31st May (Issue 349)

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.




Merrion Square, Dublin 2 A private Irish investor looks set to secure a NIY of 4.98% following their acquisition for €5.69m of No. 47 Merrion Square and its associated mews at 47 Stephen’s Place, which are occupied in their entirety by NewsWhip Media Ltd under two co-terminous leases, with 3.7 years unexpired. In annual rent, 47 Merrion Square produces €229.85k, while 47 Stephen’s Place is generating €81.58k pa, giving the new owner an overall rental income of €311.43k. The average rent is €36.50 per sq. ft. across the two buildings and prime Georgians are currently commanding c. €50 per sq. ft. The properties comprise a four-storey over-basement Georgian building with mews and car parking to the rear. The main building, 47 Merrion Square, extends to 6,330 sq. ft. and the two-storey modern mews extends to 2,191 sq. ft. The Irish Times, 25th May

Fitzwilliam Place, Dublin 2 Colliers is handling the sale for €6.5m of 12 and 13 Fitzwilliam Place together with the mews buildings at 12 and 13 Lad Lane. The property at 12 Fitzwilliam Place is occupied in its entirety by law firm Reddy Charlton LLP under a new 10-year lease from January 1st, 2021 at an annual rent of €168k pa, with a tenant break option at expiry of the fifth year. Reddy Charlton also occupy the basement of no. 13 on a separate lease that runs co-terminus with no. 12 at an annual rent of €12k pa. No. 12 Lad Lane is let to Irish property company Iput on a short-term lease that expires in September 2022 at a rent of €32.5k pa. No. 13 Fitzwilliam Place is partly let with excellent potential to significantly increase the passing rent from c. €43.8k pa. No. 13 Lad Lane is let to Iput until December 2023 at a rent of €30k pa. The Irish Times, 25th May
For lending terms on this asset please contact rossmetcalfe@origincapital.ie

Apple Campus, Cork Apple is planning to build a new office block on its Cork campus as it looks to expand its manufacturing, logistics, finance, sales and customer care offering. The new four-storey building would accommodate up to 1,300 additional staff and replace an existing car park which would be relocated. If planning permission is granted in a timely fashion, construction at the site could commence later this year and be completed in 2025. React News, 25th May



Carrigaline, Co Cork Discount supermarket Aldi Ireland is set to open a new €10m store in Carrigaline, Co Cork in 2024. The news comes as the supermarket was granted planning permission from Cork County Council for its new 14,154 sq. ft. store earlier this month. The store will be centrally located just off the new Carrigaline Western Relief Road, which is currently under construction. The store will be powered by 100% green electricity and will feature 52 photovoltaic solar panels on the roof. Carrigaline shoppers will also benefit from four electric vehicle-charging points at the new store, along with 12 bicycle rack stands. The Business Post, 28th May

Ashbourne, Co Meath The Star Stone Property Group, a Meath-based investor, has acquired the High Street Ashbourne retail scheme for in excess of €12.5m. The price paid represents a 9% premium on the €11.5m price that Cushman & Wakefield had been guiding when it offered the investment to the market in May of last year. The scheme was sold on the instructions of receivers Kroll. Developed between 2003 and 2007, the centre, which extends to 176,000 sq. ft., is situated in the heart of Ashbourne. The investment takes in the entirety of Killegland Street and Desmond Street and has a mix of surface and basement parking along with a multi-storey car park. Anchored by Tesco (not part of the sale), High Street Ashbourne is occupied by the HSE, McDonald’s, New Look, Lifestyle Sports, Boots, Card Factory, O’Brien’s Fine Wines and Euro Giant. At the time of its sale, the centre had an occupancy rate of c. 75% and a WAULT of 7.8 years to break option and 9.4 years to expiry, with a total passing rent of €1.64m pa. The HSE’s Ashbourne Primary Care Centre anchors the scheme and is in occupation on a long-term lease until 2037. The Irish Times, 25th May



Swords, Co Dublin Located across from Airside Retail Park, the South Quarter Airside scheme near Swords owned by Irish Life, Iput, and its original developer, David Daly, has come to the market. The property extends to an overall area of 90,685 sq. ft. and 230 car-parking spaces on a site of 1.65 acres. Extending to 57,079 sq. ft., Block A at South Quarter Airside now contains a newly developed remote broadcast and content production centre (RBC) and a mix of six retail/restaurant units. The RBC, which measures 47,791 sq. ft., was created to accommodate the content production requirements of Riot Games. The company will occupy Block A at South Quarter Airside on a new 15-year lease at a passing rent of €600k pa stepping up to €650k in year three with a CPI-indexed rent review at year five. Other tenants in Block A include Hogs & Heifers, Pizza Dog, Indigo Pearl and O’Briens with a combined rent of €287.5k pa. Block A offers a WAULT to break of c. nine years and over 14 years to expiry.
Block B comprises a four-storey building extending to 33,605 sq. ft. and is let in its entirety to Flyefit on three separate leases producing an income of €440k pa and a WAULT to expiry of over 13 years. Blocks A and B are being offered for sale on behalf of the Michael J Wright Group by Colliers by way of separate lots at guide prices of €12.5m and €4.75m respectively. Alternatively, the entire property is available for sale at a guide price of €17.25m, providing the purchaser with a blended NIY of 7%. The Irish Times, 25th May



Dublin City Centre Two pubs that formed part of Sean Quinn’s business empire are up for sale again for a total of €7m. While the new guide price is 27% higher than the amount CBRE had been seeking when it first looked to dispose of The Barge on Charlemont Street and JW Sweetman on Burgh Quay, the increase in the interim reflects the current demand from publicans and investors for premises in prime city centre locations. The two pubs are being sold with the benefit of vacant possession. In the case of The Barge, CBRE is guiding a price of €3.75m. The Barge briefly comprises a part two-storey/part three-storey over-basement building fitted in traditional style with a lounge bar at ground-floor level, a mezzanine bar, first-floor bar, second-floor function room, and catering kitchen. The basement houses the pub’s cellar and beer cold room. The façade of the building is a popular product-placement site with advertising hosted throughout the year. The premises extends to 3,875 sq. ft. and is well presented throughout. JW Sweetman (formally Messrs Maguire’s) meanwhile is a substantial licensed premises situated in a commanding trading position overlooking the Liffey at O’Connell Bridge and immediately adjacent to O’Connell Street and the Temple Bar area in the heart of Dublin city centre. JW Sweetman is a traditional-style four-storey over-basement double-fronted licensed premises. The pub’s accommodation comprises a ground-floor bar with a rich traditional interior. On the first and second floors there is similar lounge bar accommodation while on the third floor there is a catering kitchen with a dumb waiter to all floors. In the basement there is a cellar bar, cold room and microbrewery production area. The entire property extends to 8,934 sq. ft. of accommodation. JW Sweetman is being offered for sale with a guide price of €3.25m. The Irish Times, 25th May



Drogheda, Co Louth Seven units are currently for sale at Donore Business Park in Drogheda, Co Louth and agent REA OBrien Collins is guiding €3m. The units 5, 5A, 6, 7, 7A, 8 and 8A collectively offer c. 31,108 sq. ft. of space with a passing rent of €220k pa. Unit 5 is leased to the Home Renovation Centre on a four-year lease from June 2, 2020 with no break clause and a passing rent of €25k pa. Unit 5A is leased to MCB Electrical Wholesale Limited, also for four years until December 19, 2025, with no break clause and an annual rent of €30k. Units 6 and 7 are let to Nature’s Best Limited on a four-year, nine-month contract starting February 5, 2022, with no break clause and a passing rent of €70k pa. DP Gymnastics holds a four-year, nine-month lease on Unit 7A, expiring on November 30, 2026 and paying €35k pa. Unit 8 is let to Rawlplug Ireland Limited on a four-year, nine-month lease, with no break clause and expiring on July 31, 2026. It has a passing rent of €35k pa. Unit 8A is leased to Posh Pets Distribution Limited on a five-year lease term from November 1, 2021 with no break clause and a current passing rent of €25k pa, increasing to €27.5k pa on November 1, 2023 and €30k pa on the same date in 2024. The Business Post, 28th May



Tallaght, Dublin 24 Guiding at a price of €8.5m through agent Cushman & Wakefield, the sale of Cookstown Cross in Tallaght comprises a brownfield site of 1.75 acres with full planning permission for 208 residential units and ancillary commercial space across seven storeys. The approval provides for 154 apartments consisting of a mix of 41 studio, 84 one-bed and 29 two-bed units, along with 50 two-bed and four three-bed duplexes. The construction of a cafe, creche and commercial unit is also permitted. The scheme will also have 73 car-parking spaces at podium level. The Irish Times, 25th May

Blackrock, South Co Dublin Lisney is inviting offers in excess of €1.5m for a prime residential site in the south Dublin suburb of Blackrock with full planning for five architecturally designed houses. Located at no. 69 Rock Road, the 0.15-acre plot comes to the market with approval for the development of two mews houses within the footprint of the existing building and three three-storey townhouses across the remainder of the site which takes in the rear garden of no. 67. The mews houses extend from 1,152 sq. ft. to 1,259 sq. ft. while the townhouses extend from 1,238 sq. ft. to 1,905 sq. ft. Offers for no. 69 Rock Road should be submitted by noon on Wednesday, June 22nd. The Irish Times, 25th May

Dún Laoghaire-Rathdown County (DLRC) Development Plan The newly adopted DLRC Development Plan is facing three legal challenges by developers over the rezoning of south Dublin residential lands for other purposes. The High Court actions, concerning lands in Stillorgan, Goatstown, and Bulloch Harbour in Dalkey, aim to overturn the decision of county councillors in March 2022 to adopt the 2022-2028 plan, which came into effect in April. Developer Colbeam Limited sought to pursue its challenge over its concerns about the change to the zoning of part of the former site of Our Lady’s Grove school, which is c. 850 metres from University College Dublin. Richard Barrett’s Bartra Property (Dublin) Ltd is challenging the council’s decision to remove the residential reference in the zoning for its site at Bulloch Harbour. It is also seeking an order quashing the decision to adopt the plan. The third action is brought by Oceanscape Limited, based in Inchicore, Dublin. The separate actions are each against Dún Laoghaire Rathdown County Council, while the Minister for Education is a notice party in Oceanscape’s case. The Irish Times, 25th May

Kilmainham, Dublin 8 A site located between the Royal Hospital Kilmainham and the National Children’s Hospital in Dublin 8 has come to the market with a €6.75m guide price. Extending to 0.6 acres, the site on Brookfield Road benefits from full planning permission for 79 BTR apartments. Its sale follows Brookfield Property Ltd securing planning permission for 14 studio apartments, 48 one-bedroom units and 17 two-bedroom units with average floor areas ranging from 422 sq. ft. to 496 sq. ft. and 830 sq. ft. respectively. Furthermore, the development can benefit from 6,795 sq. ft. of resident amenity space. The Irish Independent, 26th May

Blackchurch, Co Kildare A large parcel of land with profile onto the N7 motorway at Blackchurch, Naas Road, Co Kildare, is being offered for sale with a guide price of €35k per acre. It is for sale in two lots, one of which comprises 92 acres. The second at exit 6 southbound on the N7 comprises 4.76 acres. Agent Jordan Town and Country Estates is handling the sale and has set July 12 as the closing date for tenders. The combined guide price for both sections would exceed €3.38m. The Irish Independent, 26th May

Walkinstown, West Dublin CBRE is guiding €6.75m for a site in Walkinstown, west Dublin. Extending to 1.65 acres, the Walkinstown site comes with full planning permission for 61 residential units while a separate planning application is pending for the development of a further eight residential units on a section of the site. The 61 units would comprise 29 one-bedroom apartments and 27 two-bedroom apartment units in a five-storey block as well as five three-bedroom townhouses. The other eight units applied for by Canmar Properties Limited comprise two two-bedroom semi-detached houses and six four-bedroom townhouses. For sale with vacant possession, the site is currently occupied by a carpark and a mix of commercial and industrial two-storey buildings. The Irish Independent, 26th May

Clongriffin, Dublin 13 A European investment manager has launched a prime residential asset in Dublin for a €200m sale. Tristan Capital Partners, on behalf of its EPISO 4 fund, and Twinlite are selling One Three North in Clongriffin. Knight Frank and NAI Hooke & MacDonald Commercial have been instructed to sell the apartment complex. It is the first EU taxonomy mitigated BTR scheme in Ireland to be brought to market. The 376-apartment asset was constructed in 2020. One Three North’s occupancy rate runs close to 100%, with the high-spec flats already likely to have reversionary potential due to the strong rental growth story in Ireland. Build cost inflation is expected to further dampen delivery of new product, further constricting the development pipeline. React News, 26th May

Merrion Road, Dublin 4 A Dublin developer has initiated a High Court action over An Bord Pleanála’s refusal to permit the construction of a five-storey apartment scheme after concluding it would depreciate the value of nearby properties. The planning board overturned Dublin City Council’s permission that had been granted to developer Brian Kennedy to demolish an existing building on Merrion Road, Dublin 4, for the development of 25 apartments, along with a residents’ gym. Mr. Kennedy’s judicial review action is against the board, while Dublin City Council is a notice party. The Irish Times, 26th May

Housing Construction, Co Kildare Major builders have claimed they could be forced to halt the construction of new homes and mothball sites in Co Kildare because housing targets for the Dublin commuter belt are too restrictive. Builders O’Flynn, Cairn, Glenveagh and Ballymore – among the biggest in the market – have made a joint submission to Kildare County Council saying its proposed development plan risks curtailing the delivery of dwellings needed to tackle the housing crisis. Separately, the National Asset Management Agency (Nama), said the council’s reduced housing target for 2023-2029 would lead to the de-zoning of residential sites and to serviced land becoming unavailable for development. The 60-page submission from O’Flynn, Cairn, Glenveagh and Ballymore — collectively described as a “consortium of housebuilders” — takes issue with the target, claiming it is “insufficiently ambitious” and fails to address the worsening national and local housing crisis. In its submission, Nama said significant, “well-located” and mainly residential land assets in Celbridge, Leixlip and Newbridge could be de-zoned under the plan. The current six-year housing target for Kildare represents a 50% reduction on the last development plan, Nama said. The Irish Times, 27th May



Croí Cónaithe Scheme, Ireland Investment funds can buy apartments that are part of the state’s Croí Cónaithe scheme, which is meant to deliver thousands of homes in cities for individual buyers, if the apartments are unsold one year after completion. A sample Croí Cónaithe contract shows there is a clause that allows developers to sell the homes “on the open market to any purchasers”, but they would then not receive the subsidy. A property agent that specialises in selling apartments told the Business Post that even with pent-up demand for housing, it would take longer than a year to sell a large block of apartments to one-off buyers. The government’s new Croí Cónaithe scheme aims to de-risk the development of apartments in Ireland. It has promised developers subsidies of between €25k and €144k per unit if they sell apartments to owner-occupiers. The fee is intended to bridge the gap between construction costs and achievable market price. The Business Post, 29th May

Mortgage Approval, Ireland The number of mortgages approved fell 5.9% in April compared with March and by 1.3% compared with the same period last year, figures from the Banking & Payments Federation Ireland (BPFI) show. The latest data from the BPFI Mortgage Approvals Report for April shows a total of 4,304 mortgages were approved in April. First-time buyers (FTBs) were approved for 2,296 mortgages (53.3% of total volume) while mover purchasers accounted for 923 (21.4%). Mortgages approved in April were valued at €1.6bn, of which FTBs accounted for €635m (54.5%) and mover purchasers for €287m (24.7%). The value of mortgage approvals fell 3.7% MoM and rose 6.9% YoY. Remortgage/switching increased 37.2% in volume terms YoY to 775, and by 43.1% YoY to €206m over the same period. Separately, the latest doddl.ie Mortgage Switching Index for the first quarter has found homeowners should consider swapping their short-term fixed mortgage rates for longer-term options to insure themselves against shock increases in repayments when their current deal ends. Mortgage switching activity has jumped 33% YoY, it found, fuelled by an expectation that rates would increase this year. As household costs rapidly rise, homeowners could be needlessly paying an average €4,388 in extra mortgage repayments per year by not switching lenders, the index found. The Irish Times, 31st May


If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie

Origin Capital funds senior debt transactions in the CRE investment sector, typically in excess of €3m, and has lent over €200m to clients since April 2015.

Origin Capital is a wholly owned subsidiary of LeBruin, a leading provider of corporate finance solutions.

If you would like to discuss how Origin Capital can help with your funding requirements, please contact us on 01 662 9264.