26th October (Issue 320)

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.




Rathfarnham, Dublin 14 Am Alpha, the Munich-based investor, has bought Nutgrove Retail Park in Rathfarnham, Dublin 14, for a sum believed to be more than 64m. It was sold by Davidson Kempner, which had bought it as part of a wider portfolio of retail assets for 170m. Facing Nutgrove Shopping Centre, the retail park is fully let and tenants include Harvey Norman, Homebase, Harry Corry, Costa Coffee and Aldi. Extending to 197,800 sq. ft., its space includes 168,000 sq. ft. of retail and 29,800 sq. ft. of offices. The Health Service Executive holds the office lease. CBRE advised the vendor and TWM the purchaser. The Irish Independent, 21st October 


Patrick Street, Cork Aviva is selling a retail investment on Corks main shopping boulevard at 43/44 Patrick Street, with a 3m price tag. Extending to 7,000 sq. ft., it is currently let to health-food chain store Holland & Barrett, at 215k p.a. That suggests a gross initial yield of 7.17%. The premises is adjacent to the English Market with its world famous food stalls. Double-fronted, the unit has a ground-floor footprint of over 3,000 sq. ft. The lease to Holland & Barrett covers the entire three to four-storey property and is due to expire in 2025. Agent Savills is handling the sale. The Irish Independent, 21st October


Townsend Street, Dublin 2 The asking price on a mixed-use investment on Dublins Townsend Street has been cut to 2.75m, from the previous guide of 3m. According to selling agent TWM, the new price provides the purchaser with an initial net yield of 7.5% off an income of 227k a year. The property occupies a prime corner site with elevations to Townsend and Creighton streets, just opposite the Westland Square apartment development. Number 88-92 Townsend Street is currently fully let to Darmody Architecture, City Break Apartments and the offices of the Irish National Organisation of the Unemployed. The Irish Times, 20th October


Capel Street, Dublin 1 37/38 Capel Street, a mixed-use investment property in Dublin 1 has been brought to the market by joint agents JLL Ireland and Dillon Marshall guiding 6.5m in a private treaty sale. It consists of two retail units with 11 overhead apartments. The agents say the building has the potential to generate a gross annual rent of 428k and this could generate an initial yield of c. 5.5%. It was previously offered for sale in 2017 when it had a 2.95m guide price, and the group of private investors who purchased it undertook refurbishments. The Irish Independent, 21st October


Capel Street, Dublin 1 Agent Knight Frank is bringing 119 and 120 Capel Street to auction with a 1m guide price. Extending to 4,998 sq. ft., the buildings ground floor and part basement is let to a Korean restaurant, and most of the upstairs offices are let to The Simon Community. Current annual contracted rent is 69k. The Irish Independent, 21st October



Healthcare, Ireland A planning application has been submitted by Valley Healthcare Fund Infrastructure Investment Fund ICAV to build a new primary care centre in Claregalway, Co Galway. The three-storey centre will measure 36,651 sq. ft. while the estimated cost of the proposed development is 8.3m. Meanwhile, works are now under way on the construction of a new 18.2m primary care centre of 70,148 sq. ft. in Clondalkin, Co Dublin. Works are expected to take in the region of 22 months to complete. The Business Post, 24th October


Drogheda, Co Louth A Bank of Ireland branch has come to the market in Drogheda, Co Louth. The building is fully let to Bank of Ireland on a FRI lease until 2031 with no break option and is seeking 3.9m. The sale of the branch comes as the bank readies a portfolio sale of some 82 closed branches across the State. The building at 14 St. Laurence Street extends to c. 6,943 sq. ft. and is being brought to market by way of private treaty by CBRE. The property benefits from an excellent location, covenant and lease term at a sustainable rental level, which is insulated by upward only review. The guide price of 3.9m, reflects a net initial yield of 7.22%, and a capital value per square foot of 562. The building is situated on the northern side of the street in the heart of Drogheda and benefits from excellent frontage of 14m to one of Droghedas busiest shopping streets. The Irish Times, 20thOctober


Stokes Place, Dublin 2 A question mark has been placed over plans by US property giant Kennedy Wilson to construct a new office campus at St. Stephen’s Green that would have the capacity to accommodate 3,000 office workers. Last month, Dublin City Council gave the green light for the scheme at Stokes Place at Stephens Green South and Harcourt Street which currently accommodates the Dublin headquarters of KPMG. The proposal involves the demolition of the existing office complex at Stokes Place and the construction of an eight storey office block. However, three third-party appeals have been lodged against the permission, including one from Davy Target Investments Ltd. A management company for 18 owners of apartments of the adjacent Russell Court Apartments, Padamul Ltd, has also raised objections. Kennedy Wilson has also appealed a condition in the decision that reduced the eight storey scheme to seven storeys. A decision is due on the appeals in February of next year. The Irish Times, 21st October



Lancaster Gate, Cork A portfolio of 10 apartments at Lancaster Gate in Cork is being brought to the market by agents OConnor Murphy for 4.2m. Constructed in 2007, it is laid out in three separate blocks, The Fastnet, The Sherkin and The Garnish. Pitched as a PRS investment, the 10 apartments, which have been refurbished to like-new” standards, come with an estimated annual rent roll of 238k. The yield is of the order of 5.5%. There may be potential for an uplift however, given that the apartments are currently let at 1.9k-2.1k a month. They are all two-bedroom units, varying in size from 710 sq. ft. – 1,019 sq. ft. and come with one designated car parking space per apartment within a secure basement car park. The portfolio is being sold with the benefit of vacant possession and all apartments are furnished and available for immediate lease. Accommodation in the area is in high demand, given the central location occupying a prominent position overlooking the river Lee. Lancaster Gate is c. 3.1km from Hollyhill Industrial Estate, home to Apple. The Irish Times, 20th October


Ranelagh, Dublin 6 A portfolio of three period houses and two additional mews, called the Ranelagh Collection”, has been brought to the market in the heart of Ranelagh village for 4.285m by joint agents Cushman & Wakefield and Sherry Fitzgerald. This offers potential for a developer to bring the properties back into residential use. The houses at 122, 126 and 128 Ranelagh comprise three prime two-storey over garden level Victorian homes. They form part of a terrace of four houses which are set back from Ranelagh Road, with pedestrian gates fronting directly on to Ranelagh and vehicular access to the rear via Cullenswood Place. All properties are being sold with vacant possession, having been in commercial use. Recently refurbished, the accommodation currently provides 9,354 sq. ft. of office space, split across 38 rooms. There are 27 private car spaces in total, all located to the rear of the properties. Given the residential zoning of the properties, all could be converted to residential use, either as individual dwellings or multi-unit dwellings. The Irish Times, 20th October


Brennanstown, South Dublin A substantial residential development site of c. 29.4 acres, with the capacity to build c. 400 homes in one of Dublins premier postal addresses, close to the villages of Cabinteely and Foxrock, has come to the market seeking what is understood to be in excess of 23m. The land at Brennanstown is being brought to the market by CBRE, on the instruction of Declan McDonald of PwC, acting as receiver on behalf of NAMA. The land is for sale in one or more lots. Lot 1, known as Druids Glen”, comprises c. 8.8 acres of residential development land and 11.1 acres of forestry land, while Lot 2, Lehaunstown”, consists of c. 9.5 acres of residential development land, with a small portion zoned for town centre use under the Cherrywood SDZ. The third lot comprises the entire 29.4 acres, with development potential for more than 370 residential units and c. 6,458 sq. ft. of commercial space. The Irish Times, 20th October 


Ashford, Co Wicklow An Bord Pleanála has given the go-ahead for a 35m housing development in the Co Wicklow village of Ashford. The appeals board granted planning permission for the 117 unit development in the face of local opposition and a recommendation by Wicklow County Council that the scheme be refused planning permission. The scheme comprises 99 houses and 18 duplexes in the townland of Ballinalea, Ashford. However, the board has inserted a condition in the permission banning corporate entities purchasing the houses and duplexes en masse and restricting the sale to individual purchasers. The board said it included the condition to ensure an adequate choice and supply of housing in the common good. The Irish Times, 20th October


Finglas, North West Dublin The appeals board has granted planning permission at Ruirside Developments for 191 apartments in blocks ranging from five to six storeys just outside Finglas in Dublin despite strong local opposition. The appeals board granted planning permission for the scheme at the former Premier Dairies site on Finglas Road after concluding that the proposal would not seriously injure the residential or visual amenities of the area or of property in the vicinity. The Irish Times, 20th October


Blackrock, Co Dublin A Strategic Housing Development application has been submitted to An Bord Pleanála by Clonkeen Investments DAC for the construction of 299 apartment units on lands adjoining Clonkeen College on Clonkeen Road in Blackrock, Co Dublin. The development includes 111 one-bed, 150 two-bed and 38 three-bed units. The total gross floor area of the proposed development is 364,369 sq. ft. A full design team has been engaged to work on the 67m development, with a decision expected in early January 2022. The Business Post, 24th October


Sandford Road, Dublin 6 A Strategic Housing Development application has been lodged for the construction of a 115m build-to-rent apartment development on Sandford Road in Dublin 6. Sandford Living Limited has submitted an application to build 671 BTR apartment units comprising 370 one-bed, 274 two-bed and 27 three-bed units, a creche and gym. A decision is expected in early 2022. The Business Post, 24th October


Baldoyle, Dublin 13 An Bord Pleanála has approved an SHD application lodged by Shoreline Partnership/Redmond Homes for the 170m ‘Shoreline 2’ Development at lands at Stapolin and Baldoyle, also known as “the Coast” in Baldoyle, Dublin 13. The extensive development will measure over 904,168 sq. ft and will include 1,221 apartment units in 11 blocks ranging in height from two to 15 storeys with a café, restaurant and a creche facility. The Business Post, 24th October


Liffey Valley, Dublin 22 Vast tracts of land beside ​​Liffey Valley Shopping Centre controlled by Hines have potential to provide space for more than 1,400 new homes, according to the US developer. Last week, the sod was turned on a new €20m bus interchange at Liffey Valley Shopping Centre, which will be a large hub in the National Transport Authority’s new Bus Connects network. A masterplan drafted by Hines for the large site has been modelled to resemble a town centre. It includes more than a thousand homes, a public plaza, health services and leisure facilities. The residential blocks would be linked to the new Bus Connects transport hub by a high line-style walkway. At least 20% of the development would be made up of social and affordable housing, with potential for more. The Business Post, 24th October



Housing Price Trends, Ireland IPPi, the Independent Property Price Index, has released its quarterly report highlighting rolling averages of sold prices for two, three and four-bedroom residential properties on a county-by-county basis for Q3 2021. A review of the report showed that rolling average sold prices for two-bedroom homes increased in all counties across the country with the exception of Co Monaghan, where they fell by 8.5% to an average of €76,500. In all other counties, the average prices achieved for two-bedroom properties ranged from the lowest increase of 0.73% in Co Cavan to the highest year-on-year Q3 2021 increase in Co Donegal of 36.07% to an average sale price of €123,471. The picture for year-on-year rolling average sold prices for three-bedroom properties showed a similar result with only two counties seeing a dip in prices achieved. The average sale price for a three-bedroom property in Galway fell c. 1.45% to €219,123. Co Waterford saw a similar dip – of 1.66% – to a county-wide rolling average of €191,812. Co Monaghan saw the largest increase in its county’s average sold prices in the three-bedroom unit category, rising c. 27.08 % in the 12-month period to an average of €177,333. Dublin retained the highest average year-on-year sold price for each category of home (two, three and four-bedroom units), from €338,845 for a two-bedroom home, (an increase of 8.44%), c. €439,628 for three-bedroom homes in Q3 2021, an increase of 8.21% on the same period last year. Four-bedroom homes sold for an average of €685,941 in Q3 2021, an yearly increase of 13.53%. Notably, Co Kilkenny enjoyed the highest yearly percentage increase in average four-bedroom house prices at €355,570, an increase of c. 25.07%. The Business Post, 24th October


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