23rd April (Issue 193)
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
Former DIT Kevin Street Campus, Dublin 2 The former DIT Kevin Street campus with a 236,806 sq.ft. collection of buildings on site has been acquired by global institutional investor York Capital and Dublin-based developer Westridge Real Estate for €140m (€591 psf). It is believed that the consortium will deliver a wide-ranging scheme comprising a combination of Grade A offices and multi-family PRS (private rented sector) residential units on the site. A feasibility study suggests it is capable of accommodating one or other of two mixed-use schemes that would extend to 548,959 sq.ft. or 570,487 sq.ft. respectively. Knight Frank brought the property to market last February guiding €80m. The Irish Times, 17th April
The Mall, Beacon Court, Sandyford, Dublin 18 QRE is seeking more than €1m (€310 psf) for an own-door office suite at The Mall at Beacon Court in Sandyford, Dublin 18. Suite 34 extends to 3,230 sq.ft. over three floors and comes with four underground car-parking spaces and a roof terrace. The property was recently refurbished and is being sold with vacant possession. Based on current market rates, the new owners could expect €85,000 pa in rent returning a NIY of 7.9%. The Irish Times, 17th April
Oliver Plunkett Street, Cork The Printworks building at 13-15 Oliver Plunkett Street, Cork standing at 15,074 sq.ft. has been launched on the letting market through joint agents Lambert Smith Hampton and QRE. The floor space spans over three storeys and is laid out in a mix of cellular and open-plan offices. Rent sought is in the region of €15 psf. The Irish Times, 17th April
Dublin Office Market According to the BNP Paribas Real Estate Report, new office deals grew by 66% YoY in Q1 2019. Take up reached 1,434,894 sq.ft. across 57 deals. The largest letting of the period was to Salesforce who have taken 462,848 sq.ft. at Spencer Place in Dublin. Facebook let 172,223 sq.ft. at Nova Atria South in Sandyford. The Irish Times, 18th April
RESIDENTIAL
East Village, Clay Farm, Dublin 18 Joint agents Cushman and Wakefield and Sherry Fitzgerald New Homes have been instructed to bring a development of 295 build to rent apartments to market guiding €130m. The proposed development will be located at East Village in Clay Farm, Dublin 18 and will comprise 71 one-bed, 198 two-bed apartments and 26 three-bed duplex units across three separate blocks. Construction will complete towards the end of 2020 and early 2021. When completed the entire development at Clay Farm will include 1,500 homes. The Irish Times, 17th April
Johnstown Road, Dun Laoghaire The Irish Independent reports that the McGrath Group plans to build more than 150 apartments in the Dun Laoghaire area with the first project to be located off Johnstown Road. This scheme will comprise 49 units broken down as 23 one-bed, 21 two-bed apartments, four two-bed duplex units and one three bed unit. The Irish Independent, 18th April
Rathmines, Dublin 6 Lisney is guiding €1.395m (€632 psf) for a 2,206 sq.ft. three-bed, mid terrace period town house located at 4 Seven Oaks, Church Avenue Rathmines. The property also has planning permission for a three storey rear extension. The Sunday Business Post, 21st April
Goodbody BER Housebuilding Tracker estimates that there were 4,255 residential units completed in Ireland in Q1 2019. This represents growth of 22% YoY, a similar rate of growth to that seen in Q4 2018 (+21% YoY), albeit lower than the growth rate seen in H1 2018 (+30% YoY). This growth is in line with Goodbody’s full year forecast of 22,000 completions at this stage, although there are broader signs that we may see a slowing in the rate of growth through the rest of the year. Goodbody’s estimate that apartment completions grew by 64% YoY in Q1. As noted in their Q4 Tracker, planning permissions data was pointing to a large increase in apartment output, although the timing is quite uncertain. At 18% of the total, the proportion of output coming from apartments remains quite small. The Build-to-Rent sector will be the biggest driver of the growth in apartments. Without this investment, Goodbody’s believe that the output in the sector would be much lower in the coming period due to viability and funding constraints. Goodbody Stockbrokers
Munster House Sales According to MyHome.ie there was a 2% increase in 2018 house volume sales compared to the previous years with Cork city and county accounting for 42.5% of this 2% increase. The value of Cork sales increased from €1.36bn to €1.63bn equating to an average of €270k per sale. The value of sales in Limerick rose from €345m to €412m or €197k per sale. The Irish Examiner, 19th April
HOTEL
40 – 47 Fleet Street, Dublin 2 JLL is guiding in excess of €45m for the Temple Bar Inn Hotel along with the ground floor retail unit occupied by Tesco in Temple Bar located at 40-47 Fleet Street. The 101 bed hotel will be sold with vacant possession. Tesco have seven years remaining on their lease. A number of planning permissions have been obtained and there is ability to increase the hotel rooms to 186. The Irish Times, 17th April
RETAIL
North Earl Street, Dublin 1 It is reported that Sports Direct have quietly sold their flagship 48,338 sq.ft. premises on North Earl Street Dublin 1 for c€20m (4.36% NIY). The off market sale and lease back deal took place three years after the property was purchased for €12m. Sports Direct will now have a 15 year lease form February 2019 at €950k pa with a break option in year 10 subject to one years’ notice and rent reviews every five years. The Irish Times, 17th April
OTHER
GoCar Foxrock, GoCar Carsharing Ltd has confirmed that it intends to provide five shared car club vehicles at the proposed 142 build to rent scheme at Roselawn and Aberdour on Stillorgan Road, Foxrock. GoCar have reported that over 30 builders have made contact with the company since the start of the year for letters of commitment to provide GoCars in new developments. The Irish Times, 17th April
Cork Sunday’s Well The Irish Examiner reports that University College Cork (UCC) has purchased the Former St Vincents’s Church and the adjacent 1.15 acre development site in Sunday’s Well in Cork. Lisney brought the property to market guiding €1.5m or €750k per individual lot. It is reported that UCC purchased the Church and site for less than €1m. The Irish Examiner, 18thApril
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