25th June (Issue 202)
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.
RETAIL
St Stephen’s Green Shopping Centre Two separate shareholdings amounting to a 62% stake in Dublin’s St Stephen’s Green Shopping Centre are being quietly offered for sale in a targeted process at a guide price of €130 million. The shares in question are held by New York-headquartered Madison International Realty (35%) and businessman Pierce Molony (27%). The centre has more than 90 shops over three levels with an overall floor area of 320,000 sq.ft. and is currently producing rental income of €8 million. The Irish Times, 19th June
O’Connell Street, Dublin 1 The flagship Eason store on O’Connell Street has been brought to the market with Bannon guiding €24.5 million. The shop has 61,630 sq.ft. of space over seven storeys with four floors of retail extending to a combined 41,680 sq.ft. The property is being sold with a 25-year lease to Eason Ltd at an initial rent of €1,341,500 a year which equates to €21.50 psf and a 5% net initial yield. The Irish Times, 19th June
RESIDENTIAL
Mount Merrion, Dublin 4 Oakmount has commenced the construction of 52 apartments on the prominent Flanagan’s of Mount Merrion site in south county Dublin, where all of the available units will be offered for sale to individual buyers. The development of the apartments represents the first phase in Oakmount’s plan to transform the overall 1.88 acre site occupied by the former Flanagan’s furniture store and the adjacent Union Cafe. The Irish Times, 19th June
Dolphin’s Barn, Dublin 8 Twenty apartments in the six-storey Ice Rink development in Dolphin’s Barn, Dublin 8, which was built in 2006 has been brought to the market through Hooke and MacDonald on behalf of Nama with a guide price of €4.6 million. Seven of the apartments are one-bedroom units (473-602 sq.ft.), twelve are two-bedroom units (645-796 sq.ft.) and there is one three-bedroom 1,011 sq.ft apartment. Fourteen of the apartments are let and are producing a current gross rental income of €188,772 per annum. The current estimated rental value is €417,600 per annum. The Sunday Business Post, 23rd June
Ashbourne, Co Meath REA Grimes are quoting €1.25 million for a portfolio of seven apartments in Ashbourne, Co Meath. The units are distributed across three blocks and comprise six two-bedroom apartments and one three-bedroom apartment. All seven apartments are being sold with the benefit of vacant possession. Based on the selling agent’s net rental income estimate of €110,207 per annum, the prospective purchaser could expect to secure a reversionary yield of 8.11% on the portfolio. The Irish Times, 19th June
Co-Living Apartments, Tallaght An Bord Pleanála has refused planning permission for a development of more than 200 co-living units in Tallaght. Bartra Capital had proposed to build 40 co-living units on each floor with a kitchen/living area, cinema and library for residents to use. Sighting the reason for the refusal, An Bord Pleanála said the co-living format would “fail to provide an acceptable living environment,” highlighting what it called a “notable shortfall in the provision of sufficient communal facilities”. RTE News, 24th June
OFFICE
South County Business Park, Leopardstown, Dublin 18 Knight Frank is guiding a price in excess of €5 million for a 0.84 acre site with significant redevelopment potential. The site currently comprises a two-storey office premises let in its entirety to Soft-ex Communications Ltd. There are seven years remaining on the current lease at an annual rent of €162,500 per annum with a rent review due in 2021. A feasibility study, prepared by Reddy Architecture in advance of the sale, suggests the site could accommodate a new office scheme extending to 54,900sq.ft. in a five-storey over-basement office block which is permissible under the current development plan (subject to planning permission). The Irish Times, 19th June
Dublin Docklands Bartra has been granted planning for a new high-rise 200,000 sq.ft. office scheme at the Boston Sidings site in Dublin’s Docklands. Bartra is developing the site at Grand Canal Quay and Macken Street in Dublin 2 in conjunction with site owner, CIE. A pre-condition of the permission being granted was that Bartra must pay Dublin City Council €1.49 million in development contributions. The Irish Independent, 25th June
MIXED USE
12 Rathfarnham Road, Terenure Browne Corrigan Chartered Surveyors is guiding in excess of €775,000 for the freehold interest in AIB’s 4,370 sq.ft. (€177 psf) former bank branch premises in Terenure village, Dublin 6. The building is Z4 zoning which makes it suitable for a wide range of possible uses including retail, bookmaker, residential, office and healthcare. The Irish Times, 19th June
