24th September (Issue 215)

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.

INDUSTRIAL

Finglas, Dublin 11 M7 Real Estate has acquired Century Business Park in Finglas, Dublin, from Marshalsea Property Company for €4.47 million (NIY 7.2%). Century Business Park went on the market in May with a guide price of €5.35 million. It is a modern industrial development comprising a total site area of 11.3 acres. The property is near Junction 5 of the M50 and is adjacent to Charlestown Shopping Centre. The acquisition increases M7’s portfolio in the Republic to three assets totalling 420,000 sq.ft. of office and industrial space. The Irish Times, 17^th September

Ballymount, Dublin 12 Agent Harvey is guiding €1.95 million (NIY 8.04%) for an industrial investment opportunity at Crossbeg Industrial Estate in Ballymount, Dublin 12. The property comprises two semi-detached concrete portal frame buildings and a further steel portal frame building, providing 33,605 sq.ft. of space (€58 psf). The property is let on a 15-year lease from November 2017 on a FRI basis at a rent of €170,000 per annum exclusive to Swan Plant Hire (Dublin) Limited. The lease provides for rent reviews at the end of 5th and 10th years and the tenant has the right to break the lease in November 2022 and November 2027, subject to six months’ notice. The Irish Times, 18^th September

Greenougue Business Park, Dublin 22 Unit 526 Grant’s Road is being offered for sale by joint agents Cushman & Wakefield and CBRE at a guide price of €3.6 million. Alternatively, the facility is available to rent for €315,000 per annum (€7.50 psf). The 41,800 sq.ft. property is a detached warehouse facility and benefits from a clear internal height of 9.5m. Access to the unit is through two entrances which split the pedestrian and heavy vehicle areas. The office accommodation has been substantially refurbished and is ready for tenant’s fit-out. Greenogue Business Park is located just 3km from the N7/Rathcoole interchange, and just 10km from the M50/Red Cow interchange at Junction 9. The Irish Times, 18^th September

Ballycoolin, Dublin 15 The HSE has agreed to rent the 50,000 sq.ft. Unit 629 in the Northwest Logistics Park in Ballycoolin, Dublin 15 in anticipation of Brexit. The Irish Times understands that the State will pay c.€475,000 per annum for the facility and have agreed to a 20 year lease with a break option in year 15. The property had been offered for sale alternatively at a price of €8.6 million in advance of its completion by joint agents Savills and CBRE. Unit 629 was completed in June of this year as part of the first phase of a wider €35 million logistics development Park Developments is in the process of delivering at the Ballycoolin scheme. The Irish Times, 18^th September

MIXED-USE

26 – 28 Dawson Street, Dublin 2 A mixed use investment property has come to the market through HWBC with a guide price of €4.75 million (NIY 4.3%). The double-fronted, four-storey over-basement building is fully let and producing a combined annual rental income of €221,201 from a number of tenants, including The Celtic Whiskey Shop, Beanhive Cafe and Davy Hickey Properties. The tenants are not affected by the sale. The Irish Times, 17^th September

OFFICE

Number 2 Upper Pembroke Street, Dublin 2 The office building which is being sold with the benefit of vacant possession has come to the market through Colliers with a guide price of €1.1 million. The property comprises four storeys and is an over-basement mid-terraced Georgian building of 2,570 sq.ft. While the property is in need of refurbishment, the office building could alternatively suit several other uses including embassy or residential, subject to planning permission being obtained. The Irish Times, 17^th September

Horgan’s Quay, Cork City Spaces, a co-working sister company of serviced office provider Regus has agreed to pre-let 30,000 sq.ft. in one of three office blocks currently under construction at the €160m Horgan’s Quay development in Cork City. Located close to Kent railway station, Horgan’s Quay is a major rejuvenation scheme for the city and the three Grade A office buildings will provide 310,000 sq.ft. of space. In addition, the development will include 325 apartments, an array of retail and restaurant outlets, as well as a 120-bedroom boutique hotel with rooftop dining, which will be operated by Press Up Entertainment Group. The first office block is due for completion in summer 2020, with Spaces expected to commence trading in the autumn. The Irish Independent, 19^th September

Limerick Office Market A Cushman & Wakefield report on the Limerick office market has outlined that the level of office lettings in Limerick and Shannon this year looks set to more than double those of last year. In the first half of the year, as much as 113,000 sq.ft. of office space was taken. Furthermore, c.72,100 sq.ft. of space was signed, indicating that take up should increase in the second half of the year and could exceed 185,000 sq.ft. The Irish Independent, 19^th September

RETAIL

St Stephen’s Green Shopping Centre The Irish Times understands that US-headquartered Hines, a fund managed by Davy Real Estate, and a private investor are among the parties looking to secure ownership of two separate shareholdings amounting to a 62.4% stake in Dublin’s St Stephen’s Green Shopping Centre. It is understood that the offers received in the first round of bidding may have fallen short of the €130 million guide price. The subject shareholding is held by New York-headquartered Madison International Realty and businessman Pierce Molony, and comprises individual holdings of 35.4% and 27% respectively. The remaining 37.6% stake in the landmark retail scheme is owned by Irish Life, and is not being made available for sale. The Irish Times, 18^th September

Ballincollig, Cork City West City Retail Park located in Cork’s largest suburban town, Ballincollig has come to the market with a €6 million guide price through Knight Frank. The park consists of 4 retail units, 300 parking spaces and 2.2 acres of development land. Units 1-3 are currently vacant and extend to a combined c.46,428 sq.ft. and are generally open plan in configuration. Unit 4 extends to 17,672 sq.ft. and is let to Lidl Ireland on a 25-year FRI lease from April 2009 at an annual rent of €504,158. Rent reviews are every five years on an upward-only basis. There is a break option on the expiry of the 15th year. West City Retail Park is highly accessible, situated within close proximity to the N22 bypass and the town is located within close proximity to Cork city with a wider catchment area comprising c.380,000 people. The Irish Times, 18^th September

Musgrave Retail Park, Waterford The retail park located 6km from Waterford city centre has had its guide price reduced from €4.75m to €4.5m (€46.48 psf) through Agent Knight Frank. It is fully let to Musgrave and The Range. The scheme is producing an annual rent of €407,712. Musgrave Limited occupies units 1 and 2 (56,810 sq.ft.) on a 20-year lease from 2012 and its lease commits to fixed rent increases of 12.5% every five years. They currently pay €207,712 per annum (€3.66 psf). The Range have occupied the remaining 40,000 sq.ft since 2018(€5 psf). The lease agreement is for €200,000 per annum with a break option in January 2021 which requires nine months’ prior written notice together with payment of a €400,000 rental penalty. The Irish Independent, 19^th September

HOTEL

The Marker Hotel The Irish Times understands that German global real estate investment group Deka Immobilien is closing in on a deal to acquire Dublin’s five-star Marker Hotel for c.€130 million. Located at Grand Canal Dock, the Marker Hotel comprises 187 guest bedrooms (€695k per room). The hotel’s amenities include the Brasserie and Marker Bar, luxurious spa facilities, the Marker Rooftop Bar & Terrace and extensive conference and banqueting rooms. In 2016, Deka purchased the former Burlington Hotel in Dublin 4 for €182 million and in 2017 they acquired the Gibson Hotel for €87 million. The Irish Times, 18^th September

Chancery Lane, Dublin 8 CBRE is guiding a price of €12.3 million for the newly-completed 51-bedroom Staycity Aparthotel on Chancery Lane, near Dublin city centre (€241k per room). The subject property is securely let to Staycity under a new 25-year lease agreement. The property is located in Dublin 8, less than 1km from Stephens Green. Staycity is already the largest aparthotel operator in Dublin with a total of 232 units across four properties. The Staycity group is committed to a pipeline of 4,500 additional units over the next 24 months. The Irish Times, 18^th September

RESIDENTIAL / LAND

Vert Portfolio Through CBRE, Tristan Capital Partners and its Irish operating partners, SW3 Capital, are seeking offers in excess of €200 million for a portfolio of 382 rental apartments distributed across two high-end developments in south Dublin which equates to €532,500 per apartment. The Vert portfolio comprises 197 units at Honeypark in Dún Laoghaire, and 185 units at the Elmfield scheme in Leopardstown. Should Tristan secure the €200 million price being guided by CBRE, it would represent a signficant premium on the €141 million it paid to assemble the Vert portfolio. The Irish Times, 18^th September

Amberley Court, Blackrock, Co. Dublin Amberley Court, located at the top of Stillorgan Park Avenue, and parallel to the N11, comprises a choice of nine A-rated semi-detached and duplex homes. The first four four-bedroom semi-detached homes, which span 2,045 sq.ft. over four levels have been launched with a guide price from €1.05 million. Stillorgan village is a five-minute walk from Amberley Court on the other side of the N11. Blackrock’s Dart station, the Luas at Stillorgan, and the M50 is a short drive away offering easy access to the nationwide road network and to Dublin Airport. The Sunday Business Post, 22^nd September

Co-Living Development Bartra Capital has been refused permission for a second time on a plan for a seven-storey 102 bed-space build-to-rent co-living development in Rathmines. In its decision, Dublin City Council found that the proposed bedroom units “would provide a poor standard of residential accommodation by virtue of their design, layout and orientation, in particular the internal configuration of the units”. The plan envisaged between 13 and 18 residents per floor above the ground floor. Bartra’s initial plan for the Rathmines site, providing 105 bed-spaces – was refused last November. The Irish Times, 17^th September

OTHER

County Donegal Today, BidX1 will offer 66 mainly commercial and investment lots with combined reserves of more than €25.2 million in an online auction. The most valuable lot in the BidX1 auction is a mixed-use portfolio of 93 commercial and residential properties in Letterkenny and Falcarragh in Co Donegal with a combined guide price of €4.85 million. 30 units also come with the benefit of vacant possession. The Sunday Business Post, 22^nd September

Sandyford, Dublin 18 Another of the more valuable lots is a tranche of five residential units on Old Kilgobbin Road in Sandyford in Dublin 18, which have a €1.1 million reserve. Ranging in size from 667 sq.ft. to 893 sq.ft. they include two three-bedroom-plus attic duplex apartments and three two-bedroom apartments. One of the three-bedroom units is vacant. The others generate combined rents of €58,200. The Sunday Business Post, 22^nd September

Little Britain Street, Dublin 7 On Thursday, REA Dempsey Sothern will offer 61 mainly residential lots for public auction. The most valuable lot is a mixed-use investment property with development prospects at 4 Campbell’s Court on Little Britain Street in Dublin 7, which has a €500k AMV. It comprises four self-contained residential units, an open plan storage/warehouse area, accessed via a roller shutter. A separate basement area completes the accommodation which is located just off Capel Street. The Sunday Business Post, 22^nd September

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