20th September (Issue 365)
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
South Leinster Street, Dublin City Centre Trinity Point in Dublin City Centre is being offered to the market by Cushman & Wakefield at a guide price of €57m (NIY 4.14%). The subject property comprises a six-storey over-basement office building extending to 43,696 sq. ft. along with 20 secure basement car-parking spaces. Located at 10/11 South Leinster Street, the property overlooks Trinity College Dublin and sits adjacent to the National Gallery of Ireland. The subject property is majority let to the Office of Public Works (OPW) on two FRI leases expiring in March 2032. With the OPW paying rents of between €55 per sq. ft. and €59 per sq. ft., the investment offers significant reversionary potential with recent deals in the area achieving in excess of €65 per sq. ft. The Irish Times, 14th September
For lending terms on this asset please contact rossmetcalfe@origincapital.ie
Eastpoint Business Park, Dublin 3 Iroko Zen has made its third investment in the Irish property market, paying €12.2m (NIY 8.98%) for Block P1 at Dublin’s Eastpoint Business Park. Iroko ZEN’s latest purchase at Eastpoint Business Park, meanwhile, comprises a modern office block comprising 41,979 sq. ft. of space distributed across three storeys, along with 61 car-parking spaces. Developed in 1999, the building is 77% let to three tenants. The tenant line-up currently includes Tedcastles Oil Products, cloud computing and virtualisation technology company Citrix Systems International, and IQVIA, a global provider of advanced analytics and human data science technology. Iroko Zen will also benefit from a two-year rental guarantee for an area of 9,461 sq. ft. which is currently being marketed for rental. The Irish Times, 14th September
Herbert Street, Dublin 2 Knight Frank is guiding a price of €6.8m for Mount Herbert Court. Located on the corner of Upper Mount Street and Herbert Street, Mount Herbert Court briefly comprises two interconnecting period buildings extending to a total of 9,272 sq. ft. along with 20 secure car parking spaces. The buildings — 34/35 Upper Mount Street — are available for sale in one or two lots. No. 34 Upper Mount Street, the larger of the two buildings extends to a NIA of 5,500 sq. ft. No. 35 Upper Mount Street interconnects with no. 34 at basement and third-floor levels and extends to a NIA of 3,722 sq. ft. The properties are being sold with the benefit of vacant possession and Knight Frank is guiding €6.8m exclusive of VAT for the entire. The Irish Times, 14th September
For lending terms on this asset please contact rossmetcalfe@origincapital.ie
North Dock, Dublin City Centre Developer TIO (Targeted Investment Opportunities) has secured its latest occupier for its North Dock office scheme in Dublin’s north docklands, with financial services company Virtu Financial committing to a long-term lease for 13,300 sq. ft. at North Dock One. Virtu is understood to have agreed to pay a rent of c. €52 per sq. ft. for its new offices. The completion of the deal comes just three months after Interactive Brokers and HEAnet signed for offices at the development. Other tenants include Gilead Sciences and Blueface. North Dock extends to 202,000 sq. ft. in total, distributed between North Dock One (95,000 sq. ft.) and North Dock Two (107,000 sq. ft.). The Irish Times, 14th September
Dawson Street, Dublin 2 Goodbody Stockbrokers is currently undertaking the fit-out on its new 60,000 sq. ft. of offices at 12 Dawson St, Dublin 2, which has been redeveloped by Oakmount, the property development company headed by Paddy McKillen Jnr. Another McKillen company, the Press-Up hospitality group, is to open a 10,000 sq. ft. restaurant to be known as Hendersons occupying the building’s ground floor and basement next year. Knight Frank is believed to have secured a rent of c. €60 per sq. ft. for the offices. The Irish Independent, 15th September
HOSPITALITY
The Temple Bar Lane, Dublin The owners of the Dublin city pub, The Temple Bar, have expanded their already-extensive interests with the purchase of the adjacent Temple Bar Lane hotel. Temple Inns Ltd, the company headed up by publicans Tom and Jackie Cleary, is understood to have paid slightly more than the €11m price MM Capital had been seeking when they offered the property for sale through JLL last February. Having acquired the then 171-bed Barnacles Hostel from the MHL Hotel Collection for €8m 2018, MM Capital went on to refurbish and reposition it as a 36-key boutique hotel. The property offers its new owners further development potential within its existing envelope, with immediate scope for the addition of eight guest rooms. The sale also included a ground-floor cafe unit on Cecilia Street. The Irish Times, 14th September
Kildare Street, Dublin City Centre Buswells Hotel is being offered to the market by Savills on behalf of the liquidators of the IBRC, KPMG, at a guide price of €22m. The 67-bedroom hotel comes for sale free from both its management agreement and brand, giving the prospective purchaser the opportunity to invest, reposition and extend the property (subject to planning permission). The Irish Times, 14th September
Howth, Co Dublin Fingal County Council has raised “significant concerns” over plans to construct a new road to serve a proposed 142-bedroom ‘destination’ hotel for Howth in north Dublin. In July, the owners of Citywest Hotel, Tetrarch Capital, lodged plans for the new hotel on the site of the former Deer Park hotel in Howth. Under Tetrarch’s plan, the existing Deer Park building is to be demolished and replaced by the new four-storey hotel. However, a Fingal County Council planner’s report has said the scale and need of the new access road for the hotel “appears excessive”. The proposed road is also the focus of objections from the local Church of Ireland, residents and the Social Democrat TD Cian O’Callaghan. The Irish Times, 16th September
Henry Street, Dubin 1 Fitzwilliam Real Estate is to lodge plans for a nine-storey, 245-bedroom hotel at Arnotts in the coming days. The hotel scheme will involve the demolition and decommissioning of the top three open air levels of Arnotts’ multi-storey car park resulting in the removal of 145 car spaces. The lodging of the plans comes 10 months after the firm sought permission for a 12-storey, 159-unit build to rent scheme on the same site at Arnotts. That involved the construction of a 12-storey over-basement element fronting Williams’ Lane; a five-storey element over Arnotts’ multi-storey car park; and a two-storey element over Arnotts’ store. That proposal also involved the removal of the top three floor levels of Arnotts’ car park. The Irish Times, 19th September
RETAIL
Douglas Village, Cork City Having been closed for more than a year during the Covid-19 pandemic after a fire caused an estimated €30m in damage to its car park, the newly-refurbished Douglas Village Shopping Centre is being offered to the market at a guide price of €21m (NIY 10.42%). Located in Douglas village and just 3.5km south of Cork city centre, the scheme, which extends to 230,000 sq. ft. on a 6.1-acre site, is Ireland’s second-oldest shopping centre after Stillorgan Shopping Centre, having first opened for business in 1971. Presently, Douglas Village Shopping Centre is being anchored by Tesco and Marks & Spencer. The total current rental income is €2.4m pa and the WAULT is seven years to break options and 11 years to expiry. Mark & Spencer, TK Maxx, Bank of Ireland, Eurogiant and Cork City Council contribute to 54% of the total income. The letting of the remainder of the centre’s vacant units has the potential to add between €300k and €500k pa to the scheme’s overall income. The Irish Times, 14th September
Carlow, Co Carlow Carlow’s Fairgreen Shopping Centre is on the market at a price of €22.85m. The scheme extends to 248,829 sq. ft. of retail space (including three owner-occupier anchor tenants – Tesco, Heatons and an IMC cinema) and is producing a current net rent roll of €2.36m pa (NIY 9.4%). Fairgreen Shopping Centre comprises 50 retail units including retailers such as New Look, Costa, Eurogiant, Carraig Donn, Elverys, River Island and JD Sports. The centre has 762 surface car-parking spaces offering three-hour free parking. Apart from the existing retail space, the current owners secured planning permission in 2019 for a new two-storey standalone retail unit of more than 40,000 sq. ft. with a view to securing an additional large anchor tenant in place of unit 27. The Irish Times, 14th September
INDUSTRIAL / LOGISTICS
