Pub Sales As the pubs sector gears up for its big reopening next month, estate agents are predicting a rake of sales, with a number of off- and on-market sales progressing. Among the off-market sales in the pipeline in Dublin, according to sources, are MB Slattery’s in Rathmines, the Wellington on Baggot Street and Water Lounge in Dun Laoghaire. These follow a changing of hands for the Brazen Head in the Liberties for a reported €15 million to Attestor Capital, a London-based private equity fund working with the hospitality entrepreneurs Ray Byrne and Eoin Doyle. Other pubs to sell this year include the 108 in Rathgar, the Magpie Inn in Dalkey and the Cabra House. Agents are optimistic that the city centre pub will make a comeback. Louis Fitzgerald, who lists Bruxelles, Kehoe’s and the Stag’s Head among his 16 pubs nationwide, is interested in adding to his city centre portfolio. Fitzgerald invested nearly €4 million on renovations during the lockdown, including at the Quays in Galway and An Poitin Stil in Dublin. The Sunday Times, 23rd May
Premier Inn, Dublin Whitbread, owner of Premier Inn, Britain’s largest hotel business, is pressing on with its expansion plans in Dublin city centre with three of its five pipeline hotels currently under construction. The company is targeting 2,500 Premier Inn hotel rooms in Dublin as it responds to a recognised undersupply of branded budget hotel accommodation in the city. A 97-bedroom Premier Inn on South Great George’s street will be the first of its city centre hotels to open later this year. Other planned locations include Gloucester Street, Newmarket, Castleforbes and Jervis Street. The Business Post, 23rd May
Aldi, Sandyford The prospect of eight years of secure investment income from the supermarket sector is expected to see strong interest in the sale of German retailer Aldi’s store in Sandyford, Dublin 18. The long leasehold interest in the property is being offered to the market by TWM at a guide price of €10.75 million. This provides a return of 5.1 per cent after standard costs of 9.96 per cent have been deducted. The Aldi store is located immediately opposite the Stillorgan Luas green line stop and is part of the Rockbrook development of apartments and retail units. Aldi is located beside Rationel Windows and Doors and EZ Living. The ground-floor purpose-built supermarket extends to 1,879sq m (20,226sq ft) with 100 basement car-parking spaces with travelator and lift access. Aldi has traded from the Sandyford unit since 2011 and its lease expires in 2036. There is a tenant break option in October 2029. The current passing rent is €603,376 per annum and the next rent review is October 2021. Rents are reviewed in line with the consumer price index, are compounded annually, and are subject to a yearly maximum increase of 4 per cent. The Irish Times, 19th May
Sports Direct, Galway Sports Direct is to open a new “mega-store” at the Corrib Shopping Centre in Galway city centre later this year. The 65,000sq ft outlet comprises four floors and had been occupied by Debenhams prior to the closure of its 11-store Irish network in 2020. The new store, which is currently being fitted out, is likely to include some of the group’s other product lines including clothing brand, USC, as well as its Brand Max concept. Sports Direct is making a significant investment in its new Galway premises and has plans for the creation of over 100 new jobs. The Irish Times, 19th May
Grafton Street, Dublin 2 Canada Goose is to leave Grafton Street after opening its first Irish store last December. The company follows Tommy Hilfiger in leaving Dublin’s premier shopping street in recent months. The Canada goose store will close in March next year. A spokeswoman for the group said the original plan when opening the Grafton Street store was for it to be a six-month “pop up” and the decision to remain until March 2022 was due to the strong response when the store was open prior to the closure of non-essential retail at the end of December 2020. According to Dublin town, a body representing 2,500 city centre firms, vacancy rates on Grafton street were around 18% before Covid restrictions were eased last week. They also stated that footfall on Grafton Street last year was c55% of the level at the same time in 2019. The Business Post, 23rd May
Fitzwilliam St Upper, Dublin 2 Agent BNP Paribas Real Estate is guiding a price of €2.375 million for No 12 Fitzwilliam Street Upper in Dublin 2. Located next to Fitzwilliam Square in the city’s central business district and within walking distance of Government Buildings, St Stephen’s Green, Merrion Square and Grafton Street, the subject property comprises a four-storey over-basement Georgian building of 376sq m (4,047sq ft). The property also includes a two-storey mews building to the rear with two car parking spaces accessed via Pembroke Lane. While the building is laid out as an office currently, it retains numerous original features and could, according to the selling agent, be converted easily for residential use. No 12 Fitzwilliam Street Upper is being offered to the market with the benefit of full vacant possession. The Irish Times, 19th May
Navigation Square, Cork French property company Corum Asset Management, on behalf of its fund, Corum XL, has agreed to buy the NSQ1 building at O’Callaghan Properties’ Navigation Square development in Cork city docklands. The deal, which is understood be valued at about €60 million, brings Corum’s overall investment in the Irish market to date to just under €290 million. The NSQ1 building in Cork is the first of four buildings which make up O’Callaghan Properties’ 360,000sq ft Navigation Square, the city centre’s largest office development. Two blocks are already built and construction of the third is expected to commence by the end of the current year. Navigation Square is a 2.25 acre site bounded by Albert Quay to the north, Victoria Road, Albert Road and Albert Street. The project will be capable of hosting some 3,000 employees when fully occupied. The development includes roof terraces with spectacular views of the city and port and has 100,000sq ft of basement parking for cars, bicycles and motorcycles. Corum’s acquisition of NSQ1 was described as “a really positive endorsement for Cork and for the city’s docklands” by Brian O’Callaghan, managing director of O’Callaghan Properties. The Irish Times, 21st May
Peleton, Cork Peloton is weighing plans to take on up to 70,000sq ft (6,503sq m) of office space in Cork to facilitate a major expansion of its European operations. The at-home fitness company is understood to have issued a request for proposal (RFP) through the London office of CBRE in recent weeks to several commercial real estate advisers in the city with a view to accommodating up to 700 workers there. While Peloton currently offers customer support to its indoor-cycling members through outsourcing specialist firm Voxpro in its headquarters at City Gate in Mahon, its initiation of a search for office space of its own will be welcomed by Cork’s commercial property sector and the city’s wider business community. The Irish Times, 19th May
Canal Road, Dublin 6 The Construction Industry Federation (CIF) and the Construction Workers Pension Scheme (CWPS) are understood to have secured about €23 million from the sale of the CIF’s headquarters on Canal Road in Dublin 6. The building and its site have been purchased by the international property developer, Osborne + Co, with property veteran Tom Hamilton in place as the company’s managing director in Ireland. Osborne’s acquisition of the site, known as ‘Canalside’, represents its second deal to date in the Irish market. Osborne’s plans for its latest acquisition meanwhile will see the demolition of the CIF’s 1980s headquarter building, and its replacement with 147,000sq ft of Grade A office space. Some 17,000sq ft of this will be contained in a new building to be retained by the CIF under the terms of the deal. The vast majority of the space – 130,000sq ft – will be contained in a second office building which is expected to come to the market in early 2024. A planning application for the development is set to be submitted in November of this year. The masterplan architects on the project are Reddy Architecture and Urbanism. The Irish Times, 19th May
Hibernia REIT Commercial property company Hibernia Reit has entered an agreement to issue €125m of new unsecured US private placement notes. The issue comprises equal amounts of 10- and 12-year notes with an average fixed coupon of 1.9pc. The notes have been placed with five institutional investors, all new lenders to Hibernia. The new funding has been earmarked to fund the development of their new office clusters at Clanwilliam Court and Harcourt Square. Hibernia Reit’s weighted average debt maturity at 31 March was 3.4 years and cash and undrawn facilities, net of commitments, amounted to €110m, according to a statement from the group. Adjusting for the new notes, the weighted average debt maturity at the same date is extended to 5.2 years and cash and undrawn facilities, net of commitments, increases to €235m. The Irish Times, 21st May
Yew Grove Stock market-listed property investor Yew Grove Reit is buying an industrial building in Dundalk and two office properties in Dublin for a combined total of €19m. In Dundalk, the company has exchanged contracts on Tanola House on Coes Road. This is a recently constructed industrial building of 86,451 sq ft over two adjoining blocks. The premises comes with 120 car-parking spaces and is tenanted by a US multinational under two leases, which together have a weighted average unexpired lease term (WAULT) to first break of approximately 8.4 years and a WAULT to expiry of 18.4 years, according to a statement from Yew Grove. Tanola House was acquired for around €8m, with a current annual rent of €601,000 increasing in approximately four years across both leases to €631,000. This represents a net initial yield of 6.9pc, rising to 7.3pc at the increase. Yew Grove has also exchanged contracts to purchase Blocks E&F, Citywest Dublin, for €11m. On completion of these deals, Yew Grove will have a portfolio of 24 properties with a proforma gross asset value of approximately €162m, which will rise to an estimated €172m on completion of a forward funding transaction in Athlone, according to the group. The company has a current annualised rent roll of approximately €12.9m. Irish Independent, 22nd May
Mountpark, Baldonnell Home Store + More and Mountpark Logistics have reached an agreement on a lease for Unit C at Baldonnell Business Park in Dublin 22. This is the second letting by Mountpark to the house wares retailer in two years. Unit C is under construction and will extend to 8,210 sq. m (c88,000 sq. ft) with completion scheduled for December 2021. Home Store + More also has a long lease on Unit B, which was officially opened in September 2019 and supplies all 22 of its branches in Ireland from this national logistics centre. The Business Post, 23rd May
Dublin Docklands An Bord Pleanala has refused Johnny Ronan planning permission for his planned 40-plus storey tower scheme for Dublin’s docklands. The appeals board has refused planning permission for Mr Ronan’s 1,005 unit apartment Waterfront South Central scheme after concluding that it is precluded from granting permission after a High Court ruling last November. The appeals board found that as a result of the High Court ruling by Mr Justice Richard Humphreys, the board does not have jurisdiction to materially contravene the North Lotts and Grand Canal Dock Planning Scheme under Strategic Housing Development legislative provisions. The scheme imposes strict height limits and the 44 storey and 45 storey heights proposed were well in excess of what is allowed in the area. As part of a 63 page planning report lodged with An Bord Pleanala, the planners stated Mr Ronan’s scheme represents overdevelopment and is “an inadequate design response to this sensitive site, would be of insufficient architectural quality, and if permitted would result in a poor placemaking outcome”. Irish Independent, 21st May
Marlet Sale The sale by developer Pat Crean’s Marlet Property Group of its Castle residential platform is preparing to move into the second round of bidding following the receipt of numerous offers in excess of the €1 billion that sole adviser Cantor Fitzgerald had been seeking when they brought the portfolio to the market in March. Upwards of a dozen parties are understood to have expressed their respective interest in acquiring the private rented sector (PRS) platform in advance of its delivery by the developer between July 2021 and March 2024. Upon completion, the Castle portfolio will comprise some 2,000 apartments and duplexes distributed across six sites in the capital. The Irish Times understands the list of those to have expressed their interest includes Kennedy Wilson, Axa, Blackstone, Union Investment, Angelo Gordon, Cortland, Nuveen Real Estate, Lone Star, Greystar, and a joint venture involving Orange Capital Partners and GIC. The Irish Times, 19th May
Carrickmines, Dublin 18 Developers and investors looking to take advantage of the ever-present demand for housing in south county Dublin will be interested in the opportunity presented by the sale of a residential development site in Carrickmines. Located just off the Glenamuck Road and to the rear of the established Cairnbrook scheme, the subject property comprises 3.07 hectares (7.53 acres) of residential zoned land, and is being offered to the market by agent Colliers at a guide price of €9 million. A feasibility study prepared by architects O’Mahony Pike suggests the site could accommodate 149 residential units (€60.5k per site) comprising a mix of 54 terraced houses, 87 apartments and eight duplex units arranged in a single three-storey block. The subject site is located just 11km from Dublin city centre and is readily accessible thanks to its close proximity to both the M50 motorway and N11, and the Luas green line stop at Ballyogan Wood. The Irish Times, 19th May
Galway Site Strong interest is expected from home builders and developers at both a local and national level in the sale of prime residential lands on the outskirts of Galway city. Located on the Ballymoneen Road in the western suburb of Knocknacarra, the subject site comprises 9.079 hectares (22.43 acres) and comes with full planning permission for the development of 238 residential units, retail space and a crèche on its southern portion, and with potential for an additional 58 units on its northern portion, subject to the receipt of planning permission. The lands are being offered to the market by agent DNG Maxwell Heaslip & Leonard at a guide price of €11.5 million (c€513k per acre). Situated in an area which has undergone significant residential development, the approved scheme includes a mix of semi-detached houses and duplexes together with a number of apartment blocks which the selling agent says will have “commanding views over the city to Salthill and Galway Bay”. The Irish Times, 19th May
Little Island, Cork Unit 34 GB Business Park in Little Island, Cork is being brought to the market by Cork auctioneers Casey & Kingston quoting €4m. The building is let to BioTector Analytical Sustems/Hach on a 10-year lease with a fixed rent of €240k pa with no breaks. The detached building extends to 2,866 sqm on a secure site of 1.55 acres. The space is divided between offices, a production area (with temperature controlled Hepa filtration) and warehousing, which has a grade level roller shutter door and a separate dock leveller. The Business Post, 23rd May
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Becky Morgans, Dublin 2 Joint agents Bagnall Doyle MacMahon and CBRE have confirmed their instructions to offer Becky Morgan’s, a long-established pub on Grand Canal Street in Dublin 2, to the market for sale by private treaty. The agents are seeking offers in the region of €1.3 million. Becky Morgan’s occupies a prominent trading position at the intersection of Grand Canal Street and Macken Street and is close to Barrow Street and Grand Canal Dock, two of Ireland’s most coveted business locations in the city. The well-appointed, three-storey over basement property extends to c227 square metres. It comprises a ground floor lounge bar, first floor bar/function room and a second floor catering kitchen with dumb waiter. There are customer toilets at basement and second floor levels and a cold room and stores in the basement cellar. The Business Post, 16th May
Dublin Pubs Two well known Dublin pubs have come to the market with O’Neill’s in Dun Laoghaire and the Eagle House in Dundrum being out up for sale. Licensed premises property specialists Lisney (incorporating Morrissey’s) has been instructed to bring O’Neill’s pub in Dun Laoghaire to the market for sale by private treaty with a guide price of in excess of €800,000. The well-known and popular licensed premises is being offered on behalf of the O’Neill family, who have called time on the pub in order to focus on the development and remodelling of the family’s other premises, the Ramblers Rest in Ballybrack in south Dublin. Elsewhere in south Dublin, Lisney has been instructed to bring another well-known licensed premises to market for sale by Private Treaty, namely the Eagle House pub in Dundrum, for which the agent has place a guide price of in excess of €1.35 million. The Eagle occupies a high-profile corner trading position on the village’s central junction between its Main Street and Kilmacud Road Upper, opposite the well-known and popular Dundrum Town Centre.The Business Post, 16th May
Trinity Street Car Park One multi-storey car park in Dublin city centre is seeking to capitalise on the changed environment brought about by Covid-19 by transforming its rooftop section into an outdoor restaurant and open air cinema. Plans to alter the upper levels of the Trinity Street car park, which is located behind Dame Street, also include an “immersive art gallery” on the building’s 5th floor. Table 21 Restaurants, which is owned by chef, Niall Davidson, has applied for a temporary change of use up to a maximum of three years for the top two storeys of the multi-storey car park. Mr Davidson said he planned to operate the rooftop restaurant and raw bar serving seafood from July to October with opening times of midday to midnight. The owners of the Trinity Street car park said the proposed development “specifically addresses the restrictions of social distancing and indoor dining at a time of uncertainty and provides a unique attraction to combat the decline in visitor numbers witnessed over the past 18 months”. The Irish Examiner, 17th May
Morrison Hotel, Dublin Zetland Capital, a London-based private equity firm, has bought the Morrison hotel in Dublin. No price was disclosed but it was reported in March that the deal was expected to be worth more than €65 million. The 145-bedroom boutique hotel on Dublin’s quays was owned by Russian billionaire investor Elena Baturina, who bought it from Nama in 2012 for €22 million. Nama took control of the Morrison after it acquired the loans of its developer, the late Hugh O’Regan. The John Rocha-designed property was the first hotel sold by Nama after the crash. Ms Baturina is understood to have invested close to €10 million into a revamp of the property. The hotel currently operates as a Doubletree, a luxury four-star brand owned by Hilton. The Irish Times, 16th May
Ashbourne, Meath A new retail investment opportunity in Ashbourne has come to the market at a guide price of €11.5 million. Located at the heart of the busy town centre, the scheme takes in the entirety of Killegland Street and Desmond Street and is let to a range of well-known domestic and international retailers. Key tenants include McDonald’s, New Look, Lifestyle Sports, Boots, Card Factory, O’Brien’s fine wines and Euro Giant. The Health Service Executive’s Ashbourne Primary Care Centre anchors the scheme and is in occupation on a long-term lease until 2037. While the scheme is also anchored by Tesco, this unit is not included in the sale. The centre has a current occupancy rate of about 75 per cent and a weighted average unexpired lease term (Wault) of 7.8 years to break option and 9.4 years to expiry with a total passing rent of €1,642,388 per annum. There is significant asset management potential according to the selling agent to increase the rent and improve the net operating income with seven deals currently agreed and in legals along with negotiations ongoing on another unit. Should this deal be completed, it would increase the rent receivable to approximately €1,782,000 per annum and the occupancy rate to 83 per cent. The investment’s guide price of €11.5 million, exclusive of VAT, reflects a net initial yield of 12.99 per cent, assuming standard purchaser’s costs of 9.96 per cent. Should the units in legals and under offer complete in the coming months, the guide price would reflect a net initial yield of 14.09 per cent. The Irish Times, 12th May
If you are interested in purchasing this asset and require financing, please contact Origin Capital as we can arrange senior debt facilities of up to €8.5m for the purchase of this Asset.
Grafton Street, Dublin 2 Tommy Hilfiger have announced that they will not be reopening its store on Grafton Street. Having remained closed since last Christmas due to Covid-19 restrictions, the US fashion retailer has decided to shut its flagship premises permanently. While the impact of the pandemic is believed to have influenced the move to a certain degree, it is understood that the company has decided to exercise the 15-year break option on its 25-year lease 12 months early. In handing back the keys to its landlord now, Tommy Hilfiger is believed to have paid the near €1.7 million rent due for that period. The retailer has occupied the premises at 13-14 Grafton Street since 2007. A spokeswoman for Tommy Hilfiger said: “In line with our strategic objective to further reach and engage with our consumers, we are focusing on next-generation retail experiences to stay ahead of continuously changing shopping behaviours. The US retailer continues to trade from its other Irish stores. The Irish Times, 13th May
HSE, Dublin 8 French asset-management company Corum has secured the HSE as a tenant at One Kilmainham Square in Dublin 8. The HSE has agreed to take the lower ground floor of the building (1,070sq m/11,522sq ft) on a 10-year lease at a rent in the region of €29 per sq ft along with 10 basement car-parking spaces for €2,500 each. The HSE joins a number of international occupiers in the building including Heineken, Parexel Pharma and Klas Telecoms. Developed in 2007, One Kilmainham Square was acquired by Corum from a joint venture partnership led by Avestus Capital Partners in 2020 alongside Classon House in Dundrum as part of its continued expansion in the Irish market. Corum is understood to have paid about €33 million to secure ownership of One Kilmainham Square, and a further €27 million in a separate off-market deal for Classon House. One Kilmainham Square is a five-storey Grade A office building extending to 6,967sq m (75,000sq ft). The property has a prominent location within Dublin 8, and is close to both Heuston station and Heuston South Quarter (HSQ). At 1,070sq m (11,522sq ft) the HSE letting at One Kilmainham Square is one of the largest office deals to have signed in the capital so far this year. The Irish Times, 12th May
Westland House, Dublin 12 Westland House, an office investment property on New Nangor Road, Dublin 12, is being offered for sale with a €4.5m guide price. Let to Actavo Group Ltd at €350,000 per annum, its price equates to a net initial yield of 7pc. The property extends to 23,336 sq ft over three floors and at its current passing rent this equates to €13.40 per sq ft. The building also comes with 58 on-site car parking spaces. The vendor, a private Irish syndicate, completed a deed of variation from October 2020 to provide a new 10-year lease term, with a break option in September 2028, and a revised rent of €350,000 per annum. Located just off the Naas Road and minutes from the M50 interchange at Junction 9, Westland House has relatively easy access to all arterial routes. Kylemore Luas Stop is about a 20-minute walk from the property. The Irish Independent, 13th May
Model Farm Road, Cork A period building, and an entire office block on a site with further scope, have come to the market in one of Cork city’s most prime addresses, the Model Farm Road, for sale as one lot. Fresh to the market is Bishopstown House, set opposite the IDA’s Cork Business and Technology Park, close to the CIT/MTU campus, Boston Scientific and adjacent to the Fás Training Centre, long-associated with Cork engineering firm JODA, who have relocated to a premises at Ballycurreen, off the south city ring road. The mix includes a 3,100 sq ft building, a protected structure in excellent order and currently let with an income of €60,000, plus a more modern c 20-year old compact, stand-alone 4,600 sq ft two-storey office/professional services building. JODA’s original building, now carrying the name Bishopstown House, is let to a medical devices company PMD Device Solutions Ltd, on a ten year lease from February 2016 at €60,000 pa. The separate 4,600 sq ft more modern building next to PDM-occupied Bishopstown House is available with vacant possession, and the site has good parking. The Irish Examiner, 13th May
Rathmines, Dublin 6 An attractive net initial yield of 7.1 per cent is on offer for the prospective purchaser of a fully-let pre-63 residential investment in the ever-popular rental location of Rathmines, Dublin 6. Situated just off Leinster Road and within a short walk of Rathmines village, number 15 Leinster Square is being offered to the market by joint agents Cushman & Wakefield and Martin Property at a guide price of €1.95 million (exclusive of VAT). The property comprises a three-storey over-basement terraced property with a two-storey over-basement return to the rear. The entire currently consists of 10 self-contained residential units. There are three studio units on the ground floor, two studios and a one-bedroom apartment on the first floor, and one studio and a one-bedroom apartment on the second floor. The building is fully occupied and producing an overall rental income of €144,720 per annum with what the selling agents describe as “limited management costs” The Irish Times, 12th May
Malahide, Co. Dublin The State’s National Asset Management Agency (Nama) is close to signing off on the bulk sale of 69 apartments in Malahide, Co Dublin, to a UK-based investment fund. A deal has been reached in principle to sell the apartments at The Casino development in Malahide village to SeaPoint Capital, a serial block-buyer of apartments for the rental market. Some 34 apartments in the complex were sold to private buyers for an average price of €433,000 over the past 2½ years. Nama is selling the remaining unsold apartments in bulk. SeaPoint is the preferred bidder. The average market value of the remaining properties in the Malahide development is between €400,000 and €450,000, valuing the deal at up to €31 million. The Irish Times, 18th May
Ushers Island, Dublin City Centre Agent John Younge is guiding a price of €1.1 million for a redevelopment opportunity with full planning permission for 10 apartments in Dublin city centre. Located on the banks of the river Liffey and overlooking the landmark James Joyce bridge, number 14 Usher’s Island is a former four-storey building which today comprises a two-storey protected structure on a site of almost 5,000sq ft. The subject site also incorporates an enclosed rear void and double-height warehouse of 2,828sq ft, with vehicular access from Island Street, to the rear. While Dublin City Council granted planning permission in August 2020 (Reference: 4252/19) for the development of 15 apartments to include the creation of a new six-storey block and the remodelling of the existing protected building, this number has since been reduced to 10 units following discussions with the owner. The Irish Times, 12th May
Crumlin, Dublin 12 Michael Moran, one of the driving forces behind the Red Cow hotel in Dublin, has secured planning permission for 152 apartments in Crumlin in Dublin 12. Moran’s Seabren Developments got the green light for the €62.5 million fast-track Glebe development at St Agnes Road, Crumlin, from An Bord Pleaneála despite local opposition. The development, which will be fully owned by Circle Voluntary Housing Association when complete, involves two apartment blocks ranging in height from four to six storeys and linked by a pedestrian walkway at first floor level. Circle Housing was established in 2003 to provide social housing and operates on a not-for-profit basis. Seabren has worked with several approved housing bodies in the delivery of social housing schemes in the past and, in the Glebe scheme, 50 per cent of the homes will be cost rental while the other half will be available as social housing. Ninety-seven submissions were lodged concerning the proposal. Local residents expressed concern relating to overlooking, adverse impact on privacy on existing residents, noise pollution and potential anti-social behaviour. The Irish Times, 17th May
Glasthule, Co. Dublin Quinn Agnew is offering 23-27 Glasthule Road in Glasthule village in south Co Dublin for sale by tender on June 11. Located on the village’s main street in the heart of Glasthule between Dún Laoghaire and Dalkey, the retail/commercial property is adjacent to Cavistons Food Emporium and Seafood Restaurant. The property, a former petrol station, currently comprises a retail/commercial unit of some 100 square metres and large canopy on a site of about 0.05 of an acre (the equivalent of some 0.02 hectares). It operated as a temporary pop-up outdoor, takeaway food outlet during the Covid-19 related restrictions. The property under the Dún Laoghaire-Rathdown County Council Development Plan 2016-2021 is zoned Objective NC: “To protect, provide for and/or improve mixed-use neighbourhood centre facilities”. The agent is seeking offers in excess of €900,000 for the property. The Business Post, 16th May
Social Housing The number of social housing units being leased to local authorities on a long-term basis has increased significantly this year despite criticism of the costs involved. Figures provided by Minister for Housing Darragh O’Brien, in response to a parliamentary question from Sinn Féin’s Eoin Ó Broin, show a total of 726 new social units were leased by local authorities in the first three months of 2021. This comprised 603 dwellings under long-term lease agreements and 123 under Part V lease agreements. The 726 total compares to just over 1,000 for last year as a whole. The average cost of all long-term leases approved in 2021 was €15,000, Mr O’Brien confirmed, which works out at €300,000 over a 20-year timeframe, the typical length of a lease. The average cost of the Part V lease units, which were mainly in Dublin, was put at €18,049, which works out at €360,980 over a 20-year term. The Irish Times, 17th May
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Moxy Hotel, Dublin The Moxy hotel in Dublin has been sold for c€35m, in what is the first major hotel sale in the capital city this year. Investment group Midwest Holding sold the hotel to The MHL Hotel Collection, whose brands also include The Westin, The Intercontinental, Powerscourt Resort, The Morgan, and the Strand Hotel in Limerick. A statement from real estate group CBRE said that while the hotel sale was an off-market deal, the transaction attracted “strong interest from a significant number of established domestic and international property investors, hotel funds, and private equity companies.” The Moxy Dublin City is located immediately behind the new Clery’s development in Dublin’s north inner city. The hotel opened in October 2019 and is made up of 157 bedrooms (€223k per room), with extensive bar and restaurant space on the ground floor. Irish Independent, 7th May
Baggot Street, Dublin 2 With the construction of its new headquarters at Fitzwilliam 27 now almost completed, the ESB is seeking a buyer for the landmark premises of Larry Murphy’s on nearby Lower Baggot Street. The property is being offered to the market by John Hughes of CBRE at a guide price of €1 million. Located at 43-44 Lower Baggot Street, and at the junction of Fitzwilliam Street Lower, the property is beside the headquarters of the Department of Health at Miesian Plaza, and within a short stroll of the headquarters of both the ESB and Slack Technologies at the newly developed Fitzwilliam 27 and 28 office scheme. The property comprises a substantial four-storey over-basement licensed premises of 465sq m (c5,000sq ft) and consists of a lounge bar at ground floor and basement levels, galley kitchen, cellar storage with office accommodation on the upper three floors. The pub premises, which has not traded for several years, is fitted out in a traditional style but would require refurbishment before reopening for trade. The Irish Times, 5th May
Donnybrook, Dublin 4 It was reported in the Irish Times that Donnybrook House has been put up for sale. Acquired by British property developer U+I and US-headquartered investor Colony Capital for c€10 million in 2014, the former AIB computer services centre has since been redeveloped into a five-storey office building extending to c66,525sq ft. The property is being offered to the market at a guide price of €27 million by agent Savills on behalf of the receiver, Kieran Wallace of KPMG. Donnybrook House underwent an extensive refurbishment in 2018. The redesign and reconfiguration of the property by architects Henry J Lyons saw it being transformed from a tired and outdated bank building into a modern mixed-use investment comprising 45,000sq ft of office space over four floors, along with accommodation for a 4,000sq ft restaurant, 2,000sq ft café and 18,000sq ft of gym facilities, and underground parking. DBH, as it is now known, comes for sale with the benefit of an existing rent roll of €680,000 per annum derived from a number of tenants including Mark Anthony Brands, Irish housebuilder D|D|RES Properties, and Raw Gyms. The vacant space in the building is predominantly offices. The ground floor meanwhile provides for separate café and restaurant units. The Irish Times, 5th May
Merchant Square, Galway The combination of immediate rental income and significant reversionary potential is expected to help drive the sale of a mixed-use investment opportunity which has come to the market in Galway city centre. Located at the heart of the city’s central business district, Merchants Square is a modern building comprising a total of 2,003sq m (21,560sq ft) over four levels. The first three floors are taken up by offices while the fourth floor comprises three penthouse apartments. The property is being offered for sale by agent Cushman & Wakefield at a guide price of €6.5 million. Merchants Square produces a total of €372,070 in annual rental income but has substantial reversionary potential. The building also offers the prospective purchaser the opportunity for further asset management with full planning permission granted in 2019 for the construction of an additional floor. This proposed floor would increase the gross area of the building by 20 per cent giving the buyer scope to increase rental income while also adding significantly to the value of the asset itself. The Irish Times, 5th May
PWC, Dublin The Middle Eastern owners of PwC’s headquarters on Dublin’s North Wall Quay have issued a request for proposal (RFP) to several commercial real estate advisers with a view to offering the property to the market later this year. It is anticipated that the building will command a price in excess of €265 million and see significant interest from international investors. The nine-storey over basement PwC office complex has an overall floor area of 21,054sq m (226,624sq ft) and was developed in 2007 by the now-defunct Treasury Holdings. The property’s current owners set a record for the Dublin office market when they paid €242 million to acquire it through London-based AGC Equity Partners in June 2016. One Spencer Dock is let to PwC under a 25-year lease with upward-only rent reviews every five years. The lease has just under 11 years left to run. The Irish Times, 5th May
Citywest, Dublin Colliers Ireland has been instructed to sell 2050 Orchard Avenue in Dublin‘s Citywest Business Campus. Built in 2008 by Davy Hickey Properties and acquired by Henley Bartra in 2018, the multi-let investment comprises nine modern purpose-built office and light industrial units across two blocks. The nine units extend to 4,121 square metres with 102 car parking spaces. The units are fully let to a mixture of national and international tenants including Oradeo, euNetworks, Fitzers, TDS, Aeolus Engine Services and KCI Medical (acquired by 3M in 2019). Producing a rental income of €730,674 per annum, with a WAULT of 4 years, c36 per cent of the rental income is derived from TDS and 25 per cent from 3M. The balance of the income is from the remaining four tenants. Colliers is guiding €9.3 million which equates to a net initial yield of 7.14 per cent and capital value of €210 per square foot after allowing for standard purchaser’s costs of 9.96 per cent. The Business Post, 9th May
Grand Canal Harbour, Dublin 8 Developer Pat Crean’s Marlet Property Group has agreed a €147 million financing facility with AIG to fund the delivery of its Grand Canal Harbour scheme in Dublin 8. The transaction represents the largest financing deal completed in the capital so far in 2021 and will be used for the construction of up to 596 apartments and 7,060sq m (76,000sq ft) of retail, clinical, and office (co-working) space, and 1,700sq m (18,000sq ft) of amenity space. The Grand Canal Harbour scheme is one of six developments within the Castle portfolio, Ireland’s largest available PRS portfolio, comprising approximately 2,000 apartments and duplexes distributed across Dublin and due for delivery between July 2021 and March 2024. The portfolio, which is on the market currently through sole adviser Cantor Fitzgerald, is expected to attract offers in excess of €1 billion. The Irish Times, 5th May
Bishopstown, Cork A tract of 21 acres of development land in a western suburb of Cork city has been brought to the market by CBRE, which is quoting €4.75m for it. That is less than one sixth of the €31m that was paid for it during the Celtic Tiger era. The vendors are receivers Tom Rogers and Jim Luby, acting for Government agency Nama. Located at Garranedarragh in Bishopstown, it is in a sought-after residential area with nearby facilities including Bishopscourt Shopping Centre, Wilton Shopping Centre and it is convenient to Cork University Hospital and UCC. It is located just 5.5km south-west of the city centre and only 2.3km from Wilton. The site has a positive planning history as it had permission for 249 residential units, including 119 apartments, 130 houses and a creche. This permission has just recently expired. Irish Independent, 6th May
Barrymore Road, Athlone Two parcels of land extending to 20.3 acres in Co Roscommon, just outside the town of Athlone, are for sale with a €3m guide price. Situated on Barrymore Road in a suburban area of the town, one parcel comprising 14.77 acres has planning permission for 15 detached houses. Also in this section are 2.75 acres zoned transitional agriculture. Irish Independent, 6th May
Slane Road, Drogheda Agent Bannon is guiding a price of €3.75 million for a 46-acre landbank strategically positioned on the Slane Road between the M1 motorway and Drogheda town centre. The property, which is in agricultural use currently, is expected to see strong interest from both residential and commercial developers, given its potential to accommodate a variety of uses. The entire holding is zoned “mixed-use (C1)” under the terms of the draft Louth County Development Plan 2021-2027. The objective of this zoning is “to provide for commercial, business and supporting residential uses”. The property, which is in agricultural use currently, is expected to see strong interest from both residential and commercial developers, given its potential to accommodate a variety of uses. The Irish Times, 5th May
Kennedy Wilson Kennedy Wilson is now collecting nearly $1,000 more in average rent per home in Ireland compared with the US. New filings published by the US real estate firm, which has 2,067 rental units in Ireland, show the average monthly rent in its Irish residential portfolio is now $2,525 (€2,075) per unit. This is significantly ahead of its average in the US, where it collects $1,598 per unit each month. Last year, the firm stated it has plans to build more than 4,000 more rental apartments in Ireland up to 2024. Kennedy Wilson is one of the largest institutional landlords in Dublin, controlling large private rental schemes such as Capital Dock, a 190-apartment, 22-storey built-to-let tower in Dublin’s Docklands. The latest quarterly filings published by Kennedy Wilson, which cover the first quarter of 2021, show that the average rent of its Irish units was down slightly from $2,599 to $2,525. Compared with the same period in 2020, total revenues collected by Kennedy Wilson in Ireland were down 5.8 per cent to $6.8 million. The Business Post, 9th May
Planning Applications An Bord Pleanála told the Government it had “significantly underestimated” just how much work would be involved in dealing with applications under the controversial Strategic Housing Development (SHD) application process. The planning board said it had assigned just six inspectors to the process at first, but that this had more than doubled under the weight of work required. In a submission to the Department of Public Expenditure-led review of the National Development Plan, the board said it needed 16 extra staff to manage its workload. The agency said a major increase in manpower would be needed to deal with the “predicted surge in applications and the increased complexity of cases that come before us”. On SHD’s it said it expected a significant rise in pre-application requests and applications over the next 12 to 18 months. It said that even though the SHD process was winding down, it thought it was likely it would be making decisions on it until at least mid-2022. The Irish Times, 11th May
Housing The Business Post reported that investment funds have outbid affordable housing bodies (AHB) on more than 400 homes in the past four weeks, with offers of up to €80,000 more per unit. This includes 142 homes in the Mullen Park estate, which the Tuath affordable housing body had hoped to buy for social and affordable housing. Declan Dunne, the chief executive of the Respond affordable housing body, said his organisation alone had lost out on 267 units in the past four weeks to institutional investors. The revelation comes as the government is scrambling to limit the impact institutional funds can have on the housing market. The coalition is under intense pressure to act after the Business Post’s reporting on the purchase of most of the 170 houses in the Mullen Park estate in Maynooth by Round Hill Capital, a London-based global investment firm, sparked political and public controversy. Darragh O’Brien, the Minister for Housing, is working on plans to restrict the power of institutional funds in the housing market by potentially ringfencing more than half of the units in residential developments for private buyers. O’Brien is working on plans to protect more than 50% of new residential developments from bulk purchase deals by institutional investors. The Business Post, 9th May
Cork Student Accommodation Three more blocks of student accommodation, ranging in height from five to 10 storeys, are in the pipeline for Victoria Cross in Cork city if planners endorse a €31m proposal from Bellmount Developments Ltd. Permission to build the accommodation on a 0.22-hectare site on Wilton Road is being sought directly from An Bord Pleanála as the application is for more than 200 student bed spaces, which qualifies as a strategic housing development (SHD). If the project is rubber-stamped by planners, it will mean the construction of 40 student apartments, ranging in size from single-bed studio apartments to eight-bed apartments, comprising 243 bed spaces, on a site that has been home to Kellehers Auto Centre, which is to relocate. Owners of the auto centre, Séamus and Pádraig Kelleher, are behind Bellmount Developments, which last year got the go-ahead for a 137-bed student complex, stretching to six storeys, also in Victoria Cross, at a site that was formerly home to Kellehers Tyres, and is just beyond the site of the current proposal. Between them, the two schemes will add 380 student beds to the area. Irish Examiner, 6th May
Goodbody Report According to Goodbody Stockbrokers, international sources account for 80% of development financing in Ireland over recent years. Over the three years to the end of 2019, the report estimates that development finance amounted to €5.4bn per annum. Of this, only €1.2bn (22%) emanated from domestic sources. This is a vital difference to the previous property cycle of the 2000s, whereby domestic banks funded most of the development – with ultimately disastrous consequences – through a large expansion of their balance sheets. With banks now under a vastly different regulatory regime, risk appetite clearly reduced and the number of players in the market continuing to fall, international capital has become vital in funding development in real estate. Given the boom in the office-building sector over recent years, it is no surprise that commercial real estate accounted for a majority (56%) of total development finance for real estate over the 2017-2019 period. However, if Ireland is to achieve its housebuilding target of c.35K per annum over the coming years, annual capital requirements could grow to €12.5bn, with the share of this capital coming from international sources rising to as high as 87%. Without international capital, the financing of much-needed offices to facilitate the surge in FDI jobs over recent years would not have been able to happen and the required ramp up in housebuilding in the coming years cannot happen either. In this way, stable international capital to fund REITs and PLCs, is crucial for Ireland. Goodbody, International Capital Report
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Douglas, Cork A redeveloped Cork suburban ‘street’ has come up for sale with rental income of €761k and a price tag of €9.5m. East Douglas Village, a highly successful mixed-use development completed in 2000, comprises five buildings. It includes a bar/restaurant with 10-bedroom hotel, 16 apartments, three restaurants, plus offices and retail accommodation, all close to 100% occupancy. The development adjoins Aldi, which is set to open in the coming weeks, and a busy McDonald’s, with a new road opened to serve the latest supermarket arrival. The development is fully occupied save for one 300 sq. ft unit which is currently available. The residential section of the income from the 16 two-bed apartments, described as large, is €186,564 per annum, which is an average of €11,500 pa per unit or under €1,000 per month. The commercial income is €574,860 pa, with a WAULT of 8.42 years.
According to Lisney’s Margaret Kelleher, the currently income of €761,424 pa has further potential uplift in income from the apartments, which could rise to €199,000 pa when RPZ increases are implemented, and from the car park.
The Irish Examiner, 29th April
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Retail Values The decline in the value of prime Irish retail properties slowed in the first quarter of this year but falls are expected to continue until early 2022. According to the latest MSCI/SCSI index, capital values across the board declined by a further 0.7% in the first quarter bringing the fall in overall values to 6.1% over 12 months. Goodbody real estate analyst Colm Lauder said he expects further rental declines which could keep capital values in negative territory for 2021. Despite the fall in values positive income returns of 1.3% kept total returns positive at 0.6%. Capital values fell by a further 3.2% on Grafton Street in the first quarter, by 4.7% on Henry Street and by 2pc for shopping centres. Consequently, Grafton Street values have fallen 26% since Covid struck while Henry Street values fell an even sharper 30.3% over the 12 months. Shopping centres, due to their grocery, suburban locations, parking and other advantages, fared better with an average 18.6% fall over 12 months. Irish Independent, 29th April
Lidl, Dublin Lidl has been granted planning permission by An Bord Pleanála for a €5.5 million redevelopment of the largely vacant Talbot Mall premises in Dublin’s north inner city. The new store on Talbot Street will take over the entirety of the centre, create 35 new permanent jobs and will support up to 100 jobs during the development and construction phases. Around three-quarters of the units in Talbot Mall have become vacant in recent years following the closure of many shops, including a florist, shoe shop, bag shop, hairdressers and travel agent. Lidl said the €5.5 million investment is the first part of an overall €30 million investment the supermarket has planned for Dublin city centre in the coming years. The German retailer has just lodged a planning application to build a new store and accompanying retail units at Ballybough to the north of the centre, which is likely to involve an investment in the region of €12 million. The Business Post, 2nd May
Sports Direct, Galway Sports Direct, the sportswear chain led by Mike Ashley, has signed a lease on the former Debenhams store in Galway. Ashley made a failed bid for Debenhams after the department store chain collapsed last year. Sports Direct has c60 stores in Ireland but this will be its first in Galway. The premises is located on the Eyre Street side of the Corrib shopping centre, which has a Marks & Spencer outlet. In February the retailer announced a €2 million, five-year sponsorship deal with Cork GAA and said it planned to increase its sponsorship of grassroots Gaelic sport from five to 11 clubs nationwide. The Sunday Times, 2nd May
Vienna Woods, Cork A Cork hotel is planning a major €6m expansion, including almost doubling its bedrooms. The Vienna Woods Country House Hotel, which has already undergone a €5m upgrade since 2006, has lodged a planning application with Cork City Council to add 42 additional bedrooms to the existing 45. Michael Magner, who owns the hotel with his father-in-law Brian Scully, is also planning to add a spa, to include an infinity pool, steam room, sauna, seven treatment rooms and seaweed baths, as well as a 25-seat cinema, a virtual golf facility and a cardio workout/gym area. Mr Magner said the new project is “dependent on planning, and, most importantly, when recovery returns”. He said once up and running, the project will create 50 new jobs and add €1.8m to the local economy in wages and salaries “not including the extra spend from visitors to the area and increased purchases from suppliers”. Vienna Woods Country House Hotel, on 22 acres of woodland in Glanmire, is a 15-minute drive from Cork city. The Irish Examiner, 28th April
City Gate, Cork Irish Life Investment Managers (ILIM) has retained agent Cushman & Wakefield to secure an occupier for 50,000 sq. ft of Grade A office space at City Gate Park in Mahon, Co Cork. The accommodation, which comes to the letting market fully-fitted, had been occupied up until recently by technology giant Dell EMC. The company vacated the first and second floors in Block 1, City Gate Park, as part of its plan to bring more of its workforce together at its campus in the nearby town of Ovens. The accommodation freed up by Dell EMC’s move extends to 50,991sq ft (4,737sq m) in total, and is being made available to let in one lot or sub-divided, as required. The offices form part of the wider City Gate Park scheme built originally by John Cleary in 2012. The development has an overall capacity of 27,870sq m (300,000sq ft), and more than 500 car-parking spaces. The Irish Times, 28th April
Project Haven The prospect of immediate rental income copper-fastened by the security of a 25-year government lease is expected to see strong interest from investors in the sale of Project Haven, a portfolio of approximately 60 social housing units across Dublin’s north, south and west suburbs. The portfolio is producing a guaranteed gross rental income of €952,000 per annum and is being offered to the market by agent CBRE on behalf of Allied Irish Property and the Topland Group at a guide price of €21 million. Each property within the portfolio has been fully refurbished and let by way of a standard lease for a term of 25 years, directly to the relevant local authority in each area. Index-linked rent reviews are provided for in every third year. Shane Cahir of CBRE says he expects the Project Haven portfolio to appeal to a wide range of domestic and international investors given the in-place income, reduced operational costs and secure 25-year government lease structure. The Irish Times, 28th April
If you are interested in purchasing this asset and require financing, please contact Origin Capital as we can arrange senior debt facilities of up to €14m for the purchase of this asset.
Citywest, Dublin Developers and investors involved in the delivery of residential accommodation in the Dublin market will be interested in the sale of a ready-to-go greenfield site at Citywest. Extending to a total area of 3.76 hectares (9.3 acres), the property – known as Mountview – is being offered to the market on behalf of Davy Hickey Properties at a guide price of €8.5 million. The subject site comes for sale with full planning permission for the construction of a 110-unit residential scheme. The existing permission comprises a mixture of 90 housing units and 20 apartments with the added benefit of no Part V requirement which has been satisfied elsewhere. The selling agents, Cushman & Wakefield, say the prospective purchaser may look to the possibility of increasing the density of development. The site is well-located within the context of the wider Citywest area. The lands are situated directly north of the Fortunestown Luas red line stop, adjacent to the Citywest Village new homes scheme and in close proximity to both Citywest Shopping Centre and the Citywest Business Campus. The site is also located directly north of a new neighbourhood park which is currently under construction. The Irish Times, 28th April
James Place East, Dublin 2 A new site in Dublin 2 has come to the market, located between Baggot Street Lower and Mount Street Upper, No 37-42 James Place East currently comprises office and mews buildings totalling 1,142sq m (12,291sq ft) which were fully refurbished in 2017, along with a secure nine-space surface car park. The property is being offered to the market by JLL, on behalf of French Investor Amundi at a guide price of €7.5 million. The overall site extends to approx 0.155 hectares (0.385 acres) and has 45m (147.6ft) frontage on to James Place East. The subject property is zoned Z6 under the Dublin City Development Plan 2016-2022, to provide for the “creation and protection of enterprise and facilities opportunities for employment creation”. An initial feasibility study, prepared in advance of the sale by architects Scott Tallon Walker, suggests the site could accommodate a new office building or other uses subject to planning permission. Should the buyer decide to pursue the development of offices, the study outlines the site’s capacity for a 40,000sq ft building together with secure underground car parking and a range of tenant amenity facilities. The Irish Times, 28th April
Knocklyon, South Dublin Vincent Finnegan Commercial is offering two residential development sites in Knocklyon in south Dublin for sale in one lot with a €2m asking price, down from the €2.75m which had been guided earlier this year. South Dublin County Council is the vendor of the sites which are located at Castlefield Avenue and Old Knocklyon Avenue, Dublin 16. Extending to 0.986 acres and 0.949 acres, the sites are separated by Old Knocklyon Road which ends at the site and could be integrated as the access road into any new development. As the zoning is RES “to protect and/or improve residential amenity”, this facilitates its residential potential. In addition, some commercial development could be considered under this zoning. Small sections of both sites closest to the M50 are subject to wayleave allowing the state agency Irish Water to access these areas which could be designed as part of the open space for any planning application. Irish Independent, 29th April
Maynooth, Kildare A global property investment firm with a €1 billion war chest has pushed out first-time buyers by purchasing most of a 170-home estate in the commuter belt. The developers of the Mullen Park estate in Maynooth in Co Kildare had been marketing new homes on the estate to private buyers since last year, with around 35 sold so far. Round Hill Capital has now agreed to buy up to 135 three and four-bed homes on the estate so that they can be put on the rental market. The homes were on sale for around €400,000, meaning that the value of the deal could be c.€54 million. Round Hill Capital was involved in a €123 million purchase of 297 apartments in Northwood in north Dublin last November with another investment firm. Last week, the company announced that it had bought 112 family homes to rent in Bay Meadows in Hollystown in Dublin 15 in partnership with another firm, SFO Capital Partners. The Business Post, 2nd May
Pearse St, Dublin 2 The Department of Housing has given approval for the regeneration of the Pearse House flat complex in Dublin, as it continues discussions with Dublin City Council (DCC) on a capital plan for the regeneration of over 6,000 other flats in the city. The department and the council are attempting to finalise a ten-year capital plan for 99 flat complexes which between them contain over 6,000 homes. The final bill could be in excess of €2 billion. The department is considering proposals for funding the wider regeneration of Dublin’s flat complexes under various social housing programmes. It said it was “supportive of DCC’s ambitious plan”, but added that the plan would be “subject to funding availability and the procedures and requirements of the public spending code”. Darach O’Connor, senior executive officer with DCC, said the regeneration programme had the potential to be the largest such programme in the history of the state. “Over 6,000 apartments were built more than 40 years ago and are in need of urgent regeneration. A strategic capital plan for the next ten years is required to implement this regeneration programme,” he said. The Business Post, 2nd May
Mortgage Approvals Mortgage drawdowns for house purchase grew by 5% yoy in Q1 despite the country being in lockdown throughout the period. This is in stark contrast to the -37% yoy decline seen at the start of the pandemic (Q2 2020), providing evidence that demand continues to be robust and credit conditions relatively loose. The data can be divided into different categories, but the most notable trend is the growth in mortgages drawn-down on existing homes, which grew by 13% yoy in Q1. Double-digit growth was seen for both first-time buyers (FTB) and mover-purchasers of existing homes. Although the data is not broken down geographically, separate transaction data show markets outside Dublin are witnessing higher transaction growth rates, possibly reflecting evidence of the Work-from-Home (WFH) effect. In contrast, mortgage drawdowns for new homes fell by 14% yoy in Q1. Mortgage approvals data for March were also published suggests that demand remains high. Approvals for house purchase grew by 14% yoy in March, but we are now entering into rather easy comparatives. Relative to March 2019, approvals for house purchase were still up 4% yoy. For Q1 overall, mortgage approvals grew by 8% yoy, with approvals for FTBs up by 12% but approvals for movers up only 1% yoy. Having fallen by 30% in the past twelve months, the record low stock for sale is likely to impact on incentives to move and, indeed, continues to have inflationary impacts. Goodbody’s expect gross mortgage lending to grow to €10bn in 2021, surpassing the 2019 level of €9.5bn. This includes growth in the re-mortgaging segment, which resumed an upward trajectory in Q1. House prices are expected to grow by 5% in 2021, led by the existing homes market. A meaningful increase in housing output is required over the coming years to free up stock and increase liquidity in the market from their current historically low levels. The early evidence suggests that locational preferences have shifted as to where these homes may be required. Goodbody’s, Irish Mortgage Market
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Windsor Motors Nissan dealer Windsor Motor Group plans to sell off some of its regional sites. In a submission to the draft Dun Laoghaire Rathdown development plan for 2022-28, Windsor has asked the local authority to rezone its Bray site from commercial to residential purposes. In a letter to the council, the group’s managing director said that the global consolidation of the motor industry would result in a “gradual move away from smaller sites like the Windsor Bray site and sites formerly shared with petrol filling stations”. The company has 11 showrooms, covering Dublin, Galway, Meath, Louth and Wicklow. The company hired Hughes Planning and Development Consultants to make its submission to the development plan with respect to its 1.2-acre site at Dublin Road in Bray. Sunday Times, 25th April
Henry St, Dublin 1 Chemist Warehouse, Australia’s biggest pharmacy chain, has signed a 10-year lease on the former Hickeys store on Henry Street in Dublin. It represents one of the first significant new lettings in a year when retail has been blighted by Covid uncertainty. The discount pharmacy has agreed a deal on another location in the capital, which is due to open this year, and has plans for more outlets across the country. The chain will pay an average annual rent of €250,000 for the three-storey-over-basement unit at 5 Henry Street, according to the commercial property price register. The store — only its second in Europe — will open in June, according to sources. Its first European outlet opened in the Westend shopping park in Blanchardstown in December. The Sunday Times, 25th April
Leixlip, Co.Kildare Stoneweg SA, the Swiss-based property investor, has acquired Liffey Business Campus, a mix of industrial, manufacturing, and office space across one million sq. ft, plus 58 acres of development land, at the former Hewlett Packard campus in Leixlip, Co Kildare.
In 2018, it was reported that BlackRock Real Estate had joined forces with developer Michael O’Flynn to acquire the former Hewlett Packard campus, for a figure understood to be in the region of €51m. That sale involved a larger 195-acre plot with nine buildings and was one of the largest industrial transactions to have taken place in the Irish market. The vendor, BlackRock Real Assets, declined to disclose the sale price. Before this latest sale to Stoneweg, BlackRock is understood to have sold another portion of the HP site which is located just south of the M4 motorway. Eastdil International and Cushman and Wakefield Ireland were the agents involved in the deal. Irish Independent, 22nd April
CBRE Report Any impact on hotel demand due to a reduction in corporate travel post-pandemic will be more than offset by the greater footprint of international businesses active in Dublin. CBRE estimates that the top ten technology employers will see their footprint in the city more than double in the next 24 months. This will drive visits from international corporate customers and coupled with a rebound in the leisure sector will see demand for hotel rooms remain strong, it predicts. “The factors that drive long term domestic consumer confidence appear strong in Ireland relative to its European competitors,” said Dave Murray, Director CBRE Hotels in Ireland. “Along with forecasted growth in population and high levels of household savings, domestic demand should prove strong in Ireland. From a corporate business perspective, the significant expansion in the size of the office market and the increasingly international nature of the city’s corporate occupiers will sustain corporate demand for Dublin’s city centre hotels into the medium term.” CBRE, Future of Demand for the Dublin Hotel Market, April 2021
City Quay, Dublin 2 The last remaining waterfront development site in Dublin’s docklands, No 1-6 City Quay, has been placed on the market with a guide price of €35 million with Savills Ireland on behalf of Ken Tyrrell (receiver) of PWC. The property extends to about 0.22 hectares (0.55 acres) and is zoned Z5 in the current Dublin City Development Plan (2016-2022), which permits a broad range of uses. Savills believes the building could be suited to an office, residential or hotel development or a mix of these use types. A feasibility study prepared by RKD Architects illustrates the potential of the site to accommodate a 13,470 square metre (c145k sq. ft) office development, subject to planning permission. City Quay is positioned at the junctions of George’s Quay, Moss Street and Talbot Memorial Bridge, within Dublin’s Central Business District. The Business Post, 25th April
L’Ecrivain, Dublin 2 The premises of the Michelin-starred Dublin city centre restaurant L’Ecrivain has been sold for c€2 million following a private treaty sale process. The restaurant, opened by Derry and Sallyanne Clarke in July 1989, has been closed for a time due to Covid-19 public health restrictions. In a statement, North’s Property confirmed that the L’Ecrivain premises has been sold. The two adjoining buildings comprise about 613sq m and are located at 109a Lower Baggot Street. North’s said there was “strong interest” from restaurant operators and investors “looking to continue the tradition of dining in these buildings which have been lovingly developed over the years by the Clarkes”. However, the group said it understood that the property would not continue as a restaurant as it has been purchased by a well-established Irish firm as its city centre headquarters. The Irish Times, 21st April
Housing Completions/ Commencements According to Goodbody Stockbrokers latest BER Irish Housebuilding Tracker, the construction lockdown in Ireland appears to have had a smaller impact on housing completions in Q1 2021 than initially feared. They estimate that c.4,000 residential units were completed nationwide in the first quarter of the year. This represents a fall of 20% yoy and compares to the 33% yoy decline exhibited during the first lockdown in Q2 2020. As a result, Goodbody’s believe that housing completions will be flat in 2021 at 21K units. The reduction in housing starts will result in a flatter path for completions over the coming years, with an expected increase to 23K units in 2022 heavily reliant on completions of apartments currently in construction in Dublin. This still leaves output well below their estimated demand levels of 35K per annum.
Separate data from the Department of Housing shows that commencements continue to be affected more by the lockdowns associated with the pandemic. In the three months to February (latest data), housing commencements fell by 50% yoy and were down by 30% yoy in the latest 12-months. Dublin has seen the largest decline, with a fall of 40% yoy in the twelve months to February 2021. Commencements in Dublin’s commuter counties fell by 34% over the same period, while outside the Greater Dublin Area, commencements were down 21%. Goodbody Stockbrokers, 27th April
Cherrywood, South Dublin Developer Johnny Ronan has secured planning permission for the construction of a mixed-use development in Cherrywood, south Dublin, which will include 198 build-to-rent apartments. The Ronan Group said permission had been obtained from Dún Laoghaire-Rathdown County Council for the project at Town Centre 3 (TC3), which will also consist of 12,151sq m of office space and 1,431sq m of café and restaurant space. The project will be situated within the Cherrywood development between Cabinteely and Loughlinstown. It will be next to Brides Glen Luas stop and will have motorway access to the M50 and M11, as well as the Dart. Cherrywood is the largest single urban development project in Ireland and will eventually be home to about 25,000 people. The Irish Times, 21st April
Newmarket Square, Dublin 8 Construction works are expected to start in Q3/Q4 2021 on a €90 million build-to-rent apartment development at a site called Newmarket Square, located at the former IDA Ireland Small Business Centre/Newmarket Industrial Estate, Brabazon Place, St Luke’s Avenue and Newmarket Street, Dublin 8. The development includes 413 units, of which there are 203 studios, 136 one-bedroom units, 72 two-bedroom units and two three-bedroom units. There will also be associated resident support facilities/ resident services and amenities and all associated ancillary accommodation in a building of up to six storeys. The Business Post, 25th April
Clonsilla, Dublin 15 Elliott Building & Civil Engineering has commenced works on a €45 million apartment development at Windmill in Porterstown, Clonsilla, Dublin 15. The scheme comprises 211 apartments in four blocks (Block J, K, L and M), including 10 studio units, 68 one-bed units and 133 two-bed units, above an existing basement. Block J is a six-storey block, including a penthouse level, with 46 apartments. Block K, another six-storey block, includes a penthouse level and another 46 apartments. Blocks L and M are interlinked, L-Shaped, part-six and part-eight storey blocks, including a penthouse level with 119 apartments in total. A communal residents amenity space is proposed at ground floor level of Block L-M. The Business Post, 25th April
Marina, Cork Planners have given the go-ahead for a transformative residential development that will see more than 1,000 apartments built on a prime docklands site in Cork city’s golden Marina Quarter. The development at the former Ford Distribution site, on a circa five-hectare parcel of land, bordered by Centre Park Road, the Marquee link road and Monahan Road, is among the most ambitious ever proposed so close to the city. The proposal, by Marina Quarter Ltd, backed by Glenveagh Properties, involves the construction of 12 apartment blocks, some up to 14 storeys in height, targeted at the build-to-rent sector. The land on which the development is set to take place was bought in 2018 by Glenveagh Properties for a sum understood to be in the region of €15m, almost double the asking price of €8.5m. Irish Examiner, 22nd April
Donnybrook, Dublin 4 Planning permission has been refused for a high-rise apartment development near the centre of Donnybrook village in Dublin. Dublin City Council cited the excessive height of the building as its main reason for rejecting an application by development firm Red Rock for permission to construct a 12-storey, build-to-rent apartment complex on the site of the existing Circle K petrol station on Donnybrook Road. The 0.11 hectare site is directly across the road from the Energia Park rugby stadium. The plans provided for 84 residential units, with a cafe and retail unit at ground floor, as well as a residents’ lounge, communal terraces on several floors, games room, co-working space, library, cinema room and concierge services. However council planners claimed the design of the building, at almost 40m in height, would constitute over-development and would have “an unreasonable overbearing, overshadowing and overlooking effect on adjoining sites”. The Irish Times, 26th April
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Core Portfolio Having engaged CBRE and Eastdil Secured to assess the value of its holdings earlier this year, Core Industrial has now directed them to offer the portfolio at a guide price of €170 million. That pricing is significantly higher than the €100 million level which had been suggested by industry sources. In an announcement published in advance of its then-proposed IPO in 2018, Core said its portfolio comprised of 106 industrial assets and 167 acres of land (of which 36.7 acres were zoned for development) in the greater Dublin area. Although the properties were valued at €82.9 million in total as of November 30th, 2017, it is understood the portfolio now being offered for sale differs in terms of its composition. The Irish Times, 14th April
North Strand, Dublin 3 The auction of a portfolio of warehouses in Dublin’s North Strand drew strong interest, with 10 parties vying to secure ownership of the units on the day. Having been offered to the market at a minimum opening bid of €650,000 by online auction specialist BidX1, the properties were sold for €1,424,000 following the receipt of more than 150 bids. The portfolio at Ossory Industrial Estate comprises 10 ground-floor warehouse units, along with garages and lock-up units. All the properties are currently occupied, many via informal agreements, and are generating a total of €20,040 in rental income annually. The industrial estate occupies a convenient location between Dublin city centre and the M1 motorway, providing access to both the M50 and Dublin Airport. The Irish Times, 14th April
Naas Road, Dublin Just over two years after it was sold for €25 million, the Royal Liver Park on Dublin’s Naas Road looks set for a potential return to the market at a new asking price of around €50 million. The retail park’s owners, Allied Real Estate Group (AREG), are understood to be considering its sale, The Irish Times understands they are weighing up a forward-funding proposal which would see them lead the delivery of a major residential scheme. Last July, AREG secured planning permission from Dublin City Council for the development of 1,102 apartments on the site, the vast majority of which will be aimed towards the private rented sector (PRS) market. The units will be distributed across nine blocks ranging from seven storeys upwards. The approved scheme also includes an 18-storey (77.6m/255ft) office building, as well as a 203-unit shared accommodation or co-living development. The Irish Times, 13th April
Dundrum, Dublin 14 Dundrum Town Centre co-owner, Hammerson, has reported 34pc rent collection in Ireland for the three months to June this year. Across the group, 40pc of its rent for the same period has been received to date, with the UK collecting 48pc and France 23pc, according to an update from the company. An aggregate 46pc of rent due for the first half of this year has been received. “Market conditions have remained challenging since our results update in early March,” Hammerson said. The company operates in seven different countries, with a number of flagship retail centres including the Bullring in Birmingham, UK. It co-owns Dundrum Town Centre, along with German insurer Allianz. The group also owns half of the Pavilions shopping centre in Swords, the Ilac Centre in Dublin city centre and 40pc of the Kildare Village premium outlet mall. Irish Independent, 20th April
Matheson HQ, Dublin 2 Irish Life has agreed to sell a Dublin docklands building to the real-estate arm of German asset manager Deka Group for c€125 million, according to sources. The off-market deal cements Deka Immobilien’s position as one of the most active buyers of Irish commercial property in the past five years. The agreed transaction comes less than a year after the law firm Matheson signed a new 12-year lease on the 12,355sq m (133,000sq ft) seven-story over basement building, called Riverside IV, on Sir John Rogerson’s Quay overlooking the Liffey. It has rented the property since 2007. The Irish Times, 15th April
Washington Street, Cork Planning has been granted by Cork City Council for change of use and alterations to 50/51 Grand Parade, known for decades as Finns’ Corner. Approval has been given for conversion of the ground floor to cafe use, with seven overhead apartments. Six of the apartments – three one-bed and three studio apartments – are earmarked for the second, third and fourth floors while the seventh two-storey apartment would involve an increase in the height of the building, with the roof raised and a fifth floor added to accommodate it. The redevelopment would require a new roof design and alterations on all building elevations, including new residential access and altered commercial ground-floor access on Grand Parade. Irish Examiner, 15th April
Quanta Capital Quanta Capital, the investment firm run by Mel Sutcliffe and backed by Oaktree, the Californian investment giant, has acquired an 82-acre data centre site on the Dublin/Wicklow border for an undisclosed sum. The land at Kilpedder has planning permission for a 700,000 square foot data centre on 40 of its 82 acres. Quanta may seek to enter a joint venture to develop the site or may sell it in its entirety in the third or fourth quarter of this year. Despite the pandemic the firm acquired €100 million worth of assets in the final quarter of 2020 and has committed close to the same amount again so far in 2021. Recent Quanta Capital acquisitions included several McDonald’s food outlets across the country, the Honda distribution plant on the M50 and over 350,000 square feet of warehousing space. It also purchased the EP Mooney Centre and five acres on the Long Mile Road in Dublin, bringing its landholdings in that area to more than 20 acres. The Business Post, 19th April
Leopardstown, Dublin 18 Developers and investors involved in the delivery of accommodation aimed towards the upper end of the capital’s private rented sector (PRS) and traditional owner-occupier markets will be interested in the sale of a site in south Dublin with full planning permission for 200 apartments. Located on Murphystown Road in Leopardstown, the site is being offered to the market on behalf of developer Noel Smyth’s Fitzwilliam Real Estate by Knight Frank at a guide price of €8.5 million. The proposed scheme secured approval under the terms of the Government’s ‘fast-track’ Strategic Housing Development (SHD) process and provides for 200 apartments across four blocks along with supporting amenities, crèche, and car parking. The Irish Times, 14th April
LDA, Cork The Land Development Agency (LDA) has been granted planning permission to build 266 homes, creche facilities and an enterprise centre at the former St Kevin’s Hospital site in Cork. The development, located west of Cork city, will consist of a mix of one to four-bedroom houses, town houses and apartments. It is the first project by the LDA to be granted planning permission in Cork and the second overall project of the Agency to receive permission. The LDA said the primary focus of the development is to provide social and affordable housing, however prices for the renting and purchase of homes have not yet been announced. The Department of Housing has also yet to announce which and how many of the homes will be for rental and which will be for purchase. Now that permission for the builds has been granted the site will go to tender for construction. The Business Post, 19th April
Hines, Dublin 8 An Bord Pleanála has given the green light to fast-track plans by US property giant, Hines to construct 732 residential units on the site of the former Player Wills factory in Dublin 8. The development includes four apartment blocks with one reaching 19 storeys in height and comprises of 492 build-to-rent apartments and 240 shared accommodation units on a site fronting onto South Circular Road. The proposal for the 7.6-acre site involves the demolition of all buildings on site excluding the original fabric of the original Player Wills factory, which will be extended from four to eight storeys in height. The planning application faced strong local opposition with more than 180 submissions lodged with An Bord Pleanála concerning the contentious scheme. As part of Hines’ social housing obligations, it has put a price tag of €19.7 million on 49 apartments it is proposing to sell to Dublin City Council. The price range of the apartments Hines is proposing to sell to the council ranges from €238,828 for a studio apartment to €611,644 for a three-bedroom apartment. With planning granted, the developer and Council can now enter talks on completing the proposed deal. The Irish Times, 19th April
Bord Na Móna, Cork & Limerick Semi-state company Bord na Móna is preparing to appoint a real estate agency as it looks to sell a large site in Cork city centre, which industry sources said could attract bids of up to €10m. Last week, Bord na Móna issued a request for tender seeking to appoint a real estate agency to undertake a sales process on a 4.5-acre site at Monahan Road, Cork. The tender document describes the former coal distribution depot as a “mixed-use site with substantial development potential”. The tender document also shows Bord na Móna is looking to sell a 0.75-acre “residential site” at Courtbrack Avenue, Limerick, which is suitable for development. An industry source estimated that the site in Cork could attract a valuation of between €7m to €10m. The source was unable to provide a potential value for the site in Limerick. Bord na Móna said the properties were no longer needed as the semi-state moves away from carbon-based operations. Sunday Independent, 18th April
Farmland Prices State agriculture development authority Teagasc and the Society of Chartered Surveyors Ireland (SCSI) said land prices remained resilient in the face of the Covid-19 crisis in 2020. Their joint Agricultural Land Market Review and Outlook forecasts that land prices will rise 4 per cent in 2021 on strong demand and a second successive year of growth in farm incomes. Kildare had the most expensive farmland in the Republic last year, with good quality property fetching €13,600 an acre. Leitrim had the cheapest, with poor quality plots valued at €3,250 an acre. Nationally, the average price for non-residential land ranged from €5,900 per acre for poor quality land to €9,381 for good quality properties. Farm incomes rose 6 per cent in 2020 while Teagasc and the surveyors expect them to grow another 3 per cent this year, helping to underpin already strong demand for land. The Irish Times, 20th April
Dundrum, Dublin 14 Seven luxury apartments, costing more than €2,000 a month, that are being leased for social housing in Dundrum have been left empty for 17 months. In November 2019, Dún Laoghaire-Rathdown County Council agreed a deal to lease 87 apartments in the new luxury Herbert Hill apartment complex developed in Dundrum. Based on figures released by the Department of Housing, an average rent of €2,000 a month is being spent on each apartment. A spokeswoman for the local authority has confirmed that seven of the 87 apartments are still not occupied by social tenants. It is understood that they cost an estimated €224,000 to lease over the course of their vacancy. The Business Post, 19th April
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Clyde Real Estate The property company, headed by Colm Piercy and Sean Gallagher, has put two substantial industrial facilities to the market in Carlow and Dundalk with respective guide prices of €5.95m and €2.7m. In Carlow, the landmark former Braun facility extends to 221,594 sq ft on a 29.2-acre site. It was built to a high specification with concrete external walls and floors. Clear internal heights in the general production/warehouse areas range from 7m to 7.4m. A separate warehouse area to the rear benefits from an eaves height of 21m. Loading to the facility is via six dock and four grade-level doors. The Dundalk property – known as Rebus House – is an industrial manufacturing facility extending to 73,500 sq ft on a 6.3-acre site in a high-profile location just off the M1 motorway in Dundalk Town. It has a €2.7m guide price. It is presented in a clean shell condition offering maximum flexibility and comes with planning permission for a new glazed entrance and canopy. Irish Independent, 8th April
Cherryhound, Dublin 15 A major landholding has come to the market near Dublin Airport. Located next to the M2 Cherryhound interchange and just minutes from both the M50 motorway and the entrance to the Dublin Port Tunnel, the M2 Airlink portfolio comprises 25.44 hectares (63 acres), the majority of which (21.8 hectares/54 acres) is zoned for employment uses under the Fingal Development Plan 2017-2023. The remaining 3.7 hectares (9 acres), meanwhile, offers future development potential subject to rezoning in the upcoming development plan. The lands are being offered for sale in their entirety by joint agents REA Grimes and Cushman & Wakefield at a guide price of €18 million. In terms of its development potential, the masterplan and feasibility study prepared on behalf of the property’s current owners suggest it could accommodate up to 65,000sq m (699,654sq ft) of logistic and industrial space distributed across 12 buildings. The Irish Times, 7th April
Merchant Square HQ, Belfast Oakland Holdings has completed the highest value office transaction ever recorded in Northern Ireland, securing £87 million (c. €102 million) from the sale of Merchant Square in Belfast to a Middle Eastern investor. The development, which reached practical completion in June 2020, extends to a total of 22,296sq m (240,000sq ft) of mixed-use accommodation, comprising 20,903sq m (225,000sq ft) of grade A offices and six retail units. The office space is let in its entirety to PwC until 2040 with tenant-only break options in 2030 and 2035 and produces a total income of £4.86 million (c. €5.69 million) per annum. The sale price reflects a yield of 5.23%. Quite apart from being Northern Ireland’s most-valuable office sale to date, Merchant Square also accounts for the region’s largest ever private sector office letting. Once occupied, the Belfast city scheme will be PwC’s largest office outside London with 3,000 employees. The Irish Times, 7th April
Naas Road, Dublin With An Bord Pleanála decisions being challenged on a more frequent basis in the High Court, the O’Flynn Group’s decision to avail of the ordinary planning system for its Southwest Gate scheme on Dublin’s Naas Road would appear to have been the right one. With no appeals lodged against Dublin City Council’s decision to approve the project last February, the way has been cleared for the O’Flynn Group to proceed with the construction of its most ambitious mixed-use project in the capital to date. Upon completion, the €625 million scheme will comprise 1,137 apartments, a 148-bedroom hotel and some 17,699 sq m (190,510 sq ft) of commercial space on a 6.8-hectare (17-acre) site along the Naas Road in Dublin 12. The Irish Times, 7th April
Solas Living A new platform focused on the supply of affordable rental homes in the greater Dublin area has completed its first round of acquisitions, paying about €40 million for 157 units across six schemes in Dublin and Kildare. The deal forms part of Solas Living’s longer-term plan to invest upwards of €200 million in new and refurbished homes, including units that are currently sitting vacant. Established as a partnership between Dublin-based Mm Capital and pan-European private equity real estate investor, Deutsche Finance International (DFI), Solas Living is also aiming to engage with local authorities in the capital and surrounding areas in relation to the provision of social housing. The Irish Times, 7th April
Goatstown, Dublin 14 A large number of objections have been lodged to publican Charlie Chawke’s plan for a €186 million apartment scheme for a site beside his Goat Grill pub in Goatstown, south Dublin. An Bord Pleanála has confirmed that it has received 148 third-party submissions concerning the proposed 299-unit apartment scheme. Mr Chawke’s Charjon Investments is seeking permission for the fast-track scheme that also includes a 22-bedroom hotel, six retail outlets and childcare facilities along with the renovation and extension of the Goat Grill. The development on a 4.6-acre site is made up of four apartment blocks ranging from five to eight storeys in height. Amongst those to object is the Minister for Tourism and Culture Catherine Martin of the Green Party and the Minister for State Josepha Madigan of Fine Gael. A decision on the application is due in June. The Irish Times, 13th April
Augustine Hill, Galway Plans for a landmark project for Galway have been reduced in size following consultation with the city council. Augustine Hill beside Ceannt Station is an eight-acre development, and its developers say it is one of the biggest city centre projects in the State in recent years. The project is currently before Galway City Council for planning approval. Last year the promoters of a €320 million mixed use, urban regeneration development were told by the City Council to scale down the scheme significantly because of the threat it posed to “the unique character of the city”. The original plan consisted of 378 apartments, a large commercial area, a 180-bed hotel, a covered public area and a six-screen cinema. Augustine Hill is a joint development by CIÉ, which owns the land, Edward Capital and Summix Capital. CIÉ held a competition in 2017 to find a developer for the site. In response to a public consultation and feedback from Galway City Council, the total area of development has now been reduced by 11 per cent from 128,080sq m to 114,161sq m. The Irish Times, 6th April
Ashbourne, Meath Three new tenants have signed tenancies at Ashbourne Retail Park, a purpose-built retail park about 1.5km from Ashbourne town centre. JYSK, the Danish furniture retailer, will open its tenth Irish store in the country at the park this summer. Choice, a fully Irish-owned indigenous retailer which specialises in household, seasonal and homewares, will occupy the former anchor store, 4 Homes Superstore’s 3,530 square metre (c38,980 sq. ft) premises. This outlet will also include a garden centre and will offer up to 25,000 products to customers. It is due to open in May, bringing Choice’s growing complement of stores to 10 across the region. Also, Leisuredome, a new entrant to the family entertainment sector, will occupy the former Fun Galaxy unit in the park. It plans to open its doors in September. All three lettings will account for almost 8,000 square metres of retail space. The Business Post, 11th April
Dublin Pubs Four Dublin pubs changed hands in the first three months of the year according to John Ryan of agents Bagnall Doyle MacMahon who estimates that they generated a combined €5.6m. In comparison, there were 12 pubs sold in 2020 with a capital value of close to €46m, many of which were for alternative use and new development purposes. The pubs which have sold are: The 108 Rathgar in Rathgar village, Dublin 6, for which Lisney Morrissey’s had been quoting €2.2m, The Magpie Inn in Dalkey which had a €1.65m guide price, The Cabra House, Fassaugh Avenue, Cabra, was also sold through Lisney, who had been guiding €850,000 and the fourth pub was located on the North side. John Ryan also reports that the appetite for pubs is reflected in a number of off-market deals currently in the pipeline which he expects to transact in the next quarter. Irish Independent, 8th April
Lower Baggot St, Dublin 2 The old Joys nightclub on Lower Baggot Street has been put up for sale. The space it occupies is expected to be of interest to bar and restaurant operators seeking somewhere to capture the zeitgeist of the post-pandemic return of Dublin’s nightlife economy. The property is being offered to the market by agent Finnegan Menton as part of the overall sale of No 127 Lower Baggot Street, a freehold five-storey Georgian commercial premises situated four doors from the junction with Pembroke Street. The property extends to a total floor area of 393.3sq m (4,233sq ft) with a garden patio area of 45sq m (500sq ft) and three or four car parking spaces. When fully let, the offices provide a net income after costs of c€105,000 per annum. With use of the offices restricted at present due to Covid-19, the current gross income is equivalent to €89,000 per annum. According to the selling agent, there is already strong interest in leasing the basement which would be expected to rent for an additional €45,000- €50,000 per annum, which would bring the (existing and potential) net income to between €150,000 and €160,000 per annum. The freehold interest in the building, together with rear car parking area, is for sale at a quoting price of €2.2 million which equates to €520 per square foot. The Irish Times, 7th April
Bradbury Place, Belfast A £20 million (€23 million) purpose-built student accommodation and retail scheme is to be developed in Belfast following the acquisition of a site by Dublin-based Elkstone Partners. The site at 30-44 Bradbury Place is the first acquisition in Northern Ireland for the property division of the investment firm. Development of the site will generate an additional 156 student beds for the 2022/2023 academic year, as well as 362sq m (3,900sq ft) of ground-floor retail space fronting on to a heavy-footfall area of the city. The scheme at Bradbury Place, located close to Queen’s University, has received planning permission from Belfast City Council for 100 cluster and 56 studio beds over six floors, and will ramp up the student accommodation offering in the city with a number of facilities and amenities. The Irish Times, 13th April
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Little Island, Cork Commercial agent Lisney has launched a new high bay warehouse development to the market at Little Island in Cork. This is the first new business park to be developed in Little Island in over a decade and it will provide much needed new warehouse and industrial space. The new seven-hectare (17.4 acre) Harbour Gate Business Park development is situated in an established industrial and commercial location, some 9km east of Cork city centre. The new park has full planning permission for four high bay warehouse/logistics/light industrial units which will provide a total floor area of about 18,580 square metres (c200k sq. ft) across four main blocks. The site has been cleared and construction will recommence once Covid-19 related restrictions on construction are eased. The new buildings are available for sale or to let. The Business Post, 4th April
Bray, Wicklow Trinity Biotech’s lab and manufacturing unit in Bray, which was completed in 2006, has been put up for sale. The property, which is being offered to the market by agent Knight Frank at a guide price of €10.5 million, offers the prospective buyer a net initial yield of 6.8% (assuming standard 9.96% acquisition costs). The figure does not account for any benefit that might be accrued from the €4.3 million capital allowance attached to the asset. Located at the heart of the IDA Business Park on Bray’s Southern Cross Road, Block 2 is a modern two-storey high-tech laboratory production facility extending to 3,977sq m (42,817sq ft) with surface car-parking spaces and a secure service yard to warehouse/cold storage section. Trinity Biotech is an Irish-founded and headquartered company quoted on the Nasdaq exchange, and with facilities spanning Europe, America and Canada. The Irish Times, 31st March
Claremont Road, Dublin 4 The YMCA gym and playing pitches in Sandymount have been put up for sale. Extending to an area of 2.6 hectares (6.6 acres), the site is zoned for the delivery of residential and open space and is being offered to the market by agent Savills at a guide price of €10 million. The property is owned by the YMCA and operates as a gym and sports facility for its members currently. Built in 2001, the gym is a modern two-storey building, which opens out into a large area with playing pitches and all-weather hockey pitches. There is a surface car park also with parking for about 40 cars. The site enjoys a prime location just two minutes from Sandymount village and is accessed from Claremont Road via an internal access road which is shared with the adjoining apartment complex known as “The Willows”. The Irish Times, 31st March
Player Wills, Dublin 8 The company behind plans for a 19-storey tower at the former Player Wills factory site in Dublin 8 said it had “no intention” of developing a co-living scheme until the retention of the old factory was mooted. US property group Hines last December submitted plans to An Bord Pleanála for 732 apartments on the land, incorporating the factory building on the South Circular Road. One third of the apartments would be co-living units. The application was submitted on December 21st, just one day before the de facto ban on co-living developments came into force. Minister for Housing Darragh O’Brien in late November announced the ban on new co-living schemes, where shared kitchen and living facilities serve multiple en suite bedrooms. However, the ban was not signed into law until December 22nd. Dublin City Council is now proposing to add the old cigarette factory to the Record of Protected Structures following the request of former minister for housing Eoghan Murphy in 2017 and a 2018 motion from then Labour councillor Rebecca Moynihan, now a Senator. Hines said that when the company bought the site in December 2018 it had intended to retain only the front of the factory. However, Hines said it subsequently became clear there was “a push to retain the whole factory”, which made a co-living scheme the only viable option. The Irish Times, 6th April
House Prices According to the latest Daft.ie report out last week price momentum continued into 2021, with asking prices rising by 8% yoy in Q1 2021. Although demand has held up surprisingly well, aided by a build-up of savings amid those that have been relatively unaffected by lockdown, the primary driver of the upward price movement is supply; the stock of properties available for sale fell by 40% over the past twelve months as; (1) homeowners were reluctant to sell in the middle of a pandemic, and; (2) new supply has been curtailed by restrictions on building activity. The stock for sale is now at an all-time low across the country which will put ongoing upward pressure on prices in the coming months. Regionally, the greatest reduction in supply (-48%) and the largest rise in prices (+12%) is in Leinster, excluding Dublin. Asking prices in Dublin rose by 7% yoy amid a 31% reduction in the stock for sale. Daft.ie Report
Hammerson, Dublin Hammerson, a UK-listed property group, has scaled back plans for its six-acre site in Dublin Central and switched the mix away from retail towards offices and residential units. Original plans for 23,500 sq m of retail space have been scaled back to 6,000 sq m, less than 10 per cent of the scheme. Speaking at a webinar organised by Dublin Chamber on Thursday, Ed Dobbs, Hammerson’s development manager, said it was taking a long-term view. “In the current market where retail is really struggling, we think this is the right location for that amount of retail,” he said. The company will submit three planning applications for the Henry Street and Moore Street locations next month, with submissions for O’Connell Street to follow around the middle of summer. If successful, work on Dublin Central, one of the city’s largest regeneration sites, could begin as early as next year. The plans are substantially different to what was proposed in the company’s masterplan two years ago. The new scheme will be cut from 90,000 sq m to 77,000 sq m, with a shift towards offices and residential units plus a significantly reduced retail element. The Sunday Times, 4th April
Skehard Road, Cork A planning application is to be lodged in the coming week for a new Aldi supermarket and residential development on Cork’s Skehard Road. It will form part of a new mixed-use scheme that will feature 28 residential units and a café. The site will be developed by developers Lyonshall and is located next to the Scally’s SuperValu supermarket near the junction with Church Road. It is also close to the existing Aldi supermarket at Blackrock Hall which opened in 2008. Aldi said the new store will employ up to 30 permanent staff with an additional 50 jobs created during construction of the proposed new store and development. The planning application will be lodged with Cork City Council in the coming weeks and if approved the store will likely open in 2024. The Irish Examiner, 1st April
Tik Tok, Dublin Tik Tok has chosen the Sorting Office at Grand Canal Dock to accommodate up to 2,000 workers, according to sources. The Sorting Office was developed by Pat Crean’s Marlet but bought by the Singapore-based real estate investment trust Mapletree for €240 million in 2019. Google had originally intended to lease the building but abandoned its plans in September. Completed in July 2020, it has 19,000 sq m of office space over seven floors. Cushman & Wakefield, the company appointed to advise Tik Tok on office locations, refused to comment on Friday. The Sunday Times, 4th April
Ballsbridge, Dublin 4 MongoDB, a US-based software company, has been forced to take a $2.1m (€1.8m) impairment related to its former Dublin office after failing to secure a sub-tenant due to Covid-19. Last June, it was revealed the Nasdaq-listed tech company, valued at over $17.1bn, had signed a $27m lease on a new office in Dublin with capacity for 500 employees. Over 200 staff will have access to the new facilities when it opens. The new office, based in Building 2 of 1 Ballsbridge, Shelbourne Road, Dublin, is owned by the Comer Group. It is located close to MongoDB’s former office, which is also on Shelbourne Road. MongoDB revealed the $2.1m impairment charge in its recently published results. It said the lease commenced on its new office on February 1, 2020, with the firm no longer occupying the former office. According to the results, the company had “been unable to assign nor secure” a sub-tenant for the former Dublin office. MongoDB recognised the impairment charge, which “represented the remaining carrying value of the right-of-use asset for this office location”. Irish Independent, 4th April
KPMG Dublin KPMG has narrowed its search for a new Dublin headquarters down to three potential locations in the city centre. Following the receipt of proposals from six of the country’s foremost developers, the Big Four accounting and advisory firm has refined its deliberations to consider schemes being delivered by Hibernia Reit, the Kenny family’s Clancourt Group, and Shane Whelan’s Westridge Real Estate respectively. KPMG currently occupies two buildings in Dublin city centre, one at Stokes Place on Harcourt Street, and another in the IFSC, but is looking to accommodate its entire complement of 2,500 office-based workers under one roof following the expiration of its existing leases in 2026. While KPMG’s original shortlist had also included proposals from Johnny Ronan’s Ronan Group Real Estate (RGRE), US real estate firm Kennedy Wilson, and a company controlled by the family of businessman, Larry Goodman, these are no longer being considered as part of the process. The Irish Times, 31st March
JLL Report Property investment deals this year could exceed the €3bn seen in 2020 according to JLL Ireland. Their estimate is based on three factors including an estimate that €650m of sales were seen in the first quarter of 2021 for properties worth more than €1m. “We are also aware of a number of large-scale opportunities which we expect to trade in the next nine months. It is also dependent on the fact that we continue to see the strong demand levels for Irish real estate that we have seen in the last few years and a resumption of travel and normal business activity,” JLL said. The largest investment deal in the first quarter was Blackstone’s purchase of the Project Tolka office portfolio for €290m. It included a 74pc interest in the Burlington Plaza office building at Burlington Road, Dublin 4 and The Three Building at 28/29 Sir John Rogerson’s Quay, Dublin 2. JLL Q1 Research Report
Montrose Student Accommodation, Dublin 2 A subsidiary of property giant Hines has reported the renovation and closure of its Montrose student accommodation initially due to fire safety concerns may cost nearly $26m (€22m), up from $11m last August. Hines Global Income Trust, which is understood to have no bearing on Hines’ other Irish assets such as Cherrywood, revealed the potential rise in costs in its recent annual results. It said the cost of renovation, which had gone beyond the original plan, at Aparto Montrose in Dublin had been estimated at around $21.9m. This had grown from an $11m estimate last August. According to the results, the continued closure, due to construction delays caused by Covid-19, could lead to a reduction in revenue in excess of property expenses of around $4m. Hines Global Income Trust had estimated a revenue loss when it first shut the facility of up to $3m. Irish Independent, 4th April
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Sir John Rogerson Quay, Dublin 2 Developer TIO is understood to have secured upwards of €95 million from the sale of a newly-completed prime office building in Dublin’s south docklands to the German family-office investor AM Alpha. The sale of 76 Sir John Rogerson’s Quay comes just four months after Rabobank agreed to take 23,500 sq ft of space at the scheme on a 10-year lease with an option to renew for a further 10 years. The Dutch-headquartered lender is understood to have agreed to pay a rent of about €57 per sq. ft. AM Alpha made its last acquisition in the Irish market in November 2019, when it paid €50 million to secure ownership of Northside Shopping Centre. The Irish Times, 24th March
Bonham Quay, Galway US software company Diligent’s plan to establish a European hub in Galway has moved up a gear with the selection of Bonham Quay as the location for its new offices. The company is expected to move its Irish-based workforce into Bonham Quay by early 2022. Diligent’s new office forms part of the wider 370,000 sq ft Bonham Quay campus being constructed by developer Gerry Barrett’s Edward Capital. Upon completion, the scheme will comprise 349,000sq ft of offices distributed across four buildings, 21,000 sq ft of retail/restaurant space and 91,435 sq ft of new landscaped public space. The letting of the overall development is being managed by the Galway offices of Cushman & Wakefield. The Irish Times, 24th March
Ballsbridge, Dublin 4 It was reported in the Irish Times that the Killeen Group is to press ahead with the delivery of a new office scheme next to Facebook’s new Dublin 4 campus and directly opposite the RDS on the Merrion Road. Designed by Reddy Architects, the six-storey over double-basement Glencar House will comprise 77,500 sq ft upon completion in 2023. The Merrion Road site has been occupied since 1991 by a pavilion-style building as part of the overall Sweepstakes Centre scheme. In recent years, the property has been occupied by a range of corporate tenants including Nuance Communications and BNP Paribas Real Estate. Walls have been appointed as the main building contractor, while Mitchell McDermott have been retained as the project managers. Cushman & Wakefield and BNP Paribas Real Estate have been engaged as joint letting agents for the property. The Irish Times, 24th March
Grafton St, Dublin 2 Foot Locker has won the first round in a battle over rent with the landlord of its Grafton Street store. In a request for discovery, it was ruled that the sportswear and footwear retailer does not have to provide documents about all seven of its Irish stores to Percy Nominees. Foot Locker has been in dispute with Percy, the investment company associated with Davy Stockbrokers, over liability to pay instalments on its €750,000 annual rent after it had to close because of Covid. The retailer claims that the lease it holds on the Grafton Street store “has been frustrated” by the restrictions brought about by the pandemic. It says that government restrictions led to “an unprecedented and dramatic collapse in the pre-existing level of footfall in Grafton Street” and has sought a declaration that it has “no liability for rent” for when it was closed. Percy had requested to see all correspondence between Foot Locker and its other landlords in the run-up to the closures in March last year. It argued that the documents would show whether Foot Locker had “conducted itself in a uniform manner in respect of all leases”. Sunday Times, 28th March
Penney’s, Cork After a year of retail devastation, Cork City centre is set for a significant boost following confirmation that Penney’s is planning a major expansion of its St Patrick St store. The fast fashion retailer has confirmed to the Irish Examiner that, pending a successful planning outcome, it intends to increase its retail space by almost 50%, adding 17,000 sq ft to its existing 37,000 sq ft. The store will not close during the expansion, which will take place on a phased basis. A spokesperson for Penneys said: “We have embarked on the planning process to redevelop our Patrick Street store. If our application is successful, we will increase the retail space by 17,000 sq ft to 54,000 sq ft, which will bring an enhanced shopping experience to our customers. We will plan a phased building schedule to allow the store to remain open during construction. We have partnered with the O’Flynn Group to support on the planning and development process”. The Irish Examiner, 24th March
Camden Quay, Cork Plans for a 194-bedroom hotel on a prime Cork city centre site have been unveiled. A planning application has been lodged with Cork City Council by Carra Shore Hotel (Camden Place) Limited for the former McKenzies Circuit Courthouse site on the bank of the River Lee. Located directly opposite Cork Opera House on Camden Place and Pine Street, the development proposal includes the redevelopment, renovation and conservation of the building to allow for the development of a city centre hotel. This would include 194 bedrooms, 41 of which would be long-stay suites, and the construction of a rear annex, ranging in height from two to six storeys. The building was purchased for €3.5m late last year by the UK/Irish group headed by John Kajani, associated with companies Carra Shore and the Seraphine Group, who owns hotels in London, Dublin and Waterford. The Irish Examiner, 25th March
Hotel Conversions With increasing demand for Irish nursing home investment opportunities and some Irish hotels expected to come under pressure because of the effects of the Covid-19 pandemic on the tourism sector, two recent deals illustrate the conversion potential of hotels. Maureen Bayley of CBRE said that one of the big advantages that many hotels offer for nursing home conversion is the size of their bedrooms, which at 12.5 square metres comply with standards being imposed by the Health Information and Quality Authority (Hiqa). Hotels also offer en suite bathrooms, which are a major requirement for infection control. It was confirmed in the media last week that the HSE have bought the Blarney Hotel in Cork to use it as a care home for the elderly. Among other hotels to be converted by other operators are the Ardmore Lodge Hotel in Dublin, which was converted to Care Choice Finglas, and the former 123-bedroom Two Mile Inn motel on the Ennis Road near Limerick city. The Business Post, 28th March
Ashtown, Dublin 15 The German investor Union Investment has paid over €200 million to acquire 435 apartments (>€460k per apartment) and a health centre being developed by Sean Mulryan’s Ballymore Group at Royal Canal Park in Ashtown, Dublin 15. The agreement of the forward-funding deal for the 8th Lock portfolio will be seen as a significant vote of confidence by international investors in the capital’s PRS market. Notably, the transaction is Union’s first investment in the Irish residential market, and one of its first residential deals in Europe. The German-headquartered fund manager’s purchase of the apartments at Royal Canal Park brings the overall value of its real estate holdings in Ireland to €770 million. The remainder of Union’s Irish portfolio is comprised of six prime Dublin office assets boasting a combined value of €570 million, which it acquired between 2015 and January 2020. The Irish Times, 24th March
Rathgar, Dublin 6 The former Murphy & Gunn Hyundai dealership in Rathgar has been put up for sale. Located at the corner of Kenilworth Square South and Rathgar Avenue, it occupies a site of 0.9 acres and is being offered to the market by agent Knight Frank at a guide price of €8.5 million. The sale of the property comes just over three months on from Rohan Holdings’ €7 million purchase of Murphy & Gunn’s former BMW car showroom site in nearby Milltown. The Rathgar site is zoned objective Z2 Residential Neighbourhoods (conservation area within the current Dublin City Council Development Plan) and enjoys significant frontage to Rathgar Avenue and Kenilworth Square South. It is is ideally positioned witin a 0.5km walk of Rathgar Village while Rathmines Village is within 1km. A feasibility study prepared by Ferreira Architects suggests it could accommodate a scheme of 90 apartments (€94k per site), subject to planning permission. Knight Frank Press Release
Sutton, Co. Dublin A site with potential for a prime residential development has gone up for sale in Sutton with a guide price of €1.525m. Located on Carrickbrack Road in Sutton, “Fairways” comes with full planning approval for the demolition of the existing house and its replacement with three substantial detached homes (€508k per site). The new properties comprise two five-bedroom dormer bungalows (265 sq m/2,852 sq ft) and one four-bedroom dormer bungalow (206 sq m/2,217 sq ft). The precise details of the planning permission may be viewed on the Fingal County Council website under planning reference F19A/0442. The subject site extends to 0.34 hectares (0.84 acres) and contains mature trees, a number of which will be retained in the new development to provide an attractive blend of old and new in the planned landscaping. The Irish Times, 24th March
Donnybrook, Dublin 4 An Bord Pleanála has consented to a High Court order quashing its permission for 614 residential units on former RTÉ lands. Three Ailesbury Road residents had brought proceedings challenging the board’s fast-track permission for the proposed development by Cairn Homes close to their homes. They also challenged the constitutionality of strategic housing provisions of the Planning and Development (Housing) and Residential Tenancies Act 2016 providing for the fast-tracking of large housing developments. Their case was against the board, the Minister for Housing, Planning and Local Government, Ireland and the Attorney General with Dublin City Council and Cairn Homes as notice parties. The proposed development comprises 611 apartments in nine blocks up to 10 storeys high, three townhouses, two cafes, one childcare facility, and change of use of an existing Regency villa to a private members club and gym. The applicants said the development is of a scale and density far in excess of what is permitted under the Dublin City Development Plan, would overlook and overshadow their homes and be “totally out of keeping” with an area consisting of low rise Victorian or Edwardian type houses. The Irish Examiner, 25th March
UCD Dublin University College Dublin (UCD) has announced it will build more than 900 new rooms for students before next September – but the plans are subject to the reopening of construction sites in the coming weeks. Phase One of the 3,000-bed development – that includes a village centre for the students – was due for completion last year but was delayed due to the closing of the construction sector. The current number of resident spaces on campus is 3,168 and will rise to 4,092 when the 924 beds open. UCD also expects to start construction of a further 1,254 beds once the Government allows construction to open up, giving a total of 5,346 beds. A further project to deliver another 700 beds is in the pipeline. Irish Independent, 28th March
Goatstown Dublin 14 Two Government Ministers are supporting locals’ objections to plans for a 698-bed student accommodation development across eight blocks in Goatstown in south Dublin. Minister for Tourism and Culture Catherine Martin and Minister of State for Special Education and Inclusion Josepha Madigan have each made submissions to An Bord Pleanála concerning the plan where the blocks range in height from three to seven storeys. The plan has been lodged by Colbeam Ltd, an Irish arm of Michael Cox’s UK-based building company Hollybrook Homes, for a site located at Our Lady’s Grove, Goatstown, 850m from UCD. A previous fast-track plan for the site for 132 apartments was granted planning permission by the board but the permission was quashed by the High Court following judicial review proceedings by a local resident. In total, the appeals board has received 67 submissions, mainly from local residents, concerning the planned scheme. Irish Times 30th March
Clonee, Meath Bannon’s have launched a site in Clonee for sale which has potential for a 400,000 sq. ft. logistics facility with a guide price of €10m. Located next to junction 4, less than five-minutes’ drive from the M50 and 15km from Dublin city centre, the M3 Gateway site is fully serviced and offers the potential for a logistics/distribution or data-centre development of about 400,000 sq ft (subject to planning permission.) The land adjoining the site has in recent years been transformed by the development of two hyper-scale data centres by Facebook. Further data centres are situated nearby in Blanchardstown and Mulhuddart where Amazon Web Services is progressing a 223,000 sq ft facility. The area has also proven to be popular among pharmaceutical and logistics companies, with MSD, Astellas, Helsinn Birex, Geodis and Masterlink all situated nearby. The property is being offered for sale by tender on Thursday, May 6th. The Irish Times, 24th March
Dundalk, Louth Harvey is guiding a price of €2.125 million for a significant land holding on the outskirts of Dundalk, Co Louth. Extending to 9 hectares (22.27 acres) and zoned “employment mixed use” under the current Dundalk and Environs Development Plan 2009-2015, the land enjoys an excellent location just 2.5km east of the M1 motorway at junction 16. The property is surrounded by the operations of a number of major multinational employers including Paypal, Xerox Europe, WuXi Biologics and the Wasdell Group. The required road infrastructure is already in place and services are available to the edge of the site. While 2.1 hectares (5.28 acres) of the site is taken up by roadways and an attenuation pond, the vast majority of the land (6.8 hectares/17 acres) is suitable for development. The subject site is being offered to the market with an asking price of €2.125 million with no VAT applicable to the sale. The Irish Times, 24th March
Exchequer Street, Dublin 2 A high-profile, mixed-use investment in Dublin city centre is coming to the market through joint agents Hooke & MacDonald & Agar Commercial Property Consultants. No 16-18 Exchequer Street is located opposite Fallon & Byrne food store, close to South Great George’s Street and some 200 metres west of Grafton Street. The investment comprises two mid-terrace, four-storey over basement mixed-use period properties extending to about 4,893 sq ft. The properties comprise two ground and basement retail/restaurant units extending to some 3,013 sq ft. Overhead on the first, second and third floors are six luxury apartments, three within each property, with two separate self-contained entrances from street level. The two-ground floor commercial units currently produce a combined income of €130,000 per annum (€65,000 per annum per unit). The six apartments overhead are in walk-in, lettable condition. The agents anticipate the ERV of the residential element to be in the region of €140,000 per annum. The Business Post, 28th March
East Wall, Dublin 3 Dublin City Council has approved plans to construct a 195-bedroom hotel and 88 build-to-rent apartments in East Wall. The proposal, put forward by private developers MKN Property Group, will see two existing motor showroom outlets demolished and a mixed-use scheme, developed in three blocks, built in its place. The three blocks at East Wall Road, located a little over 500 metres from Facebook’s 800-worker-capacity office, will consist of a mix of hotel, residential, retail and commercial developments. MKN, headed up by real estate developer Sean McKeon, plans to build a 15-storey hotel comprising 195 bedrooms, conference facilities and a restaurant, bar and lounge in the development’s first block. The second block will consist of six office units over three floors and 28 build-to-rent apartments, 16 of which will be one-bed units, with the remaining 12 set to be two-bed units. It will also include a games room, residents’ lounge and “multi-purpose” facility for residents indicated for use for “yoga or other activities”. A further 60 build-to-rent one-bed and two-bed apartments will be constructed in a ten-storey block, and the site will also include an “urban plaza” at ground level. The Business Post, 23rd March
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Tik Tok It is reported in the Irish Times that Tik Tok has narrowed down the search for their new office to three locations. Having engaged Cushman & Wakefield to conduct a search for sufficient space to grow its Irish-based headcount to 5,000 over the longer term, the Chinese-headquartered social-media company has begun assessing proposals relating to three newly-built office properties in the city capable of accommodating up to 2,000 workers onsite immediately. The three locations being considered for occupation are the Sorting Office, the south docklands scheme developed by Pat Crean’s Marlet Property Group; TIO’s North Dock development in the north docklands; and McGarrell Reilly’s Charlemont Square campus on Charlemont Street in Dublin city centre. TikTok is understood be keen to bring its Dublin workforce together as soon as is permissible to foster the culture of collaboration which it and other companies believe cannot be replicated with remote working. The Irish Times, 17th March
Leeson St, Dublin 2 Oakmount, the development company headed by Paddy McKillen Jnr, is offering a long lease for a refurbished Georgian office premises, 41 Leeson Street Lower, Dublin 2. Extending to 4,600 sq. ft, the four-storey premises includes a reception hall with two large offices to the front and rear. The hall return comprises a waiting area and modern integrated kitchen. Its first and second floors comprise four further offices/boardrooms, with an additional two offices on the third floor. There are two further offices and modern shower facilities with a locker room on the lower ground floor from which there is also access to a Georgian city garden. The rent has not been advertised but it has been estimated it could achieve €220,000 (c€48psf) a year. Irish Independent, 18th March
Rathmines, Dublin 6 Dublin City Council has approved plans for a four-storey, 78-room hotel in the centre of Rathmines. The development will involve demolishing the existing buildings at 10 Wynnefield Road, which were formerly coach houses, save for two arched gables on the street front. Rathmines Hospitality Limited, a company set up by boutique hoteliers Ray Byrne and Eoin Doyle in February 2020, plans to build the hotel with co-working spaces and an associated café on the ground floor. Byrne and Doyle have also submitted plans to construct a 57-bedroom hotel in the Helys Building, which is located between Dame Court and Dame Lane. The pair own the Eccles Hotel in Glengarriff in Co Cork, and intend to open Cork’s first “micro sleep” hotel under a new low-cost, boutique hotel brand named “REZz”. The Business Post, 21st March
Blarney, Cork It was reported in the Irish Times that the HSE has purchased a well-known Cork hotel “The Blarney Hotel” for use as a public residential care facility for older people. The hotel, developed in 2004 as part of a €25 million golf resort, is understood to have been acquired by the HSE on behalf of Cork Kerry Community Healthcare for about €3 million. While the price paid represents a fraction of the hotel’s original build cost, it is understood the HSE will need to invest a significant sum to convert the property into a Hiqa-compliant facility. The former hotel, eight miles from Cork city centre in the town of Blarney, comprises 61 guest bedrooms, of which 25 are suites. It sits within a wider 170-acre site in Shournagh Valley, and was developed originally along with a leisure and gym complex, 56 holiday homes, and a golf course designed by two-time major winner John Daly. The Irish Times, 17th March
Dublin Sale Cushman & Wakefield has completed an off-market residential portfolio sale for €17 million on behalf of its client Double Property Group. The portfolio included a new build mixed-use scheme at Limekiln Place, Greenhills in Dublin 12, comprising 26 residential units held on a long-term lease to South Dublin Co Council, and Montpelier Hill, an existing development in Dublin 7 comprising 19 units held on long-term leases to Dublin City Council. Both developments are fully let on 25-year leases to the relevant local authorities with three-yearly rent reviews linked to HCPI and no break options. The Business Post, 21st March
Bearna, Galway Galway property developer Burkeway Homes is to begin works on a 121-unit housing development in Bearna in June, following three attempts at lodging applications to build on the site. Under the terms of the most recent grant of permission by An Bord Pleanála, Burkeway Homes will earmark at least one-fifth of the new residential units for Gaeilgeoirs looking to live in the area, as it is considered the gateway to the largest Irish-speaking region in the country. Should it proceed without a hitch in June, the project is expected to be completed in 2024, with an investment of more than €30 million in the construction phase. It will also provide an estimated 150 jobs to the local economy over the course of the three-year scheme. The 121 homes in Bearna will feature a number of different types of housing, including one and two-bedroom apartments, two-bedroom garden-level apartments and three-bedroom duplex homes. There will also be three and four-bedroom semi-detached and terraced homes as well as large, four-bedroom detached houses. The Business Post, 21st March
Glenamuck, Dublin 18 A prime south Dublin development site was launched to the market last week at Glenamuck Road in Kilternan, Dublin 18 with full planning permission for 197 new homes. Hooke & MacDonald is handling the sale of the development site on behalf of receivers Duff & Phelps and Nama. The lands at Glenamuck Road are situated close to The Park Carrickmines retail and office complex, and are about 1.7km south of Junction 15 (Carrickmines/Foxrock) of the M50 and a similar distance from the Ballyogan stop on the Luas Green Line. The prime development lands extend to some 4.5 hectares (11.12 acres). They have extensive dual frontage to both Glenamuck Road and Enniskerry Road, and are accessed from both. The property was granted full planning permission by An Bord Pleanála last April for a Strategic Housing Development of 197 residential units, comprising 115 apartments, 20 duplex units and 62 houses, and a crèche of 275 square metres, in a scheme designed by Coady Architects. The Business Post, 21st March
Sandyford, Dublin 18 Kelly Walsh has launched a newly-built apartment block comprising 18 units at Dún Gaoithe Hall for sale for €6.9m. The building, next to the entrance of Aiken’s Village and close to Stepaside and Sandyford, is due for completion in early 2022. The 18 units, distributed over four storeys, will include four one-bedroom apartments and 14 two-bedroom apartments, together with 24 basement car parking spaces. The building will be self-contained and positioned to the front of Dún Gaoithe, a newly developed residential scheme of 35 detached and semi-detached three- and four-bedroom homes, all of which have been sold privately. The selling agent estimates total market rent at about €444,000 per annum with an average monthly rent for the one-beds of €1,800 and €2,050 for the two-beds with the benefit of car parking. Based on those estimates, the sale of the portfolio at the €6.9 million guide price would provide the purchaser with a gross yield of 6.15%. The Irish Times, 17th March
Georges St, Dublin 2 A legal action by local residents aimed at overturning An Bord Pleanála’s permission for a €30 million co-living development on Dublin’s North Great George’s Street is to be fast-tracked. The case by North Great George’s Street Preservation Society concerns the board’s permission for the 132-unit development at North Great George’s Street and Hill Street which was granted, with 17 conditions attached, in June 2020 to Hillstreet Limited Partnership. On Monday, Hillstreet applied to have the matter admitted to the fast-track Commercial Court. Counsel said there was “a commercial urgency” to the matter and his client has already spent some €5 million on the development, which will cost more than €30 million and range from three to seven storeys in height. The Irish Times, 22nd March
Blessington, Wicklow A town centre site in Blessington, on the Kildare-Wicklow border, is for sale with a €2 million guide price. Last month the vendor received full planning permission for a development on the site comprising 58 apartments (€34.5k per site) in three blocks ranging in height from three to four storeys. Block A’s 22 units would comprise three three-bedroom apartments, 14 two-bedroom apartments and five one-bedroom apartments. Block B’s 18 units would consist of three three-bedroom apartments, 14 two-bedroom units and one one-bedroom unit. Block C’s 18 units would consist of three three-bedroom units, seven two-bedroom units and eight one-bedroom units. Extending to 1.38 acres, the site benefits from 155 metres of road frontage and is located in a mixed-use area next to Blessington Shopping Mall. Irish Independent, 18th March
South Circular Road, Dublin 8 A government department has objected to plans by Hines, the American property group, to build a 19-storey tower on the site of the former Player Wills factory on Dublin’s South Circular Road. The development applications unit of the Department of Housing has told An Bord Pleanala the scale of the proposed tower “eclipses other tall-building development proposals to date in Dublin”. Hines wants to build 492 apartments and 240 shared-living units, a childcare facility and two public parks on the 7.4-acre site. The department also said the development would have an “adverse design impact” on the tobacco factory, which was built in the 1920s and 1930s and is one of the few examples of art deco architecture in Dublin. Hines said it had “comprehensively addressed” the department’s concerns in its application. It argued that the government’s 2018 building height regulations “specifically indicate there is no height restriction within the canals, subject to a series of ‘development management criteria’ to ensure no overshadowing and that the historic fabric of the city is protected”. The company said the tallest buildings would be at the centre of the site. The Times, 21st March
Cork Regeneration The government has committed to investing €405m in funding towards the regeneration of Cork city and the docklands. Some €353m is earmarked for the docklands quarter, which will be spent on a mix of apartments, schools, and sports and recreation facilities to cater for up to 25,000 people. A €46m investment in the Grand Parade area will be utilised towards reimagining the city as a ‘neighbourhood’ rather than just a commercial centre. The regeneration of Mallow town in the county has been granted more than €4 million in funds with €817,500 being set aside for works on the Passage West, Ringaskiddy, Carrigaline Harbour Cluster. The four projects are being funded under “Call 2” of the Urban Regeneration and Development Fund (URDF). Cork City Council and Cork County Council will receive the funding which is the biggest investment by the public sector in Cork city in the history of the State. Irish Examiner, 20th March
Yew Grove Stock market-listed property investor Yew Grove Reit increased its rent roll last year to €10.9m from €8.9m at the end of 2019. This has now further increased to €11.3m from January 1 this year. The company experienced 100% rent collections for both the final quarter of 2020 and the first three months of this year, according to annual results from the group. The company’s portfolio valuation on 31 December 2020 was €141.9m, up from €115.8m at the end of 2019. Two third of Yew Grove’s tenants are multinationals with 26% being government tenants. In December last year Yew Grove said it had progressed in its plans to sell “non-core” properties. As part of this, the company sold a vacant industrial unit in Stillorgan for €1.46m in November 2020. The company also sold units at Centrepoint Business Park, Clondalkin, County Dublin, for €950,000 in December. Irish Independent, 22nd March
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