Commercial Property Returns: The Society of Chartered Surveyors’ Ireland and IPD Quarterly Property Index has noted that the value of Irish commercial property investments rose by c. 2.1% in Q2 2017, a figure which is below the c. 3% return in Q2 2016. The index showed that commercial property returned c. 10% YoY to the end of June 2017. According to MSCI, which produced the research, Irish commercial property returns have normalised since the recovery in the market took place. The Irish Times, 27th July
CastleCourt Shopping Centre: The Northern Ireland-based investment firm Wirefox has paid c. £125m (c. €140m) to acquire the 27-year old Castlecourt shopping centre in Belfast. The property, which extends to c. 340,000 sq. ft. of space, was previously owned by the fund manager Hermes. The centre is the third largest in Northern Ireland and is the largest single-asset transaction to take place in recent years. The centre is anchored by Debenhams and has annual footfall of c. 12.5 million. The Irish Times, 28th July
Kildare Village Extension: Value Retail, the owner of Kildare Village, has submitted plans for a c. €50m extension which would add 29 stores and two restaurants to the complex. If the scheme was to be approved, it would increase the number of stores to over 130 and provide employment for several hundred people. To facilitate the extension, an additional 460 car spaces will need to be provided. The Irish Independent, 30th July
Skerries Point Shopping Centre: Skerries Point Shopping Centre in north Dublin has been sold to US investment company Grand Coast Capital for €3.4m, c. €400k above the asking price set by Savills. The purchase price equates to c. €113 psf, and the investment will show an initial yield of c. 7%. The centre, which extends to 68,682 sq. ft., currently produces rental income of c. €335k p.a. from tenants which include Eurospar and Boylesports. The weighted average unexpired lease term is 6.5 years, and the centre currently has a vacancy rate of 57%. The Irish Times, 26th July
Jervis Shopping Centre: AIB has provided JSC Properties, a company controlled by Paddy McKillen and Padraig Drayne, with a seven-year, €155m loan facility to refinance the Jervis Shopping Centre in Dublin city centre. The 385,000 sq. ft. centre, which was developed in 1994, contains over 90 retail units, including Topshop, Tesco, PC World and Next, as well as a dedicated food court. The current rental income is c. €16m p.a., a figure which is due to rise to c. €18.5m p.a. over the next 18 months. The owners of the centre were advised by LeBruin and Eastdil Secured. The Irish Times, 26th July
Dawson Street / Nassau Street Development: An Bord Pleanála has upheld plans for a c. €58m development on the corner of Dawson Street and Nassau Street in Dublin 2. The project will involve the demolition of the existing buildings, and the construction of over 215,000 sq. ft. of commercial and retail space. The Sunday Business Post, 30th July
Beech Hill, Clonskeagh: An unnamed investor has paid c. €8m to acquire one of the original office buildings at Beech Hill office campus in Clonskeagh, Dublin 4. The three-storey, 21,366 sq. ft. property is occupied by Topaz Energy under a 35-year lease from 1991, at a rent of c. €460k p.a. Based on the purchase price, the property offers a net initial yield of c. 5.5%. The property also contains 68 car parking spaces and was recently refurbished. The sale was handled by BNP Paribas Real Estate. The Irish Times, 25th July
Tallaght Land Bank: Bohan Hyland & Associates are guiding €3.5m for a 2.2-acre land bank at Greenhills Road in Tallaght, Dublin 24. The site comes with full planning permission for a 125,000 sq. ft. office development. The selling agents believe that while the current planning permission covers the development of an office building, the site will be of particular interest to nursing home operators and residential developers. The Irish Times, 25th July
Radisson Blu Hotel: Luxor investments has been granted planning permission by An Bord Pleanála for a c. €35m extension to the four-star Radisson Blu hotel on Golden Lane in Dublin city centre. The owners had been seeking an eight-storey extension which would have added 103 bedrooms to the 152-bedroom hotel, however the owners later revised their plan to seek a reduced extension of six-storeys. The targeted completion date for the works is H2 2019. The Irish Independent, 29th July
Dublin 1 Hotel: Weiyu Wu has sought planning permission from Dublin City Council to convert a five-storey, over-basement building located at 72 Middle Abbey Street in Dublin city centre into a 10,000 sq. ft., 17-bedroom hotel. The application will involve a change of use for the premises, which is currently designated for retail use on the ground and basement floors, and retail storage on the upper floors. NAMA Wine Lake, 30th July
The Avalon Inn: Joe and Julie Comerford have been granted planning permission by An Bord Pleanála to convert their bed & breakfast, the Avolon Inn, into a 39-bedroom hotel in Co. Kilkenny. Once the c. €5.4m renovation is complete, it is expected that the property will also feature a wedding venue and ballroom capable of facilitating up to 250 guests. The Irish Independent, 27th July
Dún Laoghaire Apartments: The Irish Times reports that Patrizia, the German real estate fund, is to purchase Ireland’s largest build-to-let apartment development, which is being constructed in Dún Laoghaire in south Dublin. The fund was the top bidder, at c. €132m, for 319 multifamily apartments being constructed in two five-storey blocks on the site of the former Dún Laoghaire golf course off the Upper Glenageary Road. There was substantial interest in the investment from other institutional investors such as Irish Life, AIG, SW3 and Tristan Capital Partners, underlining the continued confidence in the under-supplied rental market. According to selling agent Hooke & MacDonald, the 319 apartments will generate rental income between €7.17m and €7.84m p.a., providing an investment yield of 5.5% – 6%. The Irish Times, 26th July
New Bancroft Hall: The newly formed Dublin Artisan Development Fund has purchased a 131-unit portfolio of one-, two- and three-bedroom apartments in New Bancroft Hall in Tallaght, Dublin 24, from Park Developments for over €30m. The fund, which was set up by Bill Nowlan, is on target to let all 131 apartments by the end of August, and it is expected that over 30% of the apartments will be let to social and affordable tenants. It is believed the newly formed fund is unlikely to be a direct site developer, but will consider pre-funding suitable projects. The Irish Times, 26th July
Shankill Site: CBRE is guiding €2.5m for Eton Brae, a large Victorian house located at Corbawn Lane in Shankill, Co. Dublin. The site of Eton Brae comes with planning permission to convert the 6,675 sq. ft. three-storey mansion into two large apartments, and also for the construction of 14 new houses – eight three-bedroom houses extending to 1,636 sq. ft. and six four-bedroom houses extending to 1,797 sq. ft. CBRE believe the property, which is located beside Shankill train station, has potential to be divided into several more residential units, and are expecting considerable interest in the sale. The Irish Times, 25th July
Craddockstown Development: Cairn Homes has been granted planning permission by Kildare County Council for a c. €30m, 258-unit development located at Craddockstown, Naas in Co. Kildare. Sunday Business Post, 30th July
Dublin Apartment Heights: The Sunday Business Post reports that the government is planning new laws which will allow for higher-rise apartment blocks in certain areas of Dublin city centre. The Minister for Housing, Eoghan Murphy, informed The Sunday Business Post that the government will seek to increase the density in housing and high-rise developments as part of changes to the housing and homelessness plan, Rebuilding Ireland. Mr Murphy stated that it was necessary to ‘go higher’, particularly in Dublin city centre, and that the government was seeking to make changes to current laws to facilitate this. In the same piece, Mr Murphy also outlined that the state will take a greater role in the construction of social housing in the future. The Sunday Business Post, 30th July
Goldenbridge Student Accommodation: Derek Kelly has sought planning permission from Dublin City Council to build a low-rise student accommodation complex at Emmet Court in Goldenbridge, west of Dublin city centre. The three-storey, 10,000 sq. ft. development will provide 31 bed spaces and communal student amenities. NAMA Wine Lake, 30th July
North Dublin: Cairn Homes has applied to Dublin City Council to build 89 homes on a five-acre site at Parkside in Balgriffin, north Dublin. The development will comprise 43 houses between 1,300 – 1,800 sq. ft. (consisting of two detached, 20 semi-detached and 21 terraced units), and 46 apartments / duplexes ranging in size between 950 – 1,300 sq. ft. The development will also contain a 6,000 sq. ft. crèche. NAMA Wine Lake, 30th July
Hermitage Medical Centre: The owners of the Hermitage Medical Centre in west Dublin are planning a 62-bed extension to the private hospital. The new facilities would be located in a two-storey extension on top of an existing three-storey building at the hospital. The c. 29,000 sq. ft. extension will also include nurses’ stations and storage, as well as a multi-storey car park. The centre currently has 112 in-patient beds, 37 day beds and seven operating theatres. The hospital opened in 2006. The Sunday Times, 30th July
Action Health Enterprises: Action Health Enterprises, a new M&G-backed healthcare company, is planning a €250m investment in the Irish healthcare sector, having secured a portfolio of up to 25 primary healthcare centres. While the location of the majority of these centres has not been disclosed, documents filed with the Companies Office show that the company has taken over a care centre in Athenry, Co. Galway. The company, and its property partner Marlet (which is also backed by M&G) have agreed to take over the running of a number of primary care centres from the HSE. In addition, the consortium is refinancing other centres, and has agreed a deal with the HSE to develop its own centres. The Sunday Times, 30th July
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Tallaght Shopping Centre: NAMA has appointed Cushman & Wakefield and JLL as joint sales agents for the Square Tallaght shopping centre in Tallaght, south Dublin, with the agents expected to begin marketing the complex in September. The centre is one of the final large-scale, stand-alone commercial properties in NAMA’s portfolio, and is expected to be valued at well over €300m. The shopping centre contains over 570,000 sq. ft. of shopping space spread across 130 units, and a cinema. Anchor tenants include Dunnes Stores, Debenhams and Tesco. The centre also has planning permission for a 226,000 sq. ft. extension which will add a further 12 units, a multi-storey car park and a new anchor store. Accounts for Indego, the owner of the Square, indicate that the centre had turnover of c. €17.7m for the year ending June 2016, with operating profits of c. €9.9m. The Sunday Times, 23rd July
Frascati Shopping Centre: Aldi is set to join existing anchor tenants Marks & Spencer and Debenhams in the refurbished and extended Frascati Shopping Centre in Blackrock, Co. Dublin. The complex is due to increase in size from 100,000 sq. ft. to 170,000 sq. ft. by the end of 2018, and Aldi will lease a 13,000 sq. ft. unit. The extension will add 24 new retail units and five food and beverage units in a dedicated restaurant location, while a carpark extension will bring the total number of spaces to 550. The Irish Times, 19th July
Ilac Centre: Regatta Great Outdoors is set to occupy the final vacant retail unit in the newly redeveloped Moore Mall South at the Ilac Centre in Dublin city centre. The c. €1.5m redevelopment in the centre has seen the arrival of four other new tenants – BB’s Coffee & Muffins, The Works, So Nutrition and Nisbets. The Irish Independent, 20th July
Retail Sales: The Grant Thornton / Retail Excellence Ireland (REI) Retail Industry Sales Review for Q2 2017 has shown like-for-like declines in many sectors compared to the corresponding period in 2016. Menswear and IT / computing sales were down over 5% in the quarter, with footwear, ladies fashion and childrenswear among other sectors showing decline. However, overall sales rose by 1.26%, with agri-retail and garden centres performing strongly due to better weather during the quarter. REI have highlighted that volatility remains a key factor within the Irish retail industry with inconsistencies in sales patterns throughout 2017. The body highlighted the impact of ‘excessive’ rents, Brexit and intense competition from European online retailers as feeding into the ‘challenging’ outlook for the sector, and stressed the need for cost containment to assist with competitiveness. The Irish Independent, 23rd July
Dublin Retail Rental Growth: According to CBRE’s latest half-yearly research report on ‘Global Prime Retail Rents’, Dublin was the fifth fastest-growing prime retail location in the world, with year-on-year increases of rents of 10.5% in Q1 2017. London recorded the highest percentage growth at 39.1%, with St Petersburg, Auckland and Sofia taking the second, third and fourth positions. Looking at Ireland’s retail sector more generally, CBRE advised that it remains robust, buoyed by strong job creation, tourist activity and demographic changes. They noted that with 5% growth in retail sales in 2016, there is cautious optimism in the sector, with continued demand for stores in prime locations. However CBRE warned that supply challenges remain, which will cause increases in rents for units in prime locations. The Irish Independent, 20th July
Finglas Motor Dealerships: The Joe Duffy Group has secured planning permission for three substantial motor dealerships at Junction 5 of the M50 at Charleston in Finglas, Co. Dublin. The expansion follows the group’s purchase of an adjoining 5.3-acre site from Bovale Developments, and the three developments will require an investment of c. €20m to facilitate c. 75,000 sq. ft. of space for Volkswagen North Dublin and Porsche. The new premises are due for completion by the end of 2019. The Irish Times, 18th July
The Exchange: The Exchange, the first new building to be constructed in the IFSC since 2003, has a confirmed completion date of 28th September, ahead of schedule. The first tenant in the new 105,000 sq. ft. building is the Food Safety Authority of Ireland (FSAI), who will occupy 19,000 sq. ft. across the first floor at a rent of c. €50 psf. The FSAI will occupy their unit under a long-term lease, which will contain a break option in year 15. An additional 8,000 sq. ft. has been reserved on the ground floor. Joint agents Savills and JLL are continuing to market the remaining 78,000 sq. ft. of space, at a rent of €52.50 psf. The building is being developed by the Cosgrave Property Group, with IPUT PLC forward funding the development. The Irish Independent, 20th July
NTMA HQ: The NTMA has decided to take a lease on a much larger headquarters than initially planned in the new ‘Dublin Landings’ development. The agency had originally agreed to take c. 83,000 sq. ft. of space in Building 1, the first block under construction at the new development, which is located next to the new Central Bank in Dublin’s north docklands. However, it has now decided to rent the entire building, which extends to c. 143,000 sq. ft., an increase of 60,000 sq. ft. of space. The NTMA will pay the same rent, c. €50 psf for both lettings, which will have 25-year leases with break options in year 15. Building 1 is due to be ready for fit out in Q1 2018. The Irish Times, 19th July
Boston Sidings Grand Canal: CIE is expected to capitalise on the strong demand for office space in Dublin’s south docklands, where prime rents are currently c. €50 – €60 psf, by enlisting a partner to develop a high-rise office block at Grand Canal Quay in Dublin 2. CIE owns a 0.87-acre site, known as the Boston Sidings site, which adjoins Grand Canal DART station, and the company is reported to be seeking to secure a long-term income stream, rather than selling the site. The selected developer will be expected to handle the entire planning process, and the development of the office scheme, which is likely to consist of a minimum of seven storeys and have a floor area of at least 120,000 sq. ft. CIE is expected to provide a 300-year ground lease subject to an annual rent linked to the consumer price index, and Lisney estimate that the company should be able to earn either c. €1m p.a. by way of a premium rent, or a 10% share of the rent roll, whichever is greater. Interested parties will be invited to tender for the development opportunity by 12th October. The Irish Times, 19th July
1 and 6 Tuansgate: 1 and 6 Tuansgate, a modern office and retail building in Tallaght, south Dublin, has been sold for €6.5m, c. €700k above the €5.8m guide price. The building, which is producing strong rents, includes a modern office building and retail unit with a combined floor space of c. 40,000 sq. ft. and 105 car parking spaces in a local multi-storey carpark. The office element is fully let to the Dublin and Dún Laoghaire Education and Training Board and Tetra Pak, while the 3,296 sq. ft. retail unit is rented by Royal Foods t/a Spice Bazaar. The combined rental income from the asset is c. €521k p.a. The Irish Times, 18th July
Hotel Supply: New figures from Construction Information Services (CIS) suggest that there will be c. 3,000 extra hotel beds in Dublin by 2020, increasing the number of total hotel rooms in the capital by c. 15%. Two applications alone should increase Dublin’s capacity substantially; the first being Tetrarch’s proposed eight-storey, 393-bedroom hotel in Dublin city centre, and the second being a c. €38m, 427-bedroom hotel adjacent to Dublin Airport. The Irish Times, 24th July
The Marker: Dublin City Council has granted planning permission to GCS Hotel Property for an extension to the Marker Hotel that will involve adding a new floor and an upgraded rooftop bar. The c. €10m investment will involve adding an additional 30 bedrooms on the new floor, bringing the hotel’s capacity up to 217 bedrooms. In addition, there will be a new glass enclosed rooftop pavilion on the 8th floor that will contain a 3,250 sq. ft. restaurant, a 1,410 sq. ft. bar area and a 2,120 sq. ft. function room. Under the terms of the planning permission, the hotel must pay c. €183k in planning contributions. The Irish Independent, 22nd July
Red Cow Hotel: The Moran Family, the owners of the Red Cow hotel in south Dublin, have applied for planning permission to further extend the 275-bedroom complex by constructing an events centre and office block beside the hotel. If approved, the new four-storey building will be developed on the site of a car garage, and will extend to c. 57,000 sq. ft. It will contain an events centre on the ground floor and mezzanine level, a first floor bistro and two floors of offices. The Sunday Times, 23rd July
Fast-Track Planning: The Irish Independent provides details of the new ‘fast-track’ planning regulations which have been introduced for schemes of 100+ residential units and 200+ student bed spaces. The scheme, which became law at the start of July, has been designed to accelerate planning, one of the pillars of the Government’s ‘Rebuilding Ireland’ scheme which was launched last year. Under the previous system, a third party objection could delay an application process by 18-33 weeks, bringing the total process to over 70 weeks. The new process consists of three stages. Stage One consists of consultation with the local authority, which must be completed within four weeks. If the local authority cannot arrange a pre-planning meeting in this time, the applicant can proceed directly to Stage Two, which consists of consultation with An Bord Pleanála (ABP), and is limited to seven to nine weeks. ABP determine whether the application is valid and that it can proceed to Stage Three, while also ensuring that it complies with the Section 28 National Planning Guidelines. They do not comment on details of the application at this juncture. At Stage Three, ABP considers reports from local authorities and any objections, and must grant or refuse permission within 16 weeks. ABP cannot request further information on the application at this point. Further changes to the scheme include allowing an applicant to propose an application (at Stage One) that does not comply with a local development plan, but which meets national planning guidelines. The Irish Independent, 20th July
Aungier Street: Scape, a major international student living operator, has entered the Irish market with the acquisition of a development site on Aungier Street in Dublin 2 for over €20m. In November 2016, An Bord Pleanála granted full planning permission for a mixed-use development containing a 300-bed student accommodation complex on the site, alongside a mix of recreational and study facilities in three-to-seven storey blocks. The units will be divided into 282 bed spaces with communal kitchen facilities between every three and eight en-suite bedrooms. There will also be 18 one-bed studio rooms. Construction is due to commence in January 2018, with completion in mid-2020. The Sunday Business Post, 23rd July
64 Fitzwilliam Square: A Dublin-based senior counsel has purchased 64 Fitzwilliam Square, currently a corporate headquarters, for c. €3.5m, with the intention of converting it into a private residence. The property has an overall floor area of 7,255 sq. ft. and the lower ground floor is fitted out as a self-contained one-bedroom apartment. The Irish Times, 19th July
Baldoyle Development: Planning permission has been granted for a significant residential development in Baldoyle in north Dublin, which will see the construction of 379 apartments and 171 houses. The site, which is located on the grounds of the former Baldoyle Racecourse and Stapolin House which is c. 8km from Dublin city centre, will see the construction of 13 housing blocks of up to six storeys and a commercial ground floor area which will include convenience outlets, a crèche, a café, four retail units and communal courtyard areas. A range of housing will be provided, including one-bed apartments, own-door duplex apartments, two-to-three storey terraced houses and four-bed semi-detached houses. The 53-acre site, which sold for c. €13.5m, is being developed as part of the Baldoyle-Stapolin local area plan, and is zoned under the 2011 – 2017 Fingal Development Plan. The new development, which will have access to the nearby Clongriffin train station, is being undertaken by receivers to a company called Helsingor, which is currently controlled by NAMA. The Irish Independent, 20th July
Leopardstown Planning Application: Developer Michael Cotter is the first house builder in the country to use the Government’s new temporary ‘fast-track’ planning application system for large-scale housing developments. Viscount Securities, a company owned and controlled by Mr Cotter and his family, has submitted a pre-application proposal to An Bord Pleanála for 934 residential units at Clay Farm in Leopardstown, south Dublin. If approved, the scheme will contain 363 houses and 571 apartments on the site which is being developed by Mr Cotter’s Park Developments. Under the new regulations, Mr Cotter should receive a decision on his application by January 2018 at the latest. The Irish Independent, 20th July
Bluebell Avenue: KM Kyle Holdings Ltd has sought planning permission from Dublin City Council to demolish two cottages on Bluebell Avenue, west of Dublin city centre, and to construct a 52-unit apartment block extending to 70,000 sq. ft. The proposed six-storey complex will contain 17 one-bedroom, 26 two-bedroom and nine three-bedroom units. NAMA Wine Lake, 23rd July
Nursing Home Sites: The Irish Times reports that Bartra Capital Property acquired two north Dublin sites in June 2017, both of which have planning permission for nursing home developments. The first site extends to 11.12 acres at Featherbed Lane in Skerries, where Bartra will develop a 123-bedroom facility. The rooms will be single-bed and all will have en-suite facilities. The second site extends to 1.06 acres on the Old Ballymun Road in Santry, where Bartra will soon commence the construction of a 114-bedroom facility. The Santry facility will contain 110 single-bedrooms and four double-bedrooms, all of which will have en-suite facilities. The Irish Times, 18th July
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McDonalds Jervis Street: State Street Global Advisers have paid c. €17m to acquire a three-storey McDonalds fast-food outlet at the junction of Jervis Street and Mary Street in Dublin city centre. This figure is below the guide price of €18.5m quoted by CBRE for the high-profile investment. McDonalds has a 35-year lease on the premises which runs from 1998, leaving c. 16 years remaining on the lease, for which there are no break options. McDonalds is paying a rent of c. €733k p.a. for 5,553 sq. ft. of retail space at basement and ground floor levels, and two floors of high quality offices overhead, which extend to 5,694 sq. ft. The Irish Times, 12th July
Sandymount Premises: Coldwell Banker Commercial has secured a sale price of over €3m for a business premises in Sandymount, Dublin 4. The premises, located at 23/24 Sandymount Green, extends to 5,177 sq. ft. and produces rental income of c. €234k p.a. The rental income is receivable from Spar, Indie Spice and a mobile phone mast owned by Vodafone. The Irish Times, 12th July
Cork Retail / Industrial Units: Four retail and industrial units near Cork city centre, located at the junction of the Kinsale Road and a five-arm junction with the N40 flyover have gone on the market with a guide price of €2.2m through Cohalan Downing Associates. The current rental income from the properties is c. €221k p.a., offering a net initial yield of c. 9.6%. HSS Hire Service Group PLC rent two of the units for a combined rent of €141k p.a., with Egan Electrical Equipment (Ireland) Ltd (€50k p.a.) and Leeside Interiors Ltd t/a Cork Tile & Wood Flooring (€30k p.a.) occupying the other two units. Three of the units are terraces, and one is detached, and they have a combined floor area of 15,600 sq. ft. (with additional mezzanine space), situated on a site of 1.19 acres. The Irish Examiner, 13th July
One Grand Parade: After an extensive bidding process, German fund Quadoro Doric Real Estate has purchased One Grand Parade from Credit Suisse for €26m, paying c. €3m over the property’s guide price. The building contains a floor area of c. 31,500 sq. ft. and 15 car parking spaces. Current rents range from €26 psf to €52.50 psf, therefore the new owners will have the potential to increase the rental income of the property through active management. The weighted average unexpired lease term is approximately three years. Based on the current rental income of just over €1m p.a. and the €26m sales price, the net yield of the property is c. 3.8%. The Irish Times, 12th July
Fonthill Business Park: State Street Global Advisers has paid €11.05m for an office and warehouse block in Fonthill Business Park in Dublin 22. The building, which is adjacent to Liffey Valley Shopping Centre, is let to United Drug PLC on a 10-year lease from June 2015 at €500k p.a., however this can be stepped up to a maximum of €700k p.a. The building contains c. 60,000 sq. ft. of warehouse space, and c. 27,000 sq. ft. of office space. The Irish Times, 12th July
Central Park Leopardstown: Green REIT has begun development of another substantial office building at Central Park in Leopardstown, Dublin 18, having just completed the letting of the newly built Block H to AIB. Their next project, Building 1, is expected to have c. 100,000 sq. ft. of lettable space and contain 156 basement car spaces by the time it is completed, with the fund targeting a completion date of Q4 2018. The building will be available to let either in its entirety or on a floor by floor basis. Central Park has established itself as Dublin’s leading office park, with all 850,000 sq. ft. of the completed space fully let, producing contracted rental income of c. €23.7m p.a. In addition to Building 1, planning permission is also in place for the development of an additional 300.000 sq. ft. of space. The Irish Times, 11th July
Baggot Street Development: Planning permission has been granted for a c. €10m office development by Irish Life Assurance plc in Dublin 2. The new development will be located on 74 – 75 Baggot Street Lower, will extend to over 75,000 sq. ft. and will be six storeys in height. The Sunday Business Post, 16th July
Carton House Resort: Joint selling agents Savills and CBRE are inviting offers of €60m for Carton House Hotel, Spa & Golf Resort, near Maynooth, Co. Kildare. The asset, which is situated on a c. 668-acre site, includes a newly restored 18th century Palladian mansion (Carton House), a separate five-star hotel and extensive sports facilities. The sale has come about after the owners, the Mallaghan family and the Carton Development Partnership, reached a consensual agreement with NAMA to put the asset on the market. The hotel has 165 bedrooms, a strong food and beverage offering, extensive meetings rooms, conference and banqueting facilities and two 18-hole golf courses. Sports facilities include high specification soccer, rugby and GAA training pitches, which have been used by teams such as Real Madrid, AC Milan and the Irish rugby team. The Irish Times, 12th July
Irish Hotels Federation (IHF) Report: A new report from the IHF has found that seven out of ten hoteliers believe that trade has improved dramatically when compared with the same period in 2016, with the outlook for the rest of the year also looking positive. Despite a decrease in the number of visitors from Britain, the number of overseas visits in 2017 is expected to be above the 2016 figure of 8.8 million, due to an increase in the number of visitors from other markets such as Germany, France and the US. Confidence amongst hoteliers is also growing, with the vast majority of hotels and guesthouses reporting that they intend to invest in refurbishment and increased capital expenditure over the next year, while 61% of hoteliers have recruited new staff over the last year. While the report is predominantly positive, it does show that rising insurance costs are an increasing concern for hoteliers. The Irish Times, 17th July
Tara Towers: Dalata has sought planning permission to redevelop the Tara Towers Hotel in Dublin 4, which it acquired last year for c. €13.2m. The application proposes the demolition of the existing hotel, which is situated on a 1.46-acre site. Dalata propose to replace the existing structure with a mixed-use development, which will include a four-star Maldron hotel with 140 bedrooms, and 70 residential units. The Irish Times, 18th July
RTE Montrose Site: After being chosen as the preferred bidder last month, Cairn Homes has announced that it has completed the purchase of RTE’s Montrose Site in Dublin for c. €107.5m. The company is now expected to seek planning permission to build 500 apartments and 10 houses on the site, and is now focused on the design and pre-planning stage of the development. The Irish Times, 17th July
Edward Square Galway: Cushman & Wakefield is inviting offers of €7.5m for all 38 apartments in the Edward Square apartment complex in Galway city centre. The complex is fully occupied and producing rental income of c. €554k p.a. The complex was developed in 2002 and consists of one one-bedroom apartment, three two-beds, 33 three-beds and one four-bed. The guide price reflects a break-up price of less than €200k per apartment. The Irish Times, 12th July
Gorse Hill: Gorse Hill in Killiney, south Dublin, which was formerly owned by solicitor Brian O’Donnell and his wife Mary Pat, has been sold to an undisclosed buyer for c. €9.5m. The sale price for the six-bedroom property, which is situated on a two-acre site, was c. €1m above the €8.5m guide price set by joint agents Sherry FitzGerald and Knight Frank. The instruction to sell the 10,220 sq. ft. property came from Deloitte, who was the receiver for Bank of Ireland. The buyer is reported to be a low-profile businessman who was represented by an investment vehicle. The Irish Times, 13th July
Castletown Cox: Offers in excess of €17.5m are being sought by Knight Frank for Castletown Cox, a restored Palladian mansion in Co. Kilkenny. The Georgian estate is situated on a 513-acre site and has a floor area of 36,630 sq. ft. There are 10 bedrooms in the main building, with all of them being en-suite. The Irish Times, 12th July
House Prices: The Irish Independent reports on the May 2017 residential property price figures released by the CSO, which show that the increase in property prices has picked up pace, with price inflation nationwide of c. 12% in the year to May 2017, compared with an increase of c. 10% in the year to April. Prices rose by 2% in April alone, the highest rate of increase since April 2015. With regards to Dublin, prices rose by 11.2% YoY. Prices outside of Dublin rose by nearly 13% in the year to May, with the biggest increase being recorded in the south-east region, where prices rose by nearly 19% YoY. The Irish Independent, 12th July
Beacon South Quarter: IRES REIT has completed the construction of a new 68-unit apartment complex in Beacon South Quarter, Dublin 18. The cost of the development, known as the Maple at Block B2B, was c. €19.6m. The Irish Times also reports that tenants have been found for all 68 of the apartments, with c. 60% of the leases expected to begin by the end of July and the remainder expected to begin by the end of August. The complex consists of four one-beds, 55 two-beds and nine-three beds, with the rental income projected at €1.64m p.a. The Irish Times, 17th July
Mortgage Rates / Mortgage Exemptions: The Irish Independent reports that Ulster Bank is set to offer a new four-year fixed mortgage rate of 2.6%. The rate is only expected to be on offer for three months, and will be available to new, existing and switcher customers with a loan-to-value of up to 80%. The Irish Independent also reports that Ulster Bank has stated that for the moment, it is not accepting applications for exemptions to the Central Bank’s mortgage lending rules. EBS and Haven have already ceased taking applications looking for exemptions to the mortgage lending rules. The Irish Independent, 15th July
Daft.ie Wealth Report: A new report by Daft.ie has identified Sandycove in south Dublin as the most expensive micro-market in Ireland, with an average property value of c. €787k, with the nearby Foxrock second with an average property value of c. €759k. The report also highlights that there has been over 800 transactions of properties worth €1m or more since the start of 2016, which results in an average of 12 transactions per week. The Daft.ie Wealth Report 2017
Cork Street Student Accommodation: Hines is intending to seek planning permission for a new student accommodation block on Cork Street, which will contain more than 200 bedrooms. The fund has just opened its fourth student accommodation block in Dublin, and intends to spend a total of €600m on student apartment blocks in Ireland and Britain where it owns 14 sites, five of which are in Dublin. The Cork Street project will be the first that Hines will have begun from scratch, as it acquired the other blocks in Dublin either completed or under construction. The Irish Times, 12th July
Department of Housing Figures: The Department of Housing has published its commencement and completion figures for April and May combined. In the two months, 3,099 units were completed nationally, of which 961 were completed in the four local authority areas that comprise Dublin city and county. During the same period, 3,673 units were commenced nationally, with 1,435 being in Dublin. Over the year to May, there were commencement notices for 15,579 units (5,856 in Dublin), compared with 10,986 during the same period last year (5,263 in Dublin). There is some variation in the estimated annual need for new housing units, with figures ranging from 25,000 to 50,000 per annum being quoted by various sources. NAMA Wine Lake, 16th July
Q2 2017 Review: CBRE’s latest report on the Dublin industrial market shows that take-up in Q2 2017 was nearly 753,000 sq. ft., bringing total take-up in H1 2017 to nearly 1,300,000 sq. ft. There were 45 industrial transactions in Q2 2017, with 29 being lettings and 16 being sales transactions. At the end of Q2 2017, prime yields remained at c. 5.5% with prime rents at c. €9.25 psf. CBRE note that prime rents are now close to levels which would justify new developments, and therefore they expect to see an increase in the number of speculative developments in the second half of the year. CBRE Dublin Industrial & Logistics MarketView, Q2 2017
Swords Business Park: A private investor has paid €2.85m for Unit 2 in Swords Business Park, c. €100k over the guide price. The property contains c. 18,000 sq. ft. of warehouse space and c. 6,900 sq. ft. of office space, with the property let to DVS Roads Ltd on a 25-year lease from 1997. The current rent is €280k p.a. The Irish times, 12th July
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AIB Grafton Street: Ireland’s largest property fund, Irish Life, has purchased AIB’s principal branch office, which has frontage onto both Grafton Street and Wicklow Street in Dublin city centre. The fund outbid strong domestic and international interest to emerge as the highest bidder, paying c. €50m for the investment. Irish life is expected to earn a net initial yield of c. 3.5% on the investment, which was previously purchased by the German fund manager GLL Real Estate for c. €28m in 2010. The rent roll on the property is c. €1.8m p.a., and the sale price equates to a capital value of €2,800 psf. The sale was handled by CBRE, and is understood to have attracted bids from IPUT, two European investment funds and an unknown Irish investor. The Irish Times, 5th July
Project Anchor: Joint agents JLL and HWBC are guiding €43m for three successful shopping centres in the Dublin suburbs of Dún Laoghaire, Donaghmede and Clondalkin. The Project Anchor portfolio will also include a three-storey office block at Lock Road in Clondalkin, which is currently let to the Department of Social Protection. The purchase price will provide an initial yield of c. 6.8%, with significant opportunities to increase the return through active management. The portfolio is for sale in either one or more lots, and currently produces a combined rent roll of c. €3m p.a., with a weighted average unexpired lease term of approximately eight years. The Bloomfield Shopping Centre in Dun Laoghaire produces rental income of €830k p.a. from tenants including Argos, Boots, Dealz and Jack & Jones, while anchor Tesco owns its own store. The 59,000 sq. ft. Kilbarrack Centre is also anchored by Tesco, which owns its own 25,000 sq. ft. store. The shopping centre’s tenants, which include Lloyds Pharmacy, Pizza Hut and Clannad Medical Centre, generate rental income of €680k p.a. The Mill in Clondalkin is anchored by Dunnes Stores, which owns its own unit, while 30 other retailers such as Boots, Specsavers and Carphone Warehouse produce rental income of €1.2m p.a. The Irish Times, 5th July
Lidl Castleknock: An Bord Pleanála has granted planning permission to Lidl to proceed with a c. €15m commercial development in Castleknock, north Dublin, despite objections from local residents and politicians, including Taoiseach Leo Varadkar. The mixed-use development will include an anchor Lidl supermarket, a number of smaller retail units, a medical centre and eight apartments. The scheme was previously refused permission by Fingal County Council in 2014. The Irish Times, 6th July
Sports Direct Dunnes Stores: Sports Direct has reportedly approached Dunnes Stores with a view to making an offer on up to seven of the Irish retailer’s premises. The company is believed to have targeted the Dunnes Stores unit next to Sports Direct’s flagship Irish store on North Earl Street in Dublin, and is also reportedly interested in stores in Cork and Waterford. The Sunday Times reports that Dunnes Stores could represent a natural choice for Sports Direct’s expansion, as the company has multiple stores in prime city centre locations, and has reportedly up to 24 vacant units in its portfolio. The approach is believed to be at a preliminary stage, with no deal having been concluded. The Sunday Times, 9th July
The Kiosk, Ballsbridge: Brothers Colum and Ciarán Butler, who run the Starbucks franchise in Ireland, have purchased a landmark Dublin coffee shop – the kiosk at the centre of Ballsbridge. The Butlers outbid several investors for the tiny 37 sq. ft. premises, paying €330,000 to acquire the kiosk, which is located on a prime location at the junction of Lansdowne, Pembroke and Northumberland roads. The purchase price equates to c. €8,918 psf before purchasing costs are taken into consideration. Starbucks has grown rapidly under the control of the Butler brothers, with over 60 outlets now located in the greater Dublin area. The Irish Times, 5th July
Golden Lane: Mm Capital has acquired 31 – 36 Golden Lane in Dublin 2 in a deal worth c. €22m. The 31,000 sq. ft. property is expected to be let to the software analytics company New Relic, who are likely to move in next year. The property will allow New Relic to accommodate up to 300 staff. The Irish Times, 11th July
Sandyford Offices: Melford Property Consultants has brought two Sandyford office investments to the market. The first is a recently refurbished two-storey HQ building located at Sandyford Business Centre on Burton Hall Road. The unit, which is guiding €2.5m, extends to 8,000 sq. ft., and is currently leased to CareWorks from Q2 2017 on a 20-year lease at €183k p.a., with a tenant break option in years 10 and 15. The purchase price will offer a return of c. 7%. Melford is also inviting offers in excess of €850k for a 3,546 sq. ft. third-generation office at Apex Business Centre in Sandyford. The unit is currently let on a five-year lease that expires in July 2020. It is currently significantly under-rented at a rent of €52.5k p.a., with potential to increase this to c. €98k p.a. in 2020. The Irish Times, 4th July
Dublin 8 Development: Newmarket Partnership PM Ltd has applied to Dublin City Council to construct a 110,000 sq. ft. building (including 100,000 sq. ft. of office space), at the junction of Newmarket Street and Mill Street in Dublin 8. The proposed scheme involves the demolition of existing buildings on the site and construction of a new six-storey over-basement building. NAMA Wine Lake, 9th July
Dublin Office Space: New figures by Knight Frank show that the take-up of office space in Dublin exceeded 1 million sq. ft. in Q2 2017. The total space transacted for the quarter was 1,049,356 sq. ft., bringing the total take-up for H1 2017 to 1,491,942 sq. ft., an increase of 30% on the corresponding period in 2016. According to Knight Frank, the high take-up in Q2 could be attributed to a flow of new office stock, as all of the top eight transactions involved new or refurbished office stock. Facebook’s rental of 170,000 sq. ft. of the Beckett Building at East Wall was the largest deal in the quarter, followed by AIB’s agreement to occupy 152,000 sq. ft. of space at Block H in Central Park. JP Morgan’s purchase of a 128,220 sq. ft. building at Capital Dock, Zendesk’s pre-letting of 57,865 sq. ft. at 55 Charlemont and Google’s decision to lease 51,096 sq. ft. of the Velasco building completed the top five transactions. The Irish Times, 4th July
Fernhill Hotel: Savills are guiding €4.5m for the Fernhill Hotel, 10 holiday homes and the private residence of owner Michael Bowes, who has decided to retire from heading up the hotel business. The properties lie on a c. 5.5-acre site on the edge of Carrigaline, and c. 100 metres from the new N28 road to Ringaskiddy. The hotel contains 39 en-suite bedrooms, a resident’s bar, a dining room and a former health club. The Irish Examiner, 29th June
The Millrace Hotel: CBRE are guiding €2m for The Millrace Hotel in Bunclody, Co. Wexford. The hotel, which was constructed in 2004, contains 60 well-appointed guest rooms, including 30 interconnecting rooms suitable for family occupancy. In addition, the hotel features the Slaney Suite, which contains its own bar and kitchen area and has capacity for 120 guests. On the top floor is a rooftop restaurant with views over the countryside. The complex contains 50 car parking spaces and an overflow carpark with capacity for a further 70 to 80 cars, and is situated on a 3.7-acre site. The Irish Independent, 6th July
The Windmill Collection: Cushman & Wakefield are inviting offers in excess of €13.5m for a portfolio of 67 apartments near Kempton Vale in west Dublin, which are located within five minutes’ walk of Coolmine railway station. The current rental income from the portfolio is c. €990k p.a., meaning the sale will offer a net yield of c. 7%. The Windmill Collection includes six one-beds, 60 two-beds and one three-bed. The one-beds currently rent for c. €1,150 p.m., the two-beds rent for c. €1,250 p.m. and the one three-bed rents for €1,400 p.m. The selling agents advise that the market rents for the apartments would be €1,300, €1,550 and €1,800 p.m. The Irish Times, 4th July.
Ballsbridge Residence: Lisney are guiding €3.3m for an elegant Victorian home located at 23 Clyde Road in Ballsbridge, Dublin 4. The two-storey, over-basement house is rented for €96k p.a. on a residential lease running until March 2020, with the tenant having a rolling break option subject to 30 days prior notice. The agents expect a significant uplift in the value of the property, which was refurbished and extended in 2008, to more than €4m once vacant possession has been obtained. The five-bedroom house extends to 6,254 sq. ft., and includes an extension with two bedrooms and a basement gymnasium. The Irish Times, 5th July
Dublin Docklands Apartments: David Carson of Deloitte, the NAMA-appointed receiver to a company previously owned by developer Liam Carroll, is seeking planning permission to build 360 apartments on a site in the Dublin docklands. The development would consist of four buildings of up to seven storeys, with a total floor area of c. 463,000 sq. ft., containing 108 one-beds, 198 two-beds and 54 three-beds. The site extends to 3.7 acres and is located between Sheriff Street Upper and Mayor Street Upper, close to the new Central Bank HQ. The Sunday Times, 9th July
IDA Site Redevelopment, Dublin 8: Newmarket Partnership PM Ltd has submitted a major application to Dublin City Council to demolish all buildings on an IDA site at Newmarket Industrial Estate in Dublin 8 and construct four new buildings. The first building will contain an eight-storey, 90,000 sq. ft. hotel above three lower levels (two basement and one lower ground) containing an unspecified number of hotel rooms. The second building will consist of six storeys and contain 8,500 sq. ft. of retail space at ground floor and 34 apartments on the upper stories (eight one-beds, 20 two-beds and six three-beds). The third building is an eight-storey over lower ground floor and double-basement building containing 58 apartments (15 one-beds, 35 two-beds and eight three-beds). The fourth building will have six storeys over a lower ground floor and basement and contain 85,000 sq. ft. of office space. NAMA Wine Lake, 9th July
Housing Repossessions: The Sunday Business Post reports on the increasing number of housing repossession cases across the country. The number of repossession cases being brought before the courts has increased substantially in the past few years as banks and loan acquirers seek to work through non-performing loan books. According to Central Bank figures, in 2013 there were c. 99,000 family home residential mortgages in arrears of more than 90 days. This figure had decreased to c. 53,000 by Q1 2017. However while a total of 120,894 loans have been restructured so far, this does not always resolve the issue, as figures show that c. 13% of these borrowers are not meeting the revised terms. The Sunday Business Post, 9th July
Emergency Housing Legislation: The government is introducing emergency legislation to ensure that construction doesn’t have to stop on c. 75 housing developments in Dublin’s commuter belt. The majority of the developments are estates which were put on hold during the property crash before being given a five-year extension to their original planning permissions. Although many of them are now under construction, they will not be built by the time the planning extensions expire, so the government is rushing through a planning law to enable the developments to get a further five-year extension. It is believed that the developments, which are mainly located in Dublin, Meath, Kildare and Wicklow, include social housing projects. The Sunday Business Post, 9th July
HP Leixlip: HP Inc has retained CBRE to manage the sale of its 195-acre Liffey Valley Technology Campus in Co. Kildare, which may sell for north of €50m. The facility consists of nine main buildings, six of which are dedicated to high-quality manufacturing, clean room, warehouse and office use. The facility has a cumulative gross floor area of c. 1,460,000 sq. ft., and includes c. 70 acres of undeveloped land which offers development potential. The current rental income from the facility is c. €3.8m p.a., which is being generated from medium-term leases which cover c. 35% of the building area. The Irish Times, 11th July
Grianan Estate: Grianan Estate in Donegal, one of the largest organic farms in Europe, has been sold to Glenmore Estate Farms by the Donegal Investment Group for €17.425m. The farm is located at Speenoge, Burt, less than 20 minutes from Letterkenny, and extends to c. 2,400 acres, consisting of land mainly reclaimed from Lough Swilly. The farm includes c. 1,290 acres of organically farmed prime land, an extensive range of farm buildings and a lake extending to c. 500 acres. The Irish Independent, 6th July
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GE Capital Irish Mortgages: Specialist buy-to-let lender Dilosk has acquired c. €160m of owner-occupied loans that originated from US Group GE Capital’s former Irish subprime loan book. The 1,200 performing mortgages involved will continue to be serviced by the Australian firm Pepper, which bought GE’s c. €600m Irish mortgage portfolio in 2012, at a c. 60% discount. Dilosk previously purchased Bank of Ireland’s ICS Mortgages brand in 2014. The Irish Times, 1st July
Danske Bank Loan Book: The Irish Independent reports that Danske Bank is considering selling more than €2bn of performing Irish home loans and buy-to-let mortgages as it continues to wind down its Irish retail banking business to focus solely on the corporate and institutional markets. The paper reports that Danske Bank is understood to be considering either a portfolio sale or rolling the loans into a securitisation deal, with Morgan Stanley advising the bank. It is believed that any deal is likely to be concluded by the end of 2017. Bank of Ireland is reportedly viewed as a logical purchaser of the loans, given that it has already purchased c. €274m of performing commercial loans from Danske Bank in 2015, as part of a wider c. €540m disposal, with Goldman Sachs acquiring the remaining c. €266m. Sources have indicated that the portfolio will include some buy-to-let loans in addition to primary residential mortgages. It is also believed to include a significant number of tracker mortgages, which could have an impact on the final sale price of the portfolio given the low profitability associated with such loans. The Irish Independent, 29th June
Salamanca Restaurant: Salamanca, a well-known tapas restaurant and bar on Andrew Street in Dublin 2, has been sold to a private investor for slightly over the guide price of €2.8m. Agents Bagnall Doyle McMahon handled the sale of the four-storey over-basement building, which is held on a 25-year lease from 2014, with five-yearly rent reviews. The current rent is €155k p.a., and the first rent review in March 2019 will be linked to the Consumer Price Index, with subsequent reviews determined by open-market rent values. The Irish Times, 27th June
Avoca Expansion: Avoca plans to open two to three new stores in the next 24 months, according to its managing director, Simon Pratt. Mr Pratt announced the intentions for the firm’s expansion whilst commenting on newly filed accounts for the 11 month period ending January 5th 2016, which show that turnover increased by c. 3% to c. €60m. Mr Pratt also advised that the company’s most recent store opening in Dunboyne, Co. Meath, is trading well, and that the business is actively looking for more sites for new openings. The Irish Independent, 1st July
The Sorting Office: CBRE are seeking €152.8m for ‘The Sorting Office’, a 203,700 sq. ft. office development currently under construction on the site of a former An Post sorting depot in Dublin’s south docklands. The building, which is being developed by Irish property group Marlet and M&G investments, will contain office accommodation over eight levels, 26 car parking spaces and room for 318 bicycles. The purchase price equates to c. €750 psf based on vacant possession, however CBRE and Marlet expect a number of letting agreements to be signed before the sale is completed, which will likely push the purchase price up. The sale price would offer a significant return for Marlet and M&G investments, who acquired the site from An Post two years ago for c. €40m. The Irish Times, 29th June
Athlone Research Centre: The long-established Ericsson research and development facility in Athlone, Co. Westmeath has been sold to an international investment firm with Irish links for slightly over the €19m guide price. The property is let to Ericsson on a 25-year lease from 2002. The current rent is c. €2m p.a., offering the investor c. 10 years of secure rental income. The next rent review occurs in 2022, and the lease provides for a minimum rental uplift of 10%, or open market rental value, whichever is higher. The guide price of €19m would provide the purchaser with a minimum net initial yield of c. 10% until 2022, and c. 11% thereafter. The facility is a campus-style development occupying 15.23 acres, which consists of two connecting office and software development facilities and a detached communications building. The Irish Times, 30th June
Plassey Portfolio: Agents Power & Associates are guiding €25m for the Plassey Portfolio, which consists of three modern office buildings in the National Technology Park in Limerick. The buildings, known as Civic House, Hamilton House and Hamilton House Block 2, will show an initial yield of c. 7%, after allowing for purchasing costs of 4.46%. The buildings in the portfolio date from 1998, 2006 and 2015, have a net floor area of 133,432 sq. ft. and are available to purchase in one or more lots. They currently have an occupancy rate of 92% from a strong tenant line up including Northern Trust, Cook Medical, QAD and Icon. The current rent roll is c. €1.84m p.a., however there is scope to increase this in the short term by conducting a number of rent reviews and letting 10,000 sq. ft. of vacant space in Civic House. The Irish Times, 28th June
Park Collection: Cantor Fitzgerald Ireland Ltd, through the Cantor Park Commercial Property Fund (the “Fund”), has successfully completed the acquisition of the Park Collection in Carrickmines, Co. Dublin. The Park Collection comprises of four modern office buildings totalling 130,000 square feet, let to a mixed portfolio of tenants with excellent transport links via access to the M50 and the LUAS. The investment strategy of the Fund is to re-gear the current tenancy profile across the portfolio with the aim of increasing the current passing rent to an average passing rent level of c. €26 psf and improve the weighted average unexpired lease term from the current level of c. 2.5 years. The expected term of the investment should be c. 5 years. The acquisition price for the Park Collection was €41.5m (inclusive of costs) and this was financed by €20m in private equity raised by Cantor Fitzgerald and a €21.5m loan facility from Rietumu Bank. Cantor Fitzgerald, 30th June
Former EBS Offices: The former HQ of EBS Building Society has been sold to a private fund for approximately €9m. The 1980s building, located on Townsend Street in Dublin 2, extends to 24,370 sq. ft. and is located in an area of the city which is expected to undergo significant changes over the next few years. Brown Corrigan Chartered Surveyors, who acted for the new owners, have advised that they plan to upgrade the building, despite it being in generally good condition. The Irish Times, 27th June
Fenian Street: CBRE is guiding in excess of €5m for a five-storey building at 9-10 Fenian Street in Dublin 2. The c. 11,600 sq. ft. building, which is currently let to Hibernia College, has planning permission for a c. 24,000 sq. ft. redevelopment of the site. There is a landlord break option on the current lease in 2018. The Irish Times, 27th June
Molesworth Street: The Irish Times reports that IPUT has pre-let 40 Molesworth Street in Dublin city centre to Jet.com, the US online retailer. Jet.com has reportedly agreed to a 20-year lease for 30,000 sq. ft. at a rent of c. €1.8m p.a. (c. €60 psf). IPUT acquired the property in March 2013 for c. €8.4m. A full redevelopment of the property has since been undertaken, for which the total cost is expected to be c. €13m. Once the redevelopment has been completed, the property is expected to be valued at over €40m. The Irish Times, 4th July
Donnybrook Flagship Centre: Planning permission has been granted for a mixed-use flagship centre in Donnybrook, Dublin 4, which will contain offices, a large restaurant and café and a double basement gymnasium. UK Companies U+I and Colony Northstar made the application to redevelop the existing Donnybrook House after purchasing it in 2014, and now plan to spend c. €16m redeveloping the property, which will have 45,000 sq. ft. of high-quality office space over five floors. In addition, the building will have a 4,000 sq. ft. restaurant, a café of c. 2,000 sq. ft., a 20,000 sq. ft. gym, secure bicycle bays, parking and internal courtyards. Colliers International will quote a rent of c. €45 psf for the office space, which will be ready for fit-out in Q1 2018. The Irish Times, 27th June
Barclays EU Hub: The Irish Times reports that Barclays is likely to settle on Dublin’s Dawson Street as the location for a post-Brexit EU hub if UK finance companies lose easy access to the European Trading block. The bank has agreed rental terms with Green REIT for most of the office space of One Molesworth Street, a high profile building under construction on Dawson Street. Barclays is believed to have agreed a rent of slightly above €55 psf for c. 60,000 sq. ft. of office space in the building, where the total available office space is believed to be c. 71,000 sq. ft. Barclays’ office space is expected to be able to facilitate c. 400 employees. The planned move coincides with the announcement that London-based Caprice Holdings will open a branch of The Ivy Collection on the ground floor of the same building. The company have agreed a rent of €500k p.a. for 5,000 sq. ft. of primary retail space on the ground floor, and a further 4,000 sq. ft. at basement level. The Irish Times, 28th June
Bank of China: Bank of China has opened a Dublin branch, which will focus on corporate lending and target Chinese companies operating in Ireland, Irish groups with interests in China and large multinationals with offices in Ireland. The 64% state-owned bank already has a presence in Ireland through its aircraft leasing operation BOC Aviation (Ireland), which will continue to operate as a separate business. The Irish Times, 28th June
Hotel Sales: New figures from CBRE show that 18 hotels were sold in the first six months of the year, generating cumulative sales proceeds of c. €75m. In the same period of 2016, 29 hotels with combined sales proceeds of c. €136m were sold. Hotels sold as investment sales were excluded from the figures. The most valuable hotel sold in H1 2017 was Mount Wolseley Hotel Spa & Golf Resort, Tullow, Co. Carlow, which had been guiding €14.25m. The Irish Times, 3rd July
Tifco Deutschland: Banesto, the company owned by DID Electrical founder Gerry Houlihan and accountant Aidan Crowe, sold a portion of its shareholding in Tifco Deutschland for c. €6m in 2016. Tifco Deutschland is a hotel operator under which Tifco manages a number of hotels under the Crowne Plaza, Hilton, Travelodge and Holiday Inn Express brands. The Sunday Business Post, 2nd July
Liberties Dublin Redevelopment: Planning permission will shortly be lodged for a c. 400,000 sq. ft. development in the Liberties area of Dublin, which is expected to cost c. €200m. The scheme will include a 239-bedroom hotel, an indoor market, a micro-brewery, retail and office space and residential accommodation. The project will have a regeneration element, which will include the demolition of the 1970s enterprise centre and work on Mill Street. Interest in the area has risen in recent months since Dublin City Council announced its plan to develop a ‘high quality, multi-functional market square and city wide destination’ in the area. The Irish Times, 3rd July
Development Land Transactions: CBRE reports that there has been a sharp drop in the value of development land transactions completed in H1 2017. Their figures show that 50 development land transactions with a combined value of c. €269m took place during the period, compared with 53 transactions totalling c. €489m in the corresponding period last year, when a number of large transactions occurred. The Irish Times, 3rd July
Oaktree Development Fund: The Sunday Business Post reports that Oaktree Capital is aiming to float a large Irish property fund this autumn. The company is reportedly working with Irish developer Bridgedale, with Credit Suisse and Davy retained as advisors. Market sources have estimated the initial fundraising target to be c. €200m, and the aim is to launch a listed Irish homebuilder on the Irish, and possibly London, stock exchange(s). It is believed that the new venture is seeking a linchpin seed asset for the plan. Bridgedale was a close underbidder for the recently sold nine-acre RTE site, and the Sunday Business Post reports it will likely seek to develop an alternative large site, with c. €100m of Cerberus-controlled development prospects suggested as one possibility. The Sunday Business Post, 2nd July
Deepwell, Blackrock: Deepwell in Blackrock, one of Dublin’s best known properties which sits on a 2.38-acre site, has been put on the market with an asking price of €13m. The current owners of the 5,750 sq. ft. property, Cynthia Chua and Nick Holman, are hoping to improve the return on their investment by selling Deepwell as a development opportunity. The owners have engaged Plus Architects to conduct a feasibility study for a 42-unit apartment scheme, which will offer a developer a net revenue of c. €51m. The proposed 42-unit scheme would be pitched at the high end of the market, with prices for 12 one-bed units ranging between €545k – €695k, 22 two-bed units priced between €775k and €1.15m and eight three-bed units priced between €950k and €1.35m. The Irish Times, 29th June
Ballymun Road: A 3.84-acre strategic site at the Ballymun Road entrance to the Northwood Business Campus in Santry, Dublin 9, has been put on the market for more than €3m through Knight Frank. The site is 600m from Junction 4 of the M50, 200m from a planned Metro North stop and has easy access to Dublin Airport, the Port Tunnel and DCU. The site could potentially be developed to facilitate offices, residential, student accommodation or retail, or a combination of all four, subject to planning permission. The Irish Times, 3rd July
Foxrock Residential Site: Savills is guiding €3m for a 0.62-acre site in Foxrock, Dublin 18, which has planning permission for 20 apartments and duplex units. The planning permission permits the development of 16 two-bed apartments extending to 915 sq. ft. and four three-bed duplexes extending to 1,243 sq. ft. Savills have advised that the typical selling prices for the apartments and duplexes range from €575k – €725k, which would give the development a gross value of over €12m. The Irish Times, 28th June
Glenageary House: Colliers International are inviting offers of €2.7m for a 0.98-acre site located within the walls of the former Glenageary House in Glenageary, south Dublin, which was demolished in the 1970s. The site is zoned for residential development, and the agents advise that the site has potential for an exclusive housing scheme, subject to planning permission. The Irish Times, 27th June
Stoneybatter Student Accommodation: Gurtmont Ltd has applied to Dublin City Council to develop a five-storey, 35,000 sq. ft., 96-bedroom student accommodation complex in Stoneybatter. The complex will be located on Mount Street, and will involve the demolition of existing properties on the site. Gurtmont is controlled by Enda Bannon, Niall McHugh, Barry O’Connor and Aoife O’Gorman. NAMA Wine Lake, 2nd July
Malahide Road: Dublin City Council has lodged a planning application to construct 150 new apartments on a three-acre site on Malahide Road in Belmayne, north Dublin city. The development will consist of a number of six-storey blocks, comprising 50 one-bed, 81 two-bed and 19 three-bed units. The application is understood to be the first residential application by Dublin City Council in two years. NAMA Wine Lake, 2nd July
Daft.ie House Price Report: A new report by Daft.ie warns that house prices will continue to rise for the next five to 10 years, unless ‘drastic’ action is taken. The report warns that the market is unlikely to stabilise, and that prices in Dublin will continue to rise more quickly than the rest of the country, because we have ‘regulated ourselves out of the volume of homes that are needed’. Based on the findings of the report, house prices have risen more in the first six months of 2017 than they did in all of 2016, with prices c. 8.8% higher at the end of Q2 2017 than in December 2016. With regards to the types of property the country needs, Daft.ie chief economist Ronan Lyons has stated that Dublin in particular doesn’t necessarily need any more three-bedroom semi-detached properties, but that the properties that are needed, like apartments, are difficult to build and heavily regulated. The Irish Times, 30th June
MyHome.ie House Price Report: A new report from property website MyHome.ie and Davy suggests that house prices are now rising by an average of €4,000 per month. Their figures show that national property prices are up by 8.9% YoY, while Dublin prices are up 10.3% YoY. The average monthly jump in values recorded on newly listed properties in the last six months was more than double that registered by Daft.ie in their recent report, however the disparity may be due to MyHome’s greater focus on Dublin properties, where the monthly price hike was put at over €5,000. The report also warned of a possible ‘rush in transactions’ as first-time-buyers seek to avail of the Help-to-Buy scheme before its likely abolition in the upcoming budget. The Irish Times, 2nd July
May Mortgage Approvals: The May 2017 report by the Banking & Payments Federation Ireland (BPFI) on mortgage approvals shows that there were 4,124 mortgages approved in May 2017, which had a total value of c. €884m. Based on the value of mortgages approved, these figures represent an increase of c. 45.1% YoY (c. €609m May 2016) and an increase of 29.1% MoM (c. €685m April 2017). Based on the value of mortgages approved, the first-time buyer segment grew by 60.7% YoY (c. €448m May 2017 vs c. €279m May 2016). BPFI Mortgage Approvals May 2017
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I Care Housing: The Sunday Business Post reports that David Hall is close to signing up to a c. €100m financing deal with British lenders, as part of his plan to purchase thousands of troubled mortgages in Ireland. He will deploy the funds for phase one of I Care Housing, a mortgage-to-rent scheme which he hopes to have fully operational by October. It is proposed that I Care Housing will purchase the properties of borrowers who qualify for social housing and then allow them to remain as tenants with rents subsidised by their local authority. Subject to certain conditions, the tenants would also be allowed to buy back their houses. Mr Hall, who has long been an advocate for distressed borrowers through the Irish Mortgage Holders Organisation, is also seeking funding of c. €250m for the second phase of the project, which will also involve buying distressed mortgages. He is in early stage negotiations with two unnamed British lenders for this phase, and is also in advanced negotiations with three financial institutions (reportedly including AIB) who are expected to sell of thousands of non-performing mortgages. The Sunday Business Post, 25th June
KBC Impaired Mortgages: KBC Bank Ireland’s chief executive Wim Verbraeken has indicated that the bank may sell some impaired mortgages in the future as it comes to the end of restructuring loans, and as banks face increasing regulatory pressure. Mr Verbraeken advised that the bank may sell non-performing loans (NPLs) if it concludes that there is no additional value to be extracted from restructuring NPLs. KBC has the highest level of impaired loans in Ireland among retail banks, with over 40% of KBC Bank Ireland’s c. €12.4bn primarily mortgage-dominated loan book classified as impaired. However, Mr Verbraeken advised that the high portion of impaired loans is a consequence of the bank applying the strictest classification towards NPLs in the country. Although the ECB has pressed domestic Irish banks to formulate plans to reduce NPLs in recent months, the chief executive expects that the ECB won’t engage with KBC until H2 2017, as the overall level of troubled loans in the wider KBC Group is below the Eurozone average. The Irish Times, 21st June
Department of Justice and Equality HQ: Savills are guiding €20m for 94 St Stephen’s Green, which currently houses the headquarters of the Department of Justice and Equality. The premises is being sold by the investment group SW3 Capital, and consists of a series of relatively modern buildings which were developed behind the former façade of the Centenary Church of Ireland. The property, which extends to 22,249 sq. ft., is let to the Office of Public Works (OPW) under two co-terminus leases which generate a combined rent of c. €1.02m p.a. (c. €46 psf). The Irish Times reports that investors planning to pitch for the property will be well aware of the redevelopment and extension opportunities which exist after the current leases run out in June 2018. The €20m asking price reflects an initial yield of just under 5%, and a capital value of €899 psf. The Irish Times, 21st June
Baggot Street: Esprit Investments, a private Irish investment company, has paid c. €7.1m for three modern office buildings at 117 – 119 Lower Baggot Street in Dublin 2. Based on the purchase price and the current rent roll of c. €380k p.a. (c. €26 psf), the property will provide an initial yield of c. 5.4%. The four-storey over-lower ground floor property extends to 13,296 sq. ft. and includes 10 car spaces. Tenants include Hooke & MacDonald, CBRE, Brompton Recruitment and the Irish Mortgage Corporation. The Irish Times, 21st June
Maynooth Business Campus: Savills, acting on the instructions of the receiver Grant Thornton, are guiding €4.65m for a partially occupied office building at the front of Maynooth Business Campus in Co. Kildare. Block C is producing net rental income of c. €388k p.a., however there is scope to increase this to over €600k p.a. once the remaining space on the ground floor has been fitted out and rented. Based on the current rental income, the net initial yield will be c. 8%, however this should increase to c. 10% once the block is fully let. Capita Asset Services occupy c. 70% of the property under two separate leases, with the company’s lease on the second floor running for 10 years from 2010 (including a five-year break option which was not exercised), while their lease on the first floor runs for 10 years from 2016, with a five-year break option. This gives a weighted average unexpired lease term of c. 3.8 years, based on the earliest termination, and c. 6.3 years based on lease expirations. Block C was built in the early 2000s and extends to 58,000 sq. ft. with 150 parking spaces. The Irish times, 21st June
The Exchange: The Food Safety Authority of Ireland (FSAI) is set to become the first tenant to occupy The Exchange, a new c. €80m office building currently under construction in Dublin’s IFSC. The FSAI will occupy 19,041 sq. ft. on the first floor of the six-storey over-basement building, which will have an overall capacity of 105,000 sq. ft. As the first tenant, the FSAI will pay a rent of c. €50 psf under a long-term lease, with a break option in the 15th year. The FSAI is currently located at the Abbey Court in the Irish Life Centre, where its lease is due to end shortly. Joint agents Savills and JLL are continuing to market the remaining space in The Exchange at a rate of €52.50 psf. The Irish Times, 21st June
Charlemont Place: The technology company ViaSat has agreed to lease the entire of a recently developed office block by Rohan Holdings at Charlemont Place in Dublin 2. ViaSat has agreed a 12-year lease for the 37,000 sq. ft. property, for a rent of c. €55 psf. However since ViaSat initially only requires c. 15,000 – 20,000 sq. ft. of space, it will sublet the remainder of the property. Rohan Holdings previously paid c. €6.5m to acquire the site, which was the former HQ of McConnells Advertising. The Irish Times, 21st June
Premier Inn Expansion: The Sunday Times reports that Premier Inn, the UK’s largest hotel chain, is planning to expand its presence in Dublin with up to 1,500 bedrooms. The three-star brand is reportedly in negotiations with owners of sites in Dublin 1 and Dublin 2, where the company wants to secure five or six properties through 25-year lease agreements. Sites with and without planning permission are being considered, and developers and investors have been invited to a launch event in Dublin on the 5th of July, when details of the company’s expansion plans in the city will be announced. The Sunday Times, 25th June
JD Wetherspoon Hotel: Pub group JD Wetherspoon is set to spend c. €15m on the development of a 98-bedroom hotel and ‘superpub’ on Camden Street in Dublin city centre. Construction is set to begin on the site of the proposed development in February 2018, with the new property expected to open in early 2019. The pub will be set over two levels and will have a beer garden, while all hotel rooms will be equipped with disabled access. The Irish Times, 26th June
Cork City Hotel: Cork City Councillors have voted to sell 1 – 2 Deane Street and 7 – 9 Parnell Place to Tetrarch Capital Ltd, who has plans to redevelop the properties into a budget boutique hotel and a separate designer hostel. The properties, which the council previously acquired in 2015 and 2016, were home to Mahers Sports and Flor Griffin’s Electrical in recent years. The Irish Examiner, 26th June
Ormond Quay Aparthotel: Targeted Investment Opportunities ICAV have applied to Dublin City Council to construct a 100,000 sq. ft., 165-bedroom “aparthotel” on a 0.5-acre site on Ormond Quay in Dublin city centre. Under the proposal, the existing buildings, which include the old Bondi Beach Club, will be demolished to make way for the aparthotel. NAMA Wine Lake, 25th June
RIU Plaza The Gresham Hotel: RIU Group, the new owner of the former Gresham Hotel (now known as RIU Plaza The Gresham Hotel) has sought planning permission to convert part of the office facilities in the hotel into 18 further bedrooms. The hotel currently has 323 bedrooms and planning permission to build a further 140 rooms. The Irish Times, 20th June
Iveagh Trust Social Housing: The Iveagh Trust, the Dublin housing fund founded by the Guinness family, has secured funding for an additional two social housing projects. The trust, which launched the Annamore Court social housing scheme last week, plans to build 84 homes in Clongriffin and an additional 26 homes at Miller’s Glen in Swords. Both builds will be Part V affordable homes and will be on sites belonging to Gerry Gannon. The trust has been building social housing in Dublin for over 125 years, and plans to add 650 homes to the existing 1,350 it owns or manages by 2020. The Sunday Business Post, 25th June
Galway Student Accommodation and Retail Investment: A private investor has paid €3.35m for a student accommodation and retail investment in Galway, which was put on the market with a guide price of €3.2m last September. The current rent roll is c. €272k p.a., offering a net initial yield of c. 7.8%. The complex consists of 20 student apartments in four blocks (12 three-beds and eight two-beds) and four commercial units. The student accommodation has achieved c. 90% occupancy in recent years, and additional lettings are made to tourists in the summer after the academic year is over. Three of the four retail units are rented to Domino’s Pizza, Subway and the Irish Nurses Organisation, with one ready-to-rent office unit suite currently vacant. The complex is c. 2km from Galway city centre, and within walking distance of NUI Galway and University College Hospital Galway. The Irish Times, 21st June
Greystones Site: Agar is inviting offers of €2.2m for Carraig Eden, a landmark property with vacant possession in Greystones, Co. Wicklow. The 0.83-acre site is located close to the sea and the local DART station, and is zoned town centre in the local development plan, which permits a range of uses including institutional, boutique hotel, B&B, offices, residential and educational. Included in the sale is a large detached, unlisted period property with 21 bedrooms, five apartments, caretaker accommodation and catering facilities. There is also a related L-shaped bungalow and sports pavilion structure. The Irish Times, 20th June
Planning Permission Statistics: The latest figures from the Central Statistics Office (CSO) show that c. 4,650 planning permissions were granted for dwelling units in Q1 2017, an increase of 50.4% on the corresponding period last year. One-off houses accounted for c. 27% of all new dwelling units granted. Dublin had the most planning permissions granted, with 1,403 permissions, while the midland region had the least, with 391 applications approved. Across the country 1,523 permissions were granted for new dwellings, while 1,767 were granted for extensions. The Irish Times, 23rd June
Donabate Development: Bernard McNamara’s Roxtip Ltd has received planning permission from Fingal County Council for 31 homes on a site in Beaverbrook, Donabate in north Co. Dublin. Mr McNamara had initially sought approval for 36 homes, however following concerns by local authorities and opposition from locals, he reduced the number to 31. The Irish Independent, 27th June
South Dublin Development: Dalkey could be set for another residential development as it has emerged that Twinlite, which is owned by Eugene Larkin and his family, is seeking planning permission for 50 apartments on a three-acre site on Castlepark Road in Dalkey, south Dublin. The Sunday Business Post, 25th June
Malahide Apartment Complex: Developer Padraig Drayne has agreed to remove one storey from a proposed luxury apartment development in the Dublin suburb of Malahide. Mr Drayne had planned to build a five-storey over-basement building containing 17 two-bedroom apartments and six one-bedroom apartments at Gas Yard Lane. However, Fingal County Council’s planning department raised concerns regarding the proposed development, stating that it would cause overshadowing and have an overbearing impact. As a result, new designs for the building have been submitted, which include the omission of the fifth storey of the building. The Irish Independent, 26th June
Northwest Business Park: William Harvey is guiding €3.25m for a modern detached warehouse and office facility in Northwest Business Park in Dublin 15. The 18,094 sq. ft. property contains 16 banana-ripening rooms which can either be used for refrigerated storage, or removed entirely by the new owners. The plant can also be let on flexible terms for c. €160k p.a. The Irish Times, 20th June
Porsche Showroom: Car dealer Joe Duffy is looking to invest c. €20m in a major new Porsche and Volkswagen showroom in Finglas, north Dublin. The new showroom, which is subject to planning permission, will be located on a 5.7-acre site next to the M50. The Irish Independent reports that the new showroom will capitalise on the small but growing appetite for Porsche cars in Ireland. The Irish Independent, 26th June
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NAMA Transactions: NAMA will proceed with high-profile assets sales worth more than €300m in the coming weeks as the pace of its asset disposals increases. Included in the planned sales is the Gibson Hotel in Dublin’s Docklands, which sources believe could attract a price tag of c. €80m. The Gibson Hotel is currently being operated by Dalata, and it is speculated that the company will be among those preparing bids when the hotel comes to market. Other assets planned for disposal include NAMA’s interest in The Grange apartment complex in South Dublin, where the 54 apartments and penthouses were developed with the help of funding from NAMA. The Sunday Business Post also reports that NAMA is understood to be closing in on a deal to ‘forward fund’ the construction of the XO building in Dublin’s Docklands. This will involve the purchaser paying an upfront fee for the building, with ownership to transfer on completion. Sources say that these proposed asset sales are part of a broader intensification of NAMA-related activity, which may also see another loan book sale before the end of the year, potentially consisting primarily of residential development land and income-producing assets. The Sunday Business Post, 18th June
Pullamore Business Park: A three property portfolio at Pullamore Business Park in Cavan has been put on the market through joint agents CBRE and Crotty Auctioneers. Two of the properties are investment opportunities, while one comes with vacant possession. The portfolio is available in one or more lots. The first lot is a McDonald’s outlet extending to 2,840 sq. ft., which produces a rent roll of c. €90k p.a. on a 25-year lease running from 2000 with five-yearly upwards-only rent reviews. It is currently let to McDonald’s Restaurants of Ireland and is being marketed with a €1.1m guide price, offering a net initial yield of 7.86%. The second lot is a modern industrial premises extending to 2,707 sq. ft., which is used as an NCT centre and commands a rent of €29k p.a. on a 30-year lease from 2000, with a break option in 2020. It has a guide price of €300k, offering a net initial yield of 9.15%. Finally, Units 20A and 20B comprise two adjoining industrial units extending to 3,626 sq. ft. each, and the agents are guiding €100k for both. The Irish Times, 13th June
Letterkenny Warehouse: Commercial agents Bannon are quoting €3.7m for a retail warehouse investment opportunity in Letterkenny, Co. Donegal. The 30,203 sq. ft. warehouse is occupied by Currys, PC World and Crown Paints, who pay a combined rent of €428k p.a. with a weighted average unexpired lease term of 6.4 years to break. The Currys lease (worth €338k p.a.) has a fixed rental uplift in 2019, which will see the rent increase by 15.9%. The net income yield will be 11% before this rental uplift, rising to 12.6% when the rent from Currys increases in 2019. The Irish Times, 14th June
77 Sir John Rogerson’s Quay: Agents Savills are guiding €28m for 77 Sir John Rogerson’s Quay, a medium sized office block in the south Dublin docklands. Block C, a six-storey building with an over-basement car park extends to 34,413 sq. ft. and has been used as serviced offices by Fitzwilliam Properties since 2006. The block is expected to be of interest to companies already based in the south docks, and others with ambitions to move there, especially given the building’s flexible floor plates and 20 car-parking spaces. The sale comes at a time when the vacancy rate for office accommodation in south docklands is just 1.8% (0.38% for Grade A stock) – an all-time low for the area. The Irish Times, 14th June
Tallaght Office / Warehouse Building: Lisney are inviting offers of €4.8m for a high-income producing office and warehouse building in Tallaght Village in Dublin 24. The building, which extends to 27,506 sq. ft., is divided into three separate buildings, each with direct access, and includes a car park with 69 spaces. The development produces rental income of €453k p.a., with a weighted average unexpired lease term of more than 8.1 years. The recently refurbished building is fully let to tenants including office supplies group Brian S Ryan (€273k p.a.), the HSE (€84k p.a.) and Dún Laoghaire Education and Training Board (€97k p.a.). The Irish Times, 14th June
AIB Bankcentre Move: The Sunday Times reports that AIB is planning to move its head office operations from Bankcentre in Ballsbridge to a newly developed office block on 10 Molesworth Street. The bank is expected to pay about €60 psf to rent the c. 115,000 sq. ft. building, equating to a rent bill of c. €6.9m p.a. The new office block will have room for around 1,000 staff, and is owned by the Irish property investment group IPUT. AIB also recently agreed a deal to move 500 support staff to Central Park in Leopardstown, south Dublin. The Sunday Times, 18th June
IDA Headquarters: The Sunday Business Post reports that the IDA is looking for a new HQ in Dublin city centre as the lease on its existing shared office ends in 2019. IDA Ireland shares its current office in Wilton Terrace with a number of government bodies, who will also seek to relocate with the IDA. Agents GVA Donal O Buachalla have been hired to source a building of up to 120,000 sq. ft., capable of accommodating roughly 500 people. The new premises must be ready by September 2019, and it is expected the IDA will remain in Dublin’s central business district given the nature of its work. The Sunday Business Post, 18th June
Central Hotel: Emco Hotels Ltd has applied to Dublin City Council to renovate the three-star Central Hotel in Dublin city centre. Under the plans, a significant part of the existing building, located on Exchequer Street, would be demolished to make way for a newly constructed five-storey over basement hotel extending to c. 70,000 sq. ft.. The new building would contain 116 hotel bedrooms, adding an additional 46 bedrooms to the hotel. NAMA Wine Lake, 18th June
Marker Hotel Extension: GCS Hotel Property Ltd has applied to Dublin City Council to extend the Marker Hotel in Dublin’s south docklands by adding a 7th storey to the premises. The 30,000 sq. ft. extension will in part involve adding an unspecified additional number of bedrooms to the hotel. NAMA Wine Lake, 19th June
RTE Montrose Site: RTE has accepted a bid of c. €107.5m from Irish listed property group Cairn Homes for 8.64 acres of land (c. €12.4m per acre) at its Montrose complex in Donnybrook, in a deal which is expected to close next month. Cairn Homes plans to seek permission to build 500 apartments and nine houses on the site, which is in a prime location. The purchase price is significantly in excess of the €75m guide price provided by Savills, and it is understood that Cairn Homes substantially outbid other interested parties including Chartered Land and Bartra Capital. The company is currently one of the most active housebuilders in Ireland, and has a land bank consisting of over 12,000 sites. The Irish Times, 13th June
Blackrock Land Bank: WK Nowlan Real Estate Advisers are guiding offers in excess of €25m for a 9.7-acre land bank (c. €2.6m per acre) in the south Dublin suburb of Blackrock which is suitable for a large-scale residential development. The site includes a large period house and disused school buildings owned by the Daughters of Charity of St Vincent de Paul religious order, and is one of the last major undeveloped sites located in close proximity to Blackrock Village. The centrepiece of the complex is the listed St Teresa’s House, a Victorian mansion which is likely to be converted into a number of distinctive apartments. In addition, it is expected that the new owner will demolish a range of vacant school buildings on the site. A feasibility study by O’Mahony Pike Architects suggests potential for an overall development of almost 2.5m sq. ft., including 252 apartments and houses and the conversion of St Theresa’s House. The Irish Times, 14th June
Tallaght Development Site: Marlet Property Group has acquired a major 16-acre site in Tallaght which has potential for large-scale residential development. The transaction sees the merging of three separate sites into one, located near the centre of Tallaght and the Luas line. It is believed Marlet Property Group paid c. €16m to acquire the site (c. €1m per acre), which market sources believe could accommodate as many as 1,500 apartments. The site, which contains a number of vacant industrial buildings, is zoned for regeneration by South Dublin County Council, meaning the council would need to approve any plans to make the site entirely residential. The Irish Independent, 18th June
Foxrock Residential Site: A 1.65-acre site with planning permission for a residential development in Foxrock, Dublin 18, has gone on the market through agents CBRE with a guide price in excess of €5m (over €3m per acre). CBRE are to set up a tender arrangement for the site, located on the Stillorgan Road, which has permission for 16 one-, two- and three-bedroom apartments (ranging in size from 785 sq. ft. to 1,453 sq. ft.) and seven four-bedroom houses (ranging in size from 1,980 to 2,098 sq. ft.). The Irish Times, 14th June
Earls Court Apartments: Seventeen apartments in the Earls Court development in Cork Street in Dublin 8 are being offered for sale through agents Hooke & McDonald, with a guide price of €3m. This equates to a price of c. €176k per unit, and the return on the purchase will be c. 7.1%. The 12-storey over-basement development contains 70 apartments in total and fronts onto both Reuben Street and Cork Street, just off the South Circular Road. Twelve of the apartments are two-bedroom units, while the remaining five are one-bedroom units. Hooke and McDonald advise that the portfolio has a current rent roll of c. €305k p.a., with rents in the area averaging €1,600 p.m. for a two-bedroom apartment and €1,250 p.m. for a one-bedroom apartment unit. The Irish Times, 13th June
Killester Redevelopment Opportunity: WK Nowlan Real Estate Advisers are inviting offers of more than €3m for a Dublin convent on a 2.2-acre site which could accommodate a residential development. St Mary’s Convent and grounds in Killester, Dublin 5 is being sold by private treaty on behalf of the Holy Faith Order. A feasibility study by DMOD Architects found that the 2.2-acre site on St Brigid’s Road could accommodate up to 70 apartments, not including the potential to convert the convent into further residential units. The Irish Times, 14th June
Help-to-Buy (HTB) Grant: The Sunday Business Post reports that the Government is considering the closure of the HTB grant this year, as the number of applicants for the grant continues to rise. Figures cited in the paper show that the number of applicants for the grant has risen from 4,400 in March 2017 to 7,275 now. Of these applicants, c. 2,500 have submitted the full documentation to get the grant, with 1,679 applicants receiving the payment, giving an approval rate of c. 75%. Based on the current rate of approvals, the cost of the scheme could be c. €80m this year, well above the c. €50m budgeted for it. The average grant to date is c. €14.5k, and the cost of the scheme so far is c. €24.5m. The Sunday Business Post, 18th June
Avestus Capital Partners: Avestus Capital Partners is set to supply the greater Dublin area residential market with multiple developments after acquiring a number of well-located sites. The company has joined forces with the US investment manager Magnetar Capital to acquire sites which will then be developed by an in-house team. The first development under the Richmond Homes brand will be Dawson Place, a 25 two- and three-bedroom unit scheme at Arbour Hill in Dublin 7. Other sites acquired by the company include the 1.13-acre former Ashfield College site (with planning permission for 16 family homes), the 1.5-acre Kilmacud House site in Stillorgan (with planning permission for an apartment scheme) and a two-acre infill site on Clontarf’s Dollymount Avenue, where the company has already started the development of 25 large family homes. The Irish Times, 14th June
Gardiner Street Student Accommodation: Carrowmore Property Ltd has applied to Dublin City Council to build an extension to a student accommodation complex currently under construction at the junction of Gardiner Street and Summerhill in Dublin city centre. The proposal will involve the construction of a 45,000 sq. ft., six-to-seven storey extension with 117 bed spaces in 81 units. NAMA Wine Lake, 19th June
Sligo Biotech Vaccine Facility: CBRE is to launch an international campaign to find a buyer for a world-class biotech vaccine manufacturing complex in Sligo. The facility was operated since 2010 by the Eli Lilly subsidiary Elanco Animal Health, which announced in early 2016 that it was to close the plant. The complex consists of three separate facilities – a 39,407 sq. ft. manufacturing plant which has been carefully decommissioned in a manner that will allow for rapid ramp-up for future operators, a 5,479 sq. ft. quality control building in the nearby Finisklin Business Park and the adjacent Fort Gary-leased facilities which contain a three-storey office block and a packaging area extending to 51,104 sq. ft. A guide price has not been provided by the agents, who have highlighted the limited opportunity to acquire top tier vaccine manufacturing plans of this capability and capacity. The Irish Times, 14th June
Carrigtwohill Manufacturing Facility: A detached manufacturing facility in the Carrigtwohill IDA Business Park in Cork is being offered for sale by agents CBRE with a guide price of €2.6m. The unit, which extends to 54,680 sq. ft., is let to TRS Global Services Ireland Ltd on a 20-year fully repairing and insuring lease from 2007, leaving c. 10 years left on the current lease. Unusually, rent is payable in USD at a rate of $413k p.a., which equates to c. €367k p.a. as of 7th June. The property benefits from five-year upwards-only rent reviews, and the guide price would offer a net initial yield of 13.5%. The Irish Examiner, 15th June
SME Property-Related Loans: The Central Bank has advised that property-related loans accounted for c. 30% of new lending to non-financial sector SMEs in 2016. Lending to this cohort jumped by over €1bn (or almost one third) in 2016 when compared to the same period in 2015. According to the Central Bank, the main driver of the increase in new lending has been loans for real estate activities, where lending increased from €650m in 2015 to €1.2bn last year. The Irish Independent, 15th June
Allsop Online Auction: Allsop’s is holding their largest ever online auction on the 5th and 6th of July, where over 270 lots with combined guide prices of over €51m will go on sale. Included in the sale will be the most valuable lot ever offered through its online auctions – a 1.85-acre prime south Dublin development site on Deansgrange Road, which is guiding €4.75m – €5.25m (c. €2.6m – €2.8m per acre). Other lots for sale include a portfolio of 15 apartments on Middle Gardiner Street in Dublin 1, a mixed-use property with development potential in Harold’s Cross in Dublin 6w and a portfolio of 11 apartments in Limerick City. The Irish Independent, 15th June
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AIB Loan Sale: The Sunday Business Post reports that AIB is considering a loan sale which would consist of its 35 largest borrowers whose facilities are in arrears. The paper reports that the loans are secured by property development, SME and operating assets. The reporting of this potential loan sale comes at a time when the bank is exploring its options for reducing the size of its non-performing loan book of c. €8.6bn. The Sunday Business Post, 11th June
Blackpool Shopping Centre: Bids in excess of €117m are being sought by joint agents JLL and HWBC for Blackpool Shopping Centre in Cork, along with the adjoining retail complex and self-contained offices. The complex produces a net operating income of c. €7.38m p.a., offering the new owners an initial yield of more than 6%. Extending to 300,000 sq. ft. of retail and retail park space, c. 109,000 sq. ft. of offices and c. 1,800 car parking spaces, the Blackpool complex also contains a number of community services including a council library, post office and health board, and has a catchment area of over 400,000 people. The occupiers include a variety of high profile retailers including Dunnes Stores, Aldi, Next, Carphone Warehouse and Boyle Sports. The retail centre is currently owned by Varde Partners, who purchased the centre as part of the c. €170m Project Acorn portfolio nearly three years ago. The Irish Times, 7th June
Florentine Centre Site: A public sale process has commenced to find a developer to build a new €25m retail hub on a site formerly owned by Ballymore Properties in Bray, Co. Wicklow. Wicklow County Council has launched a pre-qualification process for bidders who are seeking to purchase the proposed Florentine Centre site, which has been in a derelict condition for a decade. The sale offer has strict conditions regarding what must be developed on the site, including two anchor stores, eight retail units, a five-screen multiplex cinema, three restaurants, business units, 250 car-parking spaces and 320 cycle spaces. The Council will shortlist three bidders after the initial pre-qualification process, while the second stage of the competition will assess the financial offer and how quickly the development can be completed and open for business. It is hoped that the retail centre will be open within the next two years. The Irish Independent, 11th June
Polonez Food Stores Building: An unnamed investor has paid slightly less than €2.9m to purchase the Polonez Food Stores Building at 49/50 Mary Street in Dublin 1. The three-storey, over-basement mixed-use building extends to 10,000 sq. ft., with 4,100 sq. ft. of the ground floor let to Polonez. The freehold building produces a rental income of c. €82k p.a., and has a number of outstanding rent reviews. The Irish Times, 6th June
Adelaide Chambers: Colliers International is guiding €8m for the Adelaide Chambers office scheme on Peter Street in Dublin city centre. The complex comprises a landmark four-storey over-basement period office building, with a modern, four-storey extension. With a net internal area of 17,670 sq. ft. and 31 car parking spaces, the scheme’s configuration allows for a corporate HQ, while the suites could be used for start-up companies seeking a city centre location. The building currently produces a rent roll of €293k p.a. from tenants including the HSE and SEBELA pharmaceuticals. This equates to €17.31 psf, which the agents advise is substantially lower than average market rents in the area. The Irish Independent, 9th June
Georgian Office Market: The Sunday Times reports on the continued recovery in the Georgian office market in Dublin city centre. According to Mark McCormack of GVA Donal O’Buachalla, prime rents for office space on the main southside squares can now command between €40 and €45 psf. Approximately 18 months ago, the market rent was c. €30 to €35 psf. Brian Gaffney of Murphy Mulhall also reports on the sales market for Georgian assets, mentioning that prime Georgian properties in Fitzwilliam Square and Merrion Square can sell for up to €502 psf. The Sunday Times, 11th June
St George’s Church: Joint agents Arthur Ryan Property Consultants and Cushman & Wakefield are inviting offers of €2.9m for the newly restored St George’s Church on Temple Street in Dublin’s north inner city. The former church has been significantly refurbished and converted into a high-class office facility, and is currently rented by the adjoining Temple Street Children’s University Hospital on a 10-year lease from 2015 at a rent of €225k p.a. Additional income comes from two licence arrangements and €35k in annual fees from Vodafone and Meteor, who both have communications equipment located on the roof of the building. The premises extends to 22,000 sq. ft. and the guide price will offer the new owner an initial yield of c. 8.6%. The Irish Times, 7th June
Metropole Hotel: Planning permission is to be sought within days by Trigon Hotels for a c. €50m extension and refurbishment of The Metropole, one of the oldest hotels in Cork. The plans, which will likely take three to five years to complete, will involve the extension and refurbishment of the existing 112-bedroom hotel, the construction of a new adjoining hotel, to be named the ‘M’, and the provision of a retail arcade. Trigon Hotels is associated with Philip Hotel Holdings Ltd, who bought the Metropole Hotel in 2015 for €5m, and subsequently purchased a 0.36 acre site across Harley Street for c. €1.35m. The plans propose the development of what will be Cork’s largest hotel complex in two associated buildings, offering 400 rooms and connected by a glass bridge link above Harley Street. The Irish Examiner, 8th June
Chancery Street Hotel Application: Melonmount Ltd has sought planning permission from Dublin City Council to construct a new 249-bedroom hotel on Chancery Street, near the Four Courts in Dublin city centre. The application seeks permission to demolish the existing six-storey building on the site, and replace it with an eight-story hotel extending to 100,000 sq. ft. Melonmount is controlled by Mawash, Sonia and Jalaluddin Kajani. NAMA Wine Lake, 11th June 2016
Amiens Street Hotel Application: Railtours Ireland First Class Ltd has applied for permission to demolish an existing two-storey property on Amiens Street in Dublin city centre and replace it with a new four-storey over basement hotel with 11 bedrooms. Railtours is controlled by James Deegan and Fiona Ballance. NAMA Wine Lake, 11th June
Dublin Living Development: Marlet Property Group, owned by property developer Pat Crean and M&G Investments, is to seek in excess of €425m to forward fund the development of 1,170 apartments in four separate locations in the Dublin suburbs. The four schemes are located at Mount Argus and St Clare’s in Harold’s Cross, Dublin 6w, Carriglea in Bluebell, Dublin 12, and Cabra Road in Dublin 7. Savills estimates that based on current rental values in similar schemes in the Dublin suburbs, the equivalent net rental income from the ‘Dublin Living’ developments would be c. €20.5m p.a., allowing for running costs. However, it is believed that the estimated rental figure will increase significantly during the construction period because of the undersupply of private rented accommodation in Dublin. The four high quality schemes are scheduled to be completed between H2 2018 and the early part of 2020, and will consist predominantly of two-bed units (750 in all) along with 255 one-beds and 165 three-beds. The Irish Times, 7th June
RTE Donnybrook Site: The Irish Times reports that the bidding for RTE’s 8.64-acre Montrose site in Donnybrook, Dublin 4 is approaching €90m, with Cairn Homes believed to be the front runner. Michael O’Flynn, Bartra Capital, Chartered Land and Bridgedale are also believed to have lodged bids for the site. The site has been on the market through Savills, who had given the site a guide price of €75m. It is believed that the successful bidder will be chosen this week, possibly after a RTE board meeting on Thursday. The Irish Times, 13th June
Foxrock Residential Site: CBRE is guiding over €5m for a 1.1-acre residential development site on the Stillorgan Road in Foxrock in Dublin 18. The site comes with full planning permission for the demolition of the existing dwelling and the construction of 24 new properties. The proposed scheme contains a mixture of apartments ranging in size from 785 sq. ft. to 1,540 sq. ft., and houses ranging in size from 1,981 sq. ft. to 2,099 sq. ft. The Irish Independent, 12th June
Dublin City Apartments: A private investor has paid c. €4.6m (c. €600k over guide) to purchase a block of 25 apartments located between Christchurch Cathedral and the Guinness Storehouse in Dublin city centre. The complex consists of 10 two-bedroom apartments and 15 one-bedroom units in Hanbury Mews at Hanbury Lane, which when fully let produce a combined rent roll of c. €345k p.a. The apartments were developed by Liam Carroll in 2008. The Irish Times, 6th June
Parkhouse: QRE has completed the sale of seven two-bed apartments in the Parkhouse development on Benson Street, Dublin 2 for c. €2.24m, c. €140k over the guide price. The sale was completed using the BIDX1 online property transaction platform. The Irish Times, 6th June
Bank of Ireland (BoI) Mortgage Rates: BoI has announced rate cuts of up to 0.35% on their fixed rate mortgage products. The rate cuts, which ranged from 0.10% to 0.35%, commenced on June 6th. The best rate the bank offers for a two or three year fixed rate mortgage is now 3%, however the borrower must have an LTV of 80% or less. The Irish Times, 13th June
Bluebell Apartments Application: Arcourt Ltd has applied to Dublin City Council to build three three-to-six storey residential blocks on a one-acre site on the Old Naas Road in Bluebell, south west Dublin. The buildings will contain a total of 85 new apartments, split between 18 one-beds, 55 two-beds and 12 three-beds. The new application supersedes a 2014 application to build a 44-unit aparthotel on the site. Arcourt is controlled by Jackie Cosgrave. NAMA Wine Lake, 12th June
Cork Street Application: Como Properties Ltd has applied to Dublin City Council for permission to replace the Hanlon Food Services factory on Cork Street in Dublin city centre with a mixed-use development consisting of residential and retail space. The development will accommodate 39 apartments, split between eight one-beds, 25 two-beds and six three-beds, alongside 2,500 sq. ft. of ground floor retail and office space. The application supersedes a 2015 application for a similar development with 42 apartments. Como is controlled by Eamonn and Marie McCann. NAMA Wine Lake, 11th June
Residential Property Prices: According to the latest property price index from the Central Statistics Office (CSO), residential property prices increased by 10.5% nationally and by 8.2% in Dublin for the year ending April 2017. Excluding Dublin, residential property prices rose by 13.4% in the same period. For the month of April 2017, national prices rose by 1.1%, while Dublin prices rose by 0.2%. Overall, national prices remain 30.7% below their 2007 peak, while Dublin prices are 31.3% below their February 2007 peak. CSO Residential Property Price Index April 2017
Stadium Business Park: JLL is inviting offers above €8m for a modern logistics building in the Stadium Business Park in Ballycoolin, Dublin 11. The c. 79,000 sq. ft. building is let to Viking Direct on a 20-year lease from 2007, with a break option in 2020. The company pays a rent of €744k p.a., offering the new owners a return in excess of 8.8%. The Irish Times, 6th June
15 Barrow Street: Property developer Chris Jones has purchased 15 Barrow Street in Dublin’s south docklands through Jones Investments. The property is a low-rise industrial warehouse near Google’s international HQ that was on the market for c. €2m in 2016. Jones plans to demolish the building and replace it with an enterprise centre with ‘collaborative workspace’, a café, landscaped courtyard and a roof terrace. The new four-storey building will include a double basement and will extend to over 40,000 sq. ft., more than double the size of the existing building on the site. The Sunday Times, 11th June
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AIB Loan Sales: The Sunday Business Post reports that AIB is planning at least two major loan sales following its upcoming IPO. The sales will include a c. €1bn portfolio known as Project Redwood, and the paper reports that investors, who have asked not to be named, have said they have been told to expect an increase in repossessions as AIB tackles the remaining non-performing loans on its books. The bank is also believed to be in talks with a number of anti-repossession advocates in relation to the disposal of c. 5,000 home loans through a combination of mortgage-to-rent and debt sales, however AIB will need to ensure that any disposal is in line with the EU’s accounting standards. The majority of the organisations seeking to acquire the home loans intend on doing so as an Approved Housing Body (AHB), and the AHB structure will need to be in line with the views of Eurostat, the EU’s statistics agency. Sunday Business Post, 4th June
Supervalu Bray: Musgrave, the food retailer and wholesaler, has outbid several Irish and European funds to purchase the store rented by its subsidiary company Supervalu in Bray, Co. Wicklow. The purchase price in excess of €9m will offer a net initial yield of c. 6.9%, and is above the €8.4m guide price sought by Savills. The 27,000 sq. ft. store, which had been owned by Friends First for the past 10 years, is let to Supervalu at c. €650k p.a. on a lease that has another c. 13.5 years left to run. The Irish Times, 30th May
Capel Street Portfolio: Turley Property Advisers is guiding €2.95m for two shops and 11 overhead apartments at 37 and 38 Capel Street in Dublin 1, which are being sold on the instructions of a receiver. The portfolio is producing rental income of c. €250k p.a. although it is believed that there is scope to increase this figure to over €300k p.a. The mixed-use development is located midway along Capel Street, with one of the two ground floor and basement shops currently vacant in shell condition, and the other let to Moldovan Supermarket at €50k p.a. The 11 apartments consist of three extra-large two-bedroom units, six two-bedroom units and two one-bedroom penthouses. The Irish Times, 30th May
Navan Retail Units: Offers above €2.3m are being sought by Cushman and Wakefield for six retail units and overhead offices located beside the main entrance to Navan Shopping Centre in Co. Meath. The shops trade exceptionally well and have a weighted average unexpired lease term (WAULT) of over six years. The current rent roll from the complex, which has an overall area of 10,509 sq. ft., is c. €218k p.a. The retail tenants include O’Briens Wines, the Big Apple Fruit Company and Enable Ireland, while the overhead offices are rented by chartered accountants Farrell & Scully. The investment will offer a net initial yield of c. 9% after accounting for standard purchasing costs of 4.46%. The Irish Times, 31st May
Irish Retail Parks: According to two national surveys by Retail Excellence Ireland, both retail parks and shopping centres nationwide have generally seen an improvement in performance over the last two years. The research covers over 650 shopping centre stores and 80 retail park tenants with over 240 retail park stores, and although there was a general improvement, some retailers continue to struggle, with 13 retail parks deemed ‘unprofitable’. According to the Retail Park Review 2017, Castlebar Retail Park is the least profitable in the country, while the best overall retail park was Mahon Point in Cork. The research on shopping centres showed Dundrum Town Centre to be the strongest performing shopping centre in Ireland, with Liffey Valley also performing admirably. The Laurence Centre in Drogheda was rated the least healthy when scores on a number of measures were combined. The Irish Independent, 4th June
Seagrave House: A property fund run by Irish Life has sought planning permission to demolish Seagrave House, a five-storey building on Earlsfort Terrace and Davitt House, an adjoining building on Adelaide Road in Dublin city centre. Replacing the two properties will be a new office building with a gross floor area of c. 140,000 sq. ft. and a further c. 21,500 sq. ft. of space in a double basement. The Sunday Times reports that the new seven-storey building could accommodate up to 1,300 workers, and will contain a ground floor courtyard, outdoor terraces on the sixth and seventh floors and a basement car park with 33 parking spaces and 157 bicycle spaces. It is anticipated that the new building would command a premium rent due to its close proximity to Dublin’s central business district and St Stephen’s Green. The Sunday Times, 4th June
Dublin Airport Central: The Sunday Business Post reports that joint agents BNP Paribas and Bannon are seeking rents of c. €34.50 psf for the new Dublin Airport Central (DAC) office complex which the Dublin Airport Authority (DAA) is constructing at the Dublin Airport campus. Although this is roughly half the rents being charged for new prime office space in Dublin’s central business district, it is amongst the highest rents for Dublin’s suburbs, and well ahead of rents being achieved in Sandyford, Dublin 18. The rents not only reflect the quality and scale of the floor plates of the new buildings, but also the recent rents achieved when DAA rented the former Aer Lingus HQ building to the ESB for c. €31 psf. Dublin Airport Central will contain over 450,000 sq. ft. of new office space across four blocks, alongside a 742-space multi-storey carpark. It is believed that DAC is one of two locations that the Department of Health is seeking to attract the European Medicines Agency to Ireland when it relocates from the UK after Brexit. The Sunday Business Post, 4th June
Jacobs Inn Hostel: CBRE is guiding €13.5m for Jacobs Inn Hostel, which is located at 21-28 Talbot Street in Dublin city centre. The purpose-built hostel, which is one of the busiest in Dublin, contains 428 bed spaces which are heavily booked throughout the year, mainly by overseas visitors. The property is owned by the Tetrarch Hospitality Group, who also own more upmarket hotels such as The Marker and the Powerscourt. The company acquired and further upgraded the hostel in 2014, and CBRE has advised that it is being brought to the market in turn-key condition, with no substantial capital expenditure required. The Irish Times, 31st May
Scruffy Murphy’s Pub: An application has been lodged with Dublin City Council to demolish Scruffy Murphy’s pub near Merrion Square in Dublin city centre and construct a 36-bed aparthotel above a ground-floor restaurant, bar or café. The Irish Independent reports that a letter in the name of Tim O’Connor has been lodged with Dublin City Council outlining his vision for the site. Scruffy Murphy’s, which is currently closed, was offered for sale for €1m in 2016. The Irish Independent, 5th June
Clonea Strand Development: The Sunday Independent reports that Irish Property Investor Martin Birrane is seeking to build a c. €27m hotel and holiday development at Clonea Strand, near Dungarvan on the Waterford coast. Mr Birrane’s London-headquartered company Peer Group has stated that there is an opportunity for a 100-bedroom hotel alongside up to 80 holiday homes and townhouses for letting, as well as water sports facilities on the adjacent beach. A previous planning permission for the site was granted in 2008, and renewed in 2013. However, it is understood that a new planning application will be required, as there is not sufficient time to complete the development before the 2013 planning permission expires next year, and the requirements of the project have changed somewhat since the original application. The Irish Independent, 4th June
April Mortgage Approvals: The April 2017 report by the Banking & Payments Federation Ireland (BPFI) on mortgage approvals shows that there were 3,340 mortgages approved in April 2017. The value of mortgages approved was c. €685m. Based on the value of mortgages approved, these figures represent an increase of c. 19.7% YoY (c. €572m April 2016) but a decrease of 12.5% MoM (c. €783m March 2017). Based on the value of mortgages approved, the first-time buyer segment grew by 25.8% YoY. BPFI Mortgage Approvals April 2017
Northwest Business Park: Knight Frank is guiding €9.75m for a 135,000 sq. ft. logistics facility located at Northwest Business Park in Ballycoolin, Dublin 15. The modern detached high-bay logistics facility is located on a 6.45 acre site, and contains 21 dock levellers, three standard grade doors and has a clear internal eaves height of 12m. Northwest is home to a range of well-known logistics companies and occupiers, including Dunnes Stores, Masterlink Logistics and DSV. The Irish Times, 1st June
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Cerberus Portfolio: The Sunday Business Post reports that Cabot Financial has purchased a c. €200m distressed loan portfolio from Cerberus at a price which reflects a substantial discount to the par value of the portfolio. The portfolio is believed to consist of impaired loans, which the paper cites as “tails and residuals”, which Cerberus acquired from Ulster Bank in the last few years. The majority of the loans are believed to be non-recourse. The Sunday Business Post, 28th May
Lidl Development: Lidl Ireland GmbH has sought planning permission from Dún Laoghaire-Rathdown County Council for a c. €9.3m development on the site of the Shankill Shopping Centre on Corbawn Lane, Dublin 18. The development will extend to c. 40,000 sq. ft. and will include a café, medical centre and pharmacy. The Sunday Business Post, 28th May
Dublin 2 Development: Adelaide Real Estate Investment Plc has been granted planning permission for a c. 66,700 sq. ft. mixed use development at Chatham Court, Chatham Street, Dublin 2. The development will include commercial and residential space. The Sunday Business Post, 28th May
Stillorgan Mall: The agents Coldwell Banker Commercial has secured c. €2m for a mixed-use neighbourhood mall located on Lower Kilmacud Road and Slieve Rua Drive in Stillorgan, Co. Dublin. The 4,154 sq. ft. mall has a rent roll of c. €193k p.a., and its units include a two-bed apartment and a Spar retail unit. The Irish Times, 24th May
76 Lower Baggot Street: The Sunday Times reports that Credit Suisse will acquire the former Bord Na Móna HQ at 76 Lower Baggot Street in Dublin 2 for c. €40m. The acquisition will represent an investment rather than a potential base for Credit Suisse staff, as the property is already fully occupied and generating c. €2m p.a. in rental income. The current tenants include Fitbit, Storyful and investment groups DMS Governance and Sanne Group. The five-storey property was built in the 1970s but has since been completely refurbished. The Sunday Times, 28th May
South Dublin Office Investments: Cushman & Wakefield is guiding €4.4m and €1.6m for two south Dublin office investments it is selling on behalf of Gannon Properties. Block 8 of Richview Office Park in Dublin 14 is being sold with a guide price of €4.4m, offering a net initial yield of c. 7.94%. The building extends to 10,780 sq. ft. and contains 32 parking spaces, and is let to Liberty Mortgage Corporation on a 25-year lease from July 2007 at a rent of c. €365k p.a. The second investment, Castle House in Rathfarnham, is being sold with a guide price in excess of €1.6m, offering a yield of c. 7.60%. There are more than eight years to run on the five tenancies, which generate an annual rent of c. €127k. The tenants in the 8,985 sq. ft. building include PTSB, Enigma Grill and Corporate Underwriting Ltd. The Irish Times, 24th May
33 Fitzwilliam Place: Colliers International is inviting offers of €2.65m for a Georgian property located at 33 Fitzwilliam Place in Dublin 2, a property which includes a rear mews at 33 Leeson Close. The main property, which extends to 4,824 sq. ft., is currently vacant and recently received an extensive refurbishment. The mews extends to 2,034 sq. ft. and is let under a 25-year lease which expires in 2021, at a rent of €25k p.a. The Irish Times, 24th May
The Priory: Offers of €2.25m are being sought by QRE for The Priory, a distinctive redbrick office block near Christchurch in Dublin city centre. The 10,021 sq. ft. property, which dates back to 1878, is generating rental income of c. €195k p.a., offering a net initial yield of 8.25%. The current tenants include Each & Other Ltd, Adaptics Ltd and Silvercloud. The Irish Times, 24th May
Spruce House: The OPW has received planning permission for a c. €11m, seven-storey, c. 81,000 sq. ft. office block on the site of Spruce House on Leeson Lane in Dublin 2. The Sunday Business Post, 28th May
Lower Baggot Street: MKN has applied to Dublin City Council for permission to construct a new six-storey, 50,000 sq. ft. office building with a single storey basement on Lower Baggot Street in Dublin city centre. The project will involve the demolition of the current 15,000 sq. ft. building on the site, which is owned by Sean McKeon. NAMA Wine Lake, 28th May
Jurys Inn Group: The Irish Times reports that Lone Star has retained Credit Suisse and Eastdil to advise on its disposal options for the Jurys Inn hotel group and six Hilton hotels. The portfolio is reportedly valued at c. €1.15bn and includes six Irish hotels, including the Hilton Garden Inn at Customs Quay in Dublin. Lone Star acquired the Jurys Inn group for c. €900m in 2015. The paper cites a report by The Times in London which states that a sale of the portfolio is believed to be Lone Star’s preferred exit route, however an IPO has not been ruled out. The Irish Times, 24th May
Mount Wolseley Hotel: The Sunday Times reports that Austrian investor Tomas Roeggla has signed contracts to acquire the Mount Wolseley hotel, spa and golf resort in Co. Carlow for close to the €14.25m asking price. The 170-acre resort includes the 143-bedroom hotel, a golf course and 16 four-bed lodges. The sale will offer a significant return for the current owners, Tetrarch Capital, who purchased the resort out of examinership in 2014 for c. €7.5m. The resort, described as ‘highly profitable’ by selling agent CBRE, was offered for sale with no hotel group brand or management company, giving the buyer options to rebrand the property. Mr Roeggla has acquired several hotels in Ireland through his Strategic Capital Investment Fund, including the Clarion Hotel in Co. Limerick and the Radisson Farnham Resort in Co. Cavan. The Sunday Times, 28th May
Tayto Park: Tayto Park has sought planning permission from Meath County Council to construct a c. €48m, 250-bedroom hotel on their grounds in Ashbourne, Co. Meath. The proposed seven-storey, c. 344,000 sq. ft. hotel will have accommodation facilities for up to 1,000 guests. Tayto Park had c. 765k visitors in 2016. The Irish Times, 25th May
Dublin 13 Hotel: Gannon Homes has received planning permission for a c. €28m, seven-storey, 209-bedroom hotel in Station Square, Clongriffin, Dublin 13. The hotel will include 20 apartments which can be used for short-term lettings and business use. The Sunday Business Post, 28th May
Abbey Street Upper Hostel: Abbey Ltd has applied to Dublin City Council for permission to construct a 144-bedroom hostel on Abbey Street Upper in Dublin city centre. The plans involve the demolition of a 4,000 sq. ft. building on the site and the construction of a new nine-storey, 50,000 sq. ft. ‘tourism hostel’ on the site. NAMA Wine Lake, 28th May
Sandyford Sites: Aldgate Developments has been named as the acquirer of two high-profile sites in Sandyford, Co. Dublin. Aldgate has acquired the former FAAC Electronics site at the entrance to Sandyford Industrial Estate and the Innovation House site on nearby Arkle Road. Aldgate reportedly acquired the FAAC site last year for c. €2.35m an acre, a fraction of the €20m an acre the site sold for during the property bubble. The 1.66-acre Arkle Road site was on the market in 2016 with a guide price of over €6.5m, and Aldgate is understood to have paid close to that price. Arkle Road previously sold for c. €10.16m in 2000. The Irish Times, 24th May
Sandyford Apartments Appeal: IRES REIT, the State’s biggest private landlord, has appealed Dún Laoghaire-Rathdown County Council’s decision to refuse its application for the development of 467 apartments at Rockbrook in Sandyford to An Bord Pleanála. In its appeal, IRES REIT has argued that the project would help fulfil government policy in addressing the housing crisis and that it meets the conditions contained in the 2016-2022 Sandyford Urban Framework Plan. The company also contests the council’s assertion that the project would set an “undesirable precedent” for development in the area. The Irish Independent, 29th May
Dublin Apartment Developments: The Irish Times reports that the recently introduced cap on rental increases has impacted the sale of two Dublin apartment developments in different ways. A 52-apartment development known as Shelbourne Plaza in Silicon Docks has seen particularly strong offers from eight institutions, largely because the units are vacant and therefore not subject to the new rent restrictions. The development had been guiding €18.5m, however it is believed that the final sales price could range from €22m – €23m. In contrast, a second development of 105 individually let apartments at the Casino in Malahide has been withdrawn unsold, largely due to the limited scope for rental increases as a result of the new guidelines. The apartments will now be sold individually on a phased basis as they become available. The Irish Times, 24th May
Malahide Landbank: A well located landbank beside Malahide Village in north county Dublin is expected to generate considerable interest when it goes on the market with a guide price of €5.25m through estate agents Savills. The 75-acre site has extensive views over the Malahide Estuary and frontage on to the Swords Road, Estuary Road and the M1 motorway. The estate is currently held as agricultural land and is zoned as a “greenbelt”, although Savills advise that there may be potential to rezone it for housing, leisure, commercial or institutional uses. The land is located less than 10 minutes’ drive to Dublin Airport and is close to the suburbs of Malahide and Swords. The Irish Times, 24th May
Development Sites: Savills has brought three residential sites in Dublin and Wicklow to the market. The site with the highest guide price, at €2m, is in the centre of Enniskerry in Co. Wicklow. The Enniskerry site extends to 6.2-acres and is in an area designated “specific local objective 2” in the Enniskerry Local Area Plan 2016-2022. This designation allows for multiple zonings, such as open space, special residential and existing residential. The second site, which is guiding €1.5m, is in Rathmichael, south Dublin. This 3.9-acre site is in agricultural use but is zoned “A1 residential”. The third site, which is also guiding €1.5m, is at Church Lane in Greystones, Co. Wicklow. This site extends to 1.3-acres and has planning permission for four detached four-bed houses. The Irish Times, 24th May
2016 Mortgage Data: New figures from a Central Bank study show that first-time buyers (FTBs) borrowed c. 79% of the value of their property and c. 2.9x their income in 2016. The study found that there were 29,893 new mortgage loans with a value of c. €5.7bn issued in 2016. The figures show that the average loan drawn down was c. €186k, while the average property price was €250k. The average loan in 2016 was c. €173k, and the average house price was c. €235k. The average age of FTBs in 2016 was 34. The Irish Times, 26th May
Personal Insolvency: New figures from the Insolvency Service of Ireland show that the number of people applying for a Personal Insolvency Arrangement (PIA) rose sharply in Q1 2017. The figures show that 1,114 homeowners applied for a PIA in Q1 2017, compared to 407 applications in Q1 2016. A total of 179 PIAs were agreed and implemented in Q1 2017. According to the head of the Insolvency Service, Lorcan O’Connor, where a mortgage write-off occurred, the average write-off was €93,338. PIAs allow the restructuring and write-off of mortgage and other debts up to €3m, and the PIA arrangement can last for up to six years. The Irish Independent, 26th May
Primary Healthcare Centre: British listed healthcare fund MedicX has paid c. €15.5m to acquire a new primary healthcare centre in Tallaght. The purchase represents the fourth investment in Ireland by MedicX, which has 157 primary healthcare centres throughout the UK and Ireland. The new centre will be let to a number of GPs, and will also provide space for the HSE and a pharmacy. The centre is being developed by refurbishing an existing office building, and is scheduled to be completed by the end of 2017. The pharmacy will be let on a 15-year lease, while other services will have 25-year leases. In both cases the leases will be subject to five-yearly rent reviews tied to the consumer price index. The Irish Times, 29th May
Irish Commercial Property Market: According to the latest Cushman & Wakefield Investment Atlas, which monitors global property investment trends, Ireland’s commercial property market moved up from 19th to 13th place in the world, in terms of the amount of foreign investment it attracted in 2016. The improved ranking followed a 24.6% increase in the amount of investment to c. €5.68bn. However, as a country to invest in, Ireland is ranked only 35th based on a number of risk factors, which puts it in the bottom half of the 50 countries covered. Ireland was however ranked above the UK, which was ranked at 42. In terms of political stability, Ireland was ranked in 15th place, ahead of the UK at 26 and Germany at 23. The Irish Independent, 25th May
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