Plassey, Limerick Johnson & Johnson Vision Care is to invest €100m in the expansion of its facility in Plassey, Limerick. The US multinational said that the investment will allow the company to expand the facility’s manufacturing capacity, with the installation of fully automated flexible manufacturing lines. The site in Limerick is one of the largest contact lens manufacturers facilities in the world. Construction is already underway at the site, with production expected to commence in 2024. The Business Post, 16th September
MIXED-USE
Boyne Mill, Co Louth Silveroak/Greenhills has been granted planning permission by Louth County Council to build a 236,806 sq. ft. mixed-use scheme. The project consists of a four-storey building with a digital innovation hub, co-working space, and a large two-storey restaurant; a two-storey building with five retail units and offices; a two-storey over basement building with a cultural facility and a two-storey car park; a two-storey building with another two-storey restaurant; and two five-storey buildings incorporating 64 apartment units. These are broken down into 27 one-bed units, 27 two-beds and 10 three-bed units. The renovation and adaption of the former Boyne Mill Yarn store to provide a five-storey 120-bedroom hotel with an ancillary restaurant will complete the complex. The Business Post, 17th September
Drumcondra, Dublin 3 Charthouse Business Centre off Richmond Road in Drumcondra, Dublin 3, will be auctioned on BidX1 on 29th September with a €2.5m guide price (NIY 8.19%). The subject property includes warehouse, office and retail units, but it’s better known tenants include Troubadour Rehearsal Studios, which accounts for more than 14% of the total rent. Charthouse comprises 30 units with combined floor areas of only 17,825 sq. ft. 27 units account for annual rents of €225.24k with the other three units being vacant. The Business Post, 16th September
For lending terms on this asset please contact rossmetcalfe@origincapital.ie
Drumalee, Co Cavan TWM has launched the sale of Loughtee Business Park in Drumalee, Co Cavan, which is anchored by a HSE primary healthcare centre and a Centra supermarket. The agent is guiding €5.5m for the entirety. Cavan Primary Care Centre represents c. 57% of the business park’s total revenue. The entire property extends to c. 70,568 sq. ft. on a site of c. 3.75 acres. The campus is divided into three blocks. The business park currently produces a passing income of c. €565.1k (with contracted rent of c. €636.6k) representing a NIY of 9.34% increasing to 10.53%. The WAULT on the HSE and Centra income only is 15.5 years to expiry and 13.85 years to break. The Business Post, 16th September
Midleton, Co Cork Dawn Meats’ plans to build at the Water Rock site near Midleton were approved by Cork County Council. Despite the approval, the decision can still be appealed to An Bord Pleánala and is subject to 115 conditions. The meat processor first applied for planning permission to build the mixed-use development last December. According to the application, the residential element of the plan includes a total of 434 residential units. These included apartments/duplex units in eight blocks ranging in height from three to seven storeys. The plans also included terraced and semi-detached houses ranging from two-bed to five-bed. Plans also showed Dawn Meats wants to build a three-storey research and development office and a five-storey neighbourhood centre that includes retail uses. It was also looking to develop a 90-bed nursing home and a childcare facility. The Irish Independent, 18th September
RESIDENTIAL / DEVELOPMENT
Ennis, Co Clare Glenveagh Homes has submitted an application to build 289 residential units and a crèche in Ennis, Co Clare. The development consists of 265 houses and 24 apartments. The total floor area of the proposed development is 314,284 sq. ft., and the estimated cost €55m. The Business Post, 17th September
Balbriggan, Co Dublin Kinvara Properties has submitted an application for the construction of 127 residential units consisting of 65 houses and 62 apartments at Flemington Lane in Balbriggan, Co Dublin. A crèche is included in the plan. The overall floor area of the development will measure 149,284 sq. ft. The estimated cost is €29m. The Business Post, 17th September
Sandyford, Dublin 18 Developer Zolbury is seeking planning permission to build a new scheme of 360 residential units in Blackglen, Sandyford, Dublin 18. It is planning 123 one-bed, 224 two-bed and 13 three-bed units and a crèche. The overall development would have a combined floor area of 363,206 sq. ft. at an estimated cost of €70m. The Business Post, 17th September
Navan, Co Meath Glenveagh Homes has been granted planning permission to build a €27m residential development in Navan, Co Meath. The development, on lands north of Clonmagaddan Road, will comprise a mix of detached, semi-detached and terraced units, including 24 two-bed, 73 three-bed, three four-bed houses and six one-bed, 16 two-bed and 16 three-bed apartments. A large, landscaped public open space is provided in the proposed development, including a play area for children. The scheme includes 248 car parking spaces and 108 bicycle parking spaces. The Business Post, 17th September
Sandyford, Dublin 18 Developer Atlas GP is seeking permission for a €60m development that will consist of 334 build-to-rent residential apartment units in four apartment blocks at the junction of Carmanhall Road and Blackthorn Road in Sandyford, Dublin 18. The development includes 254 one-bed and 80 two-bed units. The Business Post, 17th September
Parkside, Dublin 13 Cairn Homes has begun construction on a new €131m strategic housing development at Parkside in Dublin 13. The first building will consist of eight single storey units with own-door access beneath eight duplexes accessed via external stepped access routes. The Business Post, 17th September
Vacant Home Revamp Grant, Ireland The €50k grant for the refurbishment of vacant homes is to be extended to help tackle the housing crisis. There are at least 92k vacant buildings around the country according to Geodirectory, a company owned by An Post, but the current vacant property grant is currently only available for properties located in 500 towns and villages which have a population of over 400 people. There is €50m available for the vacant property grant, which aims to bring 2k homes back into use by 2025. Houses must be vacant for two years or more and built before 1993 to qualify. The grant is only available to people who are going to live in the home, not investors or landlords. The standard refurbishment grant will be up to €30k, but this can rise to €50k on structurally unsound and dangerous derelict houses. There is a clawback mechanism if people sell their homes, with the full €50k grant having to be repaid if there is a sale within five years, and three-quarters having to be repaid if there is a sale between five and ten years. After that, there is no clawback charge. The Business Post, 17th September
Blackrock, Co Dublin Glenveagh Homes has sold a forthcoming development in Blackrock, Co Dublin to German investment fund Union Investment. The forward purchase deal for Newtown Gardens, a 140-unit apartment scheme near the wealthy suburb’s village centre, is due to complete in Q3 2024. The type of deal means the one and two-bed apartments will not come onto the open market for owner-occupiers to buy and will instead be rented out by Union. The Irish Independent, 19th September
Douglas Street, Cork Patricks Unity Ltd has lodged plans with Cork City Council proposing the conversion of the site at 18/19 Douglas Street – formerly An Cruiscín Lán pub – into three apartments. The works involve the construction of an open courtyard within the existing building footprint and a new access gate as part of the protected stone archway to the former St John’s Market. In 2020, the council granted permission to Michael Kennefick to transform the pub into a ground-floor cafe/restaurant. Although plans for the restaurant were given the green light, they never came to fruition. The Irish Examiner, 14th September
Glanmire, Co Cork A housing body received more than 900 applications for 32 affordable-rental homes in Co Cork in a period of just two days this week. Respond housing said the “huge volume” of interest in the homes, which will be available at a rate 25% below market rents, underlines the “level of need and demand” for affordable housing. The housing body said it expected the first tenants would move into the homes, located southeast of Glanmire, by November. Applications opened last Wednesday and will close next Wednesday. The Glanmire homes, comprised of eight three-bedroom houses, eight two-bedroom houses, eight two-bedroom duplex apartments and eight one-bedroom apartments, are likely to be priced at between €840 and €1,085 per month. The tenancies will be secure as long as the tenancy agreements are upheld. Property website Daft.ie had just two properties available to rent in Glanmire, both four-bed homes seeking €2.2k and €2.8k pm respectively. The Irish Times, 16th September
Residential Portfolio, Ireland The pension fund of a British weapons dealer has sold its Irish residential portfolio to a Davy investment fund for a 15% profit less than a year after purchasing the homes. BAE Systems spent €14.4m acquiring 43 second-hand properties in Ireland in 2021 through its pension fund. According to market sources, the British weapons manufacturer sold the properties in April for €16.8m to an investment fund controlled by Davy, making a profit of €2.4m. BAE Systems made an average of €50k profit on each unit. An examination of homes purchased by the firm’s pension fund has shown that at least 33 of the 43 were acquired individually on the open market, not as part of a bundle. In many cases, the arms manufacturer paid significantly more than the going rate to secure the homes. BAE Systems originally sought to acquire the properties in order to lease them to Dublin City Council and Fingal County Council for use as social housing. It secured a preliminary agreement to lease some homes to Dublin City Council, but the deal was abandoned after the local authority said “it would not be appropriate to proceed”. The Business Post, 17th September
OTHER
Goatstown, Dublin 14 Lisney is seeking offers of more than €3m (NIY 6.77%) for the Circle K filling station on Taney Road in Goatstown, Dublin 14. The investment is situated on a 0.4-acre plot and is let to Circle K from 2014. Circle K recently extended its lease to a 12-year unexpired term with no break options. The passing rent is €200k pa. The property also benefits from a roof mast that is leased on a five-year licence from 2021, providing a further €23.4k pa. This brings the overall income to €223.4k pa. The Irish Times, 14th September
Boherbue Wastewater Plant, Co Cork Galway wastewater company Glan Agua is expected to start construction imminently on the €1.5m upgrade at Boherbue Wastewater Plant in Co Cork. The project will allow for village expansion, the supply of water to 1,200 people and the construction of 20 additional housing units in the Laharan West Area. It is expected to be completed in 2024. The Business Post, 17th September
Dundalk, Co Louth Kilcawley Construction has completed the works on the new €6.8m IDA Technology Building in the Dundalk Science & Technology Park at Mullagharlin in Dundalk, Co Louth. The building extends to 34,896 sq. ft. and took c. 24 months to complete. The Business Post, 17th September
Population Projections, Ireland While supply chain and wage inflation are putting significant upward pressure on the cost of housing delivery, the zoning policies being adopted by many councils are contributing to high land values, rising house prices and spiralling rents. This is according to an opinion piece by Michael McElligott, CEO of Tetrarch Homes in the Irish Times. Every development plan in Ireland is informed by the population growth targets in the National Planning Framework (NPF) and a Housing Need and Demand Assessment prepared with guidance from the Department of Housing. According to Mr. McElligott, there is a major flaw in the data used, given that projections informing the current series of development plans are based on the 2016 census, when Ireland had a population of 4.75m people, rather than the evidence from this year’s census with the population now standing at a much larger 5.12m. Immigration in the 12 months to April 2022 was at its highest annual level in 15 years. While 60k people left the State in that period, twice that number came to Ireland. Add to that the 75k+ Ukrainian refugees that are projected to come this year and up to a further 25k refugees from elsewhere. Next year it is quite possible that the population will reach 5.3m people, a growth rate c. 80% more than that assumed under the NPF. Despite the facts on the ground, which the Department of Housing and the Office of the Planning Regulator are fully aware of, they continue with a housing policy that assumes the housing requirement will average 33k new build units for the foreseeable future. The Irish Times, 19th September
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