Government Initiatives: RTÉ reports that no changes are expected to be made to the Help-to-Buy (HTB) scheme in this year’s budget, however there are substantial changes proposed to the rate of stamp duty on commercial property transactions. When commenting on the HTB scheme, RTÉ cites a report commissioned by the Government which states that it is too early to judge the impact of the HTB scheme, which was only introduced last year. On stamp duty for commercial property transactions, RTÉ reports that there is speculation that the Government could increase the rate from 2% to 5% or 6%. RTÉ, 9th October
Q3 2017 Investment Summary: New figures from JLL show that the level of investment in the Irish commercial property market exceeded €1.3bn in the first nine months of 2017, with c. €530m of investment in Q3. The largest transaction in Q3 2017 was the off-market purchase of an un-named Dublin office block for c. €60m. JLL forecast that the total investment volume for 2017 will be between €2bn and €2.5bn, with this assumption based on transactions for The Square in Tallaght (€233m) and the Gibson Hotel (€87m) completing before the end of the year. Even if the projected investment figure of €2.5bn is reached, it will still be significantly lower than the corresponding figure of c. €4.5bn recorded in 2016. The Irish Times, 3rd October
Danske Retail Book: The Irish Independent reports that a joint bid by Goldman Sachs and Pimco is close to being chosen as the preferred bid by Danske for its c. €1.8bn retail loan portfolio. The loan portfolio has drawn substantial interest, with institutions such as Bank of Ireland, Prudential and the US hedge fund, Elliott Management reported as rival bidders for the portfolio. Goldman Sachs and Pimco are understood to have offered 95 cents in the Euro for the portfolio. The Irish Independent, 6th October
The Griffeen Centre: QRE are guiding €6.5m for a mixed-use neighbourhood centre in Lucan, Co. Dublin, which will offer a yield of c. 9% based on the guide price. The current rental income of the property, which is understood to be c. 96% occupied, is c. €611k p.a. The property includes seven retail units, six office suites, a crèche, a restaurant, a medical centre and a community centre. The tenants which pay the highest portion of the rent are Centra (€145k p.a.), Pizza Hut (€70k p.a.) and McCabe’s Pharmacy (€50k p.a.). The property, which dates from 2006, is being sold under the instructions of an AIB-appointed receiver. The Irish Times, 4th October
Avoca Stores: Signature Capital has reportedly agreed to acquire two Avoca properties in Dublin and Wicklow from Aramark, on behalf of their private clients. The properties are located at Rathcoole in Dublin and Kilmacanogue in Wicklow. The Sunday Times, 8th October
No. 1 Dublin Landings: The Irish Times reports that Ballymore and its partner Oxley are to commence the forward sale of the first of five office buildings under construction in the new Dublin Landings development in Dublin’s docklands. Joint agents CBRE and Knight Frank are guiding c. €150m for No. 1 Dublin Landings, which will offer an initial return of 4.5%. The 10-storey, 143,158 sq. ft. block has been fully let to the NTMA at a rent of €50 psf for the office space and €4k for each of the 44 car-parking spaces. The building is due to reach ‘practical completion’ in Q1 2018, and depending on the final measurements, the annual rent roll will be c. €7m p.a. The NTMA have taken a 25-year lease on the building, with a break option in year 15. When completed, Dublin Landings will extend to over 1.08m sq. ft. and in addition to offices, retail and restaurant facilities, the development will also contain 288 apartments. The Irish Times, 4th October
Gardner House: The Sunday Times reports that IPUT has agreed to purchase Gardner House, a c. 75,000 sq. ft. office block on Wilton Terrace in Dublin’s Grand Canal for c. €60m. The purchase price represents a much lower price than the c. €83m which IPUT previously sold the property for, to a consortium which included Gerry Conlon and Colum and Ciarán Butler in 2006. The seller of the property is Kennedy Wilson, who acquired loans linked to the property for c. €45m in 2015. The Sunday Times, 8th October
Independent House / Brett Court: CBRE has begun the sales process for an office building occupied by Independent News & Media, an adjoining supermarket and 10 apartments in Dublin’s north city centre, with the portfolio expected to sell for in excess of €24m. The portfolio consists of Independent House and Brett Court, which are located on Talbot Street and Foley Street, and have a combined floor area of 61,000 sq. ft. and rental income of €1.47m p.a. The sale includes 26 basement car spaces. Independent News & Media occupy the office block, paying rent of more than €1.04m p.a. (c. €22 psf), under a 25-year lease from 2004, with a break option in 2024. The supermarket is occupied by Kane’s Supervalu under a 25-year lease from 2004, at a rent of c. €275k p.a. (c. €28 psf). The portfolio, which was developed by Bennett Construction in 2004, is being sold under the instructions of the receiver, Ken Tyrrell of PwC. The Irish Times, 4th October
Park House: Dublin Institute of Technology (DIT) has reportedly paid c. €9m to acquire the Park House office block on North Circular Road in Dublin’s north city centre. The 113,034 sq. ft. block, which dates from 1972 when it was opened as a hotel before being substantially redeveloped, will be used to relocate staff closer to the college’s new c. €500m campus at Grangegorman. The Irish Independent, 5th October
Cisco Galway: Friends First has paid €8.1m, c. €400k below the guide price, for a modern office building in Oranmore Business Park in Co. Galway. The 49,694 sq. ft. property is let to Cisco Corporation under a 25-year lease from 2007, with a break option at the end of 2022. The current rent is c. €774k p.a., with the lease subject to five-yearly upwards-only rent reviews. The sale includes a 99-space basement car park with an additional 42 surface spaces. The Irish Times, 4th October
Century Court: Cushman & Wakefield is guiding in excess of €3m for part of Century Court, a mixed-use development on Upper George’s Street in the centre of Dún Laoghaire in south Dublin. Century Court consists of four blocks extending to 17,544 sq. ft. and included in this sale is Block A, the first to third floors of Block B, the second and third floors of Blocks C and D and 30 underground parking spaces. The rental income from the units for sale is c. €390k p.a. from five tenancies, with the units having a weighted average unexpired lease term of approximately three years. Based on the guide price, the net initial yield is c. 12.5%. Tenants include An Post, Sagem Security, Clickworks, St Nicholas Montessori Society of Ireland and The Saint John of God Trust (Lucena Clinic). There are three floors of vacant office space in Block B, offering the purchaser the opportunity to increase the rental income in the short-term. The Irish Times, 3rd October
Pembroke Place Ballsbridge: Lordglen Ltd has sought planning permission from Dublin City Council for a 10,000 sq. ft., 15-suite extension to an aparthotel development in Ballsbridge, Dublin 4. The site of the proposed extension is the former HQ of Cablelink / NTL, with planning permission already in place on the site for a 25,000 sq. ft., 43-suite aparthotel. Lordglen is controlled by Brian, John and Geraldine Kennedy and Liam, Frank and Peter McSharry. NAMA Wine Lake, 8th October
Hampton Hotel: Genport Ltd has sought planning permission from Dublin City Council to add 10 bedrooms to the four-star, 24-bedroom Hampton Hotel on Morehampton Road in Ballsbridge, Dublin 4. The rooms would be accommodated by redeveloping an existing nightclub on the site of the hotel. Genport is controlled by Gene Kavanagh, Brenda Flood and Philip Smyth. NAMA Wine Lake, 8th October
The Regency Hotel: The Regency Hotel, which is located along the main route to Dublin Airport from Dublin city centre in north Dublin is being upgraded and rebranded. The hotel is being renamed the Bonnington hotel, bringing it under the same brand as its sister hotel in Dubai, The Bonnington Jumeirah Lakes Towers. As part of the refurbishment, the lobby and reception areas have already been refurbished. Further works to be completed over the next 18 months include a major upgrade to the bedrooms and public and dining areas. The hotel contains 240 bedrooms, a state of the art leisure centre, a new conference centre for 3,000 delegates, and a newly refurbished lounge and bar. The Irish Examiner, 5th October
Glenveagh IPO: Shares in Glenveagh Properties rose by as much as 16.3% in initial trading, after the company raised €500m from its IPO on the London and Dublin stock exchanges. The increase in the share price pushed the value of the company from €617m to c. €717.6m. The market capitalisation of Glenveagh could see a further substantial increase in the coming weeks, if as expected, Credit Suisse and Davy exercise an option to place another 50m shares on the market within 30 days of the IPO. International investors are believed to have already fully subscribed to this additional share placement. Shares in Glenveagh are trading conditionally until Friday, when the transaction becomes unconditional and is formally listed on the stock exchanges. The Irish Times, 10th October
Glenveagh Sites: The Sunday Business Post reports that Glenveagh Properties has agreed to acquire a number of high-profile residential development sites in Dublin from Cerberus. The sites include the original Chester Beatty library near Shrewsbury Road in Dublin 4 and a second site at Proby Square in Blackrock. The Chester Beatty site has permission for 10 houses while the Proby Square site has permission for 23 units. The purchase price of the sites is c. €22m, with the value of the sites upon completion estimated at c. €59m. In a prospectus circulated to analysts last week, Glenveagh revealed that they have c. 1,700 units which are ‘shovel ready’. The Sunday Business Post, 8th October
North Bank Apartments Portfolio: Hooke & MacDonald are guiding €33m for the North Bank portfolio in the north Dublin docklands, one of the last remaining large-scale Dublin city centre apartment developments to be offered for sale in a single lot by NAMA. The development contains 124 apartments, the majority of which have been upgraded, with the remainder to be refurbished before the sale takes place. The development consists of 124 apartments, split between 31 one-bedroom units, 64 two-bedroom units and 29 three-bedroom units, alongside 85 car parking spaces and a 16,468 sq. ft. vacant ground floor commercial building which is currently in shell and core condition. Hooke & MacDonald estimate that when fully let, the residential development will generate rental income of c. €2.63m p.a., equating to a gross yield of 7.09%. The development was completed in 2007 by Liam Carroll’s Zoe Developments. Hooke & MacDonald have been retained by David Carson of Deloitte, who was appointed as the receiver by NAMA. The Irish Times, 4th October
Shelbourne Plaza: A Davy fund has paid in excess of €23m for the Shelbourne Plaza apartment development in Ringsend, Dublin 4, a purchase price well above the guide price of €18.5m. The development, which was completed in 2007, was sold with vacant possession, with the apartments having previously been leased to a company who provided short-term serviced accommodation. The new owner has the option of continuing this arrangement, with short-term rents in the area ranging from €850 – €1,000 per week for a one-bedroom unit and €1,500 – €2,000 per week for a two-bedroom unit. Of the 52 apartments sold, six are one-bedroom units, 42 are two-bedroom units and four are four-bedroom units. The Irish Times, 4th October
Planning Guidelines: Housing Minister Eoghan Murphy has indicated that changes will be introduced to planning regulations in an effort to address the ongoing housing crisis. The potential changes he has suggested include lifting the height restrictions in core city centre locations and along public transport corridors, and removing the mandatory provision of car-parking for developments in certain areas. Mr Murphy also suggested the development of a new style of accommodation for professionals, whereby they would have their own en-suite bedrooms, but share other facilities, in an effort to bridge the affordability gap between student accommodation and apartments. With regards to increasing the size of cities, the Minister believes that building cities outwards is a failed concept, and that more apartments need to be delivered in Irish cities. The Minister advised that new statutory guidelines would be in place by the end of the year, following the publication of a draft of the new policy provisions by the Department of Housing and Planning by the end of November. The Irish Times, 6th October
Harold’s Cross: Archtree, a newly formed Irish development company, is expected to proceed with a residential development in Harold’s Cross, Dublin 6W, after acquiring a 3.4-acre site for above the €15m guide price. The development will consist of 36 three and four-bedroom houses, for which prices are expected to guide from c. €775k, and 30 apartments which are expected to have asking prices beginning at €360k. Archtree was formed by Shane Barrett, Paul Whitaker and Tom Gilligan. The Irish Times, 4th October
Portmarnock Development: Subsidiaries of the American fund Lone Star have sought planning permission from An Bord Pleanála for 102 houses and 96 apartments at Station Road in Portmarnock, north Dublin. The application is to be decisioned under the fast-track planning regulations by November 29th. The Sunday Times, 8th October
Hole in the Wall Road: Gannon Homes Ltd has sought planning permission from Dublin City Council to develop 13 three-bedroom, two-storey houses on the Hole in the Wall Road in north Dublin city. Gannon Homes is controlled by Gerry Gannon and Aidan Kenny. NAMA Wine Lake, 8th October
Dublin 8 Development: L&S Developments Ltd has applied to Dublin City Council for planning permission to construct a mixed-use building consisting of ten apartments and two retail units on Bow Lane West, near St James’s Hospital in Dublin 8. L&S is controlled by Lisa and Robert Slevin. NAMA Wine Lake, 8th October
Housing Completions: The Department of Housing has published its latest statistics on housing supply, with their figures for completions based on new ESB connections. The figures show that for the months of June, July and August 2017, the total number of units completed nationally was 4,891, giving a monthly average of 1,630, a 31% increase on the monthly average of 1,244 units for all of 2016. Figures from the four local authorities in Dublin show that the combined number of units completed in the capital was 1,564 units for the three-month period, giving a monthly average of 521. The figures for Dublin reflect an increase of 48% on the monthly average for completions in 2016 of 353. NAMA Wine Lake, 8th October
EBS Mortgage Rate: EBS, which is a subsidiary of AIB, has announced interest rate cuts to its fixed-rate mortgage products. The most substantial reduction was to the building society’s five-year rate, which has been cut from 3.8% to 3.25%, with the rate on the one-, two- and three-year fixed rate mortgages being reduced to 3.15%. The reduced rates will apply from October 10th, however existing fixed-rate borrowers will have to wait until their current term expires, or else they may incur a penalty. The Irish Times, 9th October
St James’s Gate Quarter: Diageo has confirmed plans to develop a 12.6-acre site within its St James’s Gate complex in Dublin city centre, and is seeking a development partner for the project. The mixed-use project will consist of residential, office and commercial spaces alongside public spaces. Diageo has not released financial details on the project, which it says will not be fully determined until a development partner is in place. It will also retain ownership and custodianship of a number of key buildings in the quarter, including Arthur Guinness’s residence and St James’s Gate itself. A feasibility study submitted to Dublin City Council by Diageo suggests the 12.6-acre site has the potential to deliver c. 678,000 sq. ft. of office space, c. 54,000 sq. ft. of retail space, c. 237,000 sq. ft. of hotel / leisure facilities and up to 500 homes. The tender process will be managed by Deloitte Real Estate and is expected to take 18 months to complete. The Irish Times, 4th October
Friends First Acquisition: Friends First has paid c. €25m for a warehouse and distribution facility at the Merrywell Industrial Estate in Ballymount, Dublin 22. The facility was constructed in two sections on an enclosed 9.4-acre site, and the fund has availed of a sale and leaseback opportunity, with a 35-year lease to a tenant who is a subsidiary of Valeo Foods. Based on the lease, the property will offer an overall equivalent yield of 6.2%. The Irish Times, 4th October
Trim Primary Care Centre: The Sunday Business Post reports that Barchester Healthcare has placed its primary care centre in Trim, Co. Meath on the market. The centre, which is located alongside Knightsbridge nursing home, is generating a combined income of c. €479k p.a. from four lease agreements. The centre is anchored by the HSE, however there are also GP practices and a pharmacy located on site. The value of the centre is estimated at c. €20m when an adjacent 2.5-acre site is included. The Sunday Business Post, 8th October
Tralee Primary Care Centre: Glencar Medical is understood to have agreed a deal to purchase a primary care centre in Tralee, Co. Kerry, from Lee Strand, a local co-op, for c. €17m. The state-backed company has been active in the market recently, having completed a deal for Mitchelstown Living Health Clinic in Co. Cork in recent weeks, after also acquiring facilities in Wicklow and Mayo earlier this year. The Sunday Times, 8th October
Crèche Portfolio: Offers in excess of €7.6m are being sought by agents Kelly Walsh for a portfolio of six modern crèche facilities in south Dublin and a seventh facility in Greystones, Co. Wicklow. The portfolio is fully let to Park Academy Ltd at a combined rent of c. €647k p.a., offering a return of 8.15% after standard purchaser costs. The agents plan to sell the properties by tender on November 17th, or they can also be bought in individual lots, with the asking price for each individual property available on request. The locations of the crèches include Beacon Court, Beacon South Quarter, Greystones, Cherrywood, Cabinteely and Booterstown Avenue, and the directors of Park Academy will provide a personal guarantee on the rental income of each property for three years. The Irish Times, 4th October
Dublin Pub Sales: New figures from CBRE show that 16 pubs in Dublin were sold in the first nine months of 2017, with a combined sale value in excess of €17.8m. This figure compares with sales of more than €50m in the whole of 2016, c. €50m in 2015 and c. €45m in 2014. Pubs that were sold included Bolands in Stillorgan (sold for well above the €1.4m guide price), JJ Smyth’s on Aungier Street (c. €1.4m) and Sandyford House in Sandyford (c. €1.7m). The decrease in the value of sales is attributed in some degree to improving trading conditions in Dublin leading to a reduction in the number of properties being offered for sale. According to CBRE, four Dublin pubs are currently sale agreed and expected to close in the near future. The Irish Times, 3rd October
Intel Manufacturing Facility: Intel has received planning permission from An Bord Pleanála for a two-storey, c. 969,000 sq. ft. manufacturing facility at its facility in Leixlip, Co. Kildare. While Intel’s corporate parent has yet to confirm that it will proceed with the development on the site, as they are also looking at alternative locations such as Israel, the construction of the facility would be very positive for the labour market. The development of the facility would be expected to create c. 3,000 construction jobs, with 850 jobs created post-completion. The Irish Times, 9th October
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7 South Anne Street: Cushman & Wakefield are guiding €4.685m for 7 South Anne Street in Dublin city centre, which will offer a net initial yield of 5% once purchaser’s costs are taken into account. The four-storey, over-basement building extends to 4,542 sq. ft. and is let to Eddie Rockets on a 35-year fully repairing and insuring lease from 1988, with c. 5.6 years remaining. The net rent of €244k p.a. is subject to five-yearly upwards only rent reviews, with the next review in June 2018. The Irish Times, 27th September
Lifestyle Nutgrove: Offers in excess of €1.75m are being sought by Quinn Agnew for a 3,304 sq. ft. retail unit occupied by Lifestyle Sports in Nutgrove Shopping Centre in south Dublin. The unit is let to Drevez Nutgrove t/a Lifestyle Sports under a 20-year, two-month lease from September 1999 at a rent of €130k p.a., with the lease guaranteed by Lifestyle Sports (Ireland) Ltd. Quinn Agnew, 26th September
WeWork Expansion: WeWork, a US company that provides office space with flexible leases, is to expand into the Dublin market, after agreeing rental terms on two buildings being upgraded in the city. The company will occupy 50,000 sq. ft. in the renamed 1GQ, the George’s Quay block which was previously Ulster Bank’s Dublin HQ, and 55,000 sq. ft. in Iveagh Court, which was recently occupied by the Central Bank. It is understood that WeWork has agreed rental terms of c. €57 psf for the ground and first floors in 1GQ, and c. €50 psf for the Iveagh Court lease. Both leases are believed to be for 25 years, with break options in year 15. The two new offices should be ready for fit-out in early 2018. The Irish Times, 27th September
The Exchange: Ronan Daly Jermyn (RDJ) has agreed to rent 6,781 sq. ft. of office space in The Exchange, an office block which is nearing completion in Dublin’s IFSC. Under the terms of the lease, RDJ will lease space on the ground floor of the six-storey building, paying a rent of c. €50 psf on a 20-year lease which has a break option in year 10. The law firm will join the Food Safety Authority of Ireland, who agreed a lease for 19,041 sq. ft. on the first floor in June of this year. Upon completion, The Exchange will have 105,000 sq. ft. of grade A office space, two retail units (1,173 sq. ft. and 506 sq. ft.), 37 car spaces and 133 bicycle spaces. Joint agents Savills and JLL are quoting €52.50 for the remaining space in the building. The Irish Times, 27th September
St Fintans Swords: Lambert Smith Hampton is guiding in excess of €2.6m for a mixed-use development containing three retail units and five overhead office suites in Swords, Co. Dublin. The development, which was built in c. 2007 and is located at the junction of North Street and Balheary Road, generates rental income of c. €227k p.a., offering a net initial yield of 8.37%. Two of the three retail units are let to Gourmet Food Market (€8k p.a.) and Paddy Power (€30k p.a.), while the third unit, which has planning permission for a food takeaway outlet, is vacant. Four of the five office units are let to the HSE, Flexsource, Gourmet Food Market and Connect Serviced Offices. The agents advise that rental terms have been agreed on the fifth office suite. The sale also includes 44 car-parking spaces. The Irish Times, 26th September
Tetrarch Capital Accommodation Complex: Tetrarch Capital has been granted planning permission for a new development in Dublin city centre which will include a 393-bedroom hotel, a 202-room aparthotel and 21 apartments. The €80m, eight-storey scheme will be developed on a one-acre site bounded by Townsend Street, Moss Street and Gloucester Street South in Dublin 2, and will involve the demolition of the existing buildings on the site, including council flats on Moss Street and Ned’s pub. Under an agreement with Dublin City Council, the new apartments (14 one-bed and seven two-beds) will be handed over to the council on completion. The Sunday Times, 1st October
Sandyford Student Accommodation: Prime Living, a Swedish student accommodation provider, has purchased a site at the junction of Blackthorn Road and Carmanhall Road in Sandyford, south Dublin, with a view to developing a c. 700 bed space student accommodation complex on the site. The company estimates that the total cost of the development will be c. €31.5m, which includes the €10.3m site acquisition cost. The site was sold with planning permission for 147 apartments, a crèche, café, gym and 151 car parking spaces. The Irish Times reports that Prime Living’s emergence as the buyer was somewhat of a surprise, given that the existing planning permission is likely to be of little value to the company. The site is located c. 3km from UCD, and a five minute walk from two Luas stops, offering easy access to Trinity College, RCSI and DIT. The project is a JV between Prime Living (70%) and Cara Cove (30%), and the JV intends to also target additional student housing development opportunities in Ireland and the UK. The Irish Times, 27th September
Danes Hollow: Concert promoter Peter Aiken of Aiken Promotions has paid over €8.2m for Danes Hollow, a north Dublin coastal home previously owned by Riverdance creators Moya Doherty and John McColgan. The 9,000 sq. ft. property came on the market in April 2016 with a guide price of €9.5m. The property, which is situated on a 3.35-acre site, is located beside Baily Lighthouse and benefits from sea views across Dublin Bay to Bray Head. The previous owners purchased the property in 1997, when it was a modest bungalow on one acre of land, however they later purchased the adjoining land and constructed the large five-bedroom home and expansive terraced gardens. A small cliff-edge guest cottage on the site with its own access road has been retained by the previous owners. The Irish Times, 28th September
Ballinteskin Stud: Agents REA Coonan have placed a €2.5m minimum price on Ballinteskin Stud, a 120-acre country estate near Enniskerry in Co. Wicklow, which is to be sold by way of auction on October 25th. The estate was previously acquired by John Flynn from the Durkan family in 2006 for c. €7m. After a major refurb, Flynn put it back on the market in 2008 for c. €14m, however it failed to sell. The fully refurbished six-bedroom Georgian house comes with c. 30 stables, indoor and outdoor arenas and a helicopter hanger and landing pad. The Irish Times, 28th September
Lisselan Estate: The Irish Examiner reports that Lisselan Estate, a 10,000 sq. ft. chateau located on a land belt of 315 acres near Clonakilty in Co. Cork, has been sold to an unnamed buyer for c. €3.5m. The estate was previously brought to the market in 2014 with a guide price of €9m, however it now appears to have sold for a fraction of this price. The 315 acres which comprise the estate include 160 acres of agricultural land, a nine-hole golf course extending to 80 acres and 30 acres of extensive gardens which surround the main house. The property was previously owned by the Blackburn family. The Irish Examiner, 28th September
D18 Residential Site: Savills have been retained by Deloitte to market a 3.75-acre site at Aikens Village, in Stepaside, Dublin 18, which is to be sold by way of licence agreement. Deloitte are the receiver over the site, which previously belonged to the Aikens Village Partnership. The planning permission permits the development of 35 houses, 18 apartments and eight duplex units. The site is to be sold by way of licence agreement, with the purchasers likely to pay a deposit of c. €1m and further payments (potentially rising to c. €5m) upon completion and sale of the residential units. The Irish Times, 26th September
Northern Cross: Three development sites at Northern Cross on the Malahide Road in north Dublin have been brought to market through agent JLL. The three sites are available in individual lots, or together with a guide price in excess of €3.4m. The first site extends to one acre, and has a guide price in excess of €250k. The second site extends to 1.4 acres and is expected to sell for over €2.25m, while the third site, which is guiding €850k, extends to 0.5 acres and fronts onto the Malahide Road. All three sites are located within the Northern Cross, which includes 500 apartments, offices, the Hilton Dublin Airport Hotel and a range of retail outlets. The Irish Times, 26th September
IRES Sandyford: IRES REIT’s planning application for c. 450 apartments in Rockbrook in Sandyford, south Dublin, has been declined by An Bord Pleanála (ABP). In making their ruling, ABP determined that the proposed development would be “contrary to the statutory development plan for the area”. Davy Stockbrokers now expect IRES to submit a revised planning application for 350 – 400 apartments. The Irish Times, 3rd October
Mortgage Approval Statistics: The latest figures from the Banking and Payments Federation Ireland (BPFI) show that 3,964 mortgages were approved in August 2017, with c. 51% being for first-time buyers (FTB). The August 2017 approval volume figures represented an increase of 14.7% YoY, but a decline of 0.2% MoM. The total value of mortgages approved in August 2017 was c. €842m, an increase of 24.5% YoY, but a decline of 1.3% when compared to the figures from July 2017. On its own, the FTB sub-sector showed increases of 25.6% YoY on a volume basis and 41.2% YoY on a value basis. BPFI Mortgage Approvals August 2017
Glenveagh Properties IPO: Glenveagh Properties, the new Irish housebuilder backed by Oaktree Capital and the residential developer Bridgedale, has raised its IPO target for the third time, with the target now set at c. €550m. The IPO is expected to take place by the middle of next week. The company plans to build at least 1,000 new homes per year by 2020, and more than 2,000 new homes and apartments per year in the longer term. The Irish Times, 2nd October
Daft.ie House Price Report: The Q3 2017 house price report by Daft.ie shows that the national rate of inflation in asking prices slowed to just 0.3% for the quarter. This rate of inflation is well below the 4.3% quarterly increases witnessed in the first two quarters of 2017. The report also examined the rate of inflation in transaction prices in the 12-month period ending September 2017, with national inflation running at 11.2%, driven largely by inflation in Dublin transaction prices of 15%. According to the report, the projected rate of inflation for the next 12 months is 6.6% nationally and 8.3% in Dublin. The Daft.ie House Price Report Q3 2017
MyHome.ie / Davy Report: The latest house price report from Myhome.ie and Davy has shown that the average cost of a home in Dublin has risen by 11.8% over the last year, equating to a price increase of c. €750 per week. The average mix-adjusted price for newly listed homes in Dublin is now €366k, an increase of €39k on the same period last year. On a national basis, the rate of inflation for the twelve months ending September 2017 was 8.9%, with the average price of a home up €21k to €253k. The double digit price-rises in Dublin are set to continue throughout 2018, according to the report. The author of the report, Conall MacCoille of Davy, stated that the ‘key factor’ driving house prices higher has been the mortgage market, with the average loan drawn down by first time buyers in Q3 2017 rising by 9.4% to €200k, up from €183k in mid-2016. The Irish Times, 1st October
Goodbody Housebuilding Tracker: A new report by Goodbody on housebuilding activity in Ireland suggests that the actual level of housebuilding is substantially below the figures reported in official completions data. The Goodbody BER housebuilding tracker, which is based on building energy ratings, shows that 5,377 houses were completed in 2016, compared with a reported 14,932 completions indicated by official data, which is based on electricity connections. Those opposed to the use of ESB meter connection data for housebuilding figures argue that new meter connections can be also triggered by works to existing homes or previously vacant units, thereby overstating the number of newly built homes. The Goodbody analysis shows that while the number of houses being built is increasing, it is still considerably below the number required to meet current and future demand, which Goodbody estimates to be 35,000 units per annum. Goodbody’s housebuilding tracker does show that in the year to August 2017, 5,393 units were completed, an increase of 77% YoY. Of the new homes completed this year (based on Goodbody figures), 72% were in the Greater Dublin Area of Dublin, Wicklow, Meath and Kildare. Semi-detached homes remain the most popular property type, accounting for 41% of all new builds in 2017. Goodbody, 2nd October
Mortgage-To-Rent Schemes: AIB and Permanent TSB (PTSB) have announced plans of their mortgage-to-rent schemes. AIB have become the first bank to launch the scheme, having reached an agreement with the Irish Mortgage Holders Association and iCare Housing. Per the terms of the scheme, iCare will obtain €100m of funding from AIB, with these funds being used to acquire properties from borrowers who qualify for the scheme. In return for surrendering ownership of their homes, the families (who will need to qualify for social housing) will be able to enter into a long-term lease to stay in their homes. Any residual debt following the sale of their home will be written off under the scheme. PTSB is to launch their own scheme in the coming months, with a “preferred partner”. The bank expects up to 2,000 home loan holders to participate in the scheme. The Irish Times, 28th September
Cherrywood Town Centre: Hines has lodged a planning application to develop a new town centre in Cherrywood in south Dublin. The application seeks approval for the construction of a mixed-use development extending to 2.1m sq. ft. on an elevated site integrating the existing Luas stops at Cherrywood and Bride’s Glen. The proposed development will include 1,269 rental apartments and 585,000 sq. ft. of shops, restaurants, cafés, bars, leisure outlets and a hotel. It will also contain two underground car parks, 2,600 bicycle spaces and over 150 charging points for electric vehicles. Hines estimates that the development of the new town will take approximately three years, with work due to commence in Q2 2018. Hines and other Cherrywood landowners have already commenced the first phase of the development, which involves the development of three new parks and 5.4km of roadways, footpaths, cycle lanes and greenways as well as the planting of c. 3,000 trees. When completed, over 3,200 people are expected to live in the town centre, which will also accommodate 2,300 office workers. The Irish Times, 27th September
