Dublin grew by 10.8% in the past year, surpassing the 8.2% growth rate in Dublin. Despite this increase, prices remain 35% below their peak in 2007. Goodbody Stockbrokers estimate that the national average sales price for a property is now c. €215k, well below the average in Dublin of c. €288k. Economists believe that an improving economy and continued shortage of supply are the primary factors behind the continued increase in prices. The Irish Independent, 1st October
St Augustine Apartments: Savills are guiding in excess of €22m for 110 apartments at 42 – 76 St Augustine Street, Dublin 8. The guide price reflects an average valuation of €200k per apartment, with the block consisting of 77 two-beds, 21 one-beds and 12 three-beds. One of the most appealing aspects of the investment is that the entire block has been let to rental company Staycity, therefore the investment will require minimal asset management. Staycity are currently paying rent of €1.3m p.a., with eight years left on the lease. The Irish Times, 30th September
Commercial Market Overview: On a quarterly basis, the value of completed commercial property transactions (excluding loan sales) has fallen by almost 50% between Q1 2015 and Q3 2015. In Q1 2015 there were c. €1.03bn worth of transactions completed, decreasing to c. €665m in Q2 and c. €530m in Q3. Based on current figures, the total value of commercial property transactions in 2015 should fall short of the 2014 figure, when nearly €5bn worth of transactions were completed. The Irish Independent, 3rd October
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Project Jewel: A 50:50 JV between Hammerson and Allianz Real Estate has been chosen as the preferred bidder for NAMA’s Project Jewel loan portfolio. Hammerson and Allianz will pay c. €1.85bn for the loan portfolio which has gross liabilities of €2.57bn, reflecting a discount of c. 28%. As part of the JV agreement, each entity will acquire a 50% stake in Dundrum Town Centre. Hammerson have separately acquired the 50% stakes in The Ilac Centre and Pavilions shopping centre which were included in the portfolio. Underbidders for the portfolio include Colony Capital and a joint bid from Hines and the Kuwait Investment Authority. CoStar Finance, 29th September
Elmpark Complex: Joint agents DTZ and Savills are guiding in excess of €185m for the Elmpark Complex in Dublin 4, which is being sold by NAMA. The current income of the asset of c. €9.5m p.a. is generated from c. 400,000 sq. ft. of commercial accommodation, 218 multi-family units and eight luxury houses. Of the €9.5m, c. €5.36m comes from office space let to Allianz and Novartis. The 218 apartments are fully let and generating annual income of c. €3.8m. There is potential to increase the income by a further c. €5m in the short term from the letting of the 175,000 sq. ft. Pioneer building, which can be let for office use. The Irish Times, 23rd September
The One Building: Following a €7m redevelopment, The One Building on Grand Canal Street, Dublin 2 is now being offered to rent from €49.50 psf. The One Building has been extended to 45,000 sq. ft. over seven floors, with 44 underground car spaces. The car spaces are available to rent at €3,500 per space. The owner of the building is Jones Investments Ltd, who also developed Dock Mill last year which was subsequently purchased by Google. The Irish Independent, September 24th
Blackstone Properties: Lisney are guiding c. €130m for the sale of the Bloodstone Building and Central Quay in Dublin’s Docklands. The properties, along with Hume House in Ballsbridge, were bought by Blackstone in January 2014 for c. €100m. Hume House is expected to be put up for sale before the end of the year for c. €40m, offering Blackstone a potential gross return of 70% on their investment. The Bloodstone Building is c. 83,000 sq. ft., Central Quay c. 59,000 sq. ft. and Hume House is a c. 80,000 sq. ft. property. The properties are believed to be yielding 6% in annual rental income. NAMA Wine Lake, 27th September
2 Custom House Plaza: Lisney are launching the sale of 2 Custom House Plaza, IFSC for €14.35m. The five storey office block, which is fully let, has a floor area of 29,430 sq. ft. and 29 car spaces. The current rental income of c. €991k p.a. offers a net initial yield of 6.6%, however there is potential to increase the rental income in the short term. There are 14 car spaces which are unlet with potential to increase the annual rental income by c. €40k. In addition the office space offers an average rent of c. €32 psf, significantly below the top rents in the IFSC of c. €45 psf. The property has a weighted average unexpired lease term of c. 5.19 years. The Irish Times, 23rd September
Block R: The Central Bank have completed the purchase of the Block R office building on Spencer Dock in Dublin 1 for c. €104m. The bank already occupy nearly 50% of the 127,000 sq. ft. property, which is located close to their proposed new headquarters on North Wall Quay. The current rent roll for the property is c. €4.9m p.a., with the bank paying c. €3m (€46 psf). Of the remaining office space in the property, Nationwide occupy half the top floor and the balance is being fitted out for state bodies. The Irish Times, 23rd September
Castlemartyr Hotel: The Castlemartyr hotel in Cork is believed to have been bought by the owners of the Old Thorns hotel and estate in Surrey. The 103 bed Castlemartyr hotel went on the market for €13m in June having originally been developed at a cost of c. €70m by building group John F Supple. According to details filed by Old Thorns, its owners include Chinese businessman Zhang Zhenxin and Singaporean Phang Yew Kiat. The Sunday Times, 27th September
Maritime Hotel: Savills are guiding €1.5m for the Maritime Hotel, a four star, 110 bed hotel located in Bantry, Co. Cork. Included in the sale are 80 underground car spaces, a medical centre occupied by the HSE and a Doctor’s surgery which is under a lease agreement for the next three years. The hotel is being operated under a management agreement and benefits from its location along Ireland’s Wild Atlantic Way. The Irish Independent, 24th September
Premier Inn: The Limerick based Kirkland Investments have purchased the three-star, 155 bed Premier Inn hotel in Airside Business Park in Dublin. Kirkland paid c. €11m for the hotel, which was €1.4m above CBRE’s guide price. The acquisition is Kirkland’s second in the Irish market in the past twelve months, with the firm having acquired the Savoy Hotel, 84 apartments and six shops in Limerick last October for c. €18.54m. The Irish Times, 23rd September
23A Mary Street: A private investor has paid €4.95m for 23A Mary Street, which is alongside Jervis Shopping Centre in Dublin City Centre. The property offers 1,032 sq. ft. of retail space at ground floor level with an additional 998 sq. ft. in the basement. The current tenant is Peter Mark, who were originally on a 35 year lease from 1985. Peter Mark have since signed a Deed of Variation extending the lease until 2025 with the current rent of €250k p.a. reviewable in 2020. The Irish Times, 23rd September
NAMA Residential Development: Receivers acting on behalf of Capel Developments Limited have sought planning permission for 318 homes on a 12 acre site in Pelletstown in west Dublin city. The application contains proposals for the development of 176 apartments and 142 houses on the site. Capel Developments was previously controlled by Edward Keegan, Liam Kelly and John O’Connor before NAMA had receivers appointed over the company’s assets in April 2011. NAMA Wine Lake, 27th September
NAMA Student Accommodation: Receivers acting for Wintertide Limited have applied for planning permission to construct 970 student bed spaces in north Dublin city centre. The proposed 350,000 sq. ft. of student accommodation is to be on the corner of Sheriff Street and Upper Mayor Street. Wintertide Limited was previously part of the Treasury Holdings group before NAMA had receivers appointed in 2012. NAMA Wine Lake, 27th September
Social Housing Project: New Generation have sought planning permission for Ireland’s first major social housing project since the property crash. The developer intends to build 27 houses and 142 apartments on their 41 acre site in Finglas, Dublin 11. Planning permission has also been sought for a primary care centre and nursing home on the site. The gross value of the project upon completion has been estimated at c. €18m. The Sunday Business Post, 27th September
Parkside Development: Cairn Homes have launched the initial phase of their Parkside development in Malahide, north Co. Dublin. The phase consists of 25 three and four bed houses priced between €299k and €385k. The 50 acre Parkside site has zoning for 433 homes and Cairn hope to have the first 200 completed by the end of 2016. The launch represents the first housing development by Cairn. The Irish Times, 24th September
Lad Lane: IPUT has paid over €10m for a 30 year old block of apartments on Lad Lane in Dublin 2. The apartments are currently generating rental income of €390,000 p.a. with further income of €70,800 p.a. from 37 car spaces. There is significant redevelopment potential from the asset, with the possibility of replacing the apartments with a 40,000 – 50,000 sq. ft. office block. IPUT already owns Fitzwilton House and has a major stake in Wilton Park House, two office properties located nearby. The Irish Times, 23rd September
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
National Portfolio: The Irish Times understands that Davidson Kempner, alongside minority partner Alanis Capital, is in pole position in the race to acquire Bank of Ireland’s National Portfolio. Davidson Kempner is believed to have bid in excess of €170m for the portfolio, for which JLL and Savills were inviting offers above €162m. The portfolio is producing gross income of €12.2m p.a. and consists of five retail parks – Nutgrove Retail Park, Letterkenny Retail Park, Sligo Retail Park, Tullamore Retail Park and Deerpark Shopping Centre. The Irish Times, 16th September
Project Arrow: The Sunday Times reports that a second bidder from a shortlist of just three is considering pulling out of Project Arrow. There are fears that Apollo Global Management may not submit a final round bid for the €7.2bn portfolio. Two weeks ago, a joint bid between Goldman Sachs and CarVal pulled out of the bidding process. If Apollo exits the process, then just one firm, Cerberus Capital Management, will be left in the auction. The Sunday Times, 20th September 2015
Project Jewel: The Sunday Times also understands that Davidson Kempner, one of five bidders for NAMA’s Project Jewel (which includes loans secured on Dundrum Town Centre), may withdraw from the bidding process. Bids for Project Jewel, which are expected to exceed €1.5bn, are due to be submitted by the end of this month, and competition for the prized assets is expected to be keen. The Sunday Times, 20th September 2015
Michael O’Flynn: Michael O’Flynn is in the process of finalising a deal with a multibillion dollar US private equity house that will end his relationship with Blackstone. The SBP reports that O’Flynn is in negotiations with Manhattan based Avenue Capital, a US fund which controls almost $14 billion in assets worldwide. AIB is understood to be providing the senior debt for the deal. Blackstone bought €1.8 billion of O’Flynn’s debt from NAMA for c. €1.1 billion in 2014. As part of the deal, O’Flynn and his backers will purchase the undeveloped pipeline of Irish assets from Blackstone subsidiary Carbon Finance. The Sunday Business Post, 20th September
The Exo: Receivers from Grant Thornton have submitted a planning application to construct a 73m tall office block (known as The Exo) at the Point Village in Dublin 1. The Exo is to be 17 storeys tall with the capacity to accommodate 2,000 workers. The €80m project would be taller than any office block in the Docklands at present, including Google’s Montevetro building which stands at 67m. NAMA are to finance the development, while CBRE and Savills have been appointed as joint letting agents. The Irish Times, 15th September
Jefferson House, Donnybrook: A 33 year old office building in Donnybrook is likely to undergo a major refurbishment after it is sold on behalf of a private investor. The five-storey over basement building extends to 19,374 sq. ft. and has 21 car parking spaces. It has been rented since it was built to Smurfit Services Ltd, now trading as Smurfit Kappa, under a lease which is due to expire in May 2017. Selling agent BNP Paribas are inviting offers of more than €7 million for the property. The Irish Times, 16th September
The Gresham Hotel: The Sunday Independent understands that the Gresham Hotel is expected to be put up for sale by NAMA next month. Windward Investments, which is led by Patrick Coyle (the general manager of the hotel), is set to partner with US hotel management company Pyramid to make a bid for the property. Pyramid purchased the Temple Bar Hotel earlier this year. Dalata, Kennedy Wilson and Tokyo Inn are other likely bidders for the hotel. The Sunday Independent, 20th September
Residential Planning Applications: New figures from the CSO show that when compared to Q2 2014, the number of planning applications approved in Q2 2015 increased by 87% (3,010 vs. 1,606 in Q2 2014). The number of applications approved for apartments rose by c. 227% in the same period (373 vs. 114 in Q2 2014). The increase in the number of apartments would indicate that there is to be a renewed focus on apartment building in the capital. The Irish Times, 17th September
IRES: One of Dublin’s biggest apartment owners, IRES, is planning further rent hikes. Rents increased by 10% – 15% in the first half of 2015 across IRES REIT’s 1,566 Dublin apartment portfolio. The company’s portfolio of apartments is spread across the city at high profile developments including Beacon South Quarter, Rockbrook, The Marker and Charlestown. The Sunday Business Post, 20th September
Adamstown: Ulster Bank is in the process of examining the sale of one of the largest areas of residential development land in Dublin. The bank is reviewing its position in relation to a massive land bank in Adamstown in west Dublin, with the potential market value understood to be in the region of €500m if brought to market. The bank has major exposure to the area through lending to Maplewood Development and Castlethorn Developments, and is examining whether it will be able to sell the loans and land as a single sale. The site is seen as a source of unlocking extra supply in the capital as it has Strategic Development Zone status allowing for the development of 8,000 units. The Sunday Business Post, 20th September
