27th November (Issue 174)
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
Harcourt Square, Dublin 2 Hibernia Reit has secured planning permission for 315,000 sq.ft. on the 1.9 acre site located at the current Dublin regional Garda Headquarters on Harcourt Street. It is expected that the development will cost in excess of €100m. Construction is expected to commence in January 2023 when the Garda staff will be moved to a new seven storey facility on Military Road near Heuston station. Work on this property is expected to commence in early 2019. Hibernia Reit purchased the property for €70m in 2015. The Irish Times, 27th November
Dublin Landings, Docklands JR AMC, a South Korean REIT, has purchased one of the five office blocks currently under construction in the Docklands for €106.5m (4.21% NIY). No. 2 Dublin Landings, a 100,000 sq.ft. property has been let to WeWork at €4.87m pa rising to €5.38m in year five. The Central Bank has purchased No. 4 and No. 5 for c€210m. The Irish Times, 21st November
Apollo House, Dublin City Centre The Irish Independent has reported that Marlet Property Group will acquire the 0.72 acre site of the former Apollo House for €56m (€77.7m per acre). The property was brought to market in September this year with Savills guiding €40m. The site has planning permission for a 135,863 sq.ft. 11 storey over basement office building. The Irish Independent, 26th November
8 & 9 Grant’s Row, Dublin 2 will be auctioned on 4th December with Sherry Fitzgerald guiding €3.25m. The current 5,328 sq.ft. office building on a 0.13 acre site with 13 car parking spaces has planning permission for a 10,839 sq.ft. five storey office block. The Irish Independent, 22nd November
Bonham Quay, Galway City Gerry Barrett’s company Edward Capital is due to commence work on 279,862 sq.ft. of grade A office space and 21,582 sq.ft. of retail at Bonham Quay in February 2019. Gerry Barrett also secured the tender to redevelop the 8.2 acre CIE site adjoining the train station. The Sunday Business Post, 25th November
RETAIL
Lucan, Co Dublin Cushman and Wakefield are guiding €1.8m (9.66% NIY) for nine retail units at Rosse Court, Lucan. The properties which are 12,722 sq.ft. in total generate €188,600 pa which will increase to €198,600 by 2020. The Irish Times, 21st November
43 – 45 Bolton Street, Dublin 7 will be auctioned at IAM Sold’s Leinster public auction on December 5 guiding €950k. The 2,895 sq.ft. property is let to Spar at €76k pa (8% GIY). The lease expires in 2041 and the next rent review is 2021. The Irish Independent, 22nd November
Kiltipper, Dublin 24 Cushman and Wakefield are guiding €1.25m (9.68% NIY) for units 1 – 4 at Marfield Mall in Kiltipper Dublin 24. The properties extend to 11,808 sq.ft. and three of the four units are let generating €131,370 pa. The 1,130 sq.ft. vacant unit has planning permission for bookmakers. The Irish Times, 21st November
RESIDENTIAL
Dun Laoghaire, Co Dublin Hooke and MacDonald are guiding €94m for 214 apartments currently under construction at Fairways Scheme, Cualanor, Dun Laoghaire which are due for completion by the end of 2019. The apartments will be within four blocks of five and six storey over basement buildings and are expected to generate €5.15m to €5.41m, reflecting a yield of 5.4% to 5.7%. The Irish Times, 21st November
Dalkey, Co Dublin Bartra Capital Property have been refused planning permission by Dun Laoghaire Rathdown County Council for a residential scheme in Dalkey comprising 19 apartments (in three blocks ranging up to four storeys), five three-bed houses and two semi detatched houses on a 1.4 acre site. The planning was refused on the basis that it “would seriously injure the residential amenities and depreciate the value of property in the vicinity” The Irish Independent, 26th November
MIXED USE
42 & 43 Blessington Street, Phibsoro, Dublin 7 will be auctioned through the online BidX1 auction platform on 13th December guiding €1.4m. The6,049 sq.ft. three storey over basement interconnecting properties also includes an 2,982 sq.ft. industrial unit to the rear. The Sunday Business Post, 25th November
George’s Quay, Dublin 2 Johnny Ronan has appealed again to Dublin City Council to have planning permission granted for a 22 storey 104,087 sq.ft. office and 107 bed hotel development on the 0.5 acre site bounded by George’s Quay, Poolbeg Street and Tara Street. Plans have been previously rejected twice by Dublin City Council due to concerns of negative visual impacts on the city. The Times, Irish Edition, 26th November
SERVICE STATION / CAR PARK
The Devlin Hotel, Ranelagh, Dublin 6 has been brought to market through JLL guiding €20m- €22m. The Press Up Entertainment Group will enter a sale and leaseback agreement with the purchaser for 35 years at €1m pa. The 21,528 sq.ft. 40 bed boutique hotel includes an underground cinema and cocktail bar and rooftop bar. The Sunday Business Post, 25th November
Barnacles Hostels, Dublin and Galway Two Barnacles Hostels, one located in Temple Bar Dublin and one located in Quay Street Galway have been sold for more than €12m. MM Capital have purchased the 171 bed, 35 room Dublin Hostel for €8m. A company associated with Burkeway Group purchased the 112 bed hostel on Quay Street with six more on Kirwan’s lane for over €4m. The Irish Times, 21st November
Tara Towers, Booterstown, Dublin 4 is scheduled to be demolished and replaced with a 140-bed 4 Star Maldron Hotel and 69 residential units with basement carparking. Dalata Hotel Group purchased the hotel in January 2016 for €13.15m. The redevelopment of the 1.5 acre site is expected to cost €51m and will take two years to complete. Ires Reit have agreed to purchase the entire residential element for €42.4m. The Sunday Business Post, 25th November
OTHER
Pre Contract Investigation of Title System From 1st January 2019, all real estate transactions will be required to move to a Pre Contract Investigation of Title (PCIT) System whereby all vendors’ solicitors will need to produce their title packs pre contract and all purchasers’ solicitors will have to review all title packs before the contracts are signed. The Irish Times, 21st November
Dublin Crane Count November reached a record 102, nine more than the previous high of 93 in September and 13 more than October’s 89. There are 45 cranes on the north side of the city and 57 on the south side. The Irish Times, 21st November
Cushman & Wakefield Industrial Market Q3 notes that 1,029,010 sq.ft. of industrial properties were under construction of which 423,022 sq.ft. is being developed speculatively. Take up figures reached 2,896,030 sq.ft. in Q3 of which 62% of the space occupied through lettings and 38% through owner occupation. Vacancy rates have fallen to 12.2% from 15.1% at Q3 2017. Availability has declined 18% YoY reaching 5,438,466 sq.ft. in Q3 2018. Primes yields are 5.10% and are expected to reach 5% by year end. Prime rents are €8.83 psf.
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