29nd September (Issue 14)
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.
LOAN / PORTFOLIO
Project Jewel: A 50:50 JV between Hammerson and Allianz Real Estate has been chosen as the preferred bidder for NAMA’s Project Jewel loan portfolio. Hammerson and Allianz will pay c. €1.85bn for the loan portfolio which has gross liabilities of €2.57bn, reflecting a discount of c. 28%. As part of the JV agreement, each entity will acquire a 50% stake in Dundrum Town Centre. Hammerson have separately acquired the 50% stakes in The Ilac Centre and Pavilions shopping centre which were included in the portfolio. Underbidders for the portfolio include Colony Capital and a joint bid from Hines and the Kuwait Investment Authority. CoStar Finance, 29th September
Elmpark Complex: Joint agents DTZ and Savills are guiding in excess of €185m for the Elmpark Complex in Dublin 4, which is being sold by NAMA. The current income of the asset of c. €9.5m p.a. is generated from c. 400,000 sq. ft. of commercial accommodation, 218 multi-family units and eight luxury houses. Of the €9.5m, c. €5.36m comes from office space let to Allianz and Novartis. The 218 apartments are fully let and generating annual income of c. €3.8m. There is potential to increase the income by a further c. €5m in the short term from the letting of the 175,000 sq. ft. Pioneer building, which can be let for office use. The Irish Times, 23rd September
OFFICE
The One Building: Following a €7m redevelopment, The One Building on Grand Canal Street, Dublin 2 is now being offered to rent from €49.50 psf. The One Building has been extended to 45,000 sq. ft. over seven floors, with 44 underground car spaces. The car spaces are available to rent at €3,500 per space. The owner of the building is Jones Investments Ltd, who also developed Dock Mill last year which was subsequently purchased by Google. The Irish Independent, September 24th
Blackstone Properties: Lisney are guiding c. €130m for the sale of the Bloodstone Building and Central Quay in Dublin’s Docklands. The properties, along with Hume House in Ballsbridge, were bought by Blackstone in January 2014 for c. €100m. Hume House is expected to be put up for sale before the end of the year for c. €40m, offering Blackstone a potential gross return of 70% on their investment. The Bloodstone Building is c. 83,000 sq. ft., Central Quay c. 59,000 sq. ft. and Hume House is a c. 80,000 sq. ft. property. The properties are believed to be yielding 6% in annual rental income. NAMA Wine Lake, 27th September
2 Custom House Plaza: Lisney are launching the sale of 2 Custom House Plaza, IFSC for €14.35m. The five storey office block, which is fully let, has a floor area of 29,430 sq. ft. and 29 car spaces. The current rental income of c. €991k p.a. offers a net initial yield of 6.6%, however there is potential to increase the rental income in the short term. There are 14 car spaces which are unlet with potential to increase the annual rental income by c. €40k. In addition the office space offers an average rent of c. €32 psf, significantly below the top rents in the IFSC of c. €45 psf. The property has a weighted average unexpired lease term of c. 5.19 years. The Irish Times, 23rd September
Block R: The Central Bank have completed the purchase of the Block R office building on Spencer Dock in Dublin 1 for c. €104m. The bank already occupy nearly 50% of the 127,000 sq. ft. property, which is located close to their proposed new headquarters on North Wall Quay. The current rent roll for the property is c. €4.9m p.a., with the bank paying c. €3m (€46 psf). Of the remaining office space in the property, Nationwide occupy half the top floor and the balance is being fitted out for state bodies. The Irish Times, 23rd September
HOTEL
Castlemartyr Hotel: The Castlemartyr hotel in Cork is believed to have been bought by the owners of the Old Thorns hotel and estate in Surrey. The 103 bed Castlemartyr hotel went on the market for €13m in June having originally been developed at a cost of c. €70m by building group John F Supple. According to details filed by Old Thorns, its owners include Chinese businessman Zhang Zhenxin and Singaporean Phang Yew Kiat. The Sunday Times, 27th September
Maritime Hotel: Savills are guiding €1.5m for the Maritime Hotel, a four star, 110 bed hotel located in Bantry, Co. Cork. Included in the sale are 80 underground car spaces, a medical centre occupied by the HSE and a Doctor’s surgery which is under a lease agreement for the next three years. The hotel is being operated under a management agreement and benefits from its location along Ireland’s Wild Atlantic Way. The Irish Independent, 24th September
Premier Inn: The Limerick based Kirkland Investments have purchased the three-star, 155 bed Premier Inn hotel in Airside Business Park in Dublin. Kirkland paid c. €11m for the hotel, which was €1.4m above CBRE’s guide price. The acquisition is Kirkland’s second in the Irish market in the past twelve months, with the firm having acquired the Savoy Hotel, 84 apartments and six shops in Limerick last October for c. €18.54m. The Irish Times, 23rd September
RETAIL
23A Mary Street: A private investor has paid €4.95m for 23A Mary Street, which is alongside Jervis Shopping Centre in Dublin City Centre. The property offers 1,032 sq. ft. of retail space at ground floor level with an additional 998 sq. ft. in the basement. The current tenant is Peter Mark, who were originally on a 35 year lease from 1985. Peter Mark have since signed a Deed of Variation extending the lease until 2025 with the current rent of €250k p.a. reviewable in 2020. The Irish Times, 23rd September
RESIDENTIAL
NAMA Residential Development: Receivers acting on behalf of Capel Developments Limited have sought planning permission for 318 homes on a 12 acre site in Pelletstown in west Dublin city. The application contains proposals for the development of 176 apartments and 142 houses on the site. Capel Developments was previously controlled by Edward Keegan, Liam Kelly and John O’Connor before NAMA had receivers appointed over the company’s assets in April 2011. NAMA Wine Lake, 27th September
NAMA Student Accommodation: Receivers acting for Wintertide Limited have applied for planning permission to construct 970 student bed spaces in north Dublin city centre. The proposed 350,000 sq. ft. of student accommodation is to be on the corner of Sheriff Street and Upper Mayor Street. Wintertide Limited was previously part of the Treasury Holdings group before NAMA had receivers appointed in 2012. NAMA Wine Lake, 27th September
Social Housing Project: New Generation have sought planning permission for Ireland’s first major social housing project since the property crash. The developer intends to build 27 houses and 142 apartments on their 41 acre site in Finglas, Dublin 11. Planning permission has also been sought for a primary care centre and nursing home on the site. The gross value of the project upon completion has been estimated at c. €18m. The Sunday Business Post, 27th September
Parkside Development: Cairn Homes have launched the initial phase of their Parkside development in Malahide, north Co. Dublin. The phase consists of 25 three and four bed houses priced between €299k and €385k. The 50 acre Parkside site has zoning for 433 homes and Cairn hope to have the first 200 completed by the end of 2016. The launch represents the first housing development by Cairn. The Irish Times, 24th September
Lad Lane: IPUT has paid over €10m for a 30 year old block of apartments on Lad Lane in Dublin 2. The apartments are currently generating rental income of €390,000 p.a. with further income of €70,800 p.a. from 37 car spaces. There is significant redevelopment potential from the asset, with the possibility of replacing the apartments with a 40,000 – 50,000 sq. ft. office block. IPUT already owns Fitzwilton House and has a major stake in Wilton Park House, two office properties located nearby. The Irish Times, 23rd September
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