3rd December (Issue 475)
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.
RETAIL
Athlone, Co. Westmeath H&M has signed a 10-year lease for its new store, which is an amalgamation of two units at ground-floor and first-floor levels. It will increase the retailer’s store size from 11,887 sq. ft to 15,192 sq. ft, after an investment of €3m in store re-fit. The letting agents are Bannon and Cushman & Wakefield. The shopping centre, which opened in 2007 and is the largest such outlet in the midlands, now has 98% occupancy. The Irish Times, 27th November
Cork City A €60m expansion of retail giant Penney’s Cork city centre store looks set to start by next April after more than a 3-year delay. The Irish Examiner understands that final processes are being worked through in relation to the Elbow Lane title, after a public right of way was extinguished by a vote of Cork City councillors last July. The Irish Examiner, 28th November
INDUSTRIAL
Rathcoole, Co Dublin Launched to market by Kennedy Wilson on a leasehold basis, Unit 502B Greenogue Business Park is up for let in Q1 of 2025. The unit extends to approx. 22,217 sq. ft and includes approx. 6,350 sq. ft of three-storey offices. CBRE and Harvey are quoting an annual rent of €306k/€13.75 sq. ft. The property is undergoing a refurbishment, which will take the BER to a rating of A2. Kennedy Wilson acquired 12 units across the Greenogue and Aerodrome Business Parks, Co Dublin, for approx. €39m in 2022. The Irish Times, 27th November
Collon, Co. Louth Two industrial units on the Slane Road in Collon, Co. Louth have come to the market with a combined price tag of €8m. The larger unit is on sale for €5.5m and comprises 47,000 sq. ft. which was constructed in 2015. The second unit is on sale for €2.5m and has an area of approx. 15,590 sq. ft. The unit has been used for car and tractor sales and service. The units are located 1km south of Collon, 10km from Drogheda. The Irish Independent, 27th November
2024 Review According to Harvey Industrial Specialists, the Dublin industrial and logistics market saw its post-pandemic rental surge stabilise in 2024. New-build rents held at €13 sq. ft. However, recent quoting rents suggest an increase to €13.50–€13.75 per sq. ft during 2025. In 2024, new building completions in Dublin totalled about 1m sq. ft, a decrease from the 2m sq. ft recorded in 2023. Current forecasts indicate a recovery to around 1.5m sq. ft in 2025. Take-up also declined, with 2024 expected to register less than the 3m sq. ft recorded in 2023. The Business Post, 30th November
OFFICE
Limerick City Fine Grain Property, an Irish-owned property investor, has acquired The Three Building, a 47,000 sq. ft office building at the Plassey Innovation Campus just outside Limerick city for €7.5m. This acquisition brings Fine Grain’s holdings at the “strategically important” location next to the University of Limerick to five buildings and close to 260,000 sq. ft, according to a statement from the company. The Business Post, 29th November
Adelaide Road, Dublin 2 Apple is set to take three floors capable of housing hundreds of staff at Four & Five Park Place in Dublin city centre on a long-term lease. Apple are in advanced discussions to take roughly 60,000 sq. ft at the building, which was developed by Clancourt. It is understood that a deal is likely to be done before Christmas, with Apple likely to locate several hundred staff at the site. The Business Post, 30th November
Fitzwilliam Place, Dublin 2 12-13 Fitzwilliam Place, two properties and mews on Lad Lane, which generate rents of €235k per annum, have sold for almost €4m, which was below the €4.4m guided by agents Colliers. There is potential for further income as the first, second and third floors of No 13 are vacant, as is 12 Lad Lane mews. No 12 Fitzwilliam is occupied by Reddy Charlton LLP which also occupies the basement of No 13. All four buildings offer a combined floor area of 11,490 sq. ft and the tenants also benefit from 15 car-parking spaces. The Irish Independent, 28th November
Cork Market Cork’s prime office rents may see upward pressure due to declining availability of office space as well as the cost of developing new offices. According to Cushman & Wakefield, prime Cork office availability declined to 13.1% at approx. 936,460 sq. ft in Q3 this year. That compares with gross availability of 8,019,113 sq. ft or 16.7%, in Dublin. Cushman estimates that approx. 17,222 sq. ft of space was taken up in the Cork office market in Q3, bringing the total for 2024 so far to 138,854 sq. ft. The Irish Independent, 28th November
2024 Review According to Knight Frank, the office sector has been the best performing on the occupier side, with total take-up to reach in excess of 2m sq. ft for the year as a whole. Large transactions from occupiers such as Stripe, EY, BNY Mellon have led demand. Knight Frank forecasts a similar, if not higher, level of take-up will be achieved next year, with 2025 off to a good start with a strong level of reserved stock in place. More clarity on hybrid working policies and increasing return to the office mandates are also allowing occupiers to make more detailed decisions about the amount and type of office space they need, which is expected to further support demand in 2025.The Business Post, 30th November
HOTEL
Galway Glenlo Abbey Hotel and Estate, controlled by US billionaire John Malone, recorded a near 20% bump in profits last year following an uptick in revenues last year, new financial filings have shown. The five-star, 73-room hotel just outside Galway city is part of the MHL Hotel Collection, which owns a string of luxury properties including The Intercontinental in Ballsbridge, the Powerscourt Hotel Resort & Spa in Wicklow and The Spencer Hotel in Dublin’s IFSC. New accounts published for Baswal Limited, the firm behind Glenlo Abbey, show its turnover rose from €12.5m to €13.7m in 2023. The increase in sales led to a rise in gross profits at the firm, up from €2.7m in 2022 to €3.2m last year. The Business Post, 2nd December
RESIDENTIAL /DEVELOPMENT
Naas, Kildare Aldi Ireland has purchased a 60-acre site, investing €24m in the Irish business. The site is close to Aldi’s existing distribution centre and corporate headquarters in Naas. Last year the firm expanded its store network, opening six stores as part of a capital investment of €67m across the year. The retailer plans to expand its store network in Dublin with an investment of €73m in 11 new stores with the creation of 350 new full-time jobs over five years. The Business Post, 25th November
Baggot Street, Dublin 2 61 Lower Baggot Street is for sale through Hunters Estate Agency. The mid-terrace, four storeys over basement house of 5,166 sq. ft is guiding at €3m. It also includes a self-contained two bedroomed apartment at basement level. The Business Post, 30th November
2024 Review According to Colliers, 2024 has been difficult within residential and country markets. Influences in the marketplace have been a lack of supply, international financial market unease, interest rate movement and the results of European and US elections. In 2025, Colliers anticipate market pressures to remain like those of 2024. However, if interest rates continue to ease, green mortgages are effective and new builds come online, they anticipate continued improvement on the availability of property thus opening the market to increased activity. The Business Post, 30th November
Dun Laoghaire, Dublin 18 Co-living apartments can be used for Airbnb-style holiday lets, due to a planning loophole, it has emerged. Dun Laoghaire Rathdown County Council has dropped a planning enforcement case against co-living developer Bartra following legal advice the company could use its “Niche Living” apartment scheme for holiday lets. Studio apartments in the 208-bed block on Eblana Avenue are being advertised with a two-night stay costing €278. Co-living schemes were introduced as a separate housing category in the planning system in 2018. The Irish Times, 28th November
Q3 Agricultural Land Market Review According to Sherry Fitzgerald, agricultural land price inflation has returned to a more sustainable level with values rising by 3.5% during the first 9 months of the year. The weighted average price of an acre of general farmland reached €12,342 in Q3. Land values rose in most regions from Q1-Q3 of 2024. Marginal grassland grew the most at a rate of 3.7% from Q1-Q3, followed by prime arable land with a 3.5% increase. Prime grassland grew by 3.3%. Sherry Fitzgerald, 28th November
OTHER
Abbey Street, Dublin 1 9 Lower Abbey St facing the Luas stop and Wynn’s Hotel, has gone sale agreed. Estate agent Lisney had been guiding €2.75m for the property which is being sold by The Methodist Church in Ireland. It is believed to be earmarked for a new cultural venue, but a Lisney spokesperson declined to comment. The property extends to approx. 10,742 sq. ft. The Independent, 28th November
Lauder Teacher Colm Lauder, and Andrew Teacher, two renowned and highly regarded real estate advisors, have announced the launch of a new strategic consultancy, Lauder Teacher, which will be focused on strategic communications, investor relations, and business strategy. It will be headquartered in London, with additional offices in Dublin and Monaco. Press Release, 28th November
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