22nd May (Issue 147)
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
Blackrock Office Blocks: Joint agents Lisney and HWBC have brought three 1980’s built office blocks in Blackrock, south Dublin, to the market in individual lots. They are; (i) Blackrock Park House, a vacant 16,812 sq. ft. office with 29 car spaces guiding €4.5m (€268 psf). (ii) Zurich House, a 22,221 sq. ft. office guiding €6.6m (€297 psf) with 29 car spaces let to Zurich Insurance at €500k p.a. (€22.50 psf) on lease until May 2021, and (iii) Blackrock Hall, a 11,376 sq. ft. office guiding €3.375m (€297 psf) with 21 car spaces, also let to Zurich at €345k p.a. (€30 psf) on lease until May 2021 with a break option in April 2020. The Irish Times, 16th May
Prism Building, Cork: Tower Holdings Ltd has lodged plans with Cork City Council seeking planning permission to build The Prism Building, a 15-storey, glass fronted 60,000 sq. ft. office building costing €20m on Clontarf Street. The developers are also at an advanced stage with Cork City Council for a separate €250m, multi-storey hotel and apartment development on the nearby Custom House site which they acquired last year. Tower Holdings Ltd, is owned by Kerry brothers Kevin and Donal O’ Sullivan who have developed some of New York’s tallest buildings. The Irish Times, 17th May
Eden Plaza, Sandyford: Agent CBRE has brought a 5.26 acre prime office site in Sandyford, south Dublin, to the market guiding €20m (€3.5m per acre). The site has two live planning permissions for office developments between 376,000 and 452,000 sq. ft., spread over five blocks, with space for a café and retail unit. The site which previously changed hands in 2017 for nearly €80m, was acquired by Ardstone Capital from NAMA for €6.5m in 2015. The Irish Times, 16th May
Claremont Road, Sandymount: Agent HWBC has brought a 20,000 sq. ft. grade A office building in Sandymount village, Dublin 4, to the market guiding €10.5m (€525 psf). The building, which is on a half-acre site, is let to animation studio Boulder Media on a 20-year lease from May 2017 at an annual rent of €725k (€36 psf), equating to a net initial yield of 6.37%. The Irish Times, 16th May
Citywest Business Campus: Agent JLL has brought eight own door office units at Citywest Business Park to the market with a guide price of €5.4m. The units range in size from 1,900 sq. ft. to 4,500 sq. ft. and the passing rent is €410k, with one vacant unit. A sale at €5.4m provides an initial yield of 7%, which would increase to 7.8% once the final unit is rented. The Sunday Business Post, 20th May
Nutgrove Office Park, Dublin 14: Agent Lisney has brought a 40,000 sq. ft. vacant office block in Rathfarnham, Dublin 14, to the market guiding €7m (€175 psf). The block which is partially finished and partially “shell and core” has an estimated rental value of €685k p.a. (€17 psf) when fully occupied. There are 45 car spaces included in the sale. The Sunday Business Post, 20th May
RETAIL
47/48 O’ Connell Street, Dublin:Agent CBRE is guiding €8m (€820 psf) for the 9,761 sq. ft. Schuh footwear store at 47/48 O’ Connell Street, Dublin. Schuh occupy the four-storey over-basement building on a 25-year lease at €480k p.a. (€49 psf) which has seven year to run, giving a potential net yield of 5.5% to the new owner. The Irish Times, 16th May
38-40 Parliament Street, Dublin: Licensed premises agent Morrissey’s are guiding €1.8m (€600 psf) for a 3,000 sq. ft. restaurant premises trading as Beef & Lobster on Dublin’s Parliament Street. Beef & Lobster operate under a 25-year lease from April 2014 at rent of €100k p.a. (€33 psf), with five-yearly rent reviews, the next being in February 2019. The Irish Independent, 17th May
RESIDENTIAL / LAND
Swords Road Site, Dublin 9: Agent Savills has brought a 6.75 acre site with planning permission for 358 apartments and 8,700 sq. ft. of commercial space, at Swords Road in Dublin 9, to the market guiding €18m (€2.66m per acre). The site has planning permission for seven blocks varying in height from five to seven storey’s until February 2022 and will include 518 car spaces and a two storey crèche. The Irish Times, 16th May
Delgany Site, Co. Wicklow: Joint agents Dooley Auctioneers and Knight Frank have brought a 13.9 acre site and two adjoining properties, in Delgany Co. Wicklow, to the market seeking offers in excess of €4.5m (€323k per acre). The site has planning permission until September 2018 for 11 large houses ranging in size from 3,150 sq. ft. to 4,850 sq. ft. and is being sold on behalf of Ronan Group Real Estate. The Irish Independent, 17th May
Carrigrohane Site, Cork: Cork developer O’ Callaghan Properties (OCP) have paid €3.1m (€516k per acre) for a 6 acre site at Carrigrohane, in the western Cork suburbs between Bishopstown and Ballincollig. OCP had previously purchased an adjoining 5 acre site and private house which provided access to the site, and now plan to build up to 150 houses on the side-by-side sites. The Irish Examiner, 17th May
Cairn Homes Update: A trading update from Cairns Homes has stated that the house builder is currently building on 12 of its 34 development sites at present and will this year submit planning applications for as many as five housing schemes of 100 units or more. Cairns has forecast revenues of over €350m for the next year and expects over 800 completions. The company has also ruled out any development this year on the 8.5 acre site it purchased in Donnybrook last year for €107.5m (€12.6m per acre), and they will not seek planning permission until next year at the earliest. The Times, Irish Edition, 21st May
HOTELS
Dublin Citi Hotel: Agent Savills has brought the 27-bedroom Citi Hotel on Dame Street to the market guiding €10.7m (€396k per key) in a planned sale and leaseback arrangement. The hotel is to be let on a new 25-year lease at a rent of €660k p.a. (€24.4k per key) with five yearly rent reviews linked to CPI, showing an initial yield of 5.69%. The purchaser may have the opportunity to achieve vacant possession, subject to agreement. The Irish Times, 16th May
INDUSTRIAL
Industrial Sale and Leaseback: The Valeo Food Group, which produces food products such as Odlums, Bachelors, Jacobs and Chef, is planning the sale of two of its industrial facilities on a sale and leaseback basis. Valeo has appointed William Harvey to sell facilities it owns at Broomhill Road in Tallaght, and at Westpoint Business Park in Dublin 15 for c. €11m. The Broomhill Road property is guiding €8.7m and produces an annual rent of €661k on a 35-year lease with tenant break options in the 12th and 23rd year, equating to a net initial yield of 7%. The Westpoint Business Park unit is guiding €2.6m and produce rent of €169k p.a. on a 20-year lease with a tenant break option in the 12th year, offering a net initial yield of 6%. The Irish Independent, 17th May
OTHERS
DIT, Cathal Brugha Street: WK Nowlan Real Estate Advisers have brought the DIT Cathal Brugha Street and Marlborough Street buildings to the market guiding €12m (€103 psf), €3m less than when the buildings were brought to the market in 2016.The buildings, located just off O’ Connell Street, have independent access but are linked at ground and first floor levels. The buildings are located beside the Gresham Hotel, which was sold in September 2016 for €92m. The Irish Times, 16th May
Boland’s Quay, Dublin: Google and NAMA have confirmed in a joint statement that Google has completed the acquisition of the entire Boland’s Quay Scheme in Dublin’s docklands at a total cost of c. €300m. The development which has been funded by NAMA, will upon completion include office buildings rising to 173 ft. and 161 ft. and a 15-storey apartment block rising to 157 ft. The scheme will be capable of accommodating 2,500 workers and comprise 400,000 sq. ft. of office, residential, retail and cultural space. The Irish Examiner, 18th May
Dublin Construction Costs: The cost of building in Dublin is expected to rise by 7% this year as the continued development of offices, student accommodation and build-to-rent residential sector continue to put pressure on labour and resources. Turner & Townsend’s International Construction Market Survey for 2018 places Dublin as one of the worlds “hot” markets with the large number of projects driving up prices and makes it the sixth most expensive place globally to build, with average construction costs of €242 psf, behind only New York in first place (€304 psf), San Francisco, Hong Kong, Zurich and London (€282 psf). The Irish Independent, 17th May
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie