26th January (Issue 30)

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.



NAMA Portfolios: NAMA is to launch the sale of two further loan portfolios, Projects Emerald and Ruby, in the near future. The portfolios are believed to have a par value of c. €3bn each, however they are expected to sell for a significant discount to their par values. Project Emerald has c. 120 borrower connections however the number of connections within Project Ruby is not yet known. NAMA achieved c. €8.5bn in 2015 from loan and asset sales. The Sunday Business Post, 24th January



Airbnb Building: BNP Paribas Real Estate Investment Management has emerged as the preferred bidder for the proposed European headquarters of Airbnb. BNP will pay c. €32m for the property which is located in Hanover Quay in the south Dublin docklands. The property, which is a converted two-storey waterfront building extending to 38,471 sq. ft., is in the final stages of its refurbishment and work is expected to be completed next month. Airbnb Ireland will occupy the property under a 20 year lease at €1.475m, with a fixed uplift to €1.7m in 2021. The property is currently owned by a consortium consisting of Oaktree Capital Management, the Bennett Group and NAMA. The Irish Times, 20th January

Telephone House: Knight Frank are guiding in excess of €11.5m for a 1970’s office block in Dublin 1. The nine-storey Telephone House is located on Marlborough Street and has a net floor area of 80,773 sq. ft. The Indian multinational HCL occupy the entire building under a ten year lease from July 2015, with a guarantee being provided by their UK entity HCL EAS Ltd. The current rental income of the property is c. €968k p.a., which includes rent of c. €2k p.a. from each of the 61 car spaces. There is also rent of €16k p.a. being generated from two telecommunication masts. Irish Independent, 21st January

Hibernia Acquisition: Hibernia REIT has exercised an option to purchase Hardwicke House and Montague House in Dublin 2 for a total cost of €60m. Hibernia had previously paid €18.2m to the Hardwicke group for operational control in 2014, with the option to purchase the buildings outright for €60m by mid-2016. The current rent roll for the properties is c. €2.7m p.a., and tenants include Prudential, Deloitte and Capita. Hibernia advised that c. 90% of the rent roll is subject to review in 2018. The Irish Times, 23rd January 

3 Harbourmaster Place: Joint agents Savills and CBRE are inviting offers in excess of €37.5m for 3 Harbourmaster Place in Dublin’s IFSC. The five storey, 52,094 sq. ft. property is being sold under the instruction of the receiver, Grant Thornton. The current rent roll of the property is c. €2.46m p.a., from tenants such as Depfa Bank, Danske Bank and Allianz. A sale price of €37.5m would offer investors a return of 6.27% and a capital value of €708 psf. The Irish Times, 20th January



Blanchardstown Shopping Centre: Joint agents JLL and Eastdil Secured are expected to guide c. €1bn for Blanchardstown Shopping Centre when it is brought to the market next month. The property currently generates rental income of c. €50m p.a. and is owned by the Green Property Group. The property has a floor area of 1.2m sq. ft. and is situated on 85 acres with 176 retail units, two retail parks and a multiplex cinema. The annual footfall of 16m people is served by 6,000 car spaces and 600 buses daily. The Irish Times, 21st January

Harvey Norman: A retail warehouse let to Harvey Norman on the Kinsale Road in Cork is for sale through Savills, with a guide price in excess of €8.2m. The 44,132 sq. ft. property is situated on a 1.9 acre site, has 100 car spaces and is currently generating rental income of c. €679k p.a. The lease doesn’t expire until 2025 and there is a parent company guarantee from Harvey Norman Holdings Limited, which has nearly 300 stores worldwide. The Irish Times, 20th January

Chatham Court: Lone Star has received planning permission from Dublin City Council to develop a new five storey retail and office scheme off Grafton Street in Dublin city centre. The application approves the demolition of the existing three storey block in Chatham Court, which currently houses a number of shops, restaurants and apartments. The development will feature two large retail units and will back onto Lone Star’s existing South King Street development, whose tenants include H&M and Zara. Lone Star acquired the South King Street development in 2014 after purchasing loans from IBRC and assets from Chartered Land. The Sunday Times, 24th January



Adare Manor: The five star Adare Manor hotel in Limerick is to close immediately after planning permission was obtained to allow for an extensive renovation of the hotel. Adare’s owner JP McManus received planning permission to add an extra 40 bedrooms to the hotel, bringing the total number of rooms to 104. The planning application also allows for the development of a new ballroom, boardroom, cinema, spa and pool. It is hoped that the hotel will reopen by September 2017. Industry analysts estimate that the cost of the renovation will be around €50m. The Irish Times, 21st January

Ranelagh Hotel: Dublin City Council has approved a planning application from Original Point and Oakmount, two companies linked to Paddy McKillen Jnr, to develop a boutique hotel in Ranelagh, Dublin 6. The hotel will be located on the Main Street in Ranelagh. The application approved will allow for the development of 41 hotel rooms, a 50-seater cinema in the basement, two restaurants and a bar. McKillen purchased the site for an undisclosed amount in 2013. The Irish Times, 21st January

Dublin City Site: A 0.36 acre site in Dublin 8 which was recently granted planning permission for a three star, 137 bed hotel is now for sale through JLL who are seeking offers in excess of €6.5m. The site is located at the junction of New Street South and Kevin Street Upper in Dublin city centre. JLL’s Dan O’Connor is anticipating strong interest in the site, as it is the only ready-to-go hotel site for sale in Dublin city centre. The Sunday Business Post, 24th January



Glasnevin Development: Dublin City Council has approved a planning application from IDV Developments to construct 131 homes in Glasnevin, Dublin 11. The homes are to be built on a c. 4.94 acre site which was previously the location of the Smurfit print works site. IDV Developments are understood to have paid €4.5m for the site in 2013 and now intend to develop 43 three / four bed houses, 76 apartments, 12 duplexes, a café and crèche following the receipt of planning permission. The Irish Times, 25th January

Saggart Development: Kelland Homes and Durkan Estates have submitted a joint planning application seeking approval for the development of 218 homes in Saggart, south Dublin. All of the homes under the planning application are two storeys and will have either three or four beds. The homes are to be built over two sites, with each entity owning one site. Kelland will develop 111 homes and Durkan will develop the remaining 107 if the application is approved. Irish Independent, 22nd January

Mortgage Market: The mortgage market received a boost this week following an announcement from the Australian lender Pepper. Pepper is set to enter the Irish market offering rates as low as 3.55% for first-time buyers and switchers. Pepper will initially focus on the greater Dublin area, Cork, Galway and Limerick, with arrangement fees of 0.5% of the mortgage amount applying. Irish Independent, 21st January



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

Origin Capital funds senior debt transactions in the CRE investment sector, typically in the €3m – €15m range. If you would like to discuss how Origin Capital can help with your funding requirements, please contact us on 01 662 9264.

Origin Capital is a wholly owned subsidiary of LeBruin, a leading provider of corporate finance and debt advisory solutions.