30th August (Issue 61)

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.




Liffey Valley: South Dublin County Council has approved a planning application from Hines Ireland for the extension of Liffey Valley Shopping Centre in Dublin by 555,000 sq ft.  The approval covers the development of a 2,500-seater Olympic sized indoor ice-arena, as well as additional retail and commercial space.  The development will see c. 450 full-time and part-time jobs created upon completion.  The Irish Times, 23rd August



Elm Park: Declan Taite as Statutory Receiver of Radora Developments Limited has applied for a change of use to Block HH on a four acre site at Elm Park, Ballsbridge, from a previously permitted 212,500 sq ft hotel and private hospital development to a 7-storey 216,000 sq ft office development.  NAMA Wine Lake, Issue 169



Ormond Quay Site: CBRE is guiding over €5m for a hotel development opportunity at 34 / 37 Ormond Quay in Dublin city centre.  The property, which was formerly the Zanzibar pub premises, has planning permission for the development of an 89-bed hotel.  The planning permission allows for the redevelopment of the two front buildings as well as a four-storey extension to the rear. The Irish Times, 24th August

Castleknock Hotel & Country Club: FBD Hotels and Resorts is to invest €7 million in the four-star Castleknock Hotel & Country Club in a refurbishment and expansion plan which includes increasing its capacity by 46 bedrooms to 190.  Construction is due to commence in November and be completed in early 2018.  20 permanent jobs are expected to be created on completion of the works.  The Irish Times, 24th August

Former Burlington Hotel: German asset manager DekaBank (owned by a group of German savings banks) is reported to be the preferred bidder for the former Burlington Hotel in Dublin, which had an asking price of €180m.  The 502-bedroom hotel was acquired by Blackstone Group in 2012 for €67m, and it subsequently spent c. €20m refurbishing the premises.  The hotel was rebranded DoubleTree by Hilton in 2013.  Dalata Hotel Group has said that it has engaged in exclusive talks to lease and operate the hotel with an unnamed party that was negotiating to purchase the property.  The Irish Times, 25th August

Sackville Place: Tetrarch Capital has obtained planning permission from An Bord Pleanála for a budget boutique 158-bedroom hotel at Sackville Place, near O’Connell Street, Dublin 1.  The redevelopment of the building will also include retail / restaurant / café use in one unit of 925 sq ft on the ground floor and the addition of three storeys to provide a seven storey building.  The development investment is estimated at €16m.  The Irish Times, 27th August

Hotel Sales: Figures from DTZ Sherry Fitzgerald show that there were nearly €140m worth of hotel takeover deals in Ireland in H1 2016.  The outlook for H2 2016 is strong as hotel deals in excess of €420m are expected to close before the end of the year.  These sales include the former Burlington Hotel (c. €180m), the combined sale of the Beacon, Morgan and Spencer Hotels (c. €150m) and the Gresham Hotel (c. €90m), all of which are located in Dublin.  The Irish Times, 23rd August



South Dublin: U+I has obtained planning permission for the redevelopment of two sites in south Dublin at Donnybrook House, Dublin 4 and The Avenue, Sandyford with a combined end value of €100m.  Permission has been granted for the refurbishment of the 1970s office building at Donnybrook House (currently vacant) to provide 45,000 sq ft of office, 2,000 sq ft of retail units, 4,000 sq ft of restaurant space, and a basement gym of 20,000 sq ft.  The property was purchased by U+I in 2014 for €9m and the value on completion is expected to be €45m.  The permission obtained for the 2-acre site at The Avenue, Sandyford allows for 147 apartments and c. 10,000 sq ft of commercial space.  The site, which currently contains 42,000 sq ft of office and warehouse space was acquired by U+I in 2015 for €6m, and the redevelopment value is estimated at €55m.  The Irish Times, 24th August

Sutton: Developer Greg Gallagher has applied for planning permission to develop a three storey over basement block of 22 luxury apartments (4 x 1-beds and 18 x 2-beds) with 27 parking spaces in addition to a new 3,724 sq ft detached house on a 0.95 acre site at 17 Station Road, Sutton.  The Irish Times, 25th August

Raheny: MKN Property Group has sought planning permission to construct 52 apartments (8 x 1-bed, 30 x 2-beds and 14 x 3-beds) in two four-storey apartment blocks with 102 parking spaces at basement level on a 2.2-acre coastal site in Raheny.  In addition, permission has been sought to build 16 houses comprising of 12 x 3-beds and 4 x 4-beds to the rear of the site.  The site was acquired in two tranches for a total price of €3.48m by the group over the period 2014 – 2015.  The Irish Times, 25th August

West Dublin: Garlandbrook Limited has sought planning permission to build 219 homes primarily comprising of 3 & 4-bedroom semi-detached and terraced houses on a c. 19-acre site located within the Hansfield Strategic Development Zone.  The proposal also includes 8 x 2-bed apartments.  It is reported that the company is being backed by Bank of Ireland.  The Irish Independent, 30th August



JLL Irish Property Index: The JLL Irish Property Index (based on a sample of 29 Dublin properties) for Q2 2016 shows an increase in overall returns for offices, retail and industrial of 7.4% for H1 2016 and 22.8% YoY.  Overall rental values increased by 6.1% for H1 2016 (12.9% YoY) with the largest increases YoY for office (15.7%) followed by retail (10.7%) and industrial (6.6%).  The Capital Index shows that office values increased by 14%, retail by 17.8% and industrial by 23.8%.  JLL Irish Property Index – Q2 2016

Daft.ie Rental Report: The Daft.ie Rental Report for Q2 2016 states that there were 3,600 homes available to rent nationwide on 1st August, which was 1,000 fewer than the corresponding period in 2015.  It also identifies that there has been an 11% increase in the average asking rent nationally to €1,037.  The Daft.ie Rental Report Q2 2016

University of Limerick: BAM Building Limited has won the €18m contract for the 77,500 sq ft extension of University of Limerick’s Glucksman Library. The new facility (designed by RKD Architects) is due to open in September 2017 and will comprise of a basement level and four levels of accommodation above ground.  Property International Magazine, 24th August

Cairn Homes plc: Cairn Homes published its 2016 interim results on 25th August.  The Income Statement for the 6 months ended 30 June 2016 identifies a net loss of €580m on revenue of €16m (72.5% of revenue was generated from the sales of 39 houses at Parkside, Dublin 13).  Its loans equated to €148m, and it had undrawn facilities of c. €50m and cash of €117m available.  The builder expects to deliver 1,200 units by 2019.   Cairn Homes plc 2016 Interim Results


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