20th September (Issue 64)

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.




Madrid Portfolio: Knight Frank, under the instruction of the receiver Duff & Phelps, is marketing the sale of the Madrid Portfolio, which contains 18 commercial properties and 12 residential properties with an asking price of over €27m. The properties were previously acquired by Bernard McNamara, who had hoped to develop a shopping enclave between Clarendon Street and South William Street in Dublin city centre. This development didn’t proceed and the loans were transferred to NAMA. The commercial properties extend to 76,756 sq. ft. and the residential units extend to 7,706 sq. ft. There are 26 tenants in situ in the portfolio and the current rental income is c. €1.4m p.a. The Irish Times, 14th September



Fairgreen Shopping Centre: Dr Gerard O’Hare has hired CBRE to handle the sale of the c. 255,000 sq. ft. Fairgreen Shopping Centre in Carlow, which comes to the market with a €36m price tag. The 14-year-old shopping centre has a rental income of c. €2.705m p.a. from 44 tenants, offering a net initial return of c. 7.2%. The shopping centre is anchored by Tesco and Heatons, who own their stores. The shopping centre is situated on a c. 13-acre site with 762 car spaces. The Irish Times, 14th September

Dundrum Town Centre: The joint owners of Dundrum Town Centre, Hammerson and Allianz, are considering either the alteration of the development plans for or the disposal of a six-acre site which adjoins the shopping centre. The site previously had planning permission for c. 1.184m sq. ft. of retail, dining and leisure facilities, however Simon Betty of Hammerson has said that the site may be suitable for residential units. As Mr Betty has said that “Residential development is not really our core business”, the owners may dispose of the site or enter a joint venture / partnership to facilitate any residential development. The retail units that currently occupy the six-acre site are on short-term leases. The Irish Times, 16th September

Ballymount Retail Centre: Cushman & Wakefield is guiding over €13.8m for Ballymount Retail Centre in west Dublin. The retail centre was developed on a c. five-acre site in 2006 and consists of nine ground floor retail units and a number of offices overhead. The centre is split into two blocks, with Block A having a floor area of 57,965 sq. ft. and Block C having a floor area of 39,201 sq. ft. The current rental income is over €1.22m p.a., with Tilestyle (€521k p.a.) and SIG Building Products (€316k p.a.) the highest paying tenants. The property is being sold by the receiver Deloitte. The Irish Times, 14th September

St Patrick’s Street, Cork: Cushman & Wakefield is guiding €6m for a three-storey property let to Boots on St Patrick’s Street in Cork. Boots occupy the 4,687 sq. ft. property under a 35-year lease from 1987, with the current rent set at €540k p.a. The lease is subject to upward-only rent reviews every five years. The Irish Times, 14th September

Distillery Lanes, Midleton: Cushman & Wakefield is inviting offers of €2.75m for a mixed-use investment on the Main Street of Midleton, Co. Cork. Distillery Lanes extends to 46,681 sq. ft. and encompasses 11 retail units, 10 office units and an interlinking 261-space car park. The current rental income of c. €237k p.a. comes from just nine units, as only five retail and four office units are occupied. The anchor tenants are Iceland and Irwin Electrical. The Irish Times, 14th September

Fallon & Byrne, Rathmines: Fallon & Byrne is to open a food hall in The Swan shopping centre in Rathmines, Dublin 6. The c. 10,000 sq. ft. hall will extend onto Castlewood Avenue and will contain an outdoor terrace with a seating area. The Swan shopping centre is anchored by Dunnes Stores and Omniplex Rathmines. The Irish Times, 14th September



Scotch House: QRE is quoting €21.5m for an office redevelopment opportunity near O’Connell Bridge in Dublin 2. An Bord Pleanála recently granted planning permission for the redevelopment of Scotch House, with approval given for a seven-storey, 41,600 sq. ft. property. The new property also has planning permission for retail units on the ground floor and 12 basement car spaces. The Irish Times, 14th September

Topaz House: BNP Paribas Real Estate is guiding €7.5m for Topaz House in the Beech Hill office campus in Clonskeagh, Dublin 4. The 21,366 sq. ft., three-storey block is let to Topaz, which is paying a rent of €460k p.a. under a 35-year lease from 1991. The property includes 68 surface level car spaces. The Irish Times, 14th September

Dolcain House: SIAC has retained CBRE to sell their head office on Monastery Road in Clondalkin, Dublin 22. Bids of €5m are being sought for Dolcain House, which consists of three blocks and has a net lettable floor area of 57,066 sq. ft. SIAC currently occupy Block B (18,220 sq. ft.) under a five-year lease from February 2014 at a rent of c. €101k p.a. (c. €5.50 psf), however they will vacate this block if the new purchaser wishes. The property comes with 211 car spaces. Blocks A and C are currently vacant, however the agent states that they are fitted out to a high specification. The Irish Times, 14th September



Gresham Hotel: RIU Hotels & Resorts has completed the purchase of the Gresham Hotel in Dublin city centre for c. €92m. The 323-bed hotel was previously owned by Precinct Investments, which is controlled by Bryan Cullen. The underbidders for the hotel included Apollo and Cerberus. The Irish Independent, 15th September

LeBruin acted as an advisor to Precinct Investments on the sale of the Gresham Hotel: lebruinprivate.com/lebruin-acts-advisor-sale-gresham-hotel/



Permanent TSB (PTSB) Securitisation: PTSB has hired Morgan Stanley, Citigroup and Deutsche Bank to manage the securitisation of c. €691m of mortgages. PTSB will use an investment vehicle named Fastnet Securities 12 to issue the residential mortgage-backed securities. According to the rating agency DBRS, none of the mortgages are investment properties and 92.7% of the mortgages have not been in arrears in the past five years. DBRS did note that 5.4% of the mortgages had previously been in arrears for longer than three months, however these are now back within contract. The Irish Times, 16th September

St Edmund’s Apartments: Offers in excess of €32.5m are being sought by joint agents Lisney and Hooke & MacDonald for 160 apartments and 167 car spaces in the St Edmund’s development near Liffey Valley Shopping Centre in west Dublin. The apartments are split into 142 two-beds, nine one-beds, eight three-beds and one four bed. At €32.5m, the average price of each apartment is c. €203k. The current rental income is c. €2.435m p.a., with the agents projecting the market rent at c. €2.792m p.a. The apartments were completed by Ray Grehan’s Glenkerrin Homes before the property crash. The Irish Times, 14th September

Tallaght Site: CBRE is guiding €3m for a 3.05-acre site on Whitestown Road in Tallaght, Dublin 24. There is outline planning permission for a 6,243 sq. ft. petrol station and a 4,198 sq. ft. drive-through restaurant on two acres of the site. The remaining 1.05-acres does not form part of the outline planning permission but has zoning for “enterprise and employment”. The Irish Times, 14th September

KBC Survey: A recent survey completed by KBC Bank shows that there is significant demand for residential property among Irish adults. Of the 2,000 individuals surveyed, c. 32% are planning to buy a property in the next 24 months, 49% think now is a good time to buy and 67% do not see the uncertainty surrounding Brexit as having any impact on their investment decision. 44% of the individuals surveyed say that the Central Bank’s lending restrictions have had no impact on their purchase plans, while 27% say that the measures mean that they will have to spend longer saving for a deposit. KBC Home Buyer Survey, September 2016



Citywest Warehouse: Offers of €3.1m are being sought by William Harvey & Co. for a 25,155 sq. ft. warehouse in Magna Business Park, Citywest, Dublin. The property is let to Leo Laboratories under a 10-year FRI lease, for which the current rent is c. €185k p.a. The tenant has a break option after year five, however they would have to pay a penalty of nine-months’ rent to utilise the break option.  The Irish Times, 14th September



Limerick 2030: A c. €500m investment programme has been unveiled for Limerick, making it the single largest commercial property development announced outside of Dublin. The official name for the development company is Limerick Twenty Thirty Strategic Development DAC, which will be chaired by Denis Brosnan. The first task of the company is to deliver c. €500m worth of investment infrastructure over the next five years, which is expected to be capable of creating over 5,000 jobs. The company will be responsible for redeveloping over 1.4m sq. ft. of commercial and residential space in Limerick city.  The Irish Times, 19th September

Blackrock Clinic: Jimmy Sheehan has told the board of Dublin’s Blackrock Clinic that he intends to sell his shares in the private hospital to Larry Goodman for c. €16m. Sheehan’s shares are currently held in his investment vehicle, Dornway. Goodman will acquire the shares through his own investment vehicle, Breccia. The Sunday Business Post, 18th September

Bank of Ireland (BoI) Galway: Joint agents Savills and O’Donnellan & Joyce are inviting offers of €4m for a BoI branch in Galway city centre. BoI is paying a combined rent of c. €261k p.a. across two leases, which have a weighted average unexpired lease term of 12.75 years. The four storey property has a floor area of 8,311 sq. ft. The Irish Times, 14th September

Galway Racecourse: Galway Racecourse is to undergo a c. €6m redevelopment which will begin after the 2017 Galway Summer Festival and should be completed in time for the 2018 festival. The announcement came after Horse Racing Ireland approved a funding package of c. €2.1m for the course. One of the main areas to be redeveloped is the existing Tote Ireland building, which will be demolished and replaced with a two-storey building which will facilitate up to 550 racegoers. According to Galway Racecourse manager Michael Moloney, the festival generates €54m for the local economy each year. The Irish Times, 16th September


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