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Mace Expansion: The retailer Mace is planning to add 50 new stores to its nationwide network by 2020, with new stores in both urban and rural areas being targeted. Owner BWG foods will invest over €19m to part-fund the roll-out of new stores, and to provide existing stores with high-spec refurbishments. Mace recently launched a new three-year strategy as well as a new store design as it looks to target growth on the main streets, in neighbourhoods and in forecourts. The Irish Independent, 24th September
St Andrew’s House: Irish property fund BCP Asset Management, acting on behalf of its international fund Meyer Bergman, has paid c. €11.33m for St Andrew’s House, a four-storey over-basement block which fronts onto Exchequer Street and South William Street in Dublin city centre. The block contains five shops which front onto Exchequer Street and two more on South William Street, and includes units owned by Graham Shoes, Patagonia and Skinfull Affairs. In total the 15,566 sq. ft. block has 5,602 sq. ft. of retail space, 6,941 sq. ft. of office space and three apartments. The block is 80% occupied and currently generating rental income of €532k p.a., with Grahams Shoes paying the highest rent at €146k p.a. The projected income upon 100% occupancy is €680k p.a. The Irish Times, 20th September
Ballincollig Office Campus: Cushman & Wakefield has been retained by Blackstone to market the sale of an office portfolio at the Ballincollig Office Campus in Co. Cork, which has a guide price of €24m. The portfolio includes six office blocks – Kavanagh House, Pearse House, Yeats House, Behan House, Parnell House and Unit 3 at Emmet House, as well as the adjoining Sliced pod / kiosk restaurant and 380 spaces in a nearby four-storey car park. The current rental income is c. €2.1m p.a., with VM Ware paying nearly €2m of this as they occupy nearly 90% of the space. The total office space in the portfolio exceeds 108,000 sq. ft. The Irish Examiner, 21st September
South County Business Park: Savills are guiding €20m for two fully let office blocks at South County Business Park in Leopardstown in Dublin 18, which offer a net initial yield of 6.5%. Accenture House is a three-storey office block which extends to 24,300 sq. ft., with 89 car-parking spaces. The building is fully let to Accenture at €460k p.a. with a break option in c. 4.4 years, with c. 9.4 years until lease expiry. Whelan House is also a modern three-storey block, which extends to 51,150 sq. ft. and comes with 132 car-parking spaces. The building is let to six tenants with a weighted average unexpired lease term of c. 3.25 years and rent of €900k p.a. The tenants include Keywords International and Silicon & Software Systems. The Irish Times, 21st September
Dundrum Business Park: Knight Frank are guiding €8.75m for an office investment in Dundrum Business Park, Dublin 14. The modern three-storey block extends to 24,111 sq. ft. and is configured in a way which allows for future subdivision into two self-contained offices. There are also 49 car-parking spaces included in the sale. The majority of the block is let to BT, who pay a rent of €650k p.a., with the rent due to increase to €700k p.a. in 2021 until the lease expiry in 2026. There is additional rent of €27k p.a. generated from two telecommunication masts which are let to Three Ireland and Three Ireland Services. The current net initial yield of 7.3% will increase to 7.66% when BT’s rent increases. The Irish Times, 20th September
St John’s Court Office Park: Agents Bannon are guiding €5.5m for a 1980s partially let office park at Swords Road in Santry, Dublin 9. St John’s Court Office Park consists of 10 individual two-storey buildings, extending to 54,872 sq. ft., and 183 surface car-parking spaces. The offices are 45% let in seven occupied buildings to tenants including Irish Life, New Ireland Assurance and 3D Personnel. The current rent roll is €313k p.a., however Bannon estimate that this could be increased to €960k p.a. if the vacant offices were let at €15 psf and a €750 parking charge was introduced. The Irish Times, 19th September
Dublin Office Space: The amount of available office space in Dublin fell in Q2 2017, according to research published by Savills Ireland. The research shows that the large-scale demolition of older buildings outstripped the delivery of new office stock by c. 86k sq. ft. over the three-month period. In total, c. 431k sq. ft. of office space was decommissioned, while c. 345k of new space was delivered, primarily in Dublin 2 and Dublin 4. The report noted that whilst plans are underway to redevelop most of the decommissioned buildings, one property – Pinebrook House on Harcourt Street – is being converted into a hotel. Overall, the amount of vacant space fell by c. 100,000 sq. ft. to give an overall vacancy rate of 9.2% in Dublin. The vacancy rate for Grade A buildings in the best business locations remains at less than 1%. The Irish Independent, 22nd September
Goldman Sachs Tifco: The Sunday Business Post reports that Goldman Sachs is considering the disposal of its interest in the Tifco hotel group, and that it has asked sales agents to propose strategies which would allow it to do so. Goldman initially acquired an equity stake in Tifco in 2014 after it purchased the company’s loans. Through its interest in Tifco, Goldman now owns three Crowne Plaza outlets in Blanchardstown, Dundalk and Dublin Airport, in addition to the Hilton in Kilmainham and the Parliament Hotel in Temple Bar. The Sunday Business Post, 25th September
Ceannt Quarter: CIÉ is seeking a development partner to undertake a substantial development project on an 8.2-acre site adjacent to Ceannt railway station in Galway city centre. The project, known as Ceannt Quarter, is capable of providing 495,134 sq. ft. of retail space, 247,567 sq. ft. of offices, 176 residential units, a 200-bedroom hotel and a transportation interchange. Rather than sell the site, CIÉ is seeking to enter a development agreement whereby it would receive an annual minimum licence fee of €500k followed by the higher of a premium rent or an income sharing arrangement. The Irish Times, 20th September
St James’s Gate Development: The Irish Independent reports that Diageo is ready to trigger the development of a large block of land at its St James’s Gate site in Dublin. The project would be one of the largest developments in the city centre in recent times and would lead to the creation of a new quarter in the city. Sources have reported that more than 10 acres of land have been earmarked for development, with potential for hundreds of homes. It is expected that any proposal for the site will contain residential, commercial and leisure elements. The Irish Independent, 24th September
Cork Development Site: Joint agents Lisney and McCarthy & McGrath are guiding €4m for a ready-to-go 7.1-acre site adjacent to Killumney Village in Co. Cork. The site comes with planning permission for 70 residential units (52 semi-detached units, 12 detached units and 6 townhouses), with the planning permission having been obtained in June 2017. The Irish Examiner, 21st September
Marlet Dundrum Sites: There are updates on two Marlet-owned sites in Dundrum, south Dublin. Firstly the company received planning permission from An Bord Pleanála for a 120-apartment development on its Green Acres site, while the company has also sold the nearby 1.8-acre Annefield House site for €4m above the guide price. The Green Acres site development will be up to five storeys tall and will consist of 23 one-beds, 65 two-beds and 32 three-beds. The total sales proceeds from the apartments, which the company will reportedly sell individually, could be up to €60m. The Sunday Business Post, 24th September
Cork Harbour Mixed-Use Sites: The Doyle Shipping Group has retained Cushman & Wakefield to dispose of two mixed-use development sites with waterfrontage in Co. Cork, which have a combined value of over €8m. The first site extends to nine acres at Crosshaven Boatyard and is guiding €4.5m / €5m. This site could reportedly facilitate a mixed-use development which could include over 120 houses. The second site, which is guiding €3.5m, is located at the Victoria Dockyard in Passage West, and is zoned for mixed use / town centre expansion, thereby allowing for a range of uses such as residential, retail / supermarket and amenity leisure. The Irish Examiner, 21st September
KBC Mortgages: KBC have introduced a new low-cost fixed rate mortgage product for both new and existing customers, days after AIB introduced a range of rate cuts. The new product is a 10-year fixed-rate mortgage with an interest rate of 2.95% for borrowers with an LTV of 60% or less and 2.99% for those with an LTV of 80% or less. The rate includes a mortgage discount of 0.20% for customers who have a current account with KBC. The Irish Independent, 20th September
Rent Pressure Zones: Drogheda in Co. Louth and Greystones in Co. Wicklow have both been designated as rent pressure zones (RPZs), which means that landlords in these areas cannot raise rents by more than more than 4% a year. This brings the number of RPZs in the State to 21. The move comes as the Residential Tenancies Board announced that average rental costs grew by 6.6% in the year ending June 2017. The average national rent stood at €1,017 p.m., an increase of €63 from the same period last year. In Dublin, rents grew by 3.3% in Q2 2017, and are now 14% higher than at the peak of the housing boom at the end of 2007. The cost of renting in Dublin has increased by nearly €400 over the past four years. The Irish Independent, 20th September
Scibblestown Apartments Dublin: Dublin City Council is seeking planning permission to develop 70 apartments off Scibblestown Road in Finglas in Dublin, and in order to obtain the necessary planning permission, it has sought planning permission from itself to do so. The application seeks approval to develop 19 one-beds, 40 two-beds, 11 three-beds, as well as 108 car spaces. NAMA Wine Lake, 24th September
Finglas Apartments Dublin: Percolt Ltd has sought planning permission from Dublin City Council to convert a four storey office building in the Finglas Main Shopping Centre in Dublin into 28 apartments. The application proposes that the building, known as Raven House, will be converted into a residential complex which will accommodate 4 studios, 4 one-beds, 12 two-beds and 8 three-beds. The application also seeks to add a fifth storey to the building, which will contain 1 one-bed, 2 two-beds and 1 three-bed unit. NAMA Wine Lake, 24th September
Ellis Court Residential Units Dublin: Tuath Housing Association has sought planning permission from Dublin City Council to renovate the four-storey Ellis Court on Benburb Street in Dublin city centre, and to “deep retrofit” 22 new residential units. The units will consist of 6 one-bed apartments, 13 two-bed apartments, 2 two-bed houses and 1 three-bed house. NAMA Wine Lake, 24th September
Shared Ownership Scheme Arrears: New figures by 15 local authorities on the Shared Ownership Scheme (SOS), a sub-prime government mortgage initiative introduced during the Celtic Tiger, show that the average rate of distressed loans issued by the local authorities is 44%. The figure is well above the level of mortgage arrears identified by the Central Bank in the Irish market as a whole, of c. 10%. The SOS allowed people to buy a portion of their homes, and increase the percentage they owned in steps until they achieved full ownership. Ownership of the property was shared between the buyer and the relevant local authority, with the buyer making mortgage payments on the part they owned and paying rent to the local authority for the remainder. The Irish Times, 24th September
Heuston South Quarter Development: The Sunday Times reports that Joe O’Reilly’s Castlethorn Construction will enter into a JV with the American investment fund Marathon Asset Management in order to build a 340-apartment development at Dublin’s Heuston South Quarter. The Sunday Times, 24th September
Cairn Homes Developments: The Sunday Times reports that Cairn Homes has lodged two planning applications for large-scale developments in south Dublin and Maynooth, Co. Kildare. In south Dublin, Cairn is seeking permission to develop 598 student bed spaces, 103 residential units, retail space and a sports hall on the site of the former Blake’s nightclub and Esmonde Motors in Stillorgan, near UCD. While in Maynooth, Cairn is planning to build 476 student bed spaces, 332 houses, 71 apartments, retail units and a gym on the Maria Villa site. The Sunday Times, 24th September
Clancy Quay: Kennedy Wilson has launched a second phase of 163 apartments and houses at the Clancy Quay development in Dublin 8. The company acquired the complex in 2013 for c. €82m, and has since completed, refurbished and built new units in the development. The second phase brings the total number of existing units to 423, and the company has submitted a planning application to add a further 259 units to the remaining 2.8-acre Phase III site. The units in Phase II include one, two and three-bedroom apartments and one, two, three and four-bedroom houses. The average rents start at c. €1,750 p.m. for the one-bedroom apartments, rising to c. €3,000 p.m. for three-bedroom houses. The Sunday Business Post, 24th September
Greenogue Business Park: William Harvey & Co. is guiding €2.955m for two sites on the Jordanstown Road in the Greenogue Business Park in southwest Dublin, or €1.8m and €1.755m if purchased individually. Site 601A extends to 2.62 acres, and site 601B extends to 3.94 acres. Both sites are regular in shape and have an entrance off Jordanstown Road, while 601B also has scope for an additional entrance off Jordanstown Avenue. Greenogue Business Park is one of the largest industrial and warehousing developments in southwest Dublin and is located 1.1km from the Rathcoole Interchange on Naas Road (N7), which is 8.5km from Junction 9 on the M50. The Irish Independent, 21st September
UCC Expansion: The Irish Times reports that UCC is planning a c. €350m investment programme, which will include increasing their college campus space by 20% in the next five years. Included in the investment programme is c. €110m for the Cork university business school, a c. €37m dental school and c. €64m to support student accommodation developments. The college hopes to increase student numbers to c. 23,000 by 2022. The Irish Times, 26th September
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Danske Bank Loan Portfolio: Pimco and Bank of Ireland are believed to be amongst the four firms still in the running for Danske Bank’s €2bn retail loan portfolio, with final bids due on the 25th of September. The portfolio reportedly includes approximately 30,000 performing loans, 10,000 of which are mortgages tied to the borrower’s principal residence, while 5,000 are buy-to-let mortgages. It is expected the huge portfolio sale, the largest this year, will attract a full valuation given the book’s low level of arrears (less than 5%). A successful bidder will be selected shortly after final bids are received, with Danske and its advisors, Bank of America Merrill Lynch, aiming to close the transaction by December. The Irish Independent reports that AIB is not amongst the bidders for the portfolio. The Irish Independent, 13th September & 19th September
Project Zinc: The Sunday Business Post reports that NAMA is preparing to dispose of a portfolio of granular assets under an upcoming loan sale, Project Zinc. The book is believed to consist of a large number of smaller sized loans, with the security well dispersed geographically. The par value of the portfolio has not yet been disclosed. The Sunday Business Post, 17th September
Axis Portfolio: Offers in excess of €50m are being sought by Calibrate Real Estate Ltd for the Axis Portfolio, an investment portfolio which includes a commercial and residential development in Galway, a suburban shopping centre in Swords, Co. Dublin, and two well-located car parks in Dublin and Limerick. QRE is guiding offers in excess of €23m for Citypoint, which contains a mixture of retail, office and residential units overlooking Eyre Square in Galway, with a rental income in excess of €1.5m p.a. QRE are guiding €10m for Boroimhe Shopping Centre in Swords, which extends to 34,000 sq. ft. and produces rental income of €885k p.a., offering a net initial yield of 8.2%. The car parks for sale are the Grand Canal Car Park in Dublin’s Silicon Docks and Cruises Street in Limerick city centre. QRE is guiding more than €15m for the Grand Canal Car Park which contains 165 spaces beneath the Bórd Gais Energy Theatre, while the 340-space Cruises Street Car Park is expected to sell for more than €2m. The four properties are being offered for sale in a single lot, however according to the sales agents, the vendor will consider ‘exceptional bids’ on a lot by lot basis. The Irish Times, 13th September
The Supermarket Collection: Agents TWM are guiding €49m for a portfolio of four supermarkets in Gorey (Co. Wexford), Sandyford (Co. Dublin), Roscrea and Cahir (both Co. Tipperary). Two of the supermarkets are operated by Tesco with the other two rented by Aldi. The Supermarket Collection portfolio extends to 172,000 sq. ft. and the units generate a combined rental income of €3.41m p.a. The weighted average unexpired lease term of the units is c. 11.35 years. The guide price will offer a net initial return of 6.67%. Approximately 74% of the rent roll, which is linked to changes in the Consumer Price Index, comes from Tesco, with the remainder coming from Aldi. TWM have advised that the vendor will accept offers for a combination of assets as they don’t have to sell the portfolio as a single package. The agents also highlight that the portfolio may be of interest to pension funds, due to the rents being linked to the Consumer Price Index. The Irish Times, 13th September
Tesco Newry: A private investor has purchased the Tesco Extra in Newry, Co. Down from Aberdeen Standard Investments, for £27m (€29.7m). The 94,000 sq. ft. store is let to Tesco on a 25-year lease from 2013 at a rent of c. £1.59m p.a. The store is located on the northern periphery of Newry, close to a busy residential and commercial area. The Irish Times, 13th September
The Arcadia Centre Athlone: Savills is guiding €4.4m for a retail park and neighbourhood centre in Athlone, Co. Westmeath. The Arcadia Centre contains seven retail units (four of which are held on long leasehold), a 52,000 sq. ft. B&Q store and garden centre and a petrol station. 500 car spaces are included in the sale of the centre, which is situated on a 9.2-acre site. The Irish Times, 13th September
Galway High Street: Cushman and Wakefield have been retained by Aiden Murphy of Crowe Horwath to bring 6 – 7 High Street in Galway city centre to the market, with a guide price of €2.5m. The large retail unit extends to 7,287 sq. ft. and is occupied by two retail tenants. The current rental income of €203k p.a. is split between Kilkenny Design (25-year lease from 2002 – €155k p.a.), Ladbrokes (35-year lease from 1987 – €40k p.a.) and a telecommunications mast (€8k p.a.). Aiden Murphy was appointed as receiver over the property by NAMA. Crowe Horwath, 14th September
Card Factory Irish Entry: UK greeting card specialist Card Factory is to enter the Irish market by opening six shops in Ireland by October. The company is to open units at Northside Shopping Centre, Drogheda Town Centre and the Courtyard Shopping Centre in Newbridge, as well as high-street stores in Ashbourne, Dún Laoghaire and Naas. The company is hoping to open a further 69 outlets in Ireland over the next five years. The Irish Times, 13th September
Dublin Landings Sale: NAMA and the developer Oxley are preparing to sell the first portion of the new Dublin Landings project in Dublin’s docklands for c. €150m. It is understood that the two parties have signed a memorandum governing the sale, which covers block one of the new development, which will house the NTMA when it moves from its current premises. The NTMA is due to pay a rent of €50 psf for the new building, which will extend to c. 143,000 sq. ft. The entire Dublin Landings development will provide 1m sq. ft. of office space and almost 300 apartments upon completion. It is believed that later phases of the development are also likely to be forward-sold during construction as they are pre-let. The Sunday Business Post, 17th September
Beaver House Clonskeagh: A fully-let office investment in Clonskeagh in Dublin 4 is on the market though agent Knight Frank with a guide price of €8.75m, offering a net initial yield of 5.58%. Beaver House at Beech Hill is a recently refurbished three-storey building extending to 29,483 sq. ft. with 90 car spaces. It generates rental income of €528k p.a., with a weighted average unexpired lease term of c. 6.5 years. Maxim Integrated occupies 66% of the space on a 15-year lease from 2015 (with a break option in 2025) at a rent of €315k p.a. The remaining space is let to Pinergy on a ten-year lease from July 2010 at €140k p.a. and Jefferson Payroll, who rent a ground floor suite on a ten-year lease from January 2017 at 18.50 psf. The Irish Times, 12th September
Unit 30 Cork Airport Business Park: Savills is guiding €7m for Unit 30 at the Cork Airport Business Park. The two-storey property has a floor area of more than 48,000 sq. ft., with 24,000 sq. ft. vacant on the ground floor. The first floor is occupied by BNY Mellon on a 20-year and one-month lease from 2006, with BNY currently paying €341k p.a., although the lease is subject to rent reviews every five years. Based on the guide price, the property has a capital value of €145 psf and offers an equivalent yield of 8.97%. The Irish Examiner, 14th September
Communication House: Communication House, an office building located in Dublin 4, is for sale for €6.7m through agents Cushman & Wakefield, offering a net initial yield of 6%. The three-storey over basement building extends to 9,636 sq. ft. and is arranged in two blocks connected by a central core feature tower. 17 car spaces are included with the property. It is let in its entirety to International Telecommunications Ltd on a 25-year fully repairing and insuring lease from 1999, with an annual rent of €420k p.a., with the next five yearly upwards-only rent review due in January 2019. The property is located close to Google’s European HQ on Barrow Street and a short walk from Grand Canal DART station. The Irish Times, 13th September
5 Earlsfort Terrace: IPUT plc is planning to spend c. €20m refurbishing 5 Earlsfort Terrace in Dublin 2, and has appointed Savills and CBRE to seek new tenants for the property. The building, which was the former offices of the law firm Arthur Cox, is situated beside the Conrad Hotel and opposite the National Concert Hall, and contains 66,000 sq. ft. of Grade A office space. The refurbished premises will be available from mid-2018, and Savills and CBRE are quoting rent of €57.50 psf., which would equate to rental income of €3.8m p.a. There will also be 50 car spaces and capacity for 70 bicycles at basement level. The Irish Times, 14th September
10 – 12 Hanover Quay: Kennedy Wilson is planning to convert a vacant warehouse at 10 – 12 Hanover Quay into high-tech office space. If planning permission is granted, Kennedy Wilson would be able to create four floors of office space, with the size of the building increasing to c. 79,000 sq. ft. The property backs onto the Capital Dock office and apartment scheme being developed by the group. The Sunday Times, 17th September
Carton House: First round bids are due for the Carton House Golf Resort near Maynooth in Co. Kildare, which is on the market with a c. €60m guide price. The Irish Times reports that bids are expected from a number of wealthy Irish families, along with several international investors. The property is being sold on behalf of the Mallaghan and Kelly families by CBRE, and includes a 165-bedroom four-star hotel and two championship golf courses. The Irish Times, 12th September
Clarion Hotel Liffey Valley: Dalata has acquired the long leasehold interest in 33 suites in the Clarion Hotel Liffey Valley for €8.58m. The 33 suites are the equivalent of 99 bedrooms, and further increase Dalata’s ownership stake in the hotel. Dalata completed the acquisition of the core of hotel this month, which included 158 bedrooms, the leisure centre, car park and two vacant retail units. The Irish Times, 19th September
Dublin City Centre Hotel: The Dolphin, an entity registered by KPMG in 2015, has sought planning permission from Dublin City Council to add 121-bedrooms to a planned hotel development between Aungier Street and Bow Lane in Dublin city centre. There is already planning permission in place for a 190-bedroom hotel, therefore if the latest application is approved, the proposed hotel development will increase to 311-bedrooms. NAMA Wine Lake, 17th September
Trinity Street Hotel: Torchglen Ltd has sought planning permission from Dublin City Council to develop an eight-storey, 38-bedroom hotel on Trinity Square in Dublin city centre. Torchglen is controlled by Paul Esajian, Jeffrey Carter, Colm Gunne and Gerard Conlon. NAMA Wine Lake, 17th September
The Elysian Cork: The Sunday Business Post reports that the US fund Blackstone is preparing to put two of its Cork assets on the market in the next month, with an expected cumulative guide price in excess of €100m. The assets are the Elysian apartment block in Cork city centre and a residential development in Ballincollig, a suburb near Cork City. The 71m-tall Elysian apartment block is fully let and consists of a number of luxury apartments, with a three-bedroom apartment commanding a rent of up to €3k per month. The Elysian is also Ireland’s tallest building. The Sunday Business Post, 17th September
Connolly Station Site: CIÉ is seeking offers through agent Knight Frank to redevelop nearly seven acres adjoining Connolly Station and the IFSC in Dublin. The site is being offered under a development agreement subject to an annual site licence fee, followed by the higher of a premium rent or an income sharing arrangement with the preferred bidder. The site could provide an opportunity to develop a scheme integrated with Connolly Station. The site is being offered in two parts – the first extends to c. 4.85 acres and contains the CIÉ car park, CIÉ Group buildings and part of the railway sidings, while the second site extends to two acres and essentially covers the airspace above the remaining railway sidings and depot building. There is currently planning permission (until 2022) for a mixed-use scheme on a larger site, of which the sites for sale forms part of. This would include 540,000 sq. ft. of office space, 70,000 sq. ft. of retail / restaurant accommodation, a 101-bedroom hotel and 106 apartments. A feasibility study by Reddy Architecture suggests a 665,000 sq. ft. scheme may be possible on the 4.85-acre site, with a further 70,000 sq. ft. over the two acres of railway sidings. The site for sale is outside of the Docklands SDZ, however the current city development plan identifies it as one of four areas where buildings in excess of 50m in height may be permitted. The Irish Times, 12th September
Lansdowne Place: Joint agents Sherry Fitzgerald and Savills are bringing phase two of Lansdowne Place to the market. Lansdowne Place is a 217-unit residential development on the 6.8-acre site of the former Berkeley Court and Jurys hotels in Dublin 4. Phase two consists of 23 units and includes three penthouses, which are guiding €2.15m, €3.65m and €6.5m respectively. The Irish Times, 14th September
Montebello Killiney: Savills are guiding €9m for Montebello, a seven-bedroom detached mansion on Killiney Hill Road in south Dublin. The Victorian property dates from the 1870s and extends to almost 8,000 sq. ft. on four acres of secluded, pristine grounds. The property includes the original house, a detached 850 sq. ft. gate lodge, stable blocks, a swimming pool, an orchard garden and an octagonal pavilion. The Irish Times, 14th September
Dundrum Apartment Portfolio: Finnegan Menton are guiding €7.7m for a portfolio of 25 high-end apartments in Dundrum, south Dublin. The 18 penthouses and seven two-bedroom apartments are located in the Rockfield and Riversdale schemes beside the Balally Luas stop in Dublin 16. Based on the quoted price, the penthouses would have an average unit price of €330k, while the two-bedroom apartments would have an average price of €250k. Finnegan Menton advise that that this represents a strong discount on market rates due to it being a portfolio sale. The penthouses, which are two-bedroom plus study units, are rented at €1,825 – €2,100 per month, while the two-bedroom apartments are rented at €1,050 – €1,500 per month. Three of the units are currently vacant, as these are being used as show units. Therefore the current rental income of c. €460k p.a. is expected to increase to c. €536k p.a. when the portfolio reaches 100% occupancy. The Irish Times, 13th September
Rathgar Site: An infill residential site in Rathgar, Dublin 6 with potential to be redeveloped into a high-end apartment scheme is on the market for €5m through joint agents Knight Frank and JP & M Doyle. The site includes a family home and guesthouse which is situated on a 0.5-acre site. One of the properties, Ardagh House, is a 23-bedroom detached guesthouse which extends to 9,500 sq. ft. over three floors on a 0.3-acre site. The selling agents believe the property has potential to be converted or redeveloped into luxury apartments, subject to planning permission. The second building, The Beeches, is a detached, four-bedroom house which extends to 1,800 sq. ft. over 0.2-acres. The 0.2-acre site has planning permission to be redeveloped into two six-bedroom apartments over three floors. The Irish Times, 12th September
Dublin Docklands Site: Knight Frank are guiding €2.5m for an infill residential site in the heart of Dublin’s south docklands. The site extends to 0.47-acres and is zoned for residential purposes, and could accommodate either a high-end scheme of 14 townhouses, or a duplex / apartment / townhouse development of 22 units. Surface car parking can be included with both development options. The Irish Times, 12th September
Kildare Residential Site: Jordan Auctioneers is guiding €2.3m for a 13-acre site on the Temple Mills estate, close to the Main Street in Rathangan, Co. Kildare. The site comes with planning permission for 99 houses, with 50 houses having already been completed at the estate. The Irish Times, 13th September
H1 2017 Development Land: The latest report from Cushman & Wakefield on the Irish development land market shows that there were c. €220m of transactions in H1 2017 in the Greater Dublin Area, Cork, Galway and Limerick. This figure is well below the €380m of transactions recorded in the same period in H1 2016. While the cumulative value of the transactions was down YoY, the number of transactions rose substantially, with the 115 deals closed in H1 2017 reflecting a 27% increase YoY. Although the cumulative value of transactions closed was low in H1 2017, the value of transactions which were sale agreed at the end of H1 2017 was c. €450m, with the Greater Dublin Area accounting for c. €420m of this figure. Cushman & Wakefield, Irish Development Land Market Q2 2017
Glenveagh Properties IPO: The Irish Times reports that Glenveagh Properties, the new Irish homebuilder backed by Oaktree, is poised to raise €450m through its upcoming IPO. The company will combine development land acquired by Oaktree with the assets of the developer Bridgedale, and is expected to float next month on both the Irish and London stock exchanges. It had originally targeted raising €350m through the IPO, however this figure has been revised upwards after company executives received positive feedback from potential investors, according to sources. The revised IPO size would exceed the €440m raised by Cairn Homes when it floated in June 2015, and the company would be the first Irish homebuilder to debut on the stock market in almost two decades. Market sources advised in July that the new company will contain up to €100m of assets initially rolled in by Oaktree and Bridgedale, as well as further land purchases agreed in recent months, conditional on the IPO being executed. Oaktree is expected to have a stake of less than 20% in the company at the time of flotation. The Irish Times, 13th September
NAMA Affordable Housing Role: The Irish Times reports that Taoiseach Leo Varadkar has signalled that the Government may turn NAMA into a state-owned housing developer to cover the gap left by private sector developers. Under plans which are still being developed, NAMA would be transformed to focus solely on developing land and delivering affordable housing, by raising finance, becoming involved in the planning process and working with developers. It is understood that preparatory work on the initiative suggests amended legislation will be required to give NAMA this new remit, however sources familiar with the proposal believe the agency would be able to focus on new housing immediately. NAMA has already entered into partnerships with some developers, with its JVs scheduled to deliver 20,000 new homes by 2020. NAMA, in its current form, is due to be wound down by 2020, but there are some indications that this could be fast-tracked to take place in 2018. The Irish Times, 14th September
AIB Mortgage Rate Reduction: AIB has announced a 0.25% cut to its standard variable mortgage rate, which will benefit c. 100,000 customers. The bank has also added to its fixed-rate product offering, with a new seven-year fixed term at 3.5%. This move is accompanied by reductions across fixed rate products, including a 0.5% reduction on the five-year fixed rate. The fixed-rate changes came into effect on the 18th of September, while the standard variable rate and loan-to-value changes will apply from the 1st of November. The Irish Times, 15th September
Central Bank lending figures: New lending figures from the Central Bank have shown that new lending of mortgages for principle homes increased by €182m by the end of Q2 2017, marking the fifth consecutive quarter of growth. The statistics show that borrowers are increasingly leaning towards fixed-rate contracts due to the low interest rate environment. The level of lending on floating rate loans dropped by €612m over Q2 2017, attributed to the decrease in tracker mortgages and standard variable rate mortgages. Mortgages on investment properties also decreased over the quarter by €239m, meaning that total lending for house purchases remained negative in H1 2017. Compared to last year, the level of lending for BTL mortgages has fallen by 8.6%, or €1.2bn. Overall in Q2 2017, drawdowns on mortgages exceeded repayments by €794m. The Irish Times, 15th September
Mortgage Arrears: New figures from the Central Bank have shown that mortgage arrears continued to fall in Q2 2017. The figures show that 73,706 family home mortgages, or c. 10% of all family home mortgages, were in arrears at the end of Q2 2017, a decline of 3.6% compared with the Q1 2017 figure. The number of family homes in arrears over 90 days was 51,570, or 7% of all mortgages. However this figure is also decreasing, with a quarter-on-quarter decline of 2.5% marking the 15th consecutive quarter showing a decline. On the investment side, 19% of buy-to-let mortgages were in arrears at the end of Q2 2017, with those in arrears over 90 days decreasing by 1.9% over the quarter. However, c. 14,000 investment mortgages were in arrears by over 720 days, with an outstanding balance of c. €4.1bn. The figures also show that non-bank entities, including private equity funds, now hold 48,199 mortgage accounts, accounting for 6.5% of all mortgages in the country, and 5% of family homes. The Irish Times, 12th September
Vacant Site Levy: The proposed vacant site levy of 3% which is expected to be introduced by the Government in the forthcoming budget may be increased, after the Economic and Social Research Institute advised that a 3% levy would not be enough to deter developers from sitting on sites. While The Sunday Times references one Government source as saying that the levy may be set between 6% and 10%, it is believed that a 5% rate is most likely. The Sunday Times, 17th September
IFSC Development: Sian Walsh has sought planning permission from Dublin City Council to develop a three-to-four storey residential development which will consist of 14-units on Church Street in Dublin’s IFSC. The units will accommodate eight one-bed duplexes and six two-bed apartments. NAMA Wine Lake, 17th September
Ballycoolin Data Centre: The Singapore-listed Keppel DC REIT has acquired a data centre in Ballycoolin business and technology park in Dublin 15 for €66m. The purchase of the 25,200 sq. ft. data centre is the company’s second venture in Dublin. Over 87% of the data centre has been leased. The data centre, which was previously owned by Dataplex, is currently more than 87% leased. The Irish Times, 13th September
The Mercantile Group: Danu Partners has exited the Mercantile Group by selling its stake to the majority shareholders for over €10m. As a result, the Mercantile Group, which is deemed to have a net asset value of c. €50m, will now be owned outright by EMI-MR. Following the completion of the transaction, the chief executive of the Mercantile Group, Pat Burke, has stated that the company would now push ahead with a €28m investment plan, including a redevelopment of the Mercantile Hotel. All projects other than the Mercantile Hotel are expected to be completed by Easter 2018. The Irish Independent, 17th September
Mitchelstown Living Health Clinic: The Sunday Times reports that Glencar Medical has agreed to acquire the Mitchelstown Living Health Clinic in Co. Cork for c. €9m. Glencar is believed to have acted on behalf of Valley Healthcare, a fund backed by Australian investor AMP and the Irish Infrastructure Fund. The Sunday Times, 17th September
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Project Pine: The Sunday Business Post reports that one of AIB’s next loan sales will be Project Pine, a portfolio of non-performing loans secured on assets in Northern Ireland and Britain. No final decision has been reached on the exact assets to be included, but sources estimate that the face value will be between €200m and €300m. Since the loans in the portfolio are non-performing, it is expected to trade at a deep discount to its par value. Sunday Business Post, 10th September
Crampton Buildings: In a sign of the strong recovery in the property market, Ardstone Capital is seeking to dispose of their Crampton Buildings property in Dublin’s Temple Bar for €11.75m, just three years after they acquired the property for c. €8.26m. The three-storey over-basement property, which is on the market through the agents Bannon, generates rental income in excess of €700k p.a, and the weighted average unexpired lease term of the property is over seven years. Three of the tenants, Elephant & Castle (€160k p.a.), Gallagher’s Boxty House (€120k p.a) and Café Nero Ireland (€120k p.a.) generate over 55% of the property’s rental income. The Irish Times, 6th September
Blanchardstown Shopping Centre Expansion: Multi Corporation, the company that has managed Blanchardstown Shopping Centre since August 2016, has lodged a planning application for a c. €40m extension to the centre. The application proposes a 100,000 sq. ft. extension to the Red Mall, and will include a key 40,000 sq. ft. retail unit, in addition to 18 standard units. This application is in addition to a previous application lodged by the same company in May to provide an additional 60,000 sq. ft. of large retail units on the lower and upper central malls, at a cost of c. €15m. If this latest application is approved, 300 permanent jobs will be created in the centre, which already employs c. 5,500 people. Multi Corporation is owned by Blackstone, which acquired Blanchardstown Shopping Centre for c. €945m. The Irish Times, 6th September
Irish Hotel Market: The latest research from Cushman & Wakefield has shown that after a record year in 2016, transaction levels in the hotel market in H1 2017 have returned to a more normalised level. A total of €76.8m was transacted in H1 2017 across 19 hotels, a substantial decline on the corresponding figure of €140m in H1 2016. Of the 19 hotels sold in H1, seven were sold off-market, compared with just two in the same period in 2016. Cushman & Wakefield Irish Industrial Market Review, Q2 2017
Housing Supply: New figures from Sherry Fitzgerald show that the number of homes for sale in the State fell to just 25,100 in July, a decrease of 9% YoY. The number of homes for sale nationwide is therefore just 1.3% of total stock. In Dublin there were just 3,900 units for sale, which represents just 0.8% of Dublin’s total private stock. In a normal market, the number of units for sale should equate to c. 5% of total stock. The Irish Times, 12th September
CSO Property Prices: The latest figures from the CSO on property prices show that the national rate of inflation for the year ending July 2017 was 12.3%. Dublin recorded an even higher rate of inflation, at 12.7%. In the year to July, the average price paid for a home nationally was c. €276k, with the average Dublin price at c. €413k. The Irish Times, 12th September
CSO Private Rental Figures: New figures from the CSO show that private residential rents (which are based on the actual prices paid for new tenancies only) increased by 0.4% in August, representing the 63rd consecutive month of positive or flat inflation. Annual inflation is now 7.3%, and the rate of inflation for the past 24 months is 16.7%. NAMA Wine Lake, 10th September
Household Debt: New figures from the Central Bank should that household debt, as a proportion of disposable income, is now 145.2%, its lowest level since the three month period ending September 2004. The figures also show that the ratio fell by 10.2% over the past twelve months, the strongest decrease in the European Union. The Irish Independent, 12th September
Howth Development Sites: Grant Thornton, acting as receiver on behalf of NAMA, is due to bring a valuable development site in Howth, Co. Dublin, to the market in the next three weeks, with a guide price in excess of €30m. The Techrete and Teeling Motors sites extend to 6.58-acres and have planning permission for 200 residential units, six commercial buildings and 487 car parking spaces. The residential element will contain 145 apartments, 51 three- and four-bedroom homes and an additional four houses which will be provided for Traveller accommodation. The site was previously purchased by Ray Grehan for €62m in 2007. The Sunday Times, 10th September
Boland’s Mills Site: The Sunday Business Post reports that several parties have expressed an interest in acquiring the historic mills buildings which form part of the Boland’s Mills site in Dublin’s south docklands. The buildings are expected to cost c. €11m, but it is expected that the purchaser of the buildings will need to spend another c. €10m refurbishing the properties, as they are currently in a shell condition. The rejuvenation of the mills buildings forms part of NAMA’s Boland’s Mills project, which is expected to cost c. €170m. The Sunday Business Post, 10th September
91-94 North Wall Quay: Targeted Investment Opportunities (TIO), a joint venture between Oaktree and Bennett Construction, is seeking to develop a 241-bedroom aparthotel and a nine-storey office block at 91 – 94 North Wall Quay in Dublin’s north docklands. TIO already has planning permission for c. 409,000 sq. ft. of office space on the site, however their new proposal would see the office space reduced to c. 205,000 sq. ft. The Sunday Times, 10th September
Horgan’s Quay Cork: HQ Developments, a joint venture between Clarendon Properties and BAM Ireland, has sought planning permission from Cork City Council for a substantial mixed-use development on Horgan’s Quay in Cork city centre worth c. €160m. The application proposes the development of three six-to-eight storey office blocks which will contain over 400,000 sq. ft. of office space, a 136-bedroom hotel and 237 apartments. The site is owned by CIÉ, who will enter into a c. 300-year lease which will see them receive a certain percentage of the income from the development, estimated at 10% p.a. The Irish Times, 7th September
Dublin Docklands: The NAMA-appointed receiver David Carson of Deloitte, acting on behalf of Crossman Properties Ltd, has applied to Dublin City Council for permission to construct four office buildings on a two-acre site between North Wall Quay and Mayor Street Upper in Dublin’s north docklands. The new buildings, which will be located adjacent to the new Central Bank building, will provide 400,000 sq. ft. of office space. NAMA Wine Lake, 10th September
Local Authority Housing Rejections: Figures from the Housing Agency show that local authorities have recently been offered 1,860 residential units, however only 241 of these have been accepted, indicating that nearly 90% of vacant homes offered are being rejected. Of the 1,860 units offered, 977 were properties repossessed by banks. The Sunday Business Post, 10th September
Saggart Residential Scheme: Greenacre, a joint venture between NAMA and Harcourt Developments, has sought planning permission from An Bord Pleanála for 459 houses and 67 apartments on a site in Saggart in south-west Dublin. The application was filed on the 30th of August under the new fast-track planning system, which aims to reduce the overall application timeframe to 25 weeks. The Irish Independent, 10th September
Dublin Commuter Belt: A new report from MyHome.ie has shown that a lack of affordable homes in Dublin has led to a substantial increase in the number of residential properties being purchased in the Dublin commuter belt. The total value of the homes acquired in Meath in H1 2017 was c. €230m, a c. €74m (47%) increase when compared to H1 2016. The cumulative value of homes acquired in Westmeath rose by 29% to €64.5m, with Louth recording a c. 27% increase to €105m. Dublin saw over €3bn worth of residential properties acquired in H1 2017, a c. 11% increase YoY. The Sunday Times, 10th September
Permanent TSB (PTSB) Debt Forgiveness: The Irish Times reports that AIB, Bank of Ireland, and KBC have ruled out implementing a similar initiative to the one announced by PTSB, which has seen the bank write to hundreds of buy-to-let investors, offering to write-off any arrears or shortfalls on their loans if they agree to a voluntary surrender of the property. PTSB have advised that any write-off will only occur if the borrower has no means of making up the shortfall once they have disposed of the property. The Irish Times, 6th September
Rocketts Castle: Savills is guiding c. €6m for the Rocketts Castle estate near Portlaw in Co. Waterford. The estate, which extends to 250 acres, includes a fortified tower which dates from the 13th century, a six-bed house which dates from the 19th century and a five-bed lodge which lies next to the main residence. Although the main house dates from the 19th century, it has been extensively refurbished in recent years, with c. €700k spent on Waterford Glass chandeliers. The current owners are Thomas and Rosemary Driver. The Irish Times, 7th September
21 Charlemont: Rohan Holdings has sold 21 Charlemont, a recently completed office development near the Charlemont Luas Stop in Dublin 2, to the La Française Group for c. €45m. The 37,000 sq. ft. building has been pre-let to the communications company Viasat for c. €55 psf, which is about 10% above the rent anticipated by market sources when construction began in 2015. The rent roll will be c. €2.04m p.a., suggesting a yield of nearly 4.5%. The Irish Independent, 7th September
Rockfield Central: The construction firm Mac Group and the Canadian asset manager Timbercreek have acquired two office buildings and two levels of shops in a third building at the Rockfield Central complex in Dundrum, Dublin 14 for €16.6m, c. €1.6m above the guide price. The properties are over 90% occupied, and generate rental income of c. €1.2m p.a., although there is potential to increase this in the short term, as there are six rent reviews outstanding at a time when surburban rents are back up to the mid €20s psf. The purchased office blocks are the eight-storey north block (38,750 sq. ft.), and the six-storey south block (25,402 sq. ft.), while the two levels of shops are contained within the east block. The retail tenants include Mace, Brickyard Bar and Rockfield Pharmacy, while office tenants include Mott McDonald, Locomotion, Medserv and Affidea Diagnostics. The Irish Times, 6th September
Industrial Market Review: Cushman & Wakefield’s Q2 2017 report on the Irish industrial market shows that the total take-up in Dublin, Limerick, Cork and Galway equated to 1.543m sq. ft. Dublin accounted for the majority of this figure, with c. 1.4m of take-up, with Limerick recording the second-highest level of take-up with nearly 110,000 sq. ft. There was a subdued level of take-up in Galway, with just below 6,000 sq. ft. of space transacted in H1 2017, although there were a number of units reserved in H1 2017, therefore take-up for H2 2017 should be stronger in the county. Cushman & Wakefield Irish Industrial Market Review, Q2 2017
BidX1 Auction: BidX1, the new brand name for Allsop Ireland, are hosting the largest ever auction of Irish properties in the next few weeks, with the auction consisting of more than 310 lots with a combined value of over €60m. On 27th September more than 200 residential lots with a combined value of over €30m will be auctioned, while on 28th September over 110 lots, including commercial investments and development land, will be offered with combined reserves of over €30m. The Irish Independent, 7th September
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CBRE Bi-Monthly Report: CBRE’s latest research report on the Irish commercial property market notes that H2 2017 is likely to see increased transactional activity for most sectors when compared to H1 2017. Despite the supply imbalance in the industrial sector, CBRE note that transactional activity persisted throughout the usually quiet summer months, with c. 1.29m sq. ft. of take-up in H1 2017. Also now that prime industrial rents have surpassed levels which justify new builds, CBRE note that there has been an increase in the number of planning applications for new developments in Dublin. In the retail sector, CBRE expect to see an increase in prime rents in the coming months as new transactional evidence becomes available. In the investment market, although prime yields are currently stable across all sectors, CBRE expect yields in some sectors to tighten as investors vie for Dublin investment opportunities, where yields are more attractive when compared to those of other European capitals. CBRE Ireland Bi-Monthly Research Report, September 2017
The Square Tallaght: Joint agents Cushman & Wakefield and JLL are inviting offers in excess of €233m for a controlling interest in The Square Tallaght, a 27-year old shopping centre in south Dublin which had c. 22 million visitors in 2016. The rental income from the shopping centre is c. €14m p.a., offering the new owners a return of c. 5.8%. The shopping centre is being sold under the instructions of NAMA. The sale includes 118 of the 160 units in the shopping centre, as well as the 13-screen cinema and more than 2,400 car spaces. The overall centre extends to 577,000 sq. ft. on a site of c. 27 acres, however some its units were sold to institutions, traders and tax investors when the centre first opened. Anchor tenant Dunnes Stores owns the majority of its 100,000 sq. ft. store, while Tesco also owns its 60,000 sq. ft. outlet. The top ten tenants in the centre account for more than €5.7m of the rental income, while the overall weighted average unexpired lease term for the centre stands at more than seven years. The Irish Times, 30th August
The Capitol Building: German property company Real IS has acquired the Capitol building in Cork city centre from the JCD Group for c. €45.6m. Real IS has acquired the property on behalf of a German pension fund. The Capitol is one of the largest retail and office developments in Cork city centre, and the JCD Group had secured tenants for c. 80% of the building under long-term leases prior to the sale. The tenants include TJX Ireland t/a HomeSense, Life Style Sports and the Facebook subsidiary Oculus. The JCD Group acquired the site for the Capitol in 2015 for c. €6m. The Sunday Times, 3rd September
Dundrum Refinance: As part of a refinancing deal by its joint owners Hammerson and Allianz, Dundrum Town Centre has been valued at more than €1.5bn, less than two years after it was acquired as part of the c. €2.57bn par value Project Jewel loan portfolio, which sold for c. €1.849bn. In addition to Dundrum Town Centre, Hammerson and Allianz also acquired a six-acre development site in Dundrum, a 50% stake in the Ilac Centre, a 5.4-acre site between Moore Street and Upper O’Connell Street and a 50% stake in the Pavilions shopping centre in the Project Jewel portfolio. The rental income from Dundrum Town Centre is estimated at c. €60m p.a. NAMA Wine Lake, 3rd September
Dawson Street: A mixed-use period building at the intersection of Dawson Street and St Stephen’s Green in Dublin 2 has been put on the market by SW3 Capital through Savills, with a guide price of €6m. The five-storey, over-basement period building contains three street-level shops and four large apartments on the upper floors. The retail units, which share an overall floor area of 2,310 sq. ft., are let to Tang, Sunglasses.ie and Amuse at a combined rent of €155k p.a. The four apartments on the upper floors are targeted at the corporate sector and produce rental income of €168k p.a. Each apartment is let to a single occupier on recently agreed five-year leases, requiring minimum management intervention. Based on the guide price, the investment will offer a return of c. 5.2%. The Irish Times, 30th August
SuperValu Balally: The SuperValu store in the Balally Shopping Centre in Sandyford, Dublin 16, has gone on sale with a guide price of €3.75m through agents JLL. The supermarket extends to 11,443 sq. ft. and is let under three different leases to the Musgrave Group, with an average term of c. 8.5 years remaining on the leases. The rental income from the leases, which are subject to upwards-only rent reviews, is c. €263k p.a. Based on the guide price, the investment offers a return of c. 6.7%. The Irish Times, 30th August
22 Upper Baggot Street: Colliers International is guiding €2.15m for 22 Upper Baggot Street, a four-storey Victorian building in Dublin city centre. The building extends to 3,580 sq. ft. and has rental income of c. €111k p.a., offering the new owner a return of c. 4.9%. The ground floor restaurant is let to Saba, a Thai and Vietnamese-style restaurant, at a rent of €85k p.a. on a 15-year lease from 2015, with five yearly open-market rent reviews and a break option in year ten. The upper floors are let to the Elmwood Centre on a four year, nine month lease from March 2015 at a rent of €26k p.a. This lease includes two car parking spaces to the rear of the building. The Irish Times, 30th August
City Block 9: A NAMA-appointed receiver has sought planning permission for a large scale commercial and residential development on a site known as City Block 9 on the North Wall Quay in Dublin’s docklands. The application seeks permission for nearly 388,000 sq. ft. of space across four office blocks and two apartment blocks. The application proposes that the first apartment block will contain 189 apartments, a crèche and a café, while the second block will contain 231 apartments and three retail units. The Sunday Times, 3rd September
East Gate Innovation Campus: The Sunday Times reports that McDonogh Capital Investments expects to lodge a planning application in the next year for a 350,000 sq. ft., €80m innovation campus located 2.5km east of Galway city centre. The complex has a working title of ‘East Gate Innovation Campus’ and the proposed development will be located on a c. 9.6-acre site at Bóthar Na Mine in Ballybane. It is intended that a number of office blocks between 30,000 sq. ft. and 50,000 sq. ft. will be developed in the new complex on a phased basis, and the new development will also include a public plaza that will incorporate restaurants and other service offerings. The Sunday Times, 3rd September
Google Dublin: The Irish Independent provides an update on Google’s activity in the Dublin office market. The paper understands that Google has agreed a lease with Irish Life for all four floors of the Blackthorn Building in Sandyford, south Dublin. The paper also reports that Google is exploring the possibility of taking space in two additional buildings in Sandyford, in the Chase Building (owned by Irish Life) and the Atrium. Finally the paper reports that Google remains in “informal discussions” with the owners of the Treasury Building in the south Dublin docklands over a potential purchase. The Irish Independent, 31st August
1 Windmill Lane: Hibernia REIT has announced that it has agreed terms with Core Media for 24,000 sq. ft. of its 1 Windmill Lane development in the south Dublin docklands which is in the final stages of development. Core Media has agreed to a 21-year lease, for which 12 years are certain, at a rent of €57.60 psf. Core Media will receive six months’ rent free, and they will make annual contributions towards the reception, town-hall and car park areas. Once complete, the building will contain 124,000 sq. ft. of office space, 8,000 sq. ft. of retail space and 14 residential units. The Irish Times, 4th September
Block D Charlemont Exchange: Knight Frank is guiding €12.5m for Block D at Charlemont Exchange, a vacant office block on Charlemont Street in Dublin 2. The semi-detached office block, which extends to 22,034 sq. ft., forms part of a larger mixed-use complex that includes the Hilton Hotel and was completed in the late 1990s. The hotel was bought by John Malone for c. €30m in 2014. The Irish Times, 29th August
36 Fitzwilliam Place: Bids of €3.25m are being sought by Colliers International for a Georgian house at 36 Fitzwilliam Place in Dublin 2. The sale includes a mews to the rear at 36 Leeson Close. The property has been owned by an Irish-American family for the past 25 years. The basement, ground and first floor are fitted out as high-end offices, while the two upper floors have been used as a two-bedroom apartment. The Irish Times, 29th August
The Gibson Hotel: The four-star Gibson hotel in Dublin’s docklands has been brought to the market by Savills, on the instruction of receivers Grant Thornton, with a guide price in excess of €87m. The 252-bedroom property opened in 2010, and is considered to be a landmark investment opportunity due to its location in the Dublin docklands area. The hotel is fully let to Galsay, a subsidiary of Dalata, under a 25-year lease running from 2010. The lease offers an unexpired term of 17.8 years, and the current rent of €4.65m p.a. is subject to upward-only rent reviews. Based on the guide price, the hotel offers a net initial yield of c. 5.1%. The Irish Independent, 30th August
The Plaza Complex: CBRE are guiding €14m for the mixed-use Plaza complex in Tallaght, which is being sold on the instructions of receiver Declan Taite of Duff & Phelps. The six-storey, over double-basement development extends to 201,000 sq. ft. on a site of 2.8 acres, and includes a four-star, 122-bedroom hotel and basement nightclub, three floors of offices totalling c. 74,000 sq. ft., three ground-floor retail units and 480 car parking spaces. The OPW occupy all but c. 23,000 sq. ft. of the office space under leases which have c. 7.6 years remaining, with no break options. The remaining office space is vacant. Based on the current rental income from the complex of c. €1.3m p.a., the investment offers a net initial yield of c. 8.9%. There is potential to substantially increase the yield once the vacant office space is let. The Irish Times, 30th August
Dublin Hotel Rates: The annual Crowe Horwath hotel industry survey has shown that room rates at Dublin hotels have reached an all-time high, rising at almost double the rate of the rest of Ireland over the past year. The average room rate (ARR) increased by almost 15% in 2016, due to a lack of supply and a huge increase in the number of visitors from the US. The ARR in Dublin is now €128 per night, up from €112 last year, and above the previous record of €121 achieved in 2006. Nationally, including Dublin, the ARR is €104. In the midlands, it is €91 (up 8.6%), while prices rose 10% in the southwest to €93. The average occupancy rate of 82% in Dublin means that the city’s hotels are full c. 300 nights each year, while the average occupancy rate in the rest of the country is 69%. The Irish Times, 30th August
Danske Bank Mortgage Book: The Sunday Times reports that the Central Bank is expected to veto any attempt by Danske Bank to sell its remaining mortgage portfolio to unregulated vulture funds. All of the loans in the c. €1.8bn mortgage portfolio are low-risk and performing, and the portfolio has attracted significant interest from traditional lenders such as Bank of Ireland. The majority of the mortgages are tracker mortgages, where interest margins are as tight as 0.5%. Previous loan sales by Danske Bank did not draw the interest of traditional lenders as many of the mortgages were in arrears. The sale is being handled by Bank of America Merrill Lynch, and is expected to be finalised in the next month. The Sunday Times, 3rd September
Bridgedale Developments: Bridgedale, a Dublin developer backed by Oaktree Capital Management, has taken options to acquire development sites worth almost €100m, with the options contingent on the company floating on the Dublin stock market. The company has reportedly contracted to buy €80m of development land from Cerberus, much of which is located in Co. Wicklow. Bridgedale has also agreed to purchase land (which is currently under the control of Goldman Sachs) at Citywest in Co. Dublin, in an additional deal worth €16m. The flotation may take place as early as October. The Sunday Times, 3rd September
Donnybrook Residential Site: A residential site of more than three acres in Donnybrook near UCD has been sold by Purleigh, a firm controlled by Denis O’Brien, to Cairn Homes for an undisclosed amount. The site has been earmarked for a €60m-plus development of 90 luxury apartments. Purleigh obtained planning approval to build 71 apartments on the site in Donnybrook in December 2016, and plans to increase this number to 90 units will be decided this week by An Bord Pleanála. The Irish Independent, 4th September
South Dublin Residential Development: Developers Paddy McKillen and Paddy McKillen Jr are believed to have paid c. €30m (c. €5m over guide) for a ten-acre site in Blackrock, south Dublin. The McKillens are now expected to seek planning permission for c. 300 homes on the site, which was sold by the Sisters of Charity. NAMA Wine Lake, 3rd September
Malahide Residential Sites: Cushman & Wakefield are guiding €12m for two residential sites on Seamount Road in Malahide, Co. Dublin. The first site, which extends to c. 6.3-acres, already has planning permission for 46 detached houses (11 three-beds and 35 four-beds). The second site, which extends to c. two-acres, will initially provide construction access for the first site, however the total number of houses developed on the sites could later be increased to 60. According to Cushman & Wakefield, the houses should be valued between €750k and €1m. The Irish Times, 29th August
Smithfield Lofts: Savills are guiding €9.25m for 44 apartments, six townhouses, and 33 car parking spaces in the Smithfield Lofts complex on North King Street in Dublin city centre. The gross rental income of the investment, which is 98% occupied at present, is c. €639k p.a., offering a gross income yield of c. 6.6%. Based on the guide price, the average break-up value per apartment is c. €185k. The residential units consist of 16 one-bedroom apartments, 28 two-bedroom apartments and six two-bedroom townhouses. The remaining 13 apartments and the commercial units in the Smithfield Lofts complex are already in private ownership. The Irish Independent, 31st August
Multi-Family Sector (MFS): A report by Cushman & Wakefield and Sherry Fitzgerald assesses how transaction activity in the MFS has increased in recent years. In 2013, there were just 16 MFS transactions in the Republic of Ireland, for a cumulative amount of just under €250m. In 2016, there were 74 transactions, for a cumulative amount in excess of €424m. The report also examines how private investors are exiting the investment property market. Between 2012 and 2016, private investors represented the seller in approximately 33% of all investment property transactions p.a. In contrast, private investors represented the buyer in just 15% of property purchases p.a. between the same period. Cushman & Wakefield and Sherry FitzGerald Irish Private Rented Sector, 2017
Clonskeagh Apartments: An application by Gannon Properties to add 20 apartments to a 96-unit scheme on the site of the old Clonskeagh Paper Mills site in Clonskeagh, south Dublin city has been registered with Dublin City Council. Should the additional apartments be developed, the size of the blocks will increase from three storeys to four. NAMA Wine Lake, 3rd September
Fairview Development: Percy Boyle has sought planning permission from Dublin City Council to develop a three-to-four storey residential block which will contain 13 “family studios”, as well as communal facilities on Enaville Avenue in Fairview, north east of Dublin city centre. NAMA Wine Lake, 3rd September
July Mortgage Approvals: The July 2017 report by the Banking & Payments Federation Ireland (BPFI) on mortgage approvals shows that there were 3,970 mortgages approved in July 2017, which had a total value of c. €853m. While these figures represent an increase of c. 23.3% YoY (compared with c. €692m July 2016) based on the value of mortgages approved, they reflect a decrease of 8.0% when compared to June 2017 (c. €928m). Based on the value of mortgages approved, the first-time buyer segment grew by 30.4% YoY (c. €424m July 2017 vs c. €325m July 2016). BPFI Mortgage Approvals July 2017
Allsop Ireland: The Irish entity involved in the Allsop Ireland property auction business has bought out the UK entity involved in the partnership in a deal believed to be valued at c. €4m. Allsop Ireland was set up in 2011 as a partnership between Irish company Space Property Group (SPG) and UK real estate agent Allsop. SPG has now acquired Allsop’s interest in the joint venture and renamed the company BidX1, as it plans to focus on online sales both here and in the UK. In the past six years, Allsop Ireland has sold c. €1.1bn of property at auction, through the disposal of just under 6,000 units. SPG is led by Steve McCarthy. The Irish Times, 30th August
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119 St Stephen’s Green: Receiver Ken Tyrell of PwC is understood to be close to bringing 119 St Stephen’s Green to the market. The property, which is owned by Peter White, is expected to have a sales price between €4m and €5m. The four-storey Georgian property is currently occupied by the famous steakhouse Shanahan’s on the Green, who will be unaffected by the sale. Shanahan’s have c. eight years remaining on their lease, with no break clauses. The Sunday Business Post, 27th August
Nestor’s Supermarket Group: Joyce’s Supermarket Group is believed to have agreed a deal to acquire the assets of Nestor’s Supermarket Group in Galway, in a deal understood to be in excess of €10m. The assets are being sold under the instruction of the receiver, Grant Thornton. Nestor’s has stores in Father Griffin Road, Oranmore, Ballybane and Doughiska, where they employ c. 190 people in total. The Irish Independent, 27th August
McDonald’s Cork: Cohalan Downing have brought to market a purpose-built McDonald’s drive-thru restaurant which is located in Blackpool, north of Cork city centre. No guide price has been quoted for the property, however it is believed that it will sell for at least €2.5m – €2.6m, a c. 6.3% return based on the rental income of c. €165k p.a. The 3,300 sq. ft. restaurant, which was built in 2000, occupies a 0.8-acre corner site and recently received a substantial refurbishment from the tenant. There is c. 17.5 years left on the 35-year lease, which has no break options. The Irish Examiner, 24th August
Hotel Chocolat: The UK chocolatier Hotel Chocolat is looking to open up to three stores in Ireland. The chocolatier plans to open its first store in the GPO retail building on Dublin’s Henry Street before the end of 2017. BNP Paribas had been guiding c. €175k p.a. for the unit, which extends to 646 sq. ft. on the ground floor with a further c. 1,200 sq. ft. at basement and street level. Stores in Dundrum Town Centre and Blanchardstown are also being considered. The Irish Times, 23rd August
The Exo Building: The Sunday Business Post reports that SW3 Capital is “closing in on a deal” with NAMA for The Exo Building, an unbuilt office block in Dublin’s docklands which will face the East Link Bridge. The purchase price for the property is reportedly c. €120m. It is believed that under the terms of the deal, SW3 will fund the development of the block and assume ownership upon completion. At 73 metres tall, The Exo Building is set to become Dublin’s tallest office block. SW3 is backed by Tristan Capital Partners, a British investment fund. The Sunday Business Post, 27th August
Goodbody 2017 Outlook: The brokerage firm Goodbody reports that 2017 is looking like a very strong year for the Dublin office market. They reference CBRE’s figure of c. 1.6m sq. ft. of take-up in H1 2017, which on its own is 80% of the long-run average take-up per year. H2 2017 also looks promising, with The Sunday Times reporting on the 27th of August that Indeed, the US recruitment company, are looking for c. 250,000 sq. ft. of office space. Goodbody, 28th August
Dublin 1 Hotel: Noel Smyth’s Fitzwilliam Real Estate Properties Ltd has sought planning permission from Dublin City Council for a nine-storey, 365-bedroom hotel at the junction of Upper Liffey Street and Middle Abbey Street in Dublin 1. It is believed that should the development proceed, then the hotel will be operated by Motel One, the German budget hotel operator. There is currently a c. 50,000 sq. ft. property on the site of the proposed 125,000 sq. ft. hotel, which will need to be demolished to make way for the hotel. NAMA Wine Lake, 28th August
Pembroke Road Hotel: The publican Martin Keane, who owns Bloom’s hotel and Oliver St John Gogarty pub in Temple Bar in Dublin city centre, is seeking to develop a new 50-bed boutique hotel on Pembroke Road in Dublin 4. The proposed hotel is still in the early stages, and no planning application has yet been submitted to Dublin City Council. Should the development proceed, Mr Keane has stated that the hotel will be operated by one of his own companies, as opposed to hiring an international operator. The Irish Times, 26th August
Spencer Hotel Expansion: Spencer Leisure Investments Ltd has sought planning permission from Dublin City Council for 40 new hotel bedrooms and a new conference room for the Spencer Hotel in Dublin’s IFSC. The proposed expansion of the four-star, 169-bedroom hotel will be partly facilitated by way of a seven-storey, 11,000 sq. ft. extension. Spencer Leisure is controlled by John Malone, John Lally, Daniel Sierra Junior and Paul Higgins. NAMA Wine Lake, 27th August
Ashton House: A classical period house located on c. 28 acres of land close to Ashtown Railway Station and the Phoenix Park in Dublin has been brought to the market with a guide price of €3.5m. The property, which was previously sold for c. €26m in 2006, was offered for sale by CBRE on behalf of NAMA over two years ago, however it was subsequently withdrawn from the market as it was hoped that the land would be rezoned to accommodate a residential development. However, this rezoning did not take place, and the estate is for sale once again, and is likely to end up as a private residence, nursing home, wedding venue or equestrian centre. The main residence extends to c. 6,500 sq. ft. and includes 12 large bedrooms, while there is also a four-bed lodge and four-bed gate bungalow on the site. The Irish Times, 23rd August
New Dublin Suburb: The Irish Times reports that South Dublin County Council will shortly publish plans for a new Dublin suburb containing more than 8,000 homes. The new suburb will be located on c. 690 acres of land at Clonburris, which is located to the east of Adamstown on the Dublin – Kildare railway line, and will cater for a population the size of Wexford town. Cairn Homes, the largest landowner in Clonburris, has stated that it would be in a position to start building there in early 2018, and that it could provide homes for less than €300k. Mr Eddie Taaffe, the council’s director of planning, has indicated that the land could generate in excess of 500 homes p.a., providing a steady stream of housing over the next 10 to 15 years. The potential for increased traffic in the area from the development is a concern locally, as there is already severe congestion in Adamstown, Lucan and Clondalkin. The Irish Times, 28th August
Sandyford Residential Application: Receivers Farrell Grant Sparks have sought a pre-planning consultation for the development of 482 apartments on the site of Cork developer John Fleming’s Rockbrook scheme in Sandyford, south Dublin. The plans have been submitted under the Government’s temporary fast-track planning application system, and should the scheme be given approval by An Bord Pleanála, the site should see an immediate increase in value, opening up the prospect of its sale to both developers and investors. This application is separate to the one submitted by IRES REIT to develop 467 apartments at Rockbrook. Should both developments proceed, they would bring an additional 949 residential units to Sandyford. The Irish Independent, 27th August
IRES Rockbrook Application: An Bord Pleanála have today postponed the decision date on IRES REIT’s appeal against the decision of Dún Laoghaire-Rathdown County Council to refuse planning permission for its 467-unit apartment scheme at Rockbrook. The decision date has been postponed from the 28th of August 2017 to the 2nd of October 2017. The postponing of the decision has been attributed to capacity constraints at board level. Goodbody, 29th August
Inchicore Apartments Application: Wingthorpe Ltd has sought planning permission from Dublin City Council to construct a 19-unit apartment complex on Emmet Street in Inchicore. The new five-storey, over two-level basement building will contain five one-bedroom units, nine two-bedroom units, five three-bedroom units, a ground floor commercial unit and underground car parking. NAMA Wine Lake, 27th August
Permanent TSB (“PTSB”) Mortgage Product: PTSB is introducing a new product for homebuyers which will see the bank reimburse customers with 2% of each monthly payment made, in addition to the existing offering of a once-off cashback payment of 2% of the value of their mortgage on drawdown. The new product will be available to all future residential mortgage customers who make their monthly mortgage payments from an “Explore Account”, and the reimbursement is set to apply until December 2027. Customers who have recently received mortgage approval but who have not yet drawn down a mortgage will also be invited to avail of the new offer, however it will not be available for customers taking out a buy-to-let mortgage. PTSB increased its share of mortgage lending to 10.8% in H1 2017, having fallen to just 2% during the recession. The Irish Times, 25th August
Castlemanor Nursing Home: The Sunday Business Post reports that Trinity Care is set to acquire Castlemanor Nursing Home and a number of retirement units for between €8m and €9m. Castlemanor is a 71-bed nursing home with 29 retirement cottages located outside Cavan town. The purchase price is believed to reflect a 10x valuation on earnings / EBITDA, with an additional €1m for the retirement units. Trinity Care, which is owned by Anne Heraty and Paul Carroll, already owns nursing homes in north Dublin, south Dublin, Kildare, Meath and Cavan. The Sunday Business Post, 27th August
Dublin 2 Commercial Vacancy Rate: New research from GeoDirectory and DKM Economic Consultants has shown that despite being at the epicentre of Dublin’s commercial property resurgence, Dublin 2 recorded a commercial vacancy rate of 18.3% in Q2 2017, substantially above the 13.6% vacancy rate recorded in Co. Dublin generally. GeoDirectory CEO Dara Keogh stated that with the obvious economic recovery and apparent demand for office space in Dublin 2, the 18.3% vacancy rate suggests a ‘serious mismatch’ between the stock that is available and what is being demanded. The research also showed that Dublin 2 isn’t alone in terms of outstripping the national average of 13.5% for commercial vacancies, as nine of Dublin’s postal code areas have vacancy rates in excess of 14%. At a provincial level, Connacht had the highest average vacancy rate at 15.8% in Q2 2017, followed by Ulster at 14.1%, Munster at 13.1% and Leinster (excluding Dublin) at 12.6%. The Irish Independent, 23rd August
International Construction Survey: Enterprise Ireland and Investec have released a new publication which focuses on developments in Ireland’s major export markets, with their latest publication focusing on the construction sector. The survey finds that 45% of respondents have reduced their exposure to the UK since the Brexit referendum in June 2016. While some firms have withdrawn from the UK market completely, many of those who have maintained operations in the UK have adapted their business models, implementing currency and raw material hedging strategies to mitigate against currency risk. While the UK market remains a key market, there is now an increased focus on Continental Europe, the US and Asia. The Enterprise Ireland / Investec Export Market Watch Survey – International Construction, 29th August
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Starwood Office Portfolio: The Sunday Times reports that Starwood Property Trust has turned down an offer to sell its c. €380m Dublin portfolio at a ‘significant premium’. The company acquired the portfolio, which consists of 12 office blocks and an apartment complex, from Lone Star in 2015, for over €300m. The office assets include the Iveagh Court Complex, the Watermarque building, Marsh House and 11 – 12 Hogan Place. Lone Star is reported to have made a substantial profit from the sale of the portfolio to Starwood, having acquired the portfolio for c. €220m from NAMA in 2014 as part of the agency’s Project Holly loan sale. The Sunday Times, 20th August
Carrisbrook House: A joint venture between Colony Northstar and U+I has purchased Carrisbrook House, the home of the Israeli embassy in Dublin. The property previously made headlines after it emerged the State paid almost €1m p.a. for vacant office space in the building for almost a decade, with the State agency Forfás citing security concerns for failing to find occupants for its space. AIB Investment Manager, the other long-standing leaseholder, vacated the premises in 2008, also citing security concerns. The Israeli embassy, which signed a 30-year lease agreement with Forfas in 1995, has been the only tenant in the building for a number of years. Based on documents referenced by The Sunday Times, Colony and U+I acquired the property from Carrisbrook Unlimited in July. The property was acquired by Bernard McNamara in 2007 for c. €46m, before it was sold by a receiver in 2012 for c. €16.3m. The Sunday Times, 21st August
Cork Business and Technology Park: An unnamed Irish investment company has paid c. €8m (c. €0.75m over guide) to acquire two buildings in the suburbs of Cork City, Unit 8 and Unit 14 in Cork Business & Technology Park. With the current rental income at c. €808k p.a., the properties should offer a return of just over 9% p.a. Unit 8 extends to 24,755 sq. ft. and is occupied by Apple Operations Europe, a subsidiary of Apple. Unit 14 extends to 36,340 sq. ft. and is occupied by Trend Micro (EMEA) Ltd. The combined WAULT of the two units is under four years. The Irish Examiner, 15th August
The Temple Bar Inn: The owner of the Temple Bar Inn, a 101-bedroom, three-star hotel located on Fleet Street in Dublin city centre, is seeking planning permission from Dublin City Council to add an additional 89 rooms to the property, via a six-storey extension. The applicant is Heights Hospitality Operations Ltd, which is an Irish company controlled by Dan Dumitrescu, Thomas Doyle and David Reuter. NAMA Wine Lake, 20th August
Waterford City Development: Waterford City Council is seeking c. €61m of state investment to assist in a project which should double the size of the city centre. In a submission to the Government’s ten-year capital plan, the city council has stated that the funding would unlock a further €500m from Saudi Arabian and Irish investors to regenerate a derelict site on the city’s North Quays. The plans involve the construction of a new bridge across the River Suir for both pedestrians and cyclists, as well as the relocation of the city’s train and bus stations. To date, Waterford has grown almost exclusively on the south of the Suir. The Saudi-based Fawaz Alhokair Group will invest c. €300m in a retail and office development on the north side of the river, but only if the State agrees to fund new infrastructure, while Irish developer Seamus Walsh is planning to redevelop the Ard Rí hotel into a five-star resort. The Sunday Business Post, 20th August
Donaghmede Apartments Application: Midgard Construction Ltd has applied to Dublin City Council for planning permission to construct 209 new apartments in 4 four-to-five storey blocks on the site of the former Columban Missionary on The Hole in the Wall Road in Donaghmede in north Dublin city. The new apartments will consist of 72 one-bedroom units, 102 two-bedroom units and 35 three-bedroom units. The project will require the demolition of the existing building on the site, and the new development will also contain a 2,500 sq. ft. gym, a 3,000 sq. ft. crèche, and basement car and bicycle parking. NAMA Wine Lake, 20th August
Daft.ie Rent Report: The latest Daft.ie report on national rents shows that there are less than 3,000 properties available to rent nationwide, the lowest figure on record. There were also just 1,121 properties available to rent in Dublin on August 1st 2017, which is more than 20% below the number of properties available to rent 12 months’ previously. Rents in Dublin are now c. 18% higher than their peak from the Celtic Tiger, with the average property in the capital costing €1,741 p.m. to rent, representing an increase of 12.3% YoY. Excluding Dublin, national rents have risen by 11.9% YoY. Rents in Cork city and Galway city also saw strong inflation, at 6.8% and 10.0% respectively. The Daft.ie Rental Price Report, Q2 2017
Ronan Planning Applications: Johnny Ronan’s Ronan Group Real Estate (RGRE) has taken additional steps to secure planning permission for two substantial projects in Dublin and Wicklow. RGRE have submitted extensive information to Dublin City Council in relation to a c. 717,000 sq. ft., mixed-use development in Spencer Dock in the north docklands. RGRE had sought planning permission from the council for a 212-bedroom hotel, c. 500,000 sq. ft. of office space and restaurant / retail units, before the council sought further information. RGRE have also appealed Wicklow County Council’s decision to refuse planning permission for a c. €50m, 141-bedroom hotel in St Valery’s, Enniskerry, Co. Wicklow, to An Bord Pleanála. The Irish Independent, 22nd August
Northwest Business Park: IPUT PLC has pre-let Unit 624 Northwest Business Park in Dublin 15 to German logistics operator DB Schenker. The company will occupy the building, which extends to 103,000 sq. ft., later this month after the completion of a substantial extension to Unit 624, which IPUT acquired vacant in 2015. The facility sits on a secure 5.1-acre self-contained site with three gated entrances, and is strategically located close to Dublin Airport, with excellent links to the M2, M3 and M50 motorways. William Harvey & Co advised IPUT on the transaction. IPUT, 14th August
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Permanent TSB Mortgage Sales: The Irish Times reports that PTSB is progressing with its plan to sell a substantial portion of its worst performing mortgages, and is reportedly seeking advisers on potential loan sales in either 2017 or 2018. The bank, which is 75% owned by the State, is facing mounting pressure from regulators to address the problem, as it currently has the highest ratio of non-performing loans amongst Ireland’s bailed-out banks, at 28% of its portfolio as of June 2017. More than 50% of the loans in the c. €5.78bn non-performing loan portfolio are in some form of long-term restructuring or forbearance agreement, but are making a contribution to the profitability of the bank. It is therefore believed that the focus of the loan sales will be the c. €2.68bn of ‘untreated’ bad loans, deemed to be so either because the bank can’t find a viable solution or the borrowers haven’t engaged with the bank. The Irish Times, 11th August
Former Central Bank HQ: US property giant Hines and its Hong Kong based partner Peterson are set to seek permission from Dublin City Council to embark on a c. €75m redevelopment of the former Central Bank HQ in Dublin city centre. The plans include a 300-seat rooftop restaurant and viewing area, c. 129,000 sq. ft. of office space, and shops in the adjoining retail buildings, which they also own. The plans involve changing the roof of the building by removing the current copper cladding and replacing it with a two-storey glass-roofed structure that will house the new restaurant and a viewing area. The application is part of a master plan known as Central Plaza, which includes the annex and commercial buildings on Dame Street, and 6 – 9 College Green. It is hoped that the redevelopment will be completed by Christmas 2018, with the pedestrianisation of College Green scheduled to be completed around the same time. The Irish Times, 9th August
Cork Office Development: JCD Group has been granted planning permission for a c. €8.7m, c. 75,000 sq. ft. office development in Cork city centre. It is expected that construction will commence in Q4 2017 and will take approximately 12 months to complete. The Sunday Business Post, 13th August
Vacant Site Levy: The Irish Times reports on Dublin City Council’s registrar of vacant sites, which contains 70 sites with a combined value in excess of €220m. The owners of the sites include international funds, as well as the OPW and Dublin City Council themselves. The council owns seven sites on the registrar, which have a combined value of more than €27m. There are plans to introduce a levy on vacant sites from 2019, with the levy set at 3% of the value of the site, payable annually. The criteria for the sites to be levied include (i) the site being greater than 0.12 of an acre, excluding gardens (ii) the majority of the site has been vacant or idle for at least 12 months (iii) the site must be in an area zoned for residential or regeneration purposes and (iv) the site must be in an area which is in need of housing. The Irish Times, 15th August
College House / Screen Cinema Site: Marlet Property Group has applied for planning permission to redevelop the former Screen Cinema and the adjacent nine-storey College House building on Townsend Street in Dublin city centre. The group want to demolish the existing properties and replace them with a c. 269,000 sq. ft. office block, with the estimated cost of the development at c. €70m. The block will also contain a 500-seat entertainment venue in the basement, and a bar and restaurant on the ground floor. The site is beside Hawkins House and Apollo House, both of which are set to be demolished and replaced with new buildings, and the new Luas Cross City line will pass by the site. It is anticipated that the planning process could take until mid-2018, with construction expected to take about 18 months. The Sunday Times, 13th August
Culvert Apartments: Bartra is set to purchase the Culvert Apartments complex on Pim Street in Dublin’s inner city. The complex, located near the Guinness brewery, consists of 23 apartments leased to Dublin City Council on a rental accommodation scheme, and four private duplexes. The block was put on the market in late 2014, guiding c. €3.2m. The Sunday Times, 13th August
Ballyfermot Residential Development: Dublin City Council has published a planning application to build a mix of houses and apartments on the former Cornamona Court site in Ballyfermot, west Dublin. The development will contain 61 units in total, consisting of 16 two-storey, two-bedroom terraced houses, a four-to-five storey apartment block containing 12 three-bed ground floor duplexes, and 33 senior citizen apartments (29 one-beds and four two-beds). NAMA Wine Lake, 13th August
Cherrywood Planning Application: William Neville & Sons have submitted a planning application to Dún Laoghaire-Rathdown County Council to construct 242 apartments and 80 houses in the new town of Cherrywood in south Dublin. The application comes just days after the council changed the planning scheme for the Cherrywood Strategic Development Zone (SDZ) to allow smaller apartments to be built in the town. The application is believed to be the first for the new town, despite the fact that the Cherrywood planning scheme, allowing for the development of c. 8,000 new homes, was approved in 2014. In 2015, the then Minister for the Environment, Alan Kelly, introduced new standards which lowered the minimum size of apartments which could be built, after which the council had to return to An Bord Pleanála to have the new standards incorporated into the scheme. The reduction in apartment sizes means that the number of homes that can now be built in Cherrywood will increase from 8,336 to 8,786. Under the fast-track planning scheme, planning permission for the development could be secured from the council in two months. The Irish Times, 13th August
Mortgage Rates: New figures from the Central Bank show that the average interest rate applied to new variable rate mortgages in Ireland was 3.35% in June, against an equivalent Euro area rate of 1.83%. The Irish Times reports that the banks cite relatively higher funding costs, as well as the Irish market being more risky as factors behind the difference in mortgage rates between Ireland and the rest of the Euro area. The latest Central Bank figures also show that while the share of fixed rate mortgages in Ireland is increasing, variable rate mortgages still account for c. 60% of new agreements, compared with a figure of 15% in the Eurozone area. The Irish Times, 11th August
CSO Property Prices: The latest figures from the CSO show that the growth in property prices continues to accelerate, with prices rising by 11.6% in the year to June 2017. This compares with an increase of 11.1% in the year to May, and an increase of 5.5% in the year ending June 2016. The average price paid for a home in the year ending June 2017 was c. €259k, or c. €402k in Dublin. The most expensive place to buy in Ireland was Dún Laoghaire-Rathdown in Co. Dublin, with an average price of c. €581k, while the cheapest was Co. Longford at c. €94k. House prices nationally are now just 29% lower than the highest level reached in 2007, with Dublin property prices 29.9% below their February 2007 peak, and property prices outside of Dublin 34.6% below the peak reached in May 2007. The Irish Times, 9th August
BNP Paribas Real Estate: BNP Paribas Real Estate has announced the acquisition of Strutt & Parker, one of the largest independent property partnerships in the UK. The acquisition is due to be completed in September 2017, and will merge the UK subsidiary of BNP Paribas Real Estate with Strutt & Parker, which has over 60 offices in the UK and covers all real estate asset classes. BNP Paribas Real Estate, 8th August
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Shoreline Portfolio: The Sunday Independent reports that Bank of Ireland has agreed to buy a portfolio of ‘re-performing loans’ from Lone Star. Mortgage holders have received letters in recent weeks advising them that an agreement had been reached between Bank of Ireland and the Lone Star entity Shoreline. It is understood that the loans in the portfolio were previously in difficulty, but are now performing again after engagement between the borrowers and the loan acquirer. The purchase of portfolios from investment funds provides a mechanism for banks to grow their loan books in a market where housing supply remains tight. The Irish Independent, 6th August
Lidl Expansion: Lidl could increase its presence in Ireland to as many as 200 stores, in a potential investment of at least €300m. The company currently has 152 outlets in the Republic of Ireland, and is opening further stores this year in a variety of locations including Cabra and Portmarnock in Dublin and Wilton and Bantry in Cork. In an interview with the Irish Independent, Lidl Ireland Managing Director John Paul Scally stated that the company would continue expanding until there was a Lidl store in close proximity to everyone in the country. The potential €300m spend would be in addition to the €400m the company is investing in its network in Ireland between 2016 and 2018, including c. €80m on a substantial distribution centre the company is hoping to develop in Newbridge, Co. Kildare. The Irish Independent, 3rd August
One Molesworth Street: Green REIT has confirmed that it has signed an agreement with Barclays Bank which could see the bank lease up to 45,000 sq. ft. of space in their new One Molesworth Street development in Dublin city centre. The bank has initially signed a 20-year lease for 37,000 sq. ft. of space, which equates to two and a half floors out of the total of five available floors. The bank also has an option for a further half floor, which, if taken, would bring the letting to 45,000 sq. ft. Barclays will pay a rent of €2.35m p.a., with the bank entitled to a market level rent-free period at the start of the lease. There is also a break option in the lease in year 12. The Irish Times reports that the One Molesworth Street development is set to generate an overall rental income of c. €5m p.a. for Green REIT, and cites a Goodbody client note which states the scheme could add c. €34m of profits once completed, ahead of earlier expectations of c. €29m. The Irish Times, 2nd August
Carton House Resort: The Sunday Business Post provides an update on the bidding for Carton House Hotel, Spa & Golf Resort, reporting that billionaire John Malone and the Guinness family are among those considering bids for the resort. In addition, several Chinese investors have reportedly sought access to the data room. It is also noted that a number of the usual bidders for large scale Irish hotel and resort assets such as Tetrarch, Dalata and Tifco, are not planning to make a bid. It is believed that the earnings after tax of c. €2m against a price tag of €60m – €65m is deterring several players, and several well-known hotel investors also consider the detail available in the data room to be insufficient for progressing a bid. The Sunday Business Post, 6th August
Average Room Rates: New figures from the travel research company STR show that the average daily rate (ADR) for a hotel room in Dublin city in H1 2017 was €132.60. For the State as a whole, the ADR was €122.85. STR also anticipate that the ADR in Dublin will rise by between 5.5% and 7.5% before the end of 2017, increasing the ADR to somewhere between €132 and €140. With regards to occupancy rates, Dublin currently has an occupancy rate of 80.71%, ahead of Paris, Zurich, London and Rome. The occupancy figure for Ireland as a whole (75.4%) was also above cities such as Paris, Zurich and Rome, with occupancy in hotels outside of Dublin rising by 3% in H1 2017 to 67.3%. The Irish Times, 7th August
Cork Development Site: The O’Flynn Group, of which Michael O’Flynn is the Managing Director, has sought planning permission for 515 homes, a crèche, retail units and a community centre on a c. 76-acre site in Ballinglanna, which is to the east of Glanmire in Cork. The development has a value of c. €130m. Under the new fast-track planning legislation, the group can expect a final decision of the planning application within 16 weeks. The Irish Independent, 8th August
EBS / DKM Affordability Index: The latest EBS / DKM Affordability Index shows that the cost of servicing a mortgage, as a percentage of after-tax income, continues to rise. By the end of 2017, a single-person will spend c. 34.5% of their income servicing their mortgage, a level not seen since 2008. For a first-time buyer couple, mortgage repayments accounted for c. 21.2% of their after-tax income in May 2017, having been at c. 18.7% in May 2015. First-time buyer couples in Dublin were spending c. 27.4% of their after-tax income servicing their mortgage in May 2017, up from 25.5% in May 2016 and a low of c. 17% in 2012. The Irish Times, 8th August
Government Mortgage-To-Rent Scheme: The Government has received clearance from Eurostat, the EU’s statistics agency, to proceed with a plan that will allow private equity funds to acquire distressed mortgages from the Irish banks. Under the proposed scheme, private sector entities will be able to purchase the mortgages of thousands of distressed mortgage holders, who can then apply to become social housing tenants, with the State paying a rent top-up to the private sector operators on top of what the mortgage holder can pay. While the borrower will lose ownership of their home under the scheme, instead becoming a tenant of the State, they will be able to re-purchase their home in the future if their circumstances improve. To date, several private sector entities and advocacy groups have expressed an interest in the scheme, including iCare Housing, Merrion Capital, Beacon Capital and Arizun. The Sunday Business Post, 6th August
Mortgage Approvals Vs Drawdowns: The Irish Independent reports on the increasing gap between the number of people who obtain mortgage approval and those who actually drawdown a mortgage. According to figures from the Banking and Payment Federation Ireland (BPFI), c. 8,000 more people were approved for a mortgage than those who actually drew one down in the year ending June 2017 (c. 35,000 vs. c. 27,000). However, both approvals and drawdown numbers continue to rise. The disparity, which is the greatest in percentage terms since the data began in 2011, is attributed to both the chronic shortage of properties for sale, and the fact that many buyers get approval from a number of mortgage lenders in the hope that some will offer them a higher mortgage. The figures from the BPFI show that c. 8,000 mortgages were drawn down in Q2 2017, with a combined value of c. €1.65bn, representing a 17.6% increase YoY. The Irish Independent reports that the first time buyers are driving the rise in the mortgage market, having been boosted by the relaxation of deposit rules from the Central Bank and the introduction of the Government’s Help-to-Buy scheme. First-time buyers and mover-purchasers combined accounted for 85% of the total value of mortgages drawn down. The Irish Independent, 3rd August
Apartment Sales: According to the latest investment property report from estate agents Lisney, over €300m worth of rental apartment blocks and portfolios are expected to be sold in H2 2017. Lisney reports that strong demand has seen the sector become the best performing sector in the year ending June 2017. The yields from private rental sector (PRS) investments dropped by 75 basis points in the year ending June 2017, as the prices being paid for investments rose even more rapidly than the increases in rents. However, at 5.75% gross, yields are still higher than both prime retail and offices. The Irish Independent, 7th August
Dublin Residential Development Scheme: Victoria Asset Management, a UK company connected to Dublin-based property developer Victoria Homes, is reportedly planning to raise up to €50m by issuing bonds, to fund the construction of up to 4,000 new homes around Dublin. The company has said it will work in conjunction with Victoria Homes, which it says has created a robust pipeline of development sites around the capital over the last five years. These sites are located in areas including Enniskerry, Killiney, Foxrock, Ballsbridge, Mount Merrion, Stillorgan, Rathfarnham, Portmarnock and Malahide. The Irish Independent, 4th August
Benbulben Suites: Colliers are guiding €2.5m for ‘the Benbulben Suites’ a residential, tourist and industrial investment in Sligo. The investment consists of two buildings. The first building contains 54 two-bedroom suites and extends to 74,000 sq. ft. (gross). The second building, the industrial building, extends to c. 12,000 sq. ft. (gross). The suites are currently used as serviced accommodation, with a mixture of student accommodation and short-term tourist lettings. In 2016 the suites generated turnover of c. €481k and income of c. €186k. The industrial building is to the rear of the suites and is currently being used by the HSE as a regional laundry, at a rent of c. €63k p.a. The HSE has been in situ since 1992, although their lease has expired. The Irish Independent, 3rd August
Construction Projects: According to the Construction Industry Federation, an audit of every public and private sector construction project in the State (excluding one-off housing) by Construction Information Services has shown that of the new construction projects commencing, 27% are in Dublin, 24% are in the rest of Leinster, 28% are in Munster, 13% are in Connaught and 8% are in Ulster (Republic of Ireland). The report also found that after a 29% increase in the number of projects starting between 2015 and 2016, the number of projects which commenced in H1 2017 was almost static (at 1,325) when compared with the same period in 2016 (1,317). Also notable is that the volume of planning permissions granted in H1 2017 (2,672) was below the corresponding period in 2016, with the number down by 312 projects (10.4%). The Irish Independent, 6th August
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