Baggot Street Hospital: The HSE have appointed Savills to handle the sale of Baggot Street Hospital in Dublin 4. Although Savills have not quoted a guide price, it is believed that the hospital is valued at c. €14m. The hospital has a floor area in excess of 60,277 sq. ft., and the overall site measures c. 0.71 acres. Given the size and location of the asset, the buyer will likely seek to redevelop the property into either a hotel, residential units and/or office space. One of the conditions of the sale is that the buyer of the property must provide a new primary care centre for the area, either on the property or nearby. For the new care centre the HSE have offered to enter into a new long-term lease agreement at c. €18 psf. The Irish Times, 16th September
M1 Business Park: DTZ are guiding €6.15m for 157 acres of undeveloped land and 22.56 acres of an industrial development at the M1 Business Park near Balbriggan in Co. Dublin. Of the 157 acres of undeveloped land, only 16 acres do not carry any zoning. The 141 acres which contain zoning carry a mixture of commercial zonings, including high technology and research and development. The asset is in a strong location as it is only a short drive from Dublin airport and also has direct access to the Docklands through the port tunnel. The Irish Times, 17th September
The Comer Brothers: The Sunday Independent reports that Galway builders Luke and Brian Comer have purchased two development sites located north of Wembley Stadium in London. The sites span across 1,200 acres, and if rezoned could be worth between €8.4bn and €15bn. UK property prices are forecast to rise by up to 30pc in the next four years due to an acute shortage in London and Southern England, according to BNP Paribas. The Sunday Independent, 20th September
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
National Portfolio: Bank of Ireland’s National Portfolio is expected to trade for above €162m as four second round bids were received on September 9th. The portfolio consists of five retail parks with the prized asset being Nutgrove Retail Park in Rathfarnham, South Dublin, which has an asking price of over €62m. The bidders are a JV between Tristan Capital Partners and Pradera, Oaktree Capital Management, Benson Elliott and Davidson Kempner alongside minority partner Alanis Capital. The portfolio generates gross income of c. €12.2m and has a weighted average unexpired lease term of c. 10 years. A sales price in excess of €162m would offer a net initial yield below 7.2%. CoStar Finance, 10th September
Project Arrow: Goldman Sachs and CarVal are believed to have withdrawn their interest in NAMA’s €7.2bn par value Project Arrow, leaving Cerberus and Apollo as the remaining bidders. The reason for their withdrawal is unclear. NAMA chose the three finalists for the portfolio a little over two weeks ago. Lone Star may request to re-enter the bidding process. CoStar Finance, 10th September
Hazel Portfolio: DTZ and Bannon have been retained by NAMA to manage the sale of the Hazel portfolio, with offers in excess of €115m being sought. The portfolio consists of Wilton Shopping Centre in Cork, Drogheda Retail Park in Meath and the Gateway Retail Park in Galway. Wilton is valued at c. €70m, Drogheda at c. €30m and Gateway is worth in excess of €15m. Based on a net operating income of c. €8.97m, a sale at €115m offers a net initial yield of 8.97%. The portfolio also boasts a low vacancy rate of 2.1% and a weighted average unexpired lease term of 9.11 years. First round bids are reportedly due in the third week of October. CoStar Finance, 9th September
Millennium Park: The Irish Times has learned that Tetrarch Capital is to seek planning permission for a substantial residential and commercial development at Millennium Park in Co Kildare. Tetrarch purchased 336 acres of the park from NAMA earlier this year for c. €36m. It is believed that Tetrarch will initially seek permission to construct c. 50,000 sq. ft. of office space, followed by an application early next year to construct over 400 houses. Tetrarch are currently receiving income of c. €1.62m p.a. from the site, which has a vacancy rate of c. 6%. The Irish Times, 14th September
IPUT Office Space: Investment fund IPUT intends to supply Dublin with c. 400,000 sq. ft. of office space over the next three years. The news comes at a time when some analysts predict that prime rents could rise up to €70 psf over the next twelve months. The office space is to come from the newly refurbished 7 Hanover Quay in Dublin 2, which contains 68,000 sq. ft. of office space, as well as five other properties which IPUT are currently developing or refurbishing. These properties are located at St Stephens Green, Dawson Street, 10 Molesworth Street and Citywest. 7 Hanover Quay was previously the European headquarters of Facebook. The Irish Independent, 11th September
Lower Baggot Street: Knight Frank are set to launch an international marketing campaign later this month seeking tenants for Bank of Ireland’s former headquarters on Lower Baggot Street, Dublin 2. The property has undergone a significant redevelopment in recent years at a cost of c. €100m since it was purchased by Larry Goodman’s Parma Developments for c. €40m in 2013. Once the project has been completed there will be c. 219,000 sq. ft. of lettable space along with 125 underground car spaces. Market sources estimate that the rent for property will be c. €60 psf given the €100m redevelopment spend. The Irish Times, 9th September
Dalata Gresham Hotel: The chief executive of Dalata, Pat McCann, advised that his firm would be interested in purchasing the Gresham hotel should it fit their investment criteria. McCann believes the hotel, which was built in 1817 and has in excess of 300 rooms, will be on the market for a price “somewhere north of €60m”. Dalata are also expected to bid for the Pillo Hotel in Meath and the Clarion in Sligo should they be for sale this year, as they currently manage the hotels on behalf of receivers. Dalata spent nearly €524m on hotel acquisitions in H1 2015. Irish Independent, 10th September
Hotel Sales: With 50 hotels sold for a combined value of €795m in the first eight months of 2015, it is believed that hotel sales may exceed €1bn in 2015. The most expensive sale was the combined purchase of the Ballsbridge and Clyde Court hotels for c. €175m by Chartered Land / ADAI. While this transaction would be categorised as a development deal, the fact that average room rates in Dublin are €174 a night this month (per Trivago) could make the existing 600 bedrooms more remunerative in the short to medium term. Although rates have risen in the past few months, it is believed that they are only now starting to reach levels which would justify the construction of a new hotel. The Sunday Business Post, 13th September
Wexford Portfolio: Offers in excess of €6.75m are being sought by DTZ Sherry Fitzgerald and Sherry Fitzgerald Haythornwaite for a substantial mixed use portfolio in Wexford town. The property includes a six storey building which contains 73 apartments and three retail units. The main retail tenant is TK Maxx, who are paying 5% of turnover as rent for 28,148 sq. ft. of retail space, believed to be worth c. €250k per annum. Other assets of note in the portfolio include a 314 space multi storey car park and a 28,000 sq. ft. former grain store which has undergone significant refurbishment in recent years. The Irish Times, 9th September
Capital Dock Project: Kennedy Wilson have sought planning permission for a 23 storey apartment tower on Sir John Rogerson’s Quay in Dublin 2, which would make it the tallest building in Ireland. The tower is part of their €200m Capital Dock project, which is a joint venture with NAMA. Kennedy Wilson previously sought planning permission for a 19 storey tower on the site however this was rejected by Dublin City Council. The revised planning application comprises seven blocks, 204 apartments, 313,000 sq. ft. of office space and retail units. The Sunday Times, 13th September
Dublin Student Accommodation: Global Student Accommodation and The Creedon Group have been granted planning permission for a €41m student housing complex on a 2.5 acre site in Mill Street, Dublin 8. The complex is to consist of five blocks containing study bedrooms and student community spaces. GSA is to both finance and develop the complex, which is expected to open in September 2017. Although this will be GSA’s first development in Dublin, the firm intends to invest up to €250m here over the next five years given the acute shortage of student accommodation in the capital. The Irish Times, 11th September
Malahide Apartments: Knight Frank are guiding c. €7.5m for 27 apartments at the Robswall development in Malahide, Co. Dublin. The property consists of one, two and three bed penthouse units which range from 603 sq. ft. to 1,313 sq. ft. in size. There is scope to increase the current rental income of c. €400k p.a. to c. €460k p.a. once all the units have been fully rented and rents are increased to market rent. The €7.5m guide price equates to a cost per sq. ft. of €325. The Irish Independent, 10th September
Mount Merrion Site: DTZ Sherry Fitzgerald are guiding €23m for an 18.4 acre site known as Knockrabo in Mount Merrion in Dublin 14, which should accommodate up to 170 houses and apartments. Over 5 acres of the site have been reserved for a future extension of the Eastern Bypass, leaving c. 13.3 acres of residentially zoned land. There is already planning permission for 47 houses and 41 apartments on the site. DTZ anticipate significant demand given the size and location of the site. The Irish Times, 9th September
Events Centre: Work is expected to commence shortly on a new €50m events centre at the site of the old Beamish and Crawford Brewery in Cork City. A consortium consisting of Heineken and BAM were awarded the contract to undertake the project in 2014. The 6,000 seater events centre is to be the crown jewel of the €150m Brewery Quarter project. The state is to provide funding of €20m towards the project, which will support 900 direct jobs upon completion. The Irish Times, 14th September
Shannon Free Zone: The first phase of a major redevelopment project has commenced at Shannon Free Zone in Co. Clare. The phase is valued at €21m and will take approximately two years to complete. A planning application is expected to be lodged shortly to develop a 40,000 sq. ft. Grade A office block and a 30,000 sq. ft. advanced technology manufacturing unit on a 12 acre site. There is another 67,000 sq. ft. advanced technology manufacturing unit included in the first phase at Shannon Free Zone East. The project is being run by the Shannon Group, an entity formed last year with the objective of growing traffic through Shannon Airport. The Irish Times, 9th September
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Dublin Airport Central: The Dublin Airport Authority is formulating a €1bn plan to construct a 3.2 million sq. ft. airport city in north Dublin, according to documents seen by the Sunday Business Post. The project, which will be approximately three times the size of Dundrum Town Centre, is to primarily consist of offices but will also contain hotels, cafes and recreational facilities. In March of this year the DAA purchased the former Aer Lingus headquarters in the airport for c. €10m, representing the first step towards the development of the airport city. It is believed that the DAA already have appointed a team to work on four 100,000 sq. ft. buildings as part of the project. The Sunday Business Post, 6th September
One Spencer Dock: NAMA is expected to bring One Spencer Dock to the market in the immediate future, with an anticipated guide price in excess of €100m. The eight storey property contains five blocks, with 350,000 sq. ft. of lettable space and 143 car spaces. The primary tenant is PWC, who occupy 220,000 sq. ft. of space. Other tenants include ABN Amro and Ecclesiastical Insurance. The property was constructed in 2007 by a consortium led by Treasury Holdings. Hines act as asset manager for the property. The Sunday Times, 6th September
CBRE Report: CBRE’s latest research report estimates that there will be €400m of retail and €400m of office investment opportunities on the market over the next few months, following a summer which saw no let-up in activity in the investment market. The report also assesses the current shortage of prime office opportunities in Dublin. CBRE believe that it will be 2017 before there is a substantial improvement in supply, with rents expected to continue to rise in the meantime. CBRE Bi-Monthly Research Report, September 2015
Allianz Participation: Allianz have made their first investment in the Irish market, by taking a €150m participation in a €300m Morgan Stanley loan which was provided to Starwood Capital earlier this year. Starwood used the loan to purchase 11 office buildings and one residential property in Dublin from Lone Star for €350m, with the assets now securing the facility. Properties in the portfolio include Iveagh Court, the Watermarque Building, Hogan Place and Marsh House. Real Estate Capital News, 3rd September
Nassau House: The European real estate investment fund Meyer Bergman, together with Navan developer Eamonn Duignan, is believed to have acquired Nassau House in Dublin 2 for c. €90m. The c. 100,000 sq. ft. property is a five storey office and retail block with an annual rent roll of c. €3.5m. The previous owners Aviva had the property sold through JLL on an off-market basis. The new owners are expected to be viewing the property as a redevelopment opportunity and a planning application to extend the building to eight stories and up to 200,000 sq. ft. should be forthcoming. The Irish Times, 2nd September
Heron House: JLL are guiding c. €4m for Heron House, a partially let office block in Sandyford, Dublin 18. The 19,215 sq. ft. property is currently occupied by the Grafton Group and Computershare, achieving annual rental income of €231,756. Both these leases run until the end of 2018. There are also 50 car spaces with the property, with the rented car spaces generating annual rental income of €900 each. The vacant first floor of the property is available to rent for €20 per sq. ft., having recently been refurbished. The Irish Times, 2nd September
Sandyford Development: Ardstone Capital have sought planning permission to develop 450,000 sq. ft. of office space in Sandyford, Dublin 18. The project, known as Eden Plaza, will be developed on a c. 5.06 acre site which Ardstone bought from NAMA for €6.5m. The site previously sold for in excess of €70m in October 2007 to Reg Tuthill and Derek O’Leary. The project proposes the development of a number of high specification office buildings, ranging from 35,000 sq. ft. to 150,000 sq. ft. in size. The Irish Times, 2nd September
Stauntons on the Green: JLL are guiding in excess of €12m for the boutique townhouse Stauntons on the Green in Dublin 2. The four star, 51 bed townhouse has an average room rate of €90 and is owned by Jim Staunton, however it is being sold with vacant possession. The property, which comprises three Georgian houses, has a total floor area in excess of 20,000 sq. ft. after an extension at the rear of the asset was installed in recent years. It is believed that both hotel and property investors will be interested in the property as investors may seek to convert the Georgian properties into either residential or office space. The Irish Times, 2nd September
Hotel Rates: The average room rate for hotels in Ireland rose to €116 at the end of June, marking the fifth year in a row in which hotel rates have increased. The latest figures from Hotels.com show that rates in Ireland rose by 15% in H1 2015, whereas rates globally remained relatively flat over the period. Dublin has the highest room rates with an average room rate of €128. Average room rates in Belfast were €123 at the end of H1 2015, an increase of 25% when compared to H1 2014. The Irish Independent, 2nd September
Dalata Capital Raise: The Sunday Independent understands that Dalata are to raise €150m from the issuance of new shares. The funds are to be used to increase their portfolio, with a number of hotel assets expected to be brought to market in the coming months as NAMA and Ulster Bank continue their disposal of loan portfolios. Dalata has raised €500m since floating on the ISE last year, and its share price has risen by 40% since listing. Dalata were recently outbid by developer Joe O’Reilly who bid €170m for Project Trinity. The Sunday Independent, 6th September
Terenure Apartments: DNG are guiding €11.75m for 40 apartments spread across two blocks in Terenure, Dublin 6. The apartments, which were built in 2008, are fully let and generating annual rental income of €635k. However due to the shortage of rental accommodation in south Dublin and the prime location of the apartments, DNG believe the annual rental income could rise to €750k. The apartments are being sold on the instruction of the receiver, Jim Hamilton of BDO. The Irish Times, 2nd September
Beulah, Dalkey: Sherry Fitzgerald are advertising the sale of Beulah, a c. 5,010 sq. ft. residential property sitting on c. 1.7 acres on Harbour Road, Dalkey. Valued at €6.5m, the property is of Victorian design, having been built in 1844. The six bedroom property also comes with access to the nearby private harbour, Rocklands. The current owners of the property are the O’Sullivan family (former owners of Irish Express Cargo), who bought the property in the late in 1980s from Ted Rogers of Golden Discs. The Irish Times, 3rd September
Fairbrook Development: Gannon Homes have launched their latest tranche of homes in Swords, Co. Dublin, where they hope to develop up to 1,000 homes. Fairbrook is an 85 home scheme of three and four bed properties and follows on from last year’s successful 100 home scheme under Miller’s Glen. Prices start at €264,950 for a three bed townhouse of 1,216 sq. ft. while the detached houses of 1,582 sq. ft. range from €404,950 to €439,950. The Miller’s Glen scheme was launched in September 2014 and all homes had been sold by November. The Irish Times, 3rd September
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Project Arrow: NAMA is thought to have shortlisted three bidders for the €7.2bn Project Arrow; Cerberus, Apollo and a joint bid from Goldman Sachs and CarVal. Project Arrow consists of loans to 370 borrowers which have an average par value of €19.5m. Final bids are due in the first week of October. The portfolio is expected to sell for c. €1.5bn (a c. 79%. discount). NAMA Wine Lake, 30th August
DTZ Report: DTZ’s report on the Irish office market for Q2 2015 notes that Dublin continues to face a supply shortage, particularly for grade A office space. The vacancy rate for grade A space in Dublin’s Central Business District stood at just 4% at the end of June, significantly lower than the overall vacancy rate for Dublin of 14.9%. Construction is however beginning to respond to this supply shortage, with c. 1.4m sq. ft. of office space under construction at the end of Q2 2015, 64% of which is located in Dublin’s Central Business District. At the end of Q1 2015 there was only c. 682k sq. ft. of office space under construction. DTZ Irish Office Market Review, Q2 2015
Iveagh Building: Savills are guiding c. €15m for The Iveagh Building, a mixed use commercial building which is located alongside The Park, Carrickmines, Dublin 18. The property, which has a floor area of 42,200 sq. ft. and 148 car spaces, consists of seven ground floor retail units with three floors of office space overhead. The current annual rent roll is c. €978k. Vodafone and a Vodafone subsidiary (Netshare) occupy the first two floors of office space, paying a combined €564k. BB’s coffee house pay the highest retail rent at €109k. The Irish Times, 26th August
Arnotts: The Weston Family, through their investment vehicle Wittington Investments, are believed to have reached an agreement in principle with Noel Smyth to own and operate Arnotts. Wittington already own Brown Thomas in Dublin and Selfridges in London. While Arnotts produced a trading profit of €2.5m on sales of €120m for the year ended January 2014, its balance sheet is heavily indebted. Any restructuring should see the debt reduced to a sustainable level. The Sunday Times, 30th August
Dublin SuperValu: Jim Treacy, the previous owner of the Lough Erne Resort in Northern Ireland, is believed to be in talks with Musgrave to acquire his former SuperValu store in Churchtown, Dublin 14. With annual sales estimated at over €25m it is one of the busiest SuperValu stores in the country. Treacy lost the asset in 2011 when BOSI appointed a receiver, with Musgraves purchasing the trading business and property for over €12m. Treacy has continued to run the store on behalf of Musgraves since it was sold. The Irish Independent, 29th August
Finglas Site: Developer Greg Kavanagh has sought planning permission for 108 residential units, 160,000 sq. ft. of office space and a 70,000 sq. ft. distribution centre on a 12 acre site in Finglas, Dublin 11. The application, which has been submitted through CreKav Landbank Investments Limited, proposes for the demolition of the existing industrial buildings on the site. M&G Investments are believed to be backing Kavanagh on the development, which is one of the largest applications in Dublin this year. NAMA Wine Lake, 30th August
Cairn Homes: Shares in Cairn Homes rose 2.1% on August 27th after the company revealed that they were carrying out detailed due diligence on 11 sites. These sites have a projected cost of c. €120m with potential for 1,600 units. Per Cairn’s results to June 30th 2015, the company had acquired nine development sites at a cost of €130m. After raising €440m from the company’s IPO on the LSE, Cairn had cash resources of €388m at the end of June. The Irish Independent, 28th August
Inniscorrig: With an asking price of €10.5m, Inniscorrig in Dalkey is now Ireland’s most expensive home. The property, which is on the market through joint agents BK Earley and Sherry Fitzgerald, was built in 1847 and maintains a Gothic Revival style. The 6 bed, 5,773 sq. ft. property is built on a c. 0.75 acre site with its own private harbour. The current owner of the property is Linda Ryan. The Irish Times, 27th August
Howth Site: Grant Thornton, acting as receivers for Ray Grehan’s Glenkerrin Homes, has submitted a planning application to develop Glenkerrin’s site in Howth, Dublin 13. The planning application is for a mixed use scheme of 196 residential units and six commercial units on c. 10.87 acres. Grehan acquired 6.58 acres of land in 2007 when he paid c. €62m for two adjoining sites. The remainder of the 10.87 acre site comes from land which Fingal County Council has allowed Grant Thornton to include in the application. The Irish Times, 27th August
House Sales: Research by Geodirectory has shown that 13,062 homes were added to the Republic’s supply in the year ending July 2015. At the end of July the total number of homes stood at 2,008,568. In addition there were 45,138 homes sold during the period, with c. 90% of them being second hand homes. However the chief executive of Geodirectory, Dan Keogh, believes that the level of supply is too low to satisfy demand, putting increased price pressure on the market as a result. The Irish Times, 26th August
Ashton House: CBRE are guiding €2.8m for a period house on c. 28 acres in Ashtown, Dublin 15, for which Grant Thornton are handling the sale. In addition to the main 12 bed, 6,458 sq. ft. property, there is also a four bed lodge, four bed bungalow, stables and a barn. The asset was previously sold for €26m in 2006 to Depton Ltd, a company linked to Liam Maye. It is believed the asset will be next used as either a nursing home / village or a hotel. The Irish Times, 26th August
Rathfarnham Site: Homebuilders Regency has been granted planning permission by An Bord Pleanála to construct 314 residential units and a crèche on a €38m site in Rathfarnham, Dublin 16. The company, which is run by Aodan Bourke and Patricia Hinch, sought permission for three, four and five bed family homes as well as high end apartments on the site. Regency has also begun constructing 455 homes in Hollystown, Dublin 15. The Irish Times, 26th August
Liffey Bridge: Dublin City Council is to seeking bids to design a new €12m pedestrian and cyclist bridge on the river Liffey. The bridge, which will link Sir John Rogerson’s Quay on the south side of the river to North Wall Quay, is to be located less than 250m from Samuel Beckett Bridge. Levies collected from construction in the Strategic Development Zone will be used to fund the bridge. The bridge is expected to open in approximately three years. The Irish Times, 27th August
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
PWC Report:
The latest report by PWC on European loan sales shows that on a par value basis, Ireland had the fourth highest amount of loan sales transacted in H1 2015. With €7.5bn of loan sales, Ireland was fourth behind Germany (€18bn), the UK (€13.5bn) and Italy (€8bn). The report also states that there is currently €11bn worth of loan sales in progress in Ireland. The €18.5bn of loan sales which PWC are forecasting for Ireland in 2015 would represent a c. 40% drop on the 2014 figure of €30.5bn. The Irish Times, 20th July
Windmill Lane:
A joint venture between Hibernia REIT and Starwood is to develop 120,000 sq. ft. of office space, 15 residential units and 7,000 sq. ft. of retail space at Windmill Lane, Dublin 2. Hibernia purchased the site from Starwood for €7.5m in June 2014. However as part of the terms of the transaction, Starwood retained an option to purchase 50% on a joint venture basis, for which they will now pay Hibernia €4.9m. The €4.9m figure is based on 50% of the purchase price, a return of c. 7% per annum and a sum to cover the costs incurred to date by Hibernia. Hibernia expect the development to be completed by 2017. The Irish Times, 24th August
Project Wave:
Planning permission has been sought for the initial development phase of a c. 5.4 acre site on North Wall Quay within Dublin’s Strategic Development Zone. Project Wave is capable of facilitating over 538,000 sq. ft. of commercial space and in excess of 250 apartments. While NAMA own the site, in December 2014 they appointed Oxley Holdings and Ballymore Properties to develop the site. Oxley and Ballymore will acquire a long leasehold interest in the site with NAMA retaining the freehold interest, assuring the state-owned agency of a secure income stream and a percentage of any sales proceeds. The Irish Times, 19th August
Grafton Capital Hotel:
Having purchased the Grafton Capital Hotel earlier this year for €12m, Eamon Waters is believed to be planning a refurbishment of the premises. Waters is expected to increase the number of beds from 74 to more than 90, with plans also to replace the Break for the Border pub with a café and courtyard. Waters purchased the hotel from Liam O’Dwyer and Julie Gilhooly. The Sunday Times, 23rd August
Hotel Ibis Dublin:
Hetherley Capital Partners has purchased the three star, 150 bed Hotel Ibis Dublin on the Naas Road, Dublin 22, for a figure believed to be in excess of €5m. The transaction was completed under a sale and franchise agreement, with the hotel immediately franchised back to AccorHotels, the existing operator of the hotel. The hotel, which was built in the mid-1990s, was subject to extensive refurbishment works in 2007 / 2008. The Irish Times, 19th August
IBRC Shopping Centre:
The sale of the Whitgift Centre in London for £80m has crystallised a c. £80m loss for the taxpayer. 132 Anglo customers had been investors in the shopping centre, which had been recently valued at £120m by Cushman & Wakefield. However the liquidators of IBRC decided to progress with the sale at £80m after a second valuation of less than £80m was received. Other third party interests in the centre had complicated the sales process, with Croydon Borough Council having initiated a potential compulsory purchase order, whereby they would have seized control of the asset. The Sunday Business Post, 23rd August
Arnotts:
Developer Noel Smyth’s Fitzwilliam Finance Partners is clear to complete the outright purchase of Arnotts department store after the Competition and Consumer Protection Commission approved the transaction. With Fitzwilliam Finance Partners and Apollo both owning a 50% stake in Arnotts, each sought to acquire the other’s interest this year. A deal was struck eventually when Fitzwilliam reached an agreement with Apollo to purchase their 50% stake. Arnotts accrued nearly €400m of debts in the build up to the recession by purchasing property adjacent to the store. RTE, 21st August
Allsop Auction:
Allsop are to hold their largest commercial property auction in September when 278 assets with a combined reserve of €60m are to go up for sale. One of the most attractive lots is a Georgian building on 10 Harcourt Street which includes two warehouses to the rear, for which the reserve range is €2.9m – €3.1m. The auction boasts a large number of retail investments for which the tenants include Ladbrokes, Boylesports, O’Briens and Dealz. The Irish Times, 19th August
Housing Measures:
Limits on rent increases, tax breaks for landlords, easing of development levies and state assistance for developers are expected to be amongst a range of measures approved by government next month in an attempt to ease the pressure on the housing market. Rent increases within tenancy are to be limited to the rate of inflation, with the market rate of rent applying to new tenancies. Any changes to legislation are likely to be for a fixed term, with the end of 2019 a probable expiration date. The Sunday Business Post, 23rd August
Cork Site:
Bridgedale Homes are believed to have paid c. €3m for a six acre site in Blackrock, Co. Cork. The site, which has planning permission for 18 detached homes of 2,400, 2,800 and 3,400 sq. ft., attracted the interest of a number of developers from Munster and Leinster. The site was previously purchased by Howard Holdings in 2006 for €10.7m. The sale of the site was handled by DTZ on behalf of the receiver, KPMG. The Irish Examiner, 20th August
NAMA London Building:
In 2010, developer Gerry Barrett’s Edward Holdings sold Bow Street Magistrates’ Court in Covent Garden, London to Austrians Rudolf and Christian Ploberger. The property was sold for £25m to reduce his NAMA exposure. The Plobergers have now put the property back on the market, however the guide price has increased three-fold to £75m. A portion of the increase in value can be attributed to the approval of planning permission to convert the property into a five star hotel and museum. The Sunday Business Post, 23rd August
Google Data Centre:
Google have confirmed that they are to develop a second data centre in west Dublin, at a cost of €150m. The data centre, expected to be in excess of 300,000 sq. ft., is to be located alongside their existing data centre at Profile Park near Grangecastle, west Dublin. Approximately 400 jobs will be created during the development of the data centre with several dozen permanent positions being generated once the data centre opens. Ireland is an attractive location for data centres as its cool climate allows operators to save money on energy costs. RTE, 21st August
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Project Arrow:
NAMA’s largest loan portfolio, the €7.2bn Project Arrow, is believed to have drawn the interest of at least five multi-billion euro funds. Cerberus, Lone Star, Deutsche Bank, CarVal and Apollo are among the primary candidates to purchase the portfolio, for which indicative bids were submitted last Friday. Per the information memorandum sent to prospective bidders, the portfolio consists of 367 borrower connections secured by 2,402 properties. The Sunday Business Post, 16th August
Block R Building:
The Central Bank has been selected as the preferred bidder for the Block R building at Spencer Dock, Dublin 1. The building had been on the market with a guide price of €90m through joint agents CBRE and Savills. The 128,000 sq. ft. Grade A office building is currently owned by Goldman Sachs, NAMA and Hines. Existing tenants include the Central Bank themselves and the OPW, with a current annual rent roll of c. €4.9m. The property is located near the Central Bank’s proposed new €140m headquarters in North Wall Quay. The Sunday Business Post, 16th August
Harcourt Terrace:
Lisney are guiding €3m for a 75% stake in 6 – 7 Harcourt Terrace in Dublin 2, a four storey over basement Palladian-styled property. The property measures 7,975 sq. ft. and has 8 car spaces. The whole of the property has been let to Burke-Kennedy, Doyle & Partners, who are occupying the property on a 35 year lease from December 1989. The contracted rent of €325,000 p.a. has been abated to €185,125 for the past four years. The Irish Times, 12th August
Hilton Hotel:
The four star, 120 bed Hilton Hotel on Kilmainham Square in Dublin is to be purchased by Tifco for an undisclosed amount. The current owner of the hotel is the Lalco Hotel Group, which is run by developer John Lally. Tifco is an Irish hotel operator backed by Goldman Sachs and currently operates hotels in Ireland and Germany under the Crowne Plaza and Holiday Inn Express brands. Goldman purchased Tifco’s loans from IBRC and then converted their interest into an equity stake in the company. The Sunday Business Post, 16th August
Ten Square Hotel:
Paddy Kearney’s Kilmona Group is believed to be close to completing the purchase of the Ten Square Hotel in Belfast. The boutique four star, 22 bed hotel was placed into receivership by Cerberus earlier this year. The debt attached to the hotel was sold to Cerberus as part of NAMA’s Project Eagle, with John Miskelly being the hotel’s former owner. The hotel was valued at c. GBP£4.2m per the latest accounts of Miskelly’s Yorkshire House Limited. NAMA Wine Lake, 16th August
Castle Oliver:
An Australian family have paid c. €3m for Castle Oliver in Ardpatrick, Co Limerick. The 14 bed, 23,000 sq. ft. castle is situated on 15 acres and had been on the market with a guide price of €2.95m. The new owners are planning to turn the property into their European residence, therefore it shall cease trading as a hotel. The previous owners were Emma and Declan Cormack from Northern Ireland. The Irish Independent, 14th August
Lidl Development:
Lidl is believed to have paid in excess of €2m for a site in Bishopstown, Co Cork. The site had been on the market with agents Coughlan Downing with a guide price of €1.3m. Lidl is now expected to seek planning permission to develop a new supermarket on the premises. The site is directly opposite a site where there is to be a new Aldi store, with Aldi’s unit close to completion. Aldi is believed to have paid c. €3m for their site. The Irish Examiner, 13th August
Elverys:
The sports retailer Elverys, which was bought out by management last year, has purchased a number of properties from the firm’s previous owners John and James Staunton for €2.75m. The properties acquired are spread across the country in Mayo, Donegal, Cork and Tipperary. The purchase was part-funded by Capita Trust Company, who provided debt facilities of €1.8m. Capnua sourced investor funding of €16.75m for the management buyout in 2014, which was led by Patrick Rowland. The Sunday Times, 16th August
Mortgage Drawdowns:
The Banking and Payments Federation report that there were 6,250 mortgage drawdowns in Q2 2015, amounting to €1.08bn. In value terms this was a 32.3% increase on Q2 2014. However percentage wise, the 64% jump in Q1 2015 compared to Q1 2014 was much greater, reflecting the introduction of the Central Bank’s new mortgage lending criteria. Owner occupier mortgages accounted for 90% of the €1.08bn drawn down in Q2 2015. The Irish Times, 14th August
Sorrento Terrace:
An unnamed US buyer has paid c. €10.5m for No. 1 Sorrento Terrace in Dalkey, Dublin’s most expensive residential property. The property had been on the market since 2013 for €12m. Sherry Fitzgerald and Lisney acted as joint agents on the sale, which was brokered through Christies International. Terry Coleman, the previous owner, purchased the property in 1998 for c. €7.5m and spent over €13m on a comprehensive refurbishment of the property before putting it on the market in 2006 for c. €30m. The Irish Times, 13th August
IPUT Portfolio:
The Irish commercial property fund IPUT has seen the value of its portfolio grow by c. 30% in a year. In IPUT’s latest report to their investors, the fund said their assets are now worth nearly €1.5bn. Growth of 6.1% was recorded in Q2 2015 from a combination of rental income and capital gains. Total rental income for the quarter was c. €21m. IPUT continued to add to its portfolio during the quarter, paying €80.5m for a 70.8% stake in Riverside One, Sir John Rogerson’s Quay. The fund plans to spend up to €500m this year, having spent €382m in 2014. The Sunday Business Post, 16th August
Trinity College:
Dublin City Council have granted planning permission to Trinity College for a €70m business school on the Pearse Street side of the campus. The six storey building will be almost 129,000 sq. ft. in size and will consist of two auditoriums and multiple lecture theatres. Trinity are hoping to commence construction shortly with the goal of having the building completed by September 2018. The development will be part funded by the European Investment Bank, who recently approved a €70m loan facility to Trinity. The Irish Times, 15th August
Dublin Port:
The European Investment Bank has approved a €100m loan facility to part fund the expansion of Dublin Port. The Alexandra Basin Redevelopment Project is a €230m project designed to increase the port’s ability to handle large ships. The project will deepen and lengthen 3km of the 7km of berths and also deepen the entrance channel. It is expected to take five years to complete the project. The Irish Independent, 16th August
Industrial Market:
The latest report from Savills on the Dublin industrial market focuses on the recovery of the market. According to Savills the take up for H1 2015 was c. 2.37 million sq. ft., more than double the H1 2014 figure. Sales continue to outpace lettings in the sector, with 61% of transactions coming from sales of units. In terms of transacted space, southwest Dublin is at the forefront, representing over two-thirds of transactions. Average prime industrial yields tightened to 8.1% in June 2015, with prime rents at c. €6 – €7 psf. Savills Industrial Market in Minutes, August 2015
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Dublin Docklands:
Greg Kavanagh’s New Generation Homes, who are backed by M&G Investments, has been identified as the preferred bidder for a c. €40m site in Dublin’s docklands. The 2.4 acre site is located on Lime Street, which is within Dublin’s Strategic Development Zone. New Generation are expected to lodge a planning application for a mixed use development, comprising office buildings and residential accommodation for the site. One of the underbidders, Johnny Ronan, is believed to own the freehold title of some elements of the site. The Sunday Business Post, 9th August
Cedarhurst Building:
The Sunday Times understands that the sale of the Cedarhurst building on Arkle Road in Sandyford is close to completion. Lisney are acting as the agent for the two storey office building which has a guide price of €3.9m. The property has a total internal floor area of 17,443 sq. ft. and sits on a 0.65 acre site. The site has significant redevelopment potential, with its zoning allowing for a six storey building to be built. The Sunday Times, 9th August
Microsoft Building:
BAM Construction have been awarded the contract to build Microsoft’s new office in Leopardstown. It is believed that the proposed c. 375,000 sq. ft. office building will be worth over €100m once completed and will create up to 150 jobs during construction. The majority of Microsoft’s 1,200 Irish employees are expected to have moved to the new office by the end of 2017. The Irish Independent, 8th August
Dublin Supply:
With surging demand through record tourism numbers and a recovering local economy, the immediate outlook for the Dublin hotel market is strong. The hotel research company AM:PM have however identified the lack of new hotel rooms as a risk to the sector over the medium term. It appears unlikely that the current requirement of 5,000 new rooms by 2020 will be met, with only 500 new rooms estimated to be completed by the end of 2017. The Ballsbridge and Clyde Court hotels in Ballsbridge, recently sold under Project Trinity, could also close as part of a redevelopment. This would temporarily reduce the supply of rooms by 585. Just three hotels have opened in Dublin in the past five years. The Sunday Times, 9th August
VAT Rate:
The reduced VAT rate of 9% for the hotel and restaurant sector is expected to remain unchanged in the forthcoming budget. Although it costs the government c. €350m per year, it is seen as vital to the thriving tourism industry. The reduced VAT rate is credited with the creation of 31,000 jobs since it was introduced three years ago. The Sunday Business Post, 9th August
Hennebry Refinance:
Former Leinster rugby player Paul Hennebry has exited NAMA after refinancing his c. €25m par value loans with Cardinal Capital. Hennebry, along with his brothers Michael and Barry, is also close to completing the purchase of the Citi Hotel in Dame Street, Dublin 2. The Irish Independent believes that the deal will close in the next week. The Irish Independent, 9th August
Cabinteely Development:
O’Flynn Capital Partners have been denied planning permission for their proposed 164 house scheme in Cabinteely, Dublin 18. Dun Laoghaire – Rathdown county council cited the risk of flooding as the primary reason for refusing the application. Michael O’Flynn, who purchased the site last year for c. €13m, was still confident that his company would be able to progress with the development of the site. The Sunday Times, 9th August
Clongriffin Development:
Hollywood New Homes have sought planning permission for 124 apartments in Clongriffin, Dublin 13. The apartments are to be constructed in either five or six storey buildings with penthouse units on top. Hollywood have already completed the construction of a 150-unit scheme of apartments and family homes in Malahide, north Dublin. The Irish Independent, 9th August
Holiday Home Market:
Estate agents are reporting a recovery in the holiday home market this summer, citing the recovering economy, low deposit rates, stronger sterling and improved infrastructure as key factors. The extension of the M11 motorway, which links Dublin to Wexford, has played a factor in the recovery in Rosslare, where there has been 55 units sold so far in 2015. In comparison, there were only 29 units sold in the same period for 2014. The Irish Times, 6th August
H1 2015 Sales:
According to the latest figures from the Property Price Register, the number of property transactions completed in H1 2015 (21,425) was more than 33% higher than the same period in H1 2014 (15,920). However with the surge in transactions in Q4 2014 due to the impending new mortgage rules and the ending of CGT exemptions, the figures for H1 2015 are only 49.6% of the total figure for 2014 (43,164). The Irish Times, 6th August
D4 Site:
Joint agents McNally Handy and Hooke & McDonald are guiding €1.75m for three three-bed semi-detached properties on South Lotts Road, Dublin 4. Adjacent to the three properties is a 0.11 hectare site for which McNally Handy is guiding €1m. The combined purchase of these two assets could appeal to developers due to their attractive location. The assets are alongside the Gasworks apartment scheme which contains c. 600 apartments. The Irish Times, 5th August
Blackrock Clinic:
Joseph Sheehan, who owns 28% of Blackrock Clinic, has secured a €50m debt facility from HIG Capital. The facility will be used to repay two loans which are secured by his shares in the clinic. Under the terms of the agreement HIG Capital will charge 20% interest and be entitled to 15% of the proceeds of any sale of Blackrock or Galway Clinic after the debt is repaid. €29.4m will be used to repay Breccia, a company owned by fellow shareholder Larry Goodman. Breccia previously tried to appoint a receiver over Joseph Sheehan’s shareholding in December 2014. The Sunday Business Post, 9th August
Commercial Property Turnover:
BNP Paribas’ latest research on the Irish commercial property market reports turnover of €671m in Q2 2015, down 30% on Q1 2015. €323m of this figure was from transactions in Dublin, with 64% of the €323m being prime office properties. Of the €348m spent outside of Dublin, c. €67m was from office market transactions, re-affirming the belief that confidence in the property market outside of Dublin has recovered. The Irish Times, 5th August
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie