29th January (Issue 181)

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.



Tivoli Theatre Site, Francis Street, Dublin 8 DWS, a global asset manager, has acquired the 0.968 acre Tivoli Theatre site on Francis Street, Dublin 8 and intend to forward fund construction of a 242-bed aparthotel. Staycity has agreed a 25 year FRI lease once construction is completed. The development is expected to have a GDV of more than €70m. Savills represented DWS in the transaction.The Irish Times, 23rd January

Uncle Tom’s Cabin, Dundrum CBRE is guiding €3.75m for Uncle Tom’s Cabin, a pub located beside Dundrum Town Centre. The property sits on a 0.8 acre site and offers redevelopment potential subject to planning. The Collins family have traded from the property for 129 years and it is being sold on behalf of Tony Collins who is retiring. The Irish Independent, 24th January



Units 4-5, Mygan Business Park, Finglas, Dublin 11 Cushman and Wakefield is guiding €10.5m (5.23% GIY) for two interconnecting hi-bay logistics units totalling 95,594 sq.ft. on a 5.65 acre site. The units generate rent of €550k p.a. from Nightline Group with an unexpired lease term of 12 years. Planning permission was also obtained in 2012, but not acted upon, for additional warehouse space. The Irish Times, 23rd January

2018 Dublin Industrial Take Up CBRE identifies that industrial take up in Dublin in 2018 was up 22% YoY. Average vacancy rates in 25 of the most modern industrial estates in the capital in Q4 2018 was 8.04%, a 0.19% decrease QoQ, and eight of the parks had no vacancy. Prime industrial rents were €9.85 psf and are set to rise by 6.5% in 2019. CBRE note that there is demand for 331,367 sq.ft. of space in Dublin. The Irish Times, 23rd January



151 Thomas Street, Dublin 8 Iconic Offices is set to renovate the 200 year old former IAWS premises at 151 Thomas Street into a 69,965 sq.ft. office development to accommodate 900 workstations. The Sunday Business Post, 27th January

Sandyford, Dublin 18 Construction has commenced on the 222,000 sq.ft. “Termini” office block located on Arkle Road, Sandyford. Aldgate Developments acquired the site in 2016 with the benefit of office planning permission but applied to change the planning to increase efficiency and usability of the office space by revising internal layouts and other exterior improvements. Joint agents Cushman & Wakefield and Knight Frank are seeking tenants quoting rents of €30 psf. The Irish Times, 23rd January

Setanta Centre, Nassau Street, Dublin 2 The Kilkenny Group along with three other parties have appealed An Bord Pleanála’s decision to grant planning permission for Ternary Ltd’s €100m redevelopment of Setanta House to construct a new office block. The Kilkenny Group’s flagship Kilkenny Design store is located in Setanta House. The Irish Independent, 26th January

BNP Paribas Q4 2018 Irish Office Market Report notes that 1,685,316 sq.ft. of office space was taken up in Q4 2018 across 67 deals, bringing the annual take up to the highest on record of 3,982,647 sq.ft. Of the Q4 2018 take up, 67% related to pre-lets. The market is dominated by Technology, Multimedia and Telecommunications (TMT) sector which accounted for 69% of take up in Q4 2018.

Dublin Serviced Office Market Serviced office broker Click Offices maintain that the Dublin serviced office market grew by 50% in 2018, equating to 400,000 sq.ft. or 8,000 desks. Click Offices identified that there is currently 1.15m sq.ft of serviced office space in the capital, up from 750,000 sq.ft. in 2017. Click Offices note there are 55 service office providers in Dublin with WeWork, Regus, Iconic, Glandore and Pembroke Hall accounting for 55% of the market. Monthly prices for desks range from €300 to €650. The Irish Times, 23rd January



Hooke & MacDonald Report notes the Build to Rent sector in the Irish property market is the most vibrant part of the Irish investment market and has potential for “sustained growth” for the next five years. The report identifies c. 2,000 apartments were built in 2018, 3,000 are scheduled for completion in 2019 and there will still be a demand for 9,000 more in Dublin. Investment in Build to Rent schemes accounted for 30% of 2018 transaction activity. The Irish Times, 23rd January

Longboat Quay, Dublin Docklands Savills is guiding €8.75m for 17 apartments at Longboat Quay (c. €515k per apartment). The properties comprise 2 x one-bed, 4 x two-bed, 10 x three-bed apartments and a shell and core penthouse along with 23 parking spaces. 15 of the 17 apartments for sale are vacant, but once fully let could generate €545k p.a. (6.2% GIY). Demand in this area is strong as seen by Cairn Homes’ sale of Six Hanover Quay, a development nearing completion with 120 apartments and 6,400 sq.ft. of space for a restaurant and café for €101m (c. €800k per apartment). Google also recently acquired 46 apartments currently under construction at its Boland’s Quay scheme. The Irish Times, 23rd January

Dublin Landings, Dublin Docklands The Irish Independent reports that Ballymore is in exclusive talks with Greystar for the sale of 268 luxury apartments currently under construction at Dublin Landings Development for c. €175m. The apartments, once completed, will comprise 82 x one-bed, 146 x two-bed, 31 x three-bed apartments and 9 x three-bed duplexes. The first phase of the scheme is due to be completed in September 2019. The Dublin Landings project will comprise 1,076,391 sq.ft. of office, residential, retail and leisure space of which 237,000 sq.ft. is residential space. The Irish Independent, 26th January

Cherrywood, Dublin Hines has obtained planning permission to build 146 apartments at Town Centre 5 (TC5) quarter at Cherrywood, Co Dublin. There are already 1,269 apartments under construction at Cherrywood Town Centre. TC5 will comprise 171,243 sq.ft. of residential units across four blocks of one, two and three bed apartments along with 189 car spaces and 166 bicycle spaces. The Sunday Business Post, 27th January

Sandyford, Dublin 18 Ires Reit is preparing a planning application for 428 apartments at Rockbrook development in Sandyford following a previous rejection for 456 apartments at the site by an Bord Pleanála. The Irish Times, 23rd January 

133 Stillorgan Road, Dublin Hunters Estates Agents are guiding €1.8m (€597 psf) for a 3,014 sq.ft. four-bed detached house which also comes with planning permission for a 431 sq.ft. self-contained apartment to the side of the property. The property was built in 1930 and has been recently renovated to turnkey condition. The Sunday Business Post, 27th January 

Blackrock, Co Dublin Lisney is guiding €1.45m (€728 psf) for a 1,991 sq.ft. four-bed house located at 4 Grove Avenue, Blackrock, Co Dublin. Separately, Sherry Fitzgerald is guiding €1.595m (€677 psf)  for a 2,357 sq.ft. three-bed semi-detached property at 3 Glenart Avenue, Blackrock. The Sunday Business Post, 27th January

Dalkey, Co. Dublin Estate agent Brady and McCarthy is guiding €1.275m (€658 psf) for a 1,938 sq.ft. three-bed semi-detached property located on 3 Tower Hill, Harbour Road, Dalkey. The Sunday Business Post, 27th January 

Ashford, Co Wicklow Savills is guiding €13.5m (c. €233k per acre) for a 58 acre site in Ashford, Co. Wicklow. The site which is located on the Eastern side of Ashford between the R772 and M11, comprises 28.5 acres zoned residential and 18.63 acres zoned strategic land reserves. A feasibility study by Darmody Architecture notes that the site could accommodate 343 houses. The Irish Times, 23rd January

Ratoath, Co. Meath Knight Frank is guiding €7.5m (c. €252k per acre) for a 29.73 acre site with the majority zoned residential on the Fairyhouse Road within 1km of Ratoath town centre. The balance of the holding comprises lands zoned for “Open Space” (c. 0.12 acres), un-zoned lands (c. 6.22 acres) and lands reserved for the Ratoath Outer Relief Road (c. 4.31 acres). The Irish Independent, 24th January



BNP Paribas Q4 2018 Irish Investment Market Report identifies that the final quarter of 2018 saw an increase in investment in Irish commercial property with turnover reaching over €1.1bn across 85 deals. This represented an 8% increase for the quarter YoY and brought 2018 total turnover to €3.66bn. Investment in PRS schemes increased in Q4 2018 with €399.7m invested in the sector across 13 deals. €335m was invested in the office sector across 23 deals.

Banking and Payments Federation of Ireland (BPFI) Data identifies that 45,656 mortgages with value of c. €10.1bn were approved in 2018 while 40,203 residential mortgages with value of €8.7bn were drawn in 2018 (increase in value by 20% YoY).  First Time Buyers represented 48% of 2018 drawdowns. Goodbody chief economist Dermot O’Leary noted that a normal market would see c. €14bn in mortgage drawdowns, and growth of 16% to c. €10bn of drawdowns is expected in 2019. Separately, Central Bank figures show household debt as a percentage of disposable income is currently at its lowest level since 2004 although Irish households remain the fourth most indebted in the EU. The Irish Times, 29th January

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