Maynooth, Co. Kildare A high-profile mixed-use investment has been sold for €1.4 million (16% above guide price) by joint agents Sherry FitzGerald Brady O’Flaherty and Cushman & Wakefield. Desmond House comprises a two-storey commercial premises which is occupied at ground-floor level by Picaderos Restaurant under a 10-year lease from September 5th, 2011 paying €45,000 per annum. The first floor, which has a separate access from Main Street, is currently occupied by two office tenants producing a combined net income of €21,600 per annum. The sale also included a two-storey mid-terrace residential dwelling consisting of three one-bedroom apartments to the rear of Desmond House. Two of the apartments are let on short-term residential tenancies generating an income of €21,900 per annum while the third apartment is currently vacant. The Irish Times, 19th June
INDUSTRIAL
Northwest Business Park, Dublin 15 Harvey is quoting an annual rent of €438,000 for a modern, high-bay warehouse and office facility extending to a total of 49,460 sq.ft. (€8.85 psf) at Northwest Business Park in Dublin. The subject property comprises a bright warehouse area of 36,210 sq.ft. and benefits from a clear internal height of 39ft with loading access provided via two full-height, ground-level doors with overhead canopies and two dock levellers. There are also non-structural mezzanines on two levels comprising 9,537 sq.ft. There are three storeys of office, reception and staff welfare facilities and a car park to the front and a large yard to the rear. The Irish Times, 19th June
24-25 Fenian Street, Dublin 2 A derelict site with planning permission for 10 short-term residential letting units near Merrion Square, Dublin 2, is for sale with Turley Property Advisors quoting a €950,000 guide price. The planning permission granted is to develop the existing three storey over basement protected structure facing Fenian Street and to develop a new five-storey building to the south of the site overlooking Denzille Lane. The development will also include a covered urban courtyard which will connect the two buildings. The Irish Independent, 20th June
HOTEL
Clonmel Park Hotel, Co. Tipperary A fund controlled by Davy has acquired the four-star Clonmel Park Hotel in Co Tipperary for c€5 million which represent €200k over the guide price set by JLL. The hotel comprises 99 guest rooms, state-of-the-art conference and banqueting facilities and a leisure centre and spa. The hotel is operated under the terms of a leasehold agreement by the Tetrarch Hospitality Group. Tetrarch entered into the lease in 2015. The Irish Times, 19th June
LAND
Old Navan Road, Dublin 15 Knight Frank is guiding €1.2 million for a 0.55 acre site on the Old Navan Road with full planning permission for 7 detached houses (€171k per unit). The approved scheme consists of five four-bed detached houses, one three-bed detached house and one five-bed detached house. The detached units range in size from 1,431 sq.ft. to 2,315 sq.ft. The Irish Times, 19th June
Fota Island Resort, Cork Development land on the grounds of the five-star Fota Island Resort, with full planning in place for 88 houses has just come to the market via agents Lisney, guided at €4 million. The planning granted allows for 44 big detached houses, from 2,700 sq.ft. up to 3,500 sq.ft. which can be full time residences, and for 44 two-storey lodges, which are for short term rentals only. This equates to €143,000 an acre, or over €45,000 per unit, and services are already in place from prior development to allow immediate construction. The Irish Examiner, 20th June
OTHER
BidX1’s Online Auctions 270 lots are scheduled for inclusion in BidX1’s online auctions on July 10 and 11. The most valuable, comprising five vacant apartments at Eaglewood, Rochestown Avenue, Dún Laoghaire has seen its guide price increase from €1.45 million earlier in the year when it did not sell to €1.5 million. The next most valuable lot comprises six of the commercial units at the Courtyard Shopping Centre, Newbridge, Co Kildare, with a combined €1.25 million guide price. Four of the units are generating total annual rent of €154,373 (12% passing yield). The Irish Independent, 24th June
EY-DKM Economic Advisory A new report on housing affordability from EY-DKM Economic Advisory has found that nearly half of all counties in the State are unaffordable for first-time buyers on average incomes. For the purpose of the report, the average income was set at 89% of average earnings and has assessed affordability in terms of the salary required to qualify for a mortgage, as well as the ability to save enough for a 10% deposit. The report found that the Government needs to achieve a better balance between owner-occupied and build-to-rent developments to deliver affordable rents. The Irish Times, 25th June
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie