24th November (Issue 274)

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

Dublin 2 Hibernia Reit has secured US real estate group Hines as tenants for the entire third floor of its Central Quay office building in Dublin’s south docklands. Extending to 11,250 sq.ft, the third floor has the capacity to accommodate more than 100 workers. The ground floor has been reserved by another occupier and CBRE is now offering the fully-fitted first floor which extends to 11,041 sq.ft. to the lettings market. The property is available for immediate occupation. The Irish Times, 17^th November

Dublin 2 US-headquartered Pimco Global Advisors has agreed to sublease the third floor of the Harcourt Building on Harcourt Street for a term of eight years. The floor space extends to a net internal area of 11,300 sq.ft. and the rent is understood to be in the region of €57 psf and €4,000 for each of the basement car parking spaces. The property will become Pimco’s new Irish headquarters and will give it the capacity to grow its Dublin-based workforce to more than 100 people. The Irish Times, 18^th November

Dublin 2 Browne Corrigan Chartered Surveyors are guiding €55-€58 psf for the remaining office space at Pepper Canister House on Mount Street Crescent in Dublin 2. The property comprises a five-storey office block extending to 10,000 sq.ft. and 10 car parking spaces. The second, third and fourth floors of the building are available to let. All three floors (5,600 sq.ft) are available for occupancy by a single tenant or on a floor-by-floor basis along with an allocation of car parking per floor. The Irish Times, 18^th November

Dublin 1 Developer TIO has reached practical completion of North Dock Two and the wider North Dock scheme. Located next to the 3 Arena, the scheme extends to 202,000 sq.ft. in total distributed between North Dock One (95,000 sq.ft.) and North Dock Two (107,000 sq.ft.). While Gilead Sciences have agreed to occupy more than 30,000 sq.ft. at North Dock Two, The Irish Times understands that heads of terms have been agreed on the letting of a further 15,000 sq.ft. and the remaining 62,000 sq.ft. of space is being offered by joint agents JLL and Savills at a rent of between €52.50 and €55 psf. The Irish Times, 18^th November 

Dublin Office Market Total office take-up in Dublin reached c.229,500 sq.ft. during Q3 2020. While this is an improvement on Q2 take-up, it is still very low compared to pre-pandemic levels of market activity. This brings total take-up for the first nine months of the year to c.1.45 million sq.ft. which is a decline of 32% relative to the same period in 2019. There were 29 lettings completed during Q3, up from just 13 in Q2, while the average deal size was less than 8,000 sq.ft. BNP Paribas Dublin Office Market Q3 2020

MIXED-USE

Dawson St, Dublin 2 The Irish Times understands that AM Alpha are set to acquire Royal Hibernian Way on Dawson Street for c.€75 million. Joint agents JLL and TWM had been guiding €80 million when they brought the scheme to the market on behalf of Aviva in September. Royal Hibernian Way is a mixed-use development extending to 92,888 sq.ft. The bulk of the scheme (72,000 sq.ft) comprises office accommodation while some 21,000 sq.ft. is dedicated to retail and hospitality. The majority of the office space (66,000 sq.ft.) serves as the headquarters for Davy Stockbrokers, while the remaining offices, located at 12 Duke Lane, have been left vacant intentionally by Aviva as planning permission has already been achieved to double the size of the building. The Irish Times, 18^th November  

Leixlip, Co Kildare Geneva based Stoneweg are understood to have emerged as the preferred bidder on the sale of the former Hewlett Packard (HP) campus in Leixlip, Co Kildare. The 195 acre scheme, now known as Liffey Park Business Campus, was purchased by developer Michael O’Flynn and BlackRock Real Estate Assets in September 2018 for €51 million. The scheme’s current occupiers include Hewlett Packard Enterprise, Celestica, MGS and Global Entserv Solutions. The Irish Times understands that the purchase price agreed is c.€100 million. The Irish Times, 24^th November

INDUSTRIAL

Rathcoole, Co. Dublin Harvey is guiding €2.2 million for a well-maintained warehouse and office facility at Greenogue Business Park in Rathcoole, Co Dublin. Unit 400 Grants Road is on a self-contained and gated 1.1 acre site. It extends to c.20,000 sq.ft. (€110 psf) and comes equipped with four automated level access doors, a loading yard to the rear and 27 car-parking spaces to the front and side of the property. The warehouse space extends to 16,103 sq.ft. while the offices are situated to the front of the unit and comprise 3,896 sq.ft. of fully fitted accommodation in turn-key condition. The Irish Times, 18^th November

HOTEL

Cork City Cork City Council have granted planning permission to International Investment ICAV to construct a five to seven-storey hotel on MacCurtain St and Brian Boru St in Cork City. The site formerly housed the Coliseum cinema and is currently a bowling alley and arcade. Plans for the hotel include a bar and restaurant at ground floor level in addition to 171 bedrooms. The project can still be appealed to An Bord Pleanála and 23 conditions have been attached to the construction. Some of the conditions include provision for bicycle parking and conservation compliance with regards to the former postal sorting offices, which is a protected structure. The Irish Examiner, 20^th November

RETAIL

Tyrellstown, Dublin 15 Hooke & MacDonald is guiding €9 million for the Tyrrellstown retail centre in Dublin 15. The 66,219 sq.ft. (€135 psf) commercial lot currently produces a net rental income of €1,012,112 per annum (€15.28 psf) from the existing tenancies, which have an average WAULT of c.7 years to expiry. The tenants include SuperValu, Hickey’s Pharmacy, Permanent TSB, Carry Out Off Licence and Paddy Power, with about 50% of the income secured against these five leading national covenants, which on average have approximately 10 years left to run on their leases. The projected estimated rental value is c.€1,153,000 per annum (€17.41 psf) once the vacant units have been let. The vacant units comprise a fully fitted and licensed pub and restaurant unit (9,666 sq.ft.), which has a high quality fit-out and is readily lettable. In addition, there are also three fully-fitted office suites that could be re-let or alternatively could (subject to planning permission) be converted to residential use. The Business Post, 22^nd November

If you are interested in purchasing this asset and require financing, please contact Origin Capital as we can arrange senior debt facilities of up to €6m for the purchase of this Asset.

Blanchardstown Shopping Centre Goldman Sachs is seeking to take control of the Blanchardstown Shopping Centre from US investment giant Blackstone. The shopping complex has c.1.2 miilion sq.ft. of retail space, 180 stores and anchor tenants including Marks & Spencer and Penneys, as well as restaurants and a cinema. Blackstone bought the shopping complex from Green Property for €950 million in 2016. The planned deal will include the centre itself, two adjacent retail parks and external retail units, as well as a five-storey office block. The Irish Independent, 18^th November

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