2nd October (Issue 166)
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
Lombard Street, Dublin 2 Knight Frank are guiding €8.5m (5.25% yield) for a 15,920 sq.ft office building on Lombard Street. The property is currently let to the Office of Public Works and is occupied by the Register of Births, Deaths and Marriages and avails of nine dedicated car spaces. Part of the property is sublet to the HSE. The annual rent is €481,710 and the tenants have a break option in 2028. The Irish Times, 26th September
Blackrock Business Park, Co. Dublin Three offices blocks totalling 50,500 sq.ft along with 96 car parking spaces located in Blackrock Business Park have been brought to market by Savills guiding €17m (6% yield). The properties are fully let, generating €1.2m per annum from seven tenants with a combined weighted average unexpired lease term of 4.5 years to break and 8.5 years to expiry. Planning permission was granted in 2017 for an additional penthouse level of offices of 4,596 sq.ft to one of the blocks. The Irish Times, 26th September
George’s Quay Plaza, Dublin 2 Cushman and Wakefield are seeking interested parties to sublet 7,876 sq.ft of top-class office space at George’s Quay Plaza, Dublin 2 beside Tara Street Dart station. They are seeking rent of €57.50 psf along with €3,750 per each of the four basement car parking spaces. The 8 year sublet is being organised on behalf of Amundi Ireland Ltd. The Irish Times, 25th September
Citywest Business Campus TWM are guiding €7.35m (7.2% yield) for the Miele Ireland Headquarters and a Unitied Drug warehouse in Citywest Business Campus. The 3 acre site is one of only four businesses fronting the N7 and include 67 surface car parking spaces. Miele occupy a 19,127 sq.ft, two storey office building, at €410,000 per annum, on a 25 year lease which expires in 2033, and is guaranteed by a parent company. There remains an outstanding rent review from May. United Drug occupy the entire 30,278 sq.ft warehouse on a one year lease from July 2016 at €165,000 pa. The Irish Times, 26th September
14-15 Sir John Rogerson’s Quay which is the Columbia Mills building built in the 1890s has been brought to market with vacant possession guiding €5.65m by Cushman and Wakefield. The 8,401 sq.ft three storey over basement is currently in office use but may have potential for redevelopment subject to planning permission. Some elements of the property including the façade are protected. The Irish Times, 26th September
Cork and Limerick Office In Cork, 355,209 sq.ft of office space is under construction of which 196,980 sq.ft have obtained occupier commitments. A further 1,903,059 sq.ft of office space has been granted planning permission. Cushman & Wakefield research notes that Cork office rents have stabilised at €33 psf and that prime office yields could harden by 15 basis points to 5.5% by the end of 2018.
Limerick’s €20m major regeneration project known as the International Gardens which extends to 111,945 sq.ft has seen half its space let to Nordic Aviation Capital, the world’s largest regional aircraft lessor. Cushman & Wakefield estimates that the amount of space under construction in Limerick in Q2 2018 increased to 322,917 sq.ft. There is 780,383 sq.ft of office space in the planning pipeline for Limerick including the city and suburbs. Prime Limerick rents are €30.19 psf but could rise by a further €2.3 psf to €32.49 by year end according to Cushman & Wakefield, who also predict yields for Limerick offices could hard by 25 basis points to 6.25% by year end. The Sunday Business Post, 30th September
RETAIL
Fairgreen Shopping Centre, Mullingar has been brought to market by CBRE guiding €8.6m (7.34% yield). The annual rent is €685,029 which includes income form the 300 space basement carpark. Tenants include Penneys, TK Maxx, New Look, Elverys and Dealz. In addition there are two vacant units (9,000 sq.ft) that if let, could generate a further €140,000. The property was previously brought to market in 2017 guiding €11m. The Irish Times, 26th September
Ashtown, Dublin 15 Knight Frank are seeking €6.3m (8.46% yield) for a 26,317 sq.ft supermarket which will be let to Aldi on a 25 year lease with 5 year rent reviews and initial rent of €412,320. The investment is being sold on behalf of Ballymore which has completed 1,200 houses and apartments in the adjoining Royal Canal Park. Knight Frank have advised that the supermarket will reach “practical completion” by November or December and will be open for Business in early 2019. The Irish Times, 26th September
39 Lower St Stephen’s Green, Dublin 2 has been brought to market by McNally Handy & Partners guiding €1.6m. The property comprises ground floor retail with a one-bed apartment at the first floor and two bed duplex apartment on the 2nd and third floors. The total property generates €76,300 per annum and is located beside the Hairy Lemon bar between the Drury Street and South William Street. The Irish Times, 26th September
1 Lincoln Place, Dublin 2 CBRE have brought a mixed use investment located at 1 Lincoln Place to market guiding €3.25m (5.78% yield). The property is located at the corner of Westland Road and Lincoln Place. Tenants including Café Sol, Sweeny’s Café and three overhead residential units with an annual rent roll of €130,000 of which €73,680 relates to the residential element. The Irish Times, 25th September
HOTEL
Premier Suites Plus Aparthotel, Ballsbridge, Dublin 4, a 49 unit property, has been acquired by Aviva for a figure between €15m and €20m. This sale and leaseback deal with the property’s previous owner the Prem Group, represents Aviva’s first venture into the hospitality market. The Prem Group have entered a 35 year lease at a 5% net initial yield. The Irish Independent, 28th September
RESIDENTIAL / LAND
Apollo House Site, Dublin 2 Mazars has engaged Savills to manage the sale of the 0.72 acre site which is the site of the former Apollo House office block. The site fronts on to Tara Street and Poolbeg street and is expected could achieve more than €40m. The site has full planning permission for 135,863 sq.ft, 11 storey over basement office block. There are also facilities for retail café, restaurant and bar on the ground floor. Planning also includes a double basement for 40 car parking spaces and 166 bicycles. The Irish Times, 26th September
Douglas, Co. Cork the Irish Independent reports that 42.99 acres of residential development land in Douglas, Co. Cork has been brought to the market by CBRE. The land is being offered as a single lot, of which 18.65 acres has full planning permission for 198 houses and a crèche and the remaining 24.34 acres is zoned for “medium-density residential use”. A licence to develop the 198 units is being offered, along with the option to purchase the remaining zoned lands at a future date. The guide price for the licence is €12.9m, which is to be paid in an upfront fee with the remaining consideration paid in instalments as units are built and sold. The option lands are guiding €7.3m. The Irish Independent, 27th September
Round Gardens, Citywest Savills are guiding €7.25m for 32 apartments at the Round Gardens Scheme in Citywest. The crescent shaped scheme was developed in 1999 and comprises a mixture of one, two and three bed units with surface car parking. The annual rent is €560,000 (7.7% yield). The Irish Times, 25th September
Fuel Yard Development, Finglas Savills are guiding €4.25m for 18 apartments at Fuel Yard development on the N2 in Finglas. The mix of one two and three bed apartments are within a five storey block which includes two shell and core office units and a vacant retail unit, along with 18 secure car parking spaces. Savills advises planning permission could be sought to convert the vacant units to residential. The current rent roll is €262,000 (6.16% yield). The Irish Times, 25th September
Bloomfield Park, Donnybrook, Dublin 4 Savills are guiding €4.5m (5.62% yield) for eight apartments within the Bloomfield Park scheme in Donnybrook (€563k per apartment). Each apartment is a c 810 sq.ft, two bed apartment with its own balcony and car parking space. The annual rent roll is €156,000 which could increase by a further €22,250 if the eighth apartment is let. The Irish Times, 26th September
Newmarket Square “Liberties Site” a site on Newmarket Square, adjacent to Teelings Whiskey Distillery with planning permission for 80,000 sq.ft of retail and office development has been purchased for an undisclosed sum by a consortium that includes Revelate Capital and Valorem Investment Partners. The Irish Times, 27th September
Donore Avenue, Dublin 8 CBRE are guiding €6m for a 0.82 acre site located on Donore Avenue, off the South Circular Road. The site has planning permission for 70,000 sq.ft of office. Henry J Lyons have prepared a feasibility study which states that subject to planning permission, a 210 bed co-living/student accommodation could be achievable. The Irish Times, 26th September
Shankill, Dublin 18 Knight Frank are guiding €4.5m for a detached house and 2.65 acres on Stonebridge Road, Shankill. RKD Architects have produced a feasibility study showing the site can accommodate 34 detached and semi-detached houses or 42 houses, duplexes and apartments. The Irish Times, 25th September
GENERAL
BidX1 Highlights Emmet Manor, a block of 32 two-bed apartments in Inchicore, Dublin 8 was sold on BidX1’s online auction for €3.416m, 22% in excess of its €2.8m reserve. A record number of 580 competing bids were received on the property. Separately, The Benbulben Suites in Sligo comprising 52 two-bed suites along with a detached industrial building, providing a mix of office and warehouse accommodation was sold for €3.171m, €1.2m above the guide price. The Irish Independent, 27th September
Public Private Partnership Social Housing Sisk and its joint venture partner Macquarie have won the bid, worth €300m, for the first public private partnership social housing tender. The contact is to build 534 homes in six Dublin area commuter locations The Sunday Business Post, 30th September
2018 Commercial Investment Forecast The level of investment in Irish commercial real estate is set to hit €3.5bn according to TWM property advisors. While this is a 8.6% increase on 2017 figures it will fall below the record of €4.5bn recorded in 2016. The largest deal to date was €176m for Eir’s headquarters in Kilmainham Dublin 8 The Sunday Independent, 30th September
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