3rd July (Issue 153)

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.



Wicklow Street, Dublin: New Ireland Assurance has completed the purchase of a high profile investment property off Wicklow Street for €12m (€932 psf). The property consists of 6,328 sq. ft. of retail, 6,544 sq. ft. of office space and a penthouse. The building is producing a rental income of €575,000 (€45 psf) from Cotswold Outdoor, a UK specialist in outdoor clothing, and Tracey Solicitors, giving an initial yield of 4.6%. The Irish Times, 27th June

70 St. Stephens Green: Irish Life, Ireland’s leading property investment company with a portfolio of over €3bn, is in the early stages of replacing Hainault House on St. Stephen’s Green, marking its first redevelopment project for over 20 years. The planned €20m block will be more than 70% larger, with a floor area of 61,820 sq. ft. when it is ready for fit-out in the early months of 2020 and can expect a rent of c. €65 psf. Irish Life has not been involved in any major redevelopment projects since it completed a single phase of Georges Quay in 1995. The Irish Times, 27th June

Ballycoolin Business Park: Agent CBRE has brought two separate detached office buildings at Ballycoolin Business Park to the market guiding €8m (€62 psf) combined. Unit 1 is guiding €2.5m and extends to 42,551 sq. ft. on a low-density site of 3.09 acres, while unit 2 is guiding €5.5m and has a floor area of 85,874 sq. ft. on 4.7 acres. Both buildings are laid out as open-plan call centre spaces with ancillary offices and come with vacant possession. The Irish Times, 26th June

Harcourt Road, Dublin 2: Green Reit is to lease the entirety of 5 Harcourt Road, Dublin 2, to a subsidiary of WeWork for an annual rent of €3m (€60 psf). This newly developed office building in Dublin city centre is due for completion in July and comprises 50,000 sq. ft. of lettable space over seven floors. WeWork, the world’s largest provider of collaborative workspaces, has agreed a 20 year lease with no break options, and has guaranteed the lease obligations. The Irish Times, 3rd July

Sandyford Business Park: Turley Property Advisors is quoting a guide price of €2.9m (€333 psf) for the first floor of a modern office building at Sandyford Business Park in south Dublin. The office facility is let to PrePay Power, a leading provider of prepaid electricity, on a new 15-year lease at €250,000 p.a. (€28.70 psf), rising to €275,000 (€31.60 psf) at the end of year five, with a tenant break at the end of year 10. The Irish Times, 27th June

Earlsfort Terrace, Dublin 2: Agent QRE has brought a period office of 3,000 sq. ft. and four apartments on Earlsfort Terrace to the rental market at €320,000 p.a. The building which has been refurbished to a high standard in recent months was bought by its current owners in 2017 having been on the market at €2.75m. The Irish Times, 26th June



Six Hanover Quay, Dublin: Listed housebuilder Cairn Homes has agreed to sell its Hanover Quay redevelopment to a special purpose company managed by Carysfort Capital for €101m. The development, which is currently under construction, is made up of 120 apartments, a 5,000 sq. ft. restaurant and 1,400 sq. ft. café. The price paid for the development, which is due to be completed in early 2019, represents an average gross sales price of €800,000 for each of the apartments. The Irish Independent, 28th June

Glenveagh Acquisitions: Housebuilder Glenveagh has announced at its recent AGM the acquisition of four new sites capable of delivering 2,780 homes at a combined cost of €120m. The sites are located in the Cork docklands and Greater Dublin area and means Glenveagh’s land bank now comprises of 10,120 homes, 31% of which are shovel-ready with 97% zoned residential. The Irish Times, 29th June

Hazelbrook Square, Churchtown: Cushman & Wakefield has this week brought a portfolio of 54 apartments at Hazelbrook Square in Churchtown, Dublin 14, to the market guiding €16m (€296k per apartment). The eight year old apartments are part of a block of 97 units and currently produce a rent roll of €896,000 p.a., showing an initial return of c. 5.6%. The Irish Times, 27th June

Bishopstown Site, Cork: Joint agents Savills and Agar Commercial Consultants are seeking offers in excess of €6m (€377k per acre) for a superbly located 15.9 acre site in Bishopstown, Co. Cork. The site, which is located 5.5km from Cork city centre, is zoned as an “existing built-up area” and most suitable for mixed-use, office, residential or hotel development. The Irish Times, 27th June 

Clondalkin Development Site: DNG Advisory has brought a 7.2 acre site with full planning permission for 63 houses, 20 apartments and a crèche in Clondalkin to the market guiding €5m (€695k per acre). DNG Advisory said the site was an exceptional opportunity to develop a high-quality residential community and the project is will be of particular interest to first-time buyers with apartments starting from c. €220,000 and houses from c. €250,000. The Irish Times, 27th June

Dublin South Docklands Site: Agent Savills has brought two retail units with redevelopment potential on Cardiff Lane in Dublin’s south docklands to the market for €5m. The 4,736 sq. ft. development is currently occupied by Starbucks and Arena Kitchens producing a combined rent roll of €58,000 p.a. (€12.24 psf) with a rent review outstanding. A feasibility study carried out suggests that, subject to planning approval, the site could accommodate 17 apartments above 2,260 sq. ft. of retail space and may also be suitable for office accommodation. The Irish Times, 27th June



K Club Golf Resort: The 550 acre five-star K Club golf resort is being brought to the market by Savills with an expected guide price of €70m – €80m. Located in Straffan, Co Kildare, the hotel comprises of 134 bedrooms, two Arnold Palmer designed courses and two club houses. Accounts last year showed the business made a near €4m loss before tax in 2015, up from €3.2m the previous year. However, its position was expected to have improved significantly since then due to its extended capacity and with a buoyant tourist market. The Irish Times, 29th June



The Grand Social, Dublin: Publican Frank Gleeson has acquired the Grand Social bar and music venue in Dublin city centre for more than €3m. Gleeson bought the venue from the businessman Brian Montague, who also owns the Winding Stair and the Legal Eagle pub. Located on Liffey Street, facing the Ha’penny Bridge, the Grand Social includes two bars, a loft music space and a roof garden. Gleeson has been operating the venue on a management contract. The Sunday Business Post, 1st July



Retail Sector Update: Latest figures from the CSO have revealed an annual increase of 4.3% in the volume of retail sales during May compared with the same month last year. Seasonally adjusted, the volume of retail sales increased by 0.1% in the month of May. Excluding motor trades, there was an increase of 1.5% in the volume of retail sales in May when compared with April, and there was an increase of 4.7% in the annual figure. The sectors with the largest monthly volume increases were hardware, paints and glass (+8.9%), and books, newspapers and stationery (+4.3%). The sectors with the largest month on month volume decreases were furniture and lighting (-4.7%), and bars (-2.9%). The Irish Times, 27th June

52 Henry Street, Dublin: Therapie Clinic, the leading laser, skin and body treatment specialist, is to open a new flagship store at 52 Henry Street, Dublin 2. The company has acquired the building on a sub-lease at a rent of €250,000 p.a. (€62.60 psf) and will occupy all four floors and basement, which extend to 3,993 sq. ft. The Irish Times, 26th June



Savills Dynamic Cities Index: A report from Savills Investment Management has placed Dublin sixth out of 130 European cities for commercial real estate investment. The index analyses and ranks 130 cities across the six categories of infrastructure, inspiration, inclusion, interconnection, investment, and innovation. Home to nine of the top 10 global technology companies, Dublin ranked higher than a number of other financial powerhouses including Zurich, Munich, Frankfurt, and Luxemburg. Despite concerns around Brexit, London topped the list, followed by Cambridge and Paris, with Amsterdam and Berlin completing the top five dynamic cities. The Irish Independent, 27th June

May Mortgage Approval’s: New figures from the Banking and Payments Federation have shown that mortgage approvals passed the €1bn in May, with first time buyers accounting for €506m (49.9%) and mover purchasers €324m (32%). In total 4,473 mortgages were approved in May, up 9.8% year-on-year, and 19.2% month-on-month. Growth in the re-mortgaging category continues to be the stand-out category, with the value of re-mortgaging growing by 106% year-on-year in May. The Irish Independent, 28th June

Amazon Site, Tallaght: Amazon is seeking permission for a second data centre at the former Jacob’s biscuit factory site in Tallaght. The 240,000 sq. ft. data centre will be built next to a similarly sized facility recently completed on the Belgard Road site that it acquired in 2014. A recent report, commissioned by the tech giant, found that its investment in South County Dublin since 2011 has had a cumulative economic impact for the Irish economy in excess of €1.25bn and on average supported over 1,200 full-time jobs each year.The Irish Independent, 1st July


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 the €3m – €15m range. If you would like to discuss how Origin Capital can help with your funding requirements, please contact us on 01 662 9264.

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