26th May (Issue 248)

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.




2019 Social Housing Data released by the Department of Housing said that 5,771 new homes were delivered for social housing in 2019. The records said the new homes were added through local authority and approved housing body (AHB) new builds, while a fifth were from the Part V scheme, which requires private developers to sell up to 10% of new units to the state. Further analysis of the social housing data by the Business Post has shown that over 70% of social homes delivered in 2019 were bought from the private sector by the state as turnkey houses. More than two-thirds of these turnkey homes were bought by approved housing bodies – partially funded by the taxpayer – with the remainder bought by local authorities. The social housing data also showed that the number of local authority-built units nationwide decreased to 1,088 last year – a drop of 12% compared with 2018. The Sunday Business Post, 24th May

Dublin 8 The Irish Times understands that the US real estate group Hines and its Dutch joint venture partners, APG Asset Management, are due to submit a fast-track planning application to An Bord Pleanála for the construction of 416 new homes on the former Player Wills and Bailey Gibson site on Dublin’s South Circular Road. This represents the first phase of the 6.92 acre site’s redevelopment since Hines and APG acquired it in December 2018. Should it secure approval, the residential element of the scheme will comprise of over 400 apartments, two duplexes, three triplexes and four houses distributed across five blocks ranging in height from two to 16 storeys All phases will include 10% social housing. The Irish Times, 25th May

A detailed report from Goodbody Stockbrokers predicts that housing supply and demand will be severely curtailed because of the Covid-19 crisis. They are forecasting a reduction in house completions to 14,000 for 2020, down from their previous estimate of 24,000. Output is expected to grow to 16,000 in 2021. Despite the scale of the recession, house price declines will be significantly lower than the last downturn, but are still expected to decline by 10-15%, driven by tighter mortgage lending and hits to income. Mortgage credit availability will fall in the short-term as banks tighten credit conditions and borrowers’ income characteristics are updated. Demand for social, affordable, and assisted rental is likely to rise further, necessitating additional government support in the housing market. Goodbody’s expect the job-intensive construction sector to form a key plank of an economic recovery plan that is likely from a new incoming government in the coming months. Goodbody Stockbrokers, Q2 2020 Health Check -Reopen, Resuscitate, Reignite



South William St, Dublin 2 QRE are guiding €2.6 million for two interconnecting mixed-use investment properties at 44 and 45 South William Street in Dublin city centre. Both buildings are arranged over five levels and together extend to c.9,000 sq. ft. The basement and ground floors are in restaurant use and are let at an annual rent of €123,000 under two coterminous leases both due to expire in April 2030. In addition to this, there are three small offices and workshops which increase the existing rent roll to c.€138,000 per annum. The upper floors comprise eight studio apartments, all of which are available with the benefit of vacant possession. The studios are in varying condition and all require refurbishment prior to letting. It is estimated that the eight studio units could generate c.€145,000 in annual rent. The Irish Independent, 21st May



Dublin 2 The Irish Times understands that Colony Capital have initiated a process with a view to disposing of its interests in Irish real estate. Colony holds a 75% stake in the Burlington Plaza office complex on Burlington Road and a 72% share in the headquarters of Three Ireland on Sir John Rogerson’s Quay. The two properties carry an estimated value of up to €204 million and €120 million respectively. The US firm acquired its share of both properties as part of its purchase for €455 million in 2017 of Nama’s €1.5 billion Project Tolka loan book. The Irish Times, 20th May



BidX1 Online Auction BidX1 are offering 26 commercial assets for sale on their platform, with bidding due to open on all properties on June 18th. Some of the notable properties on offer include Ballintaggart House in Co Kerry which has been listed with a guide price of €2.1 million. The property briefly comprises a five-bedroom guesthouse, 12 holiday homes, stables and staff living quarters set on 20 acres. Furthermore, a mixed-use investment on James Street in Dublin 8 is guiding €950,000. The property comprises a ground-floor retail unit with three two-bedroom duplex apartments overhead. The retail unit is let to off-licence Next Door at €45,000 per annum. While the investment is currently generating an overall rent roll of €61,800, two of the duplex apartments are vacant. The Irish Times, 20th May

Midleton, Co Cork DNG Creedon will offer online six Munster lots with combined guide prices exceeding €1.4 million on June 11. These include Granary Court, Midleton, Co Cork, which comprises eight residential units and two commercial units with a €1 million guide price. It generates €64,153 in annual rent from four residential units while the others are vacant. The Irish Independent, 21st May


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 excess of €3m, and has lent over €150m to clients since April 2015.

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

If you would like to discuss how Origin Capital can help with your funding requirements, please contact us on 01 662 9264.