27th June (Issue 403)

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.



Kenmare, Co Kerry Mayrange, the hospitality group behind Sheen Falls Lodge, a luxury resort in Kenmare, Co Kerry, is the frontrunner to buy local rival Park Hotel Kenmare from John and Francis Brennan. According to market sources, Mayrange were mulling a purchase of the property before it was officially put on the market for €17m last month. Another Brennan hotel in Kenmare — the Lansdowne, a four-star property that the brothers bought in 2021 — is also for sale for €3.5m through CBRE and is available to purchase with Park Hotel Kenmare or separately. The Sunday Times, 25th June

Townsend Street, Dublin 2 The shortage of hotel rooms in Dublin city centre has eased somewhat in recent weeks with the arrival to the market of the newly developed Travelodge Plus on Townsend Street. While the 393-bedroom hotel was to have opened for business in January of last year, that plan was put on hold when its owner, Tifco Hotel Group, signed a contract with the State to use the property to accommodate people seeking asylum in Ireland. The deal with the International Protection Accommodation Service division of the Department of Children, which is responsible for housing people seeking refuge in Ireland, saw Pumpkinspice Limited, a company set up by Tifco to develop the city centre hotel, paid approx. €20.5m to house asylum seekers in 2022. The Travelodge Plus, near the quays, is understood to have cost approx. €100m to build and is the second-biggest hotel in Dublin’s central city area. The Irish Times, 21st June



Dundrum, Dublin 14 Penneys has invested €16m in a new shop at Dundrum Town Centre. The €16m investment is part of Primark’s overall commitment to invest €250m in Ireland over the next 10 years, according to a statement from the group. The new Dundrum Penneys occupies the second and third floors of the old House of Fraser site at Dundrum. It is the third largest Penneys in Ireland after Mary Street and Blanchardstown. The Business Post, 22nd June

Liffey Valley, South Dublin The French fund Inter Gestion REIM has made its first investment in Ireland’s commercial property market, paying in excess of €26m (NIY 7%) for B&Q’s flagship store at Liffey Valley in Dublin. The fund, an independent family-owned portfolio management company, is understood to have secured ownership of the property from its owners, Aviva and Iput, in the face of competing bids from several other parties. The subject property extends to 119,213 sq. ft with an ancillary garden centre of approx. 29,000 sq. ft, as well as builder’s stores and a service yard. The unit also benefits from a large surface car park comprising 552 spaces. The property is single let to B&Q PLC on a 25-year upwards-only, FRI lease from March 27th, 2002. B&Q currently pay a rent of €2.02m pa (€18.80 per sq. ft). The Irish Times, 21st June



Sandyford, South Dublin US real estate investment firm Kennedy Wilson is seeking an occupier for the fourth-floor offices in the Chase Building at the Sandyford Business District in south Dublin. The accommodation, which extends to total area of 24,865 sq. ft, is being offered to the market by joint agents BNP Paribas Real Estate and Savills on a new direct lease and on flexible terms at an annual rent of €30 per sq. ft and €2k per car space pa. The overall scheme comprises a total area of 174,400 sq. ft, distributed over eight floors. The Chase Building on Arkle Road in the heart of Sandyford Business District is home to a number of international occupiers including Google, Service Source, Dun & Bradstreet, Ericsson and Regus. The Irish Times, 21st June



Naas, Co Kildare Palm Logistics is to seek planning permission to develop a further 500,000 sq. ft of logistics space at Naas Enterprise Park, the largest single asset in the Core industrial portfolio, which it acquired with KKR for €195m in December 2021. The proposed expansion, which will see the 250-acre park’s logistics space increase to more than 2m sq. ft, will involve an investment of more than €100m. The Naas scheme is home to more than 100 businesses employing more than 2,000 people and Palm has estimated that its investment offers the potential to double this workforce. The Irish Times, 21st June

Bluebell Avenue, Dublin 12 Gannon Recovery Services are paying more than €2m for the former Nangle Harris motor showrooms property on a 1.1-acre site at 1, 2 and 3 Bluebell Avenue, Dublin 12. The surrounding area has been designated for the City Edge Regen redevelopment by Dublin City and South Dublin local authorities. Savills had been quoting €1.85m for the property which includes three premises with a combined 23,971 sq. ft. These include a detached warehouse of 18,557 sq. ft. fronting Bluebell Avenue, together with two units to the rear of the site which total 5,414 sq. ft. The Irish Independent, 22nd June

John F Kennedy Industrial Estate, Dublin 12 Savills is bringing JFK Enterprise Centre in John F Kennedy Industrial Estate, Dublin 12 for sale with the benefit of vacant possession at a guide price of €1.4m. Sitting on approx. an acre at a prominent corner at the junction of John F Kennedy Drive and John F Kennedy Road, the detached premises extends to 16,716 sq. ft. This property is also in the area zoned Regen in the South Dublin County Council Development Plan. The Irish Independent, 22nd June



Midleton, Co Cork One of the country’s largest meat processing companies, Dawn Meats, has received planning permission to build a mixed-use development in Co Cork that includes over 400 housing units. It follows CGI Food Park Limited withdrawing its appeal at An Bord Pleanála against the County Council granting permission to Dawn Meats in September 2022 for the mixed-use development at the Water Rock site near Midleton. The scheme comprises of 434 residential units, a childcare facility, a Research and Development building, a neighbourhood centre and a 90-bed nursing home. The residential element of the development will contain 281 apartments/duplex units and the construction of 153 houses. The proposed development is to also provide 87 homes for social housing in compliance with the developer’s Part V obligations. The Irish Times, 22nd June

Guinness Brewery Site, Dublin 8 Property developer Ballymore has been granted planning permission to redevelop part of the Guinness brewery site in Dublin 8 for residential housing and a range of other uses. Dublin City Council has given the green light to Marbelsand Holding Ltd for the scheme at St James’s Gate, which includes 336 build-to-rent housing units in blocks rising up to 16 storeys in height. It also includes two hotels (with 304 bedrooms between them), a 280-capacity performance space, a food hall and marketplace, offices and a number of public spaces and new squares. Called the Guinness Quarter, the plan involves the development of a 12.5-acre site that currently forms part of Diageo’s St James’s Gate brewing campus in Dublin 8. The council has decided that Ballymore must pay a development contribution of €10.6m to the local authority “in respect of public infrastructure and facilities benefiting [the] development”. The Irish Times, 22nd June

Swords, Co Dublin CBRE is guiding a price of €7m for Gamestop’s former Irish headquarters in Swords Business Park after the video game retailer announced earlier this year it would be winding down its Irish operation. Estuary House is a high-specification detached facility of 41,290 sq. ft consisting of a two-storey office unit of 14,235 sq. ft and an industrial unit. The Irish Times, 21st June



Daft Report House prices have fallen by 0.5% YoY between March and June compared to the same period in 2022, the first drop since 2020, according to a new report published by Daft. The average house price for the period was €309.6k, which was up on a quarterly basis by 2.4%. The number of homes available on Daft on 1 June was 13,000, up 5% on the same date last year but still below 2019 when 24,200 were available on the platform. Asking prices were down in Dublin by 1%. While Daft’s report found an overall drop, data published earlier this month by the CSO found that residential property prices were up on the whole YoY by 3.6%. The Business Post, 26th June

The National Asset Management Agency (NAMA) has reported profit after tax of €81m for 2022. The body said the profit reflects the ongoing reduction in the size of its loan portfolio, which stood at €500m at end 2022, less than 2% of the value of €32bn paid by NAMA to acquire the loans when it was set up. Subject to market conditions, NAMA will make surplus transfer payments totalling €350m to the Exchequer over the remainder of this year, which will bring the total paid to the Exchequer to €4.25bn, it said. Between the start of 2014 and the end of March this year, NAMA funded or facilitated the delivery of close to 30,000 new homes, it said. Of these 30,000 homes, approx. 14,000 were directly funded by NAMA and approx. 16,000 were delivered indirectly on sites for which NAMA had funded planning permission, enabling works, legal costs or holding costs before they were disposed of. The Business Post, 22nd June

Housing Construction Nama has abandoned plans to deliver 400 apartments before it is wound down in 2½ years’ time, as investment in the targeted PRS sector has fallen sharply amid a spike in interest rates in the past year, according to the agency’s chief executive, Brendan McDonagh. Speaking to reporters after Nama published its annual report, Mr. McDonagh said the agency had envisaged delivering 1,800 new homes between 2022 and 2025, subject to commercial viability. However, 400 of the units that it had preapproved funding for its debtors to build, subject to the properties being pre-sold to institutional investors, will now not be constructed during the period, he said. The remaining 1,400 planned units are primary houses, 650 of which have already been delivered. The Irish Times, 22nd June

Ringsend, Dublin 4 Darragh O’Brien and Eamon Ryan are to meet with Nama in the coming weeks “to see if anything can be done” with the agency’s 20% stake in the Glass Bottle site to build social and affordable homes. Following reports of a controversial deal being finalised between a consortium led by developer Johnny Ronan and the Department of Housing, the ministers have moved to enter discussions with the agency. The deal between the developers, the department and Dublin City Council has been criticised due to the lack of affordable homes proposed at the 84-acre site, which is the last major vacant plot in the city. The scheme has the potential to deliver 3,800 homes, 900 of which would be used for social and affordable homes. The planning scheme for the site stipulates that 10% of homes must be for social housing and 15% for affordable housing. However, the deal being proposed for the first phase of the development would only deliver 4% of affordable homes. The Business Post, 25th June

Leixlip, Co Kildare Coonan Property is guiding a price of €3m (approx. €9.2k per acre) for a 32.9-acre landholding in Leixlip, Co Kildare. The subject property is zoned for enterprise and employment under the terms of the Leixlip Local Area Plan 2020-2023. The Irish Times, 21st June

Bishopstown, Co Cork Cork property development company Bridgewater Homes has announced the acquisition of a site in Bishopstown with planning permission for approx. 275 homes for €10.2m from rival developer Ardstone Homes. The Waterfall Road scheme will comprise 136 houses, 99 apartments, and 40 duplexes across a “diverse range” of options, the company said in a statement. It expects to deliver the project, which has an overall projected value of more than €123.6m, over a period of 30 months. The Irish Times, 25th June

Crumlin, Dublin 12 Seabren Developments is making a third attempt to secure planning permission for a €70.3m 152-unit residential scheme for Crumlin. The firm has joined with Circle VHA CLG in lodging the large-scale residential scheme to Dublin City Council for a site to the southwest of St Agnes Road, Crumlin, Dublin 12. The new application follows a community group in January in the High Court challenging the October 2022 grant of permission by An Bord Pleanála for a “fast track” Strategic Housing Development 150-unit scheme. Seabren first lodged plans for the site in January 2021. The new scheme consists of 152 apartments made up of 75 one-bed units, 72 two-bed units and five three-bed units. In order to comply with its Part V social housing obligations, the applicants have put an indicative price tag of €8m on 21 units and the indicative prices range from €518.8k to €330.6k. The Irish Times, 23rd June

Galway The High Court has rejected an attempt to halt a contract to complete 58 social housing units in Galway. Mr. Justice Michael Twomey said that if the court had allowed Glenman Corporation to challenge the awarding of the €10m contract by Galway City Council to complete the Garraí Beag social housing scheme, Ballybaan More, it could potentially have delayed the project by up to two years. Glenman previously won the contract to build these houses but the commencement of the project was delayed until June 2020 due to the pandemic. There were further practical and technical difficulties and, in June 2022, the council terminated the contract. Glenman said it had spent approx. €6.1m on the project, although it had only received €2.75m from the council. The Irish Times, 22nd June

Rathmines, Dublin 6 A Church of Ireland-backed housing development in south Dublin, described as a community-driven scheme “to address the shortage of affordable housing” in the area, is seeking up to €4k a month in rent for its main three-bed residential units. The Coram Deo project in Purser Gardens, Rathmines, which has just come on the market, is a nine-unit development. According to property website Daft.ie, the asking rent for the three-bed duplexes is €4k a month, while the rent sought for the one-bed units is €2.6k a month. Construction of the scheme was originally costed at €3.6m but ran over budget because of Covid-19 and increased procurement costs. The Irish Times, 22nd June

Rathcoole, Co Dublin Planning permission for the development of 204 homes in Rathcoole, Co Dublin, has been overturned by the High Court. Mr. Justice Richard Humphreys agreed to quash the approval, secured by Homeville Developments Ltd in November 2020, on account of two legal flaws identified by four residents’ groups. The strategic housing development was to consist of 123 three-to-four-bed houses, 28 duplexes, 53 apartments, a childcare facility and associated works at Stoney Hill Road in Rathcoole. The Irish Times, 21st June

Clonburris, West Dublin Builder Cairn Homes has put an indicative price tag of €22.19m on 56 units to be sold for social housing from a proposed €242.7m housing scheme for Clonburris in west Dublin. Plans before South Dublin County Council confirm that Cairn Homes Properties Ltd is seeking planning permission for 565 units at Clonburris made up of 230 houses, 216 duplex apartments and 119 apartments. The private scheme for the 35-acre site is in the fourth phase of the development and the latest scheme is earmarked for two parcels of land to the north of the Grand Canal in the Clonburris Special Development Zone (SDZ). The overall SDZ lands consist of 691 acres within the established Lucan, Clondalkin and Liffey Valley suburban areas. Documentation lodged with the new scheme put a value of €242.7m on the overall scheme with an average house price of €429.6k. After planning permission is granted for the SDZ scheme, the two sides will enter negotiations on a final price for the homes. The Irish Times, 20th June

Bandon, Co Cork A prime development site in Bandon previously endorsed by planners for the building of 260 homes is on the market for €4m. The approx. 24-acre landbank is zoned for large-scale residential development in the current Cork County Development Plan, which runs to 2028. If planning permission was secured again for approx. 260 units, that would equate to approx. €15k per unit. The Irish Examiner, 22nd June



Commercial Property Market, Ireland Investment property deals worth in excess of €280m have either stalled or been withdrawn from the Dublin property market in recent weeks. The South Korean owners of the Beckett building on East Wall Road in Dublin are thought to have initiated lengthy negotiations with potential buyers after receiving bids substantially less than the €80m asking price. Kookmin Bank bought the office building for €101m in 2018. Meta, the social media group, decided to exit its 15-year lease on the building in March. Negotiations could push the sale out to the end of the year, or early next year.
Seabren has pressed pause on the sale of Rockpoint, a 91-apartment scheme on the former Europa garage site in Blackrock, Co Dublin. The property was put on the market for €59m in February. Meanwhile Brookfield, the global asset manager and owner of Hibernia real estate group, has decided not to proceed with the €140m sale of an apartment portfolio in Dundrum. More than 290 apartments were for sale across Wyckham Point and Dundrum View. The Sunday Times, 25th June

Mortgage Approvals The number of new mortgage approvals fell slightly during the month of May, according to a new report from Banking & Payments Federation Ireland (BPFI). A total of 4,928 mortgages were approved in May, which is down 8% compared to the same period last year. First time buyers (FTBs) accounted for 3,170 of the mortgages approved while there were 1,033 mover purchases. The overall value of all mortgage approvals during May stood at just under €1.4bn, which is down 4% YoY. Of this, FTBs accounted for €926m in mortgage approvals, while mover purchasers accounted for €333m. The Business Post, 27th June

Online Auctions A total of 85 lots valued at approx. €21m will be auctioned online by BidX1. Residential properties, including investment apartments and houses, will account for 80% of the lots and commercial real estate for approx. 20%. The most valuable lot is a creche investment at Feltrim Business Park, Swords, Co Dublin which has a €800k guide price. Extending to approx. 5,844 sq. ft over ground and first floor, it is let to a tenant trading as Charlie’s Childcare and the total current rent reserved is €75k pa inclusive of Vat (NIY 9.37%). The Business Post, 24th June

Construction Prices Dublin has been ranked the second-most-expensive city in the European Union to build in and the 19th-most-expensive city in the world, according to Turner & Townsend’s latest International Construction Market Survey. But in spite of the high cost to build, Ireland is proving resilient, and construction is set to grow in 2023, according to the report’s authors. It put this down in part to relatively low labour costs, with construction wages in Dublin averaging €43.80 per hour. That figure stretches to €48.30 in London, €74.80 in Munich and €110.60 in Geneva. The data indicated falling sector confidence worldwide in the face of continued cost increases, fears of insufficient credit availability, and a persistent labour crisis, Turner & Townsend said. Turner & Townsend Report, 26th June


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