29th May (Issue 148)

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.



No. 2 Dublin Landings: Joint agents CBRE and Knight Frank have brought the second phase of the Landings office development in the Dublin docklands to the market, guiding €98.8m (€1,002 psf) for the 100,000 sq. ft. Grade A office space. The building has been pre-let to WeWork on a 20-year lease at €4.82m p.a. (€48 psf) with no break options, equating to an initial 4.5% yield. The Irish Times, 23rd May

Beckett Building, Dublin: The South Korean-based Kookman Bank has paid €101m (€531 psf) for the 190,000 sq. ft. Beckett Building on the East Wall Road in Dublin. The Comer Group purchased the vacant office building in 2013 for c. €5m and spent c. €30m on a high-quality fit-out (€184 psf total spend), before letting the entire building to Facebook on a 15-year lease at €4.53m p.a. (€23 psf). The Irish Times, 23rd May

Penrose Quay, Cork: Cork developer JCD Group has launched plans for a new 250,000 sq. ft. cutting edge office development on a 1.8 acre site at Penrose Quay in the heart of Cork’s docklands. Penrose Dock, will retain the historic Penrose House (12,000 sq. ft.) as well as two new individual office blocks with net lettable areas of 78,000 sq. ft. and 160,000 sq. ft. The scheme will also have a double basement with 160 car spaces and a 10,000 sq. ft. gym and the development is expected to take c. 18 months. The Sunday Business Post, 27th May

Carysfort House, Blackrock: Agent JLL has brought a four-storey 10,100 sq. ft. office building on Carysfort Avenue in Blackrock, south Dublin, to the market quoting €5.3m (€524 psf). The building is generating a rent roll of €335k p.a. (€33 psf) from Tusla, the State child and family agency, and two telecommunications masts which equates to a net initial yield of 5.8%. Just last week, three adjoining office buildings with a combined 50,000 sq. ft. of space came on the market through joint agents Lisney and HWBC with a combined asking price of c. €14.5m (€290 psf).  The Irish Times, 23rd May

Clondalkin Office Investment: Joint agents JLL and HWBC have brought two office blocks totalling 30,610 sq. ft. in Clondalkin, west Dublin, to the market guiding €5m (€163 psf).The building is let to the Department of Social Protection, which operates an Intreo office from the building, on a 10-year lease from December 2017 at €330,000 p.a. (€10.78 psf), reflecting a net initial yield of 6%. The Irish Times, 22nd May

Richview Office Park, Clonskeagh: Agent Cushman & Wakefield has brought a fully occupied 3,400 sq. ft. office building in Clonskeagh, south Dublin, to the market guiding €1.5m (€441 psf). The building, which includes 12 car-parking spaces, is let to engineering firm Malone O’ Regan on a 35-year lease from 1995 at €101,600 p.a. (€30 psf), equating to a net initial yield of 6.24%. The Irish Times, 22nd May

14 Lower Pembroke Street, Dublin 2: Colliers International has brought a 4,500 sq. ft. four-storey over-basement Georgian house in Dublin 2 to the market guiding €1.7m (€377 psf). The building is currently under-rented producing an annual rent of €100,000 (€22 psf) and is in need of refurbishment. The Irish Times, 22nd May

Dublin Industrial Estate, Glasnevin: Agent Bagnall Doyle MacMahon has brought a 10,645 sq. ft. office investment in Dublin Industrial Estate, Glasnevin, Dublin 11, to the market guiding €1.4m (€131 psf). The building which is in walk-in condition, is being sold with vacant possession and sits on a site of 0.45 acres with 34 car-parking spaces. The Irish Times, 22nd May 

Savills Skyline Survey: A report from Savills Ireland indicates that only 50% of the 202 new office buildings planned for Dublin over the next three years are likely to be delivered. The survey estimates that developers are seeking to add c. 12m sq. ft. of new office space by the end of 2021, as well as 2.5m sq. ft. of refurbishments and redevelopment to existing stock. The volume of office stock expected to come on stream in Dublin’s central business district in 2018 is 2.17 million sq. ft., 55% less than what had been estimated for 2018 delivery back in 2015. The Irish Times, 28th May



Westend Retail Park, Blanchardstown: Deutsche Bank are expected to complete the purchase of the Westend Retail Park in Blanchardstown, Dublin 15, for €148m (€493 psf), marking the German bank’s first foray into the Irish commercial real estate market. The 300,000 sq. ft. retail park which includes Nike, Next, Gap, and Lidl among its tenants generates an annual rent roll of €8.5m (€28) psf. Green Reit acquired the retail centre as part of its purchase of the Sapphire Portfolio from Nama in 2014 and are due to make a 55% profit from the sale. The Irish Times, 25th May

Camden Street Lower, Dublin 2: Agent CBRE has brought a retail building on a prominent corner of Camden Street, Dublin 2, to the market guiding €4.3m (€475 psf). The three-storey mixed-use building extends to 9,041 sq. ft. and is let to Fresh Supermarket at €280k p.a. (€31 psf), equating to a net initial yield of 6%. The Irish Times, 23rd May

Snugsborough Road, Blanchardstown: Property agent Kelly Walsh has brought three fully-let retail units on the Snugsborough Road in Blanchardstown to the market guiding €2.85m (€187 psf). The units which have tenants including Atlas Tyres, The Dublin Meat Company and Polonez, generate a combined rent roll of €241,000 (€16 psf), reflecting a net initial yield of 7.8%. The tenancies have a weighted average unexpired term of c. 13.65 years. The Sunday Business Post, 27th May

April Retail Sales: The latest report from the Central Statistics Office has shown that retail sales rebounded after poor figures in March with a 1.5% increase in April, and an annual increase of 4.8%. Sales volumes were largely boosted by increasingly popular home improvements and higher heating costs after the cold start of the year. Meanwhile, the largest drops in sales volumes were seen across electrical goods (down 3%) and in department stores (down 1%). The value of retail sales rose by 6.8% in April 2018 compared with the previous month, an annual increase of 3.8%. The Central Statistics Office, 28th May



Crosbie’s Yard, Dublin 3: Agent Lisney has brought a mixed-use apartment and office block at Crosbie’s Yard on the Ossory Road in Dublin 3 to the market guiding €5.5m (€203 psf). The five-storey over-basement detached block, comprises 12,378 sq. ft. of office space as well as eight apartments, and can be converted into either a full residential development or office facility. The vacant building, is expected to generate a rental income of c. €520,000 when fully let. The Irish Times, 23rd May

Elm Park Green: Hooke & McDonald have completed the sale of 11 apartments in the Links Block at Elm Park Green in Dublin 4 for €3.6m (€327k per apartment). The sale of the six one-beds and five two-bed units, which were launched to the market in April with a guide price of €3.4m, closed within a month with a gross yield of 4.83%.The Irish Times, 23rd May

Townsend Street Site, Dublin 2: Agent Robert Colleran has brought an infill development site extending to 0.064 acres in Dublin’s south dockland to the market for €2m. The corner site is located a short walk from Pearse Street Dart Station and Grand Canal Dock and subject to planning permission, is suitable for residential or office development. The Irish Times, 22nd May



Hyatt Centric Dublin: The Hodson Bay Group have signed a deal to operate the new €50m 234-bedroom hotel currently being built on Dean Street, in Dublin’s Liberties. The hotel will be operated under franchise as the Hyatt Centric Dublin and will be Hyatt’s first Irish Hotel. The Hodson Bay Group currently operate and own the Hodson Bay Hotel, the Sheraton Athlone Hotel and the Galway Bay Hotel. The Hyatt Centric Dublin is expected to open in May 2019.The Sunday Business Post, 27th May



New Urban Quarter, Galway: Property developer Gerry Barrett has been chosen by the board of CIE to develop a new urban centre on a key 8.2 acre site beside Ceannt Railway Station in Galway city centre. The overall development will extend to c. 1.5m sq. ft. consisting of c. 400 apartments, c. 500k sq. ft. of retail space, a new transport hub and a 200-bedroom hotel. The developer will handle the planning process and build out the project with CIE guaranteed a future income stream. The Irish Times, 23rd May

Hibernia Reit: Preliminary results from Hibernia Reit has shown that the group’s net rental income increased by 15% to €45.7m and the value of their property portfolio increased by 6.6% to €1.3bn in the 12 months to 31stMarch 2018. During the 12 month period the group completed two schemes (Windmill Lane and Dockland Central) delivering 197,000 sq. ft. of Grade A offices and they currently have three schemes totalling 222,000 sq. ft. under development. The Irish Independent, 29th May


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