2nd April (Issue 190)

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.



77 Sir John Rogerson’s Quay Hibernia Reit has announced that they will sell 77 Sir John Rogerson’s Quay, which is fully let to International Workplace Group, for €35.5m (€1,040 psf). Hibernia acquired the 34,400 sq.ft. office property in 2018 for €28.7m and simultaneously agreed a long lease with IWG at €1.8m pa (€50 psf). Hibernia will return the net sale proceeds to the shareholders and has announced an initial on market share buyback programme of up to €25m, the first time Hibernia has bought back its own stock. The Irish Times, 1st April

5 Hanover Quay, Dublin 2 DocuSign, an electronic signature software company has leased 100,000 sq.ft. of space in the seven-storey office block located at 5 Hanover Quay. DocuSign will occupy the ground to third floor. Aptiv, a vehicle technology company, already leases the three upper floors totalling 60,000 sq. ft. at €58 psf. Although not specified, it is thought that the rent will be in line with what Airbnb signed for their space at the Reflector building at €56 psf. The Irish Times, 29th March

Harcourt Centre, Dublin 2 €55 per sq.ft. is being quoted by Knight Frank for newly refurbished office space (5,250 sq.ft.) at the Harcourt Centre in Dublin 2. A rent of €4,500 per space is also being quoted for the four car-parking spots that come with the unit. The second-floor self-contained office unit has recently been upgraded and its fit-out includes data cabling, comms room, canteen and two private offices. Tenants at the Harcourt Centre include EY, Regeneron, Travelers Insurance and NTT Communications. The Harcourt Centre is within walking distance of St Stephen’s Green and Grafton Street, and is close to the Luas and Dart services. The Irish Times, 27th March

One Building, Lower Grand Canal Street, Dublin 2 was sold for €49.5m (€1,094 psf) in an off-market transaction. The One Building was sold by Savills with BNP Paribas Real Estate understood to have acted for the buyer. Stripe leased the 45,208 sq.ft. building in 2015 at an annual rent of more than €2m which breaks back at c€50 per sq.ft. It was reported in 2016 that Stripe subsequently sub-let about 15,000 sq.ft. of the space on a short-term lease at €60 per sq.ft. The building has 51 car spaces and is within walking distance of the Silicon Docks area, the city centre and the Dart. The Irish Times, 27th March

Office Block, Cherrywood Accenture has agreed to lease a further 14,000 sq.ft. of space in Building 11, a modern Grade A 120,000 sq.ft. four-storey office block extending in Cherrywood. The firm is believed to have agreed a rent of about €25 per sq.ft. on half of the ground floor at Building 11 on a new 10-year lease with a break option in year five. Accenture is also to rent 25 secure basement car-parking spaces at €1,500 each pa as part of the deal which also includes tenant incentives at the start of the lease. Last March Accenture opened its fourth base in Cherrywood when agreeing to lease 30,000 sq.ft. at Building 11. The Irish Times, 27th March



Citywest Quarter Development, Dublin 2 82 apartments currently under construction are being offered for sale in one lot by Cairn Homes for €90m (€320k per apartment). Apart from these apartments, the Citywest Quarter will also offer c170 units which will be offered for sale individually. The Irish Independent, 2nd April

122 BTL Apartments in D24 An investment portfolio of 122 apartments in two separate complexes in Tallaght, Dublin 24, is being offered for sale as the Acorn Collection. CBRE are quoting €29.8m (7% NIY) for the entire portfolio (€244k per apartment) to be sold in a single lot, with current gross passing rent of c€2.08m pa. 59 apartments are in the Abberley Square complex and include 20 one-bedroom, 34 two-bedroom and five three-bedroom units. 63 apartments are at the Arena Centre overlooking Blessington Road and Tallaght Stadium, consisting of 20 one-bedroom units, 35 two-bedroom units and eight three-bedroom units. The Irish Independent, 28th March

The Wave, Harbour Road, Dalkey Located within a one-minute stroll of Bullock Harbour, The Wave is a four-bedroom residence on the market with Colliers guiding €1.595m. The C1 energy-rated home offers c3,600 sq.ft. of space as well as a self-contained studio of c240 sq.ft. The architecturally designed home is set back from the road and is accessed via a covered entrance that leads to a parking area with a large car port. The Sunday Business Post, 30th March



Dawson Street, Dublin 2 Dublin City Council has given approval for a €35m development that includes a new 117-bedroom hotel on Dublin’s Dawson Street and also includes the redevelopment of the Royal Irish Automobile Club’s (RIAC) private members’ facility. The project is being led by Tetrarch Capital that counts the Marker Hotel and the Citywest Hotels in its portfolio. Tetrarch purchased the Dawson hotel on Nos 35-36 Dawson Street & Anne’s Lane in 2015. The RIAC is located next door at 33-34 Dawson Street and the plan reconfigures the HQ of the RIAC and creates the 117-bedroom hotel. The build is expected to take two years. The Irish Times, 1st April



1.9 acres, Kilternan Collliers is guiding €3m (€1.58m per acre) for a 1.9 residential acre site on the Enniskerry Road in Kilternan, Dublin 18. It has c150m of road frontage and is zoned “lower density residential” under the local development plan. This zoning allows for up to 40 dwellings per hectare which suggests it could accommodate, subject to planning permission, about 30 dwellings.The site is a short drive from the Luas stop at Ballyogan, 2.5km from Dundrum Town Centre and is within easy reach of the M50. Shopping at The Park in Carrickmines is also close by. The proposed Glenamuck Distributor Road should alleviate traffic through the village while improving access to Carrickmines and the M50. The Irish Times, 27th March

0.85 acre East Wall Road Site MKN Property Group has acquired a 0.85 acre site on East Wall Road, Dublin 3. The property was occupied by the Canavan Ford & Seat car showroom, which is relocating to the North Circular Road, and was marketed for sale in recent months by the McCormick agency with a guide price of €6m. A feasibility assessment carried out by the vendor identified two options for the site, including a development of 96,875 sq.ft. of commercial space in addition to 101 apartments. Alternatively, 178 hotel rooms could be accommodated instead of the apartment element. This feasibility assessment was carried out prior to December 2019, when the cap on heights for urban developments were effectively removed and therefore MKN may well secure permission for a higher development capable of accommodating a greater number of units when it lodges a planning application. The Irish Times, 27th March



48 William Street, Galway City Centre Lambert Smith Hampton has sold 48 William Street, a property comprising 915 sq.ft. retail on the ground floor and 2,658 sq.ft. of office space over the three floors above for more than its guiding price of €2m. The property was brought to the market for sale in October and the quick disposal bodes well for the sale of the Eason Shop at 33 Shop Street which is being sold on a sale and leaseback basis guiding €8m through Bannon. The Irish Times, 27th March



AIB sale of €1bn Loan Portfolio AIB has agreed to sell a €1bn portfolio of non-performing loans, consisting of mostly buy-to-let properties. The portfolio, which consists of 2,200 customer loans, is being sold to Everyday Finance as part of a consortium arrangement with Everyday and affiliates of Cerberus Capital Management. The portfolio is predominantly made up of investment properties, with limited agriculture exposure, with an average balance of €500,000 across 5,000 assets. However, for 10% the loans, the family home has also been included as it is cross-secured to wider commercial connected debt. Once the deal is completed, AIB will receive cash consideration of approximately €800m. From 2013 to end-2018, AIB has reduced NPEs from €31 billion to €6.1 billion. AIB Investor Relations Website, 1st March 2019


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