21st February (Issue 84)
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.
RETAIL
42-43 Henry Street: Savills is guiding €18m for 42-23 Henry Street in Dublin which is located on the corner of Henry Street and Moore Street and offers an initial yield of c. 4.60%. The four-storey over-basement building is currently let to the Arcadia Group at a rent of €865k p.a. on a 35-year lease from 1985, with c. 3.6 years left to run. The property has an overall floor area of 10,342 sq. ft., including 2,800 sq. ft. at ground floor level. The basement, ground and first floors are occupied by women’s fashion retailer Evans, while the upper floors are used as offices, storage and ancillary accommodation. The sale comes at a time when Dublin’s retail sector continues to experience a resurgence, with limited investment opportunities available. The Irish Times, 15th February
City Square Shopping Centre: Marathon Asset Management has begun construction on the upgrading and extension of the City Square Shopping Centre in Waterford. It is expected to spend in excess of €6m on the project, which will involve repositioning several units and constructing a new two-storey retail unit with a floor area of 17,000 sq. ft. Letting agent Lambert Smith Hampton is reportedly in discussions with several international fashion brands who are believed to be interested in the new trading opportunity. The centre was purchased by Marathon Asset Management in May 2015 for over €21m, and was generating rental income of c. €1.7m p.a. at the time. The Irish Times, 15th February
OFFICE
Harcourt Road Offices: The Irish Times reports that Blocks 4 and 5 in the Harcourt Centre on Dublin’s Harcourt Road are expected to go on the market for about €50m through joint agents JLL and Knight Frank. The two buildings, which extend to over 56,000 sq. ft., will be offered for sale either individually or as one lot. The annual rent roll on the buildings is c. €2.17m p.a., with a weighted average unexpired lease term (WAULT) of c. 5.88 years, and the investment will offer an initial yield of c. 4.25%, which could be increased to c. 5% once rent reviews are completed and a ground floor café / restaurant unit is let. The Irish Times, 15th February
Treasury Building: The Irish Independent reports that Google has held informal talks over the last two months with the owners of the Treasury Building on Dublin’s Grand Canal Street regarding making a formal offer for the property. The building is currently occupied by the NTMA and a number of its subsidiaries (including NAMA) and has a rent roll of €5.482m p.a. CBRE is currently handling the sale of a 33.33% stake in the building on behalf of Percy Nominees, however it is believed Google has expressed an interest in paying c. €125m for the entire building, significantly above its estimated valuation of €100m. The remaining 66.67% of the building is currently owned by Ambiorix, which redeveloped the building in 1989. Google recently announced plans to add 400 employees to its 6,100-strong Dublin workforce, and is reportedly in talks to rent the newly constructed Velasco building on nearby Grand Canal Street. The Irish Independent, 16th February
Connolly Quarter: The Irish Independent reports that CIE is kick-starting a large development beside Dublin’s Connolly Station, which it is referring to as ‘Connolly Quarter’. The state-owned company received 10-year planning permission in 2012 for the development of 13 buildings, providing almost 900,000 sq. ft. of mixed-use space. This includes a six-storey 110-bedroom hotel, 106 apartments, 540,000 sq. ft. of office space, a museum and 550 underground parking spaces. However, the development was put on hold after planning permission was obtained, due to the economic downturn. Given the significant current demand for hotel rooms, office space and accommodation, CIE has initiated the process of hiring a property agency that will be tasked with finding a development partner for the project. The Irish Independent, 16th February
Dublin Airport Central: DAA has been granted planning permission by An Bord Pleanála to build almost 450,000 sq. ft. of offices in a new 70-acre business park at Dublin Airport, alongside a new public space which will be connected to Terminal 2. The four Grade A, six- and seven-storey head office buildings will range in size from c. 88,000 sq. ft. to c. 123,000 sq. ft. and will adjoin a high quality landscaped urban realm and city garden area. Construction of the new buildings was brought forward due to the earlier than expected success of the refurbishment of the former Aer Lingus HQ, which is now leased to ESB International. Construction is due to begin by early summer and should be completed by summer 2018. The joint letting agents for the new office park are Bannon and BNP Paribas Real Estate. The Irish Independent, 15th February
45 Upper Mount Street: Number 45 Upper Mount Street in Dublin 2 has been purchased by an overseas investor for €2m. The property, which is believed to be in good condition, has a floor area of 4,120 sq. ft. and contains three parking spaces to the rear. Colliers International handled the sale of the property. The Irish Times, 15th February
Charlemont Place Offices: Balark Investments Ltd has applied to Dublin City Council for permission to add an additional two storeys on to a proposed five storey office development on the corner of Charlemont Street and Charlemont Place in Dublin city centre. This would add an additional 30,000 sq. ft. to the proposed building, providing a total of 110,000 sq. ft. of office space. NAMA Wine Lake, 20thFebruary
HOTEL
Kilkea Castle Hotel: Podium Hospitality has won the contract to manage the refurbished Kilkea Castle Hotel, which is scheduled to reopen this summer after a substantial investment. The hotel is currently owned by American builder Jay Cashman, and is reportedly being refurbished to a five-star luxury standard. The property also contains a golf course, archery and fishing facilities, and will target the wedding, conference and events markets, among others. Other hotels in the Podium Hospitality portfolio include The Pillo Hotel in Ashbourne and Celbridge Manor Hotel in Kildare. The Irish Independent, 19th February
The D Hotel: The D Hotel in Drogheda has been purchased by a company backed by Irish-based executives of Stellwagen, an aircraft leasing firm based in Dublin’s docklands. Gleann Hospitality is listed as the purchaser of the hotel, and the main shareholder in the company is the Maltese registered Martello Group, which is controlled by Stellwagen executives. The Sunday Times, 20th February
22 Harcourt Terrace: Cork-based company Chesaway Ltd has lodged an application with Dublin City Council to convert an office building located at 22 Harcourt Terrace in Dublin city centre into a 40-bedroom guesthouse. The project involves the reconfiguration of the existing building and the addition of a new extension. NAMA Wine Lake, 19th February
RESIDENTIAL / LAND
The Casino, Malahide: A portfolio of 105 apartments at The Casino in Malahide has been officially launched, with agents Hooke & MacDonald quoting a guide price of €40m (c. €381k per apartment). Rents, including potential income from currently vacant show-apartments equate to c. €2m, offering a gross yield of 5%. The Irish Independent, 20th February
Clancy Barracks: Kennedy Wilson has lodged an application to convert several buildings at the former army barracks in Dublin’s Clancy Quay, which is located in close proximity to Heuston Station. The company is seeking to develop 154 residential units on the site, the majority of which will be apartments, alongside a few houses. Kennedy Wilson already owns and manages 423 apartments on the Clancy Quay site, and over 1,000 throughout the country. NAMA Wine Lake, 19th February
M1 Business Park, Balbriggan: An Irish buyer has reportedly paid over €6.15m for a significant land bank at the M1 Business Park in Balbriggan, Co Dublin. The site extends to 157 acres, with a freehold interest in a further 22 acres, and has a variety of zonings. Current occupiers in the business park include Kube Kitchens, Murdock Builders Merchants and Total Produce. The Irish Times reports that the new owner may consider selling the park off in lots, due to both the interest from owner-occupiers in developing their own premises, and the fact that there is very little industrial product under development. The M1 Business Park is located in close proximity to Dublin Airport and has easy access to Dublin’s docklands through the Port Tunnel. The Irish Times, 15th February
Carrickmines Site: Knight Frank is guiding €4m for a two-acre ready-to-go residential site on the Glenamuck Road South in Dublin 18. The site has full planning permission for the demolition of the current properties on the site (two large detached houses), and the construction of 16 four-bed semi-detached houses and 12 apartments (mix of one-, two- and three-beds), all with surface-level car-parking. The buyer may be able to benefit from an anticipated fall in development levies in the area, following recent revisions by Dún Laoghaire-Rathdown County Council. The site, which contains 88m of frontage onto Glenamuck Road South, is 1.1km from the Ballyogan Luas Stop and 750m from the M50. The Irish Times, 15th February
Montrose Student Residence: US property developer Hines has purchased the Montrose Student Residence beside University College Dublin (UCD) for €37.6m, somewhat less than the guide price of €41.5m quoted last year. The 205-bed purpose-built accommodation complex was constructed on the grounds of the former Montrose Hotel, after UK accommodation provider Ziggurat acquired the site in 2012. The gross rent roll for the complex is expected to reach c. €2.91m p.a. Hines and its investor partners entered the Irish student accommodation market last year with the acquisition of a major portfolio last December. The Irish Times, 17thFebruary
OTHER
Motorway Service Stations: Topaz and McDonald’s are to spend a combined c. €16m on two new motorway service stations. The first will be in Carlow on the Dublin – Waterford motorway, with the second in Fermoy on the Dublin – Cork motorway. Of the c. €16m investment, Topaz will be providing c. €14m. The Irish Independent, 21st February
Orlagh Retreat Centre: A former Augustinian novitiate and retreat centre located on almost 100 acres of land in Rathfarnham, Dublin 16 has been sold for €2.85m to a London based investor and his brother. The new owners have indicated that they will spend some time deciding what to do with the property, which The Irish Times reports is likely to be used as either a medical centre or hospitality facility. The property extends to 17,380 sq. ft. and contains 31 bedrooms, an oratory, a drawing room and interconnecting rooms for dining and entertaining. Agents GVA Donal O Buachalla reported strong local and international interest in the sale, due to the location of the lands and their development potential subject to zoning. The Irish Times, 15th February
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