25th July (Issue 106)

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.




Tallaght Shopping Centre: NAMA has appointed Cushman & Wakefield and JLL as joint sales agents for the Square Tallaght shopping centre in Tallaght, south Dublin, with the agents expected to begin marketing the complex in September. The centre is one of the final large-scale, stand-alone commercial properties in NAMA’s portfolio, and is expected to be valued at well over €300m. The shopping centre contains over 570,000 sq. ft. of shopping space spread across 130 units, and a cinema. Anchor tenants include Dunnes Stores, Debenhams and Tesco. The centre also has planning permission for a 226,000 sq. ft. extension which will add a further 12 units, a multi-storey car park and a new anchor store. Accounts for Indego, the owner of the Square, indicate that the centre had turnover of c. €17.7m for the year ending June 2016, with operating profits of c. €9.9m. The Sunday Times, 23rd July

Frascati Shopping Centre: Aldi is set to join existing anchor tenants Marks & Spencer and Debenhams in the refurbished and extended Frascati Shopping Centre in Blackrock, Co. Dublin. The complex is due to increase in size from 100,000 sq. ft. to 170,000 sq. ft. by the end of 2018, and Aldi will lease a 13,000 sq. ft. unit. The extension will add 24 new retail units and five food and beverage units in a dedicated restaurant location, while a carpark extension will bring the total number of spaces to 550. The Irish Times, 19th July

Ilac Centre: Regatta Great Outdoors is set to occupy the final vacant retail unit in the newly redeveloped Moore Mall South at the Ilac Centre in Dublin city centre. The c. €1.5m redevelopment in the centre has seen the arrival of four other new tenants – BB’s Coffee & Muffins, The Works, So Nutrition and Nisbets. The Irish Independent, 20th July

Retail Sales: The Grant Thornton / Retail Excellence Ireland (REI) Retail Industry Sales Review for Q2 2017 has shown like-for-like declines in many sectors compared to the corresponding period in 2016. Menswear and IT / computing sales were down over 5% in the quarter, with footwear, ladies fashion and childrenswear among other sectors showing decline. However, overall sales rose by 1.26%, with agri-retail and garden centres performing strongly due to better weather during the quarter. REI have highlighted that volatility remains a key factor within the Irish retail industry with inconsistencies in sales patterns throughout 2017. The body highlighted the impact of ‘excessive’ rents, Brexit and intense competition from European online retailers as feeding into the ‘challenging’ outlook for the sector, and stressed the need for cost containment to assist with competitiveness. The Irish Independent, 23rd July

Dublin Retail Rental Growth: According to CBRE’s latest half-yearly research report on ‘Global Prime Retail Rents’, Dublin was the fifth fastest-growing prime retail location in the world, with year-on-year increases of rents of 10.5% in Q1 2017. London recorded the highest percentage growth at 39.1%, with St Petersburg, Auckland and Sofia taking the second, third and fourth positions. Looking at Ireland’s retail sector more generally, CBRE advised that it remains robust, buoyed by strong job creation, tourist activity and demographic changes. They noted that with 5% growth in retail sales in 2016, there is cautious optimism in the sector, with continued demand for stores in prime locations. However CBRE warned that supply challenges remain, which will cause increases in rents for units in prime locations. The Irish Independent, 20th July

Finglas Motor Dealerships: The Joe Duffy Group has secured planning permission for three substantial motor dealerships at Junction 5 of the M50 at Charleston in Finglas, Co. Dublin. The expansion follows the group’s purchase of an adjoining 5.3-acre site from Bovale Developments, and the three developments will require an investment of c. €20m to facilitate c. 75,000 sq. ft. of space for Volkswagen North Dublin and Porsche. The new premises are due for completion by the end of 2019. The Irish Times, 18th July



The Exchange: The Exchange, the first new building to be constructed in the IFSC since 2003, has a confirmed completion date of 28th September, ahead of schedule. The first tenant in the new 105,000 sq. ft. building is the Food Safety Authority of Ireland (FSAI), who will occupy 19,000 sq. ft. across the first floor at a rent of c. €50 psf. The FSAI will occupy their unit under a long-term lease, which will contain a break option in year 15. An additional 8,000 sq. ft. has been reserved on the ground floor. Joint agents Savills and JLL are continuing to market the remaining 78,000 sq. ft. of space, at a rent of €52.50 psf. The building is being developed by the Cosgrave Property Group, with IPUT PLC forward funding the development. The Irish Independent, 20th July

NTMA HQ: The NTMA has decided to take a lease on a much larger headquarters than initially planned in the new ‘Dublin Landings’ development. The agency had originally agreed to take c. 83,000 sq. ft. of space in Building 1, the first block under construction at the new development, which is located next to the new Central Bank in Dublin’s north docklands. However, it has now decided to rent the entire building, which extends to c. 143,000 sq. ft., an increase of 60,000 sq. ft. of space. The NTMA will pay the same rent, c. €50 psf for both lettings, which will have 25-year leases with break options in year 15. Building 1 is due to be ready for fit out in Q1 2018. The Irish Times, 19th July

Boston Sidings Grand Canal: CIE is expected to capitalise on the strong demand for office space in Dublin’s south docklands, where prime rents are currently c. €50 – €60 psf, by enlisting a partner to develop a high-rise office block at Grand Canal Quay in Dublin 2. CIE owns a 0.87-acre site, known as the Boston Sidings site, which adjoins Grand Canal DART station, and the company is reported to be seeking to secure a long-term income stream, rather than selling the site. The selected developer will be expected to handle the entire planning process, and the development of the office scheme, which is likely to consist of a minimum of seven storeys and have a floor area of at least 120,000 sq. ft. CIE is expected to provide a 300-year ground lease subject to an annual rent linked to the consumer price index, and Lisney estimate that the company should be able to earn either c. €1m p.a. by way of a premium rent, or a 10% share of the rent roll, whichever is greater. Interested parties will be invited to tender for the development opportunity by 12th October. The Irish Times, 19th July

1 and 6 Tuansgate: 1 and 6 Tuansgate, a modern office and retail building in Tallaght, south Dublin, has been sold for €6.5m, c. €700k above the €5.8m guide price. The building, which is producing strong rents, includes a modern office building and retail unit with a combined floor space of c. 40,000 sq. ft. and 105 car parking spaces in a local multi-storey carpark. The office element is fully let to the Dublin and Dún Laoghaire Education and Training Board and Tetra Pak, while the 3,296 sq. ft. retail unit is rented by Royal Foods t/a Spice Bazaar. The combined rental income from the asset is c. €521k p.a. The Irish Times, 18th July



Hotel Supply: New figures from Construction Information Services (CIS) suggest that there will be c. 3,000 extra hotel beds in Dublin by 2020, increasing the number of total hotel rooms in the capital by c. 15%. Two applications alone should increase Dublin’s capacity substantially; the first being Tetrarch’s proposed eight-storey, 393-bedroom hotel in Dublin city centre, and the second being a c. €38m, 427-bedroom hotel adjacent to Dublin Airport. The Irish Times, 24th July

The Marker: Dublin City Council has granted planning permission to GCS Hotel Property for an extension to the Marker Hotel that will involve adding a new floor and an upgraded rooftop bar. The c. €10m investment will involve adding an additional 30 bedrooms on the new floor, bringing the hotel’s capacity up to 217 bedrooms. In addition, there will be a new glass enclosed rooftop pavilion on the 8th floor that will contain a 3,250 sq. ft. restaurant, a 1,410 sq. ft. bar area and a 2,120 sq. ft. function room. Under the terms of the planning permission, the hotel must pay c. €183k in planning contributions. The Irish Independent, 22nd July

Red Cow Hotel: The Moran Family, the owners of the Red Cow hotel in south Dublin, have applied for planning permission to further extend the 275-bedroom complex by constructing an events centre and office block beside the hotel. If approved, the new four-storey building will be developed on the site of a car garage, and will extend to c. 57,000 sq. ft. It will contain an events centre on the ground floor and mezzanine level, a first floor bistro and two floors of offices. The Sunday Times, 23rd July



Fast-Track Planning: The Irish Independent provides details of the new ‘fast-track’ planning regulations which have been introduced for schemes of 100+ residential units and 200+ student bed spaces. The scheme, which became law at the start of July, has been designed to accelerate planning, one of the pillars of the Government’s ‘Rebuilding Ireland’ scheme which was launched last year. Under the previous system, a third party objection could delay an application process by 18-33 weeks, bringing the total process to over 70 weeks. The new process consists of three stages. Stage One consists of consultation with the local authority, which must be completed within four weeks. If the local authority cannot arrange a pre-planning meeting in this time, the applicant can proceed directly to Stage Two, which consists of consultation with An Bord Pleanála (ABP), and is limited to seven to nine weeks. ABP determine whether the application is valid and that it can proceed to Stage Three, while also ensuring that it complies with the Section 28 National Planning Guidelines. They do not comment on details of the application at this juncture. At Stage Three, ABP considers reports from local authorities and any objections, and must grant or refuse permission within 16 weeks. ABP cannot request further information on the application at this point. Further changes to the scheme include allowing an applicant to propose an application (at Stage One) that does not comply with a local development plan, but which meets national planning guidelines. The Irish Independent, 20th July

Aungier Street: Scape, a major international student living operator, has entered the Irish market with the acquisition of a development site on Aungier Street in Dublin 2 for over €20m. In November 2016, An Bord Pleanála granted full planning permission for a mixed-use development containing a 300-bed student accommodation complex on the site, alongside a mix of recreational and study facilities in three-to-seven storey blocks. The units will be divided into 282 bed spaces with communal kitchen facilities between every three and eight en-suite bedrooms. There will also be 18 one-bed studio rooms. Construction is due to commence in January 2018, with completion in mid-2020. The Sunday Business Post, 23rd July

64 Fitzwilliam Square: A Dublin-based senior counsel has purchased 64 Fitzwilliam Square, currently a corporate headquarters, for c. €3.5m, with the intention of converting it into a private residence. The property has an overall floor area of 7,255 sq. ft. and the lower ground floor is fitted out as a self-contained one-bedroom apartment. The Irish Times, 19th July

Baldoyle Development: Planning permission has been granted for a significant residential development in Baldoyle in north Dublin, which will see the construction of 379 apartments and 171 houses. The site, which is located on the grounds of the former Baldoyle Racecourse and Stapolin House which is c. 8km from Dublin city centre, will see the construction of 13 housing blocks of up to six storeys and a commercial ground floor area which will include convenience outlets, a crèche, a café, four retail units and communal courtyard areas. A range of housing will be provided, including one-bed apartments, own-door duplex apartments, two-to-three storey terraced houses and four-bed semi-detached houses. The 53-acre site, which sold for c. €13.5m, is being developed as part of the Baldoyle-Stapolin local area plan, and is zoned under the 2011 – 2017 Fingal Development Plan. The new development, which will have access to the nearby Clongriffin train station, is being undertaken by receivers to a company called Helsingor, which is currently controlled by NAMA. The Irish Independent, 20th July

Leopardstown Planning Application: Developer Michael Cotter is the first house builder in the country to use the Government’s new temporary ‘fast-track’ planning application system for large-scale housing developments. Viscount Securities, a company owned and controlled by Mr Cotter and his family, has submitted a pre-application proposal to An Bord Pleanála for 934 residential units at Clay Farm in Leopardstown, south Dublin. If approved, the scheme will contain 363 houses and 571 apartments on the site which is being developed by Mr Cotter’s Park Developments. Under the new regulations, Mr Cotter should receive a decision on his application by January 2018 at the latest. The Irish Independent, 20th July

Bluebell Avenue: KM Kyle Holdings Ltd has sought planning permission from Dublin City Council to demolish two cottages on Bluebell Avenue, west of Dublin city centre, and to construct a 52-unit apartment block extending to 70,000 sq. ft. The proposed six-storey complex will contain 17 one-bedroom, 26 two-bedroom and nine three-bedroom units. NAMA Wine Lake, 23rd July



Nursing Home Sites: The Irish Times reports that Bartra Capital Property acquired two north Dublin sites in June 2017, both of which have planning permission for nursing home developments. The first site extends to 11.12 acres at Featherbed Lane in Skerries, where Bartra will develop a 123-bedroom facility. The rooms will be single-bed and all will have en-suite facilities. The second site extends to 1.06 acres on the Old Ballymun Road in Santry, where Bartra will soon commence the construction of a 114-bedroom facility. The Santry facility will contain 110 single-bedrooms and four double-bedrooms, all of which will have en-suite facilities. The Irish Times, 18th July


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