21st January (Issue 230)
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.
RESIDENTIAL
Usher’s Quay, Dublin 8 A residential development site at Usher’s Quay has been sold for €3.25 million. The price secured for the 0.05 hectare plot represents a premium of 18% on the €2.75 million agent Knight Frank had been guiding when they brought the property to the market last May. Located between numbers 29/30 Usher’s Quay and numbers 1, 1A and 2 Usher Street, the subject site came for sale with full planning permission from Dublin City Council for the demolition of all existing buildings and the construction of a new part six/seven storey building comprising 27 apartments (five one-bed units and 22 two-bed units), above ancillary residential amenities and a commercial unit at ground floor. The Irish Times understands that the purchaser is considering the submission of a revised planning application with a view to developing a hotel or aparthotel. The Irish Times, 15th January
Tuath Housing Association Draft end of year accounts for Tuath Housing indicate that more than 1,000 homes were either constructed or acquired by Tuath, bringing the total number of properties it provides and manages to over 5,500 nationally. Over the past five years, Tuath’s turnover from its properties has increased from €8.4 million in 2014 to €44.4 million last year. During the same time period, its property portfolio has increased by 160%, which has made it one of the country’s biggest landlords. Any surplus generated by the association is used to help fund new social housing projects, while a financial reserve is also retained for the future maintenance of homes. The Sunday Business Post, 12th January
MIXED USE
No 10 St Stephen’s Green, Dublin 2 Quanta Capital has acquired No 10 St Stephen’s Green for c.€4 million. Located adjacent to the Hibernian Club, the high-profile Georgian building extends to 5,000 sq.ft. (€800 psf) over four floors and was formerly the home, in part, to the Il Posto Italian restaurant which ceased trading in 2018 after more than 20 years in business. Separately, the ground and upper floors had been operating as a licensed premises since 2014 but these were vacated prior to the sale. The property was brought for sale with full vacant possession and with the further benefit of a seven-day publican’s licence. The Irish Times, 15th January
INDUSTRIAL
Naas Road, Dublin Harvey has secured the letting of all three buildings which had been occupied by the State’s biggest truck importer, the Harris Group. Located on a high-profile corner with 300m frontage to the Naas Road and 500m frontage to Nangor Road, the three buildings comprise 260,260 sq.ft. on a 16.4 acre site. Having already agreed the letting of building one (9,418 sq.ft) to Peri Framework and Scaffolding last June, Harvey has now let the remaining two buildings totalling 250,842 sq.ft. on 15.1 acres to DHL Global Forwarding (Ireland) Ltd. The Irish Times, 15th January
LAND
Skerries, County Dublin CBRE is guiding a price of €4.5 million for a 30 acre (€150,000 per acre) mixed-use land holding in the coastal town of Skerries in north county Dublin. The land is variously zoned for residential, high-amenity and open space uses, and is being offered to the market in one or more lots. Lot 1 comprises 6.5 acres and is zoned “residential”. Lot 2 measures 19.4 acres and is zoned “open space” while lot 3 is zoned “high amenity” and extends to 4.1 acres. Located at Holmpatrick on the Rush Road, the overall holding falls under the Fingal Development Plan 2017-2023. The Irish Times, 15th January
Naas, Co Kildare Knight Frank is guiding €12 million for a 49.27 acre site (€244k per acre) which comes with full planning permission for 385 houses (€31k per house) and a neighbourhood centre located on the Blessington Road in Naas, Co Kildare beside Naas Racecourse. In 2017, An Bord Pleanála granted permission for the construction of a housing scheme comprising 385 houses and a neighbourhood centre with 118 houses in Phase 1. A condition of the planning permission is that in order for works to start on phases 2 to 5, a contract for the construction of the Link Distributor Road from Blessington Road to Dublin Road must be signed by the planning authority or as otherwise agreed with the planning authority. The Sunday Business Post, 19th January
HOSPITALITY
Hospitality Sector 2019 2019 saw 19 pubs generate a record €60.5 million in sales proceeds with the average price per deal at €3.2 million. This is well ahead of the €1.66 million average in 2018 and reflects on the quality of the lots sold in 2019. A report by Morrissey’s indicates that development potential was also another factor boosting prices, one reflected in the €5.5 million paid for by Rosie O’Grady’s in Harold’s Cross, which was sold off-market for alternative use. Development potential was also a factor in the sale of Uncle Tom’s Cabin in Dundrum, for more than €3 million. The purchaser is expected to redevelop the 0.8-acre site, which includes town centre and residential zoning. The Sunday Business Post, 19th January
OFFICE
Fitzwilliam St, Dublin 2 Joint agents Savills Ireland and Bannon are guiding €168 million for Fitzwilliam 28, the 135,617 sq.ft. grade-A accommodation over eight floors with 50 car-parking spaces located on Fitzwilliam Street (€1,238 psf). Slack Technologies have taken a new long-term lease of the entire building from practical completion. The Irish Times understands that the rent roll will be in excess of €7.7 million per annum (€56.78 psf), reflecting an initial yield of about 4.2%. Fitzwilliam 28 is one of two adjoining but independent blocks both being developed by the ESB. The sister block to 28, Fitzwilliam 27 will be owner-occupied by the ESB. Fitzwilliam 28 is expected to be completed in the second quarter of this year. The Irish Times, 15th January
Tara St, Dublin 2 Plans by Marlet Property Group to increase the height of the 11-storey office block it is delivering on the site of the former Apollo House in Dublin to 21 storeys have been put on hold following appeals by An Taisce and one local resident to grant planning permission for the additional 10-storeys. The residential tower comprises 54 build-to-rent apartments and the combined height of the amended College Square development would rise to 78.95 metres. The Irish Independent, 17th January
Viewpoint Portfolio Savills are guiding a combined price of €50 million for the Viewpoint portfolio on behalf of Irish property company Iput. The subject assets are being offered to the market in one or more lots. Lot 1 comprises blocks P1 and P3 in EastPoint Business Park, and is guiding c.€31 million. Block P1 is a standalone office block extending to 42,865 sq.ft. set over four floors with 61 car-parking spaces. This building is let to Conduit Enterprises Ltd at a passing rent of €910,000 per annum on an upward-only lease expiring in 2025. Block P3 is a semi-detached office building extending to 50,315 sq.ft. set over four floors with 70 car-parking spaces and is let to Citrix on two separate leases at a combined rent of €1,117,334 per annum expiring at the end of 2026.
Viewpoint Portfolio Lot 2 comprises blocks 5 and 9 in Richview Office Park, Clonskeagh and is guiding in excess of €19 million. Block 5 is a detached, three-storey building extending to 25,407 sq.ft. with 63 car-parking spaces. This property is let to Curtiss Wright Controls under a 10-year lease expiring in October 2023 at a passing rent of €565,000 per annum. Block 9 is a detached three-storey property of 35,869 sq.ft. with 90 car-parking spaces. This building is let to Paysys International Ltd and is guaranteed by First Data Corporation, which was acquired recently by Fiserv, under a 25-year lease at a passing rent of €980,000 per annum. The lease is due to expire in June 2022. The Irish Times, 15th January
Kilmainham Dublin 8 & Dundrum, Dublin 14 French asset-management company Corum has paid c.€60 million to acquire two Dublin office buildings from a joint venture partnership led by Avestus Capital Partners. The completion of the purchases of One Kilmainham Square in Dublin 8 (€33 million) and Classon House in Dublin 14 (€27 million) brings Corum’s overall investment in Ireland and Northern Ireland to more than €206 million to date. One Kilmainham Square comprises a modern five-storey grade-A office block with basement car parking and is located within close proximity to Heuston Station. Corum has acquired the property with the benefit of long-term leases to several leading international occupiers. While the building is producing an annual rental income of €2.07 million currently, there is an opportunity for Corum to increase this in the short term through the letting of a vacant office suite of 4,230 sq.ft, and the completion of a rent review on the first, second and third floors in early 2020. Located within Dundrum Business Park, Classon House comprises 75,000 sq.ft. of grade-A office space (€360 psf) with the majority of the building (51,000 sq.ft.) let to CarTrawler and the remaining let to a number of smaller tenants. The Irish Times, 15th January
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