25th September (Issue 165)
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
AIB Bank Centre, Ballsbridge Johnny Ronan is expected to commence the development of part of AIB Bank Centre in the coming weeks. The first phase of Facebook’s new EMEA headquarters will be the 333,000 sq.ft Fibonacci Square, which will be within a larger 700,000 sq.ft campus. It is reported that Facebook’s heads of terms have been finalised although details are unknown. The Irish Independent, 20th September
Citywest, Dublin CBRE are seeking offers in excess of €38m for the Eir Network Management Centre at Citywest Business park. The 77,490 sq.ft property comprises a three-storey office with single storey laboratories. The property is occupied by Eircom Ltd on a 25 year FRI lease from September 2010, with no break options. The current rent is €2.2m pa with uplifts in 2025 and 2030. The property is being sold by Irish UK investment group SW3, who are also selling J5 Plaza in Dublin 11 (€11.25m asking price) and the Dublin Business School on Aungier Street, Dublin 2 which is guiding €15m. The Irish Times, 19th September
New Century House, IFSC a 80,000 sq.ft office building, has been sold by Hibernia REIT for €65.3m (€816 psf) to a fund managed by Credit Suisse Asset Management Global Real Estate. The annual rental income is €2.9m (4.4% yield) The Irish Times, 19th September
1 Sir John Rogerson Quay, Dublin The Sunday Independent reports that Hubspot, a US tech company, is in advance stages of negotiations with Hibernian Reit to lease 115,000 sq.ft of office space at 1 Sir John Rogerson’s Quay for €60 psf. The Sunday Independent, 23rd September
RETAIL
81 Grafton Street, Dublin 2 Rituals, will open its first Irish store on Grafton street and has agreed an annual rent of €450,000 pa (€381 psf) for the former H Samuel Jewellers store. The Dutch company is one of Europe’s fastest growing beauty brands with over 500 stores in 27 countries worldwide. The Irish Times, 19th September
Donnybrook Fair the grocery chain, has been acquired by retail group Musgraves for c. €24m. Musgraves have announced that they intend to convert some of their Centra outlets into Donnybrook Fairs. The Sunday Business Post, 23rd September
HOTEL
The Liberties, Dublin Harry Crosbie has lodged plans for a 185 bed hotel at his Vicar Street venue in Dublin. He previously sought planning permission for a 194 bed hotel in 2008 and although approved, no development took place on account of the recession. The Times, Irish Edition, 23rd September
RESIDENTIAL / LAND
Docklands, Dublin Johnny Ronan, through Ronan Group Real Estate (RGRE) and partners Colony Capital, have bought a 4.6 acre site in the docklands next to the 3 arena for c. €180m (€39m per acre). The site has planning for 300,216 sq.ft of offices and 420 apartments. The Irish Independent, 19th September
Bettystown, Co Meath a 23.5 acre site with planning permission for 202 houses has been brought to market by Robert B Daly & Son guiding €8m (€340k per acre / €40k per unit). The Irish Times, 18th September
Carriglea, Bluebell, Dublin 12 Savills are seeking €12m for a 6.55 acre site in Bluebell, Dublin 12 with planning permission for 358 apartments (€1.8m per acre / €33.5k per unit). The site has approval for 76 one-bed, 219 two-bed and 63 three-bed apartments along with commercial units, a crèche and gym and 358 basement car parking spaces. The Irish Times, 18th September
Harold’s Cross, Dublin 6 A 1 acre site has been brought to market through JLL guiding €3m. The site currently consists of 20,000 sq.ft of offices and warehouses. The site has the capacity to accommodate 15 townhouses or 28 apartments according to a feasibility study prepared by BKD Architects. The Irish Independent, 20th September
Brennanstown Road, Cabinteely a 29.4 acre site with capability to accommodate 400 residential units and 6,458 sq.ft of commercial units has been brought to the market through CBRE guiding €35m (€1.19m per acre) The Irish Independent, 19th September
Celbridge, Co Kildare a 5.45 acre residential site has been brought to market by Coonan Property guiding €4.4m (€807k per acre)The Irish Times, 19th September
Swords Road, Dublin 9 a 6.75 acre site on the Swords Road has been bought by developers Fergus Lynch and Kieran Gannon for €30m (€4.4m per acre). The site has planning permission for 358 apartments, 105 surface car parking spaces and 413 basement car parking spaces. The site had been brought to market guiding €18m. The Irish Times, 19th September
GENERAL
Green Reit have announced that they intend to invest in warehousing properties in the coming years as they anticipate the logistics sector will expand and they are going to wind down their retail interests. The company currently has €1.4bn in assets with a development pipeline of around €600m. The Sunday Business Post, 23rd September
Cushman & Wakefield Irish Development Land Market H1 2018 reports that c€380m has transacted in development land in the first half of 2018, a 61% increase year on year. Residential development was the main contributor, representing 86% or €233m of these transactions. Although the value has increased, the number of sites sold has decreased year on year by 15%. The majority of the transactions were in the Greater Dublin Area, representing 79% of the transactions in the year to date. Cork has increased the number of transactions year on year by 25%. Galway and Limerick however, witnessed a slowdown in their markets. The market is expected to further strengthen with €300m sale agreed at the end of June 2018.
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