20th May (Issue 497)
Welcome to the Origin Capital Weekly Irish Property Review. This update is designed to provide you with a full recap of the latest property news from the media over the last seven days.
OFFICE
LaTouche House, IFSC CBRE is understood to be guiding €25m for LaTouche House. The price tag represents a 70% discount on the amount paid five years ago by Axa IM Real Assets and BCP to secure the property. Developed in the early 1990s as one of the first buildings in Dublin’s then fledgling financial services district, the 92,000 sq. ft office block had commanded a valuation at its peak of some €100m in 2007. In 2013, in the wake of the global financial crisis, it was sold by a group of private investors for €35m. Three years later, and with Ireland’s economic recovery firmly under way, the building’s Luxembourg-based owner accorded it a value of €70m. Credit Suisse put the property on the market for €95m in 2019 and secured its sale to Axa IM Real Assets and BCP for €84m in February 2020. The acquisition of the building was backed by a debt facility provided by Bank of Ireland, who had acquired the property in shell condition for its own use for €38m in 1993. The Irish Times, 14th May
St. Stephens Green, Dublin 2 The landmark headquarter office of Dublin law firm, Ivor Fitzpatrick & Co, is being put up for sale following a decision by the company to relocate. The property, which occupies a pivotal position at the junction of St Stephen’s Green and Hume Street, is being offered to the market with the benefit of full vacant possession by Knight Frank at a guide price of €10m. Built in the early 1970s, 44/45 St Stephen’s Green comprises a modern concrete structure behind a mock-Georgian facade. The building, which extends to a net internal area of 16,830 sq. ft, has a mix of open-plan and cellular offices over six floors, with typical floor plates of approx. 3,150 sq. ft. The property has 15 car-parking spaces. The Irish Times, 14th May
Cork Airport Business Park, Co. Cork. CBRE has brought two units to market in Cork Airport Business Park, buildings 6400 and 6700, for a combined €10.75m. CBRE is guiding €6.75m for Building 6400 which is fully let to Amazon. Building 6400 is 45,000 sq. ft and at a current rent of €756,888, reflects a return of 10.2% on a lease which expires in September 2027. Also put up for sale is building 6700, let to Red Hat, an IBM subsidiary, and which is priced at €4m. Building 6700 is 25,839 sq. ft, and is let under three separate leases at a combined annual rent of €412,550. These leases run until February 2028, and at the guide offer a NIY of 9.4%. The properties, which were constructed in 2006, have a B3 energy rating. The Examiner, 14th May
HOSPITALITY
Brittas Bay, Co. Wicklow The Conlan family is nearing the purchase of the European Club golf course in Brittas Bay in a deal believed to be worth €50m. The course sprawls across 200 acres of prime beach front dunes overlooking the Irish Sea. The deal, handled by Sotheby’s International Realty, was guided at €35m but is likely to sell for closer to €50m, it is understood. Lisney confirmed the sale was underway but would not comment on the value of the transaction. The package includes the championship links, a clubhouse with panoramic views, three private homes, and nearly a mile of sea frontage. The Ruddy family, who have managed operations since the club’s founding, will officially vacate the property on June 18. With just 80-odd members, the European Club has remained deliberately exclusive, but the new owners now face the choice of preserving its boutique charm or expanding its commercial footprint. The Business Post, 16th May
Waterville, Co, Kerry The iconic Butler Arms Hotel has been launched for sale through JLL with a guide price in excess of €6m. The move comes under the instruction of joint receivers Ken Fennell and Brendan O’Reilly, following the recent receivership of Butler Arms Hotel Limited. Nestled between the world-renowned Waterville Golf Links and the exclusive Hogs Head Golf Club, the hotel occupies a prized 1.3-acre beach-front site. Currently comprising 36 guest rooms, a popular restaurant, and the historic Fisherman’s Bar, the hotel offers uninterrupted views over Ballinskelligs Bay. The Business Post, 18th May
Trinity Street, Dublin 2 Grand Coast Capital is seeking €3.5m through Cushman & Wakefield for number 13 Trinity Street. Located at the junction of Andrew’s Lane and Trinity Street, the property comprises a part-two-storey, part-four-storey building extending to 8,353 sq. ft over basement level. While the outdoor-clothing brand Trespass currently occupies part of the ground floor under the terms of a licence agreement generating €36,000 pa plus 10% of annual turnover, vacant possession is available at short notice. Planning permission was granted by Dublin City Council (“DCC”) in November 2023 for the development of a 30-bedroom hostel comprising 198 bed spaces. The permission allows for a refurbishment of the existing four-storey building with the addition of a new eight-storey over basement building to the rear of the site. The hostel’s bedroom sizes range between 108 sq. ft and 540 sq. ft, with typical hostel facilities located at ground and basement level. The permission also provides for a standalone bar and restaurant area with seating for 63 customers. The property was originally offered to the market early last year at a higher guide price of €4m. The Irish Times, 14th May
Hotel Planning, Dublin 2 An Board Pleanála (“ABP”) and Dublin City Council (“DCC”) issued separate refusals to plans by Eamon Waters’s Sretaw Hotel Group for two hotel projects in the city centre. In one decision, the appeals board refused planning permission for a 61-bedroom hotel close to St Stephen’s Green. It included plans for a new eight storey hotel on a site known as Textile House on Johnson’s Place and Clarendon Market opposite the Grafton Hotel in Dublin. The development was to be an extension to the 127-bedroom Grafton Hotel. Separately, DCC has refused planning permission to Mr Waters’s Peachbeach UC for a 113-bedroom hotel on Baggot Street Lower as it felt the scheme would cause serious injury to the special architectural character of the Georgian area. The Irish Times, 16th May
MIXED-USE
Swords, Co. Dublin Bannon is guiding €4m (8.5% NIY) for a mixed-use investment just off Main Street. Burgundy House and Burgundy Court comprise two mixed-use blocks consisting of four apartments, seven retail units, six office/trade units and 40 underground car spaces. The investment is currently generating a combined annual rental income of €377,000. The property is let to five tenants with several units let at below market rents, representing strong reversionary potential. The subject property extends to a net internal area of 21,960 sq. ft across the two buildings. Burgundy House benefits from direct access off Swords Main Street to a courtyard which is home to a variety of retail units. The remaining retail elements front onto Fosters Way with the upper floor comprising office and retail occupiers. Burgundy Court has a single retail unit (Polonez) at ground-floor level with a mix of retail services, office and the four residential unit on the upper floors. The Irish Times, 14th May
INDUSTRIAL
Naas Road, Dublin 12 JLL is guiding €8.5m for an industrial unit at Muirfield Drive. The subject property, which extends to approximately 40,000 sq. ft and sits on a site of 2.5 acres, is currently fully let to Hevac Limited and The Tube Company of Ireland Limited, both of which are wholly owned by Wolseley. The property is occupied on a 10-year lease from June 30th, 2022, and is generating an annual rent of €525,000. The investment benefits from index-linked rent reviews with CPI adjustments, with a new adjustment scheduled for January 1st, 2029. The Irish Times, 14th May
Blanchardstown, Dublin 15 Clyde Real Estate has retained Harvey to find an occupier for the industrial space in Clyde House at Blanchardstown Business & Technology Park. Extending to 63,000 sq. ft, the available accommodation comprises the ground floor of a wider 175,000 sq. ft holding on 6.5 acres that includes corporate offices and extensive car parking. The industrial space has recently undergone a significant refurbishment and has its own dedicated entrance which leads to a secure and gated service yard. The subject property is available for immediate occupation on flexible lease terms and the quoting annual rent is €630,000. Clyde House is on a high-profile site within Blanchardstown Business and Technology Park. Key operators within the scheme include Amazon Web Services (AWS), Equinix, Innalabs, Donnelly Fresh Foods, Ipsen Manufacturing Ireland and The Jelly Bean Factory. The Irish Times, 14th May
PURPOSE BUILT STUDENT ACCOMMODATION
Coolough Road, Galway City An appeal has been lodged to ABP this week against the approval of a major student accommodation proposal. Residents have appealed to the planning authority following Galway City Council’s decision to grant permission for an 84-apartment development on Coolough Road back in April. The development would comprise of seven blocks of apartments, providing for a total of 586 bedspaces and be located near the junction of the Coolough Road and the Dyke Road. The project, initially lodged by McHugh Property Holdings Limited, was approved despite a raft of submissions against it. The apartment blocks would be located across the road from another student accommodation development of 257 bedrooms that also recently received planning permission from ABP. The proposed accommodation scheme is arranged in seven blocks ranging from four and five storey buildings. The Irish Independent, 16th May
RESIDENTIAL/DEVELOPMENT
Dun Laoghaire Rathdown DLRCC Councillors approved the building of a new 80-home development in Leopardstown in south Dublin. The 80-unit development of duplexes and apartments is earmarked for a site bordered by the M50 to the north and Leopardstown Road to the south, opposite the Leopardstown Rise housing estate. The development will include a mix of social and affordable units. Councillors who approved the scheme were told the development is one of some 16 housing schemes in various stages of progression. The largest of the pipeline of housing projects is a scheme of 597 social and affordable homes currently under way at Shanganagh Castle, Shankill. The next largest is a development of 300 proposed for Ballyman, near the Co. Wicklow border, which is at preliminary design stage. A further development of 129 homes earmarked for Blackglen Road in Sandyford is also at preliminary design stage, as are 100 homes proposed for a site at Lehaunstown, near Cabinteely. Councillors at Monday night’s meeting were also supplied with a report in which it was revealed the council received 640 applications for just 30 three-bedroom homes at Woodbrook, Shankill. The application portal was open for three weeks in April. The Irish Times, 13th May
New Homes The number of new homes commenced so far this year is almost eight times lower than by this time in 2024 and is now at its lowest level since 2016, new figures show. Latest commencement data from the Department of Housing shows 3,945 notices to commence work on new homes have been lodged so far this year. This compares to 30,689 for the same period last year. A commencement notice is sent by a landowner to the local authority as a signal of their intention to begin building on a site for which they have received planning permission. It does not mean construction has started, though once the notice is validated by the council work must begin within 28 days of it being filed. Comparing the data for the first four months of several years shows there were 9,928 notices lodged in that timeframe in 2023, 9,343 in 2022, 7,611 in 2021, 7,892 in 2020, 8,523 in 2019, 6,300 in 2018, 5,480 in 2017 and 3,735 in 2016. The Irish Times, 19th May
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