4th August (Issue 258)
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.
RESIDENTIAL / LAND
Donabate, North Dublin Housebuilder Cannon Kirk, through the entity Aledo Donabate, has entered initial talks with An Bord Pleanala to fast-track proposals for a €460 million residential project at Corballis East, Donabate. The 1,368 units will be split into 594 one and two bedroom apartments; 46 sheltered accommodation apartments; 352 duplex units; and 376 two, three and four-bedroom houses. In addition to housing, a 37-acre nature park forms a large component of the proposed development and would provide a green link to Donabate railway station. Other planned amenities include a 24-unit primary school and a c.3,200 sq. ft. retail space. Sunday Times, 2nd August
Dun Laoghaire, Co Dublin The Cosgrave Property Group has sold 368 apartments it is developing in Dun Laoghaire, Co Dublin to Deutsche Bank subsidiary DWS for c.€200 million (€543k per unit). Due for completion in stages between April 2021 and January 2022, the units at Cheevers Court and Haliday House are distributed between two buildings of five and seven storeys over a basement car park. The portfolio comprises 46 one bedroom apartments, 9 one bedroom plus study apartments, 248 two bedroom apartments/penthouses and 65 three bedroom apartments/penthouses. The Irish Times, 29th July
Prestige Portfolio DWS has also paid c.€145 million to acquire a portfolio of 317 residential units the MKN Property Group is developing in Dublin (€457k per unit). Known as the Prestige Portfolio, it consists of a mix of existing and new-build apartments and houses distributed across four schemes in the north Dublin suburbs of Swords, Raheny, Clontarf and Killester. The sale represents the largest private rental sector (PRS) or build-to-rent deal to complete this year. The Irish Times, 29th July
Construction Costs Rising construction costs have added €41k to the cost to deliver a 3-bed semi-detached house in greater Dublin in the last 4 years, according to a study by the Society of Chartered Surveyors (SCSI). The detailed survey of 30 live sites found hard costs comprised 48% of the overall cost of providing a new house. SCSI found the average cost of building a 3-bed semi in the greater Dublin area is now €371k. This includes land at €61k, VAT of €44k and a developer’s margin of €44k. The cost of delivering social housing is significantly lower at between €210k and €230k. Irish Independent, 30th July
MIXED-USE
Francis St, Dublin 8 CBRE is guiding €3.2 million for a five-storey building at 98-99 Francis Street, Dublin 8 extending to 7,094 sq. ft. with a ground-floor retail unit and seven residential units overhead. The residential component consists of three one-bed apartments and four two-bed apartments, including a top-floor penthouse. The apartments are fully let and producing a gross rental income of about €180,000 per annum. The ground-floor retail unit has own-door access and extends to 1,089 sq.ft. The unit has planning permission for food and beverage use, and offers the prospective buyer the opportunity to increase the building’s current rental income. The Irish Times, 29th July
INDUSTRIAL
Dublin 15 Harvey are guiding €1 million for Unit 8 at Plato Business Park in Dublin 15. Situated within the Damastown Industrial Park, the property comprises a modern, semi-detached industrial warehouse facility with two-storey office accommodation, extending to 12,519 sq.ft. Unit 8 is leased in its entirety to 7-Day Auto Limited until August 25th, 2024. The annual rent is €90,000, following the settlement of a 2019 rent review. The Irish Times, 29th July
Quantum Distribution Park, Kilshane Cross Iput is planning a €120 million logistics park near Dublin airport as part of a further expansion of its industrial portfolio. Quantum distribution park will comprise four standalone warehouse units, totalling 600,000 sq. ft. The company lodged a planning application for the development with Fingal county council last week. Iput is already the largest owner of modern logistics assets in Dublin, with a portfolio that extends to 31 properties comprising 2.4 million sq. ft. It controls more than 10% of the modern logistics stock in the capital. Sunday Times, 2nd August
OFFICE
Burlington Rd, Dublin 2 The Irish Times understands that Henderson Park Capital have sold the Dublin headquarters of the EBS Building Society to the German investment fund, KGAL for c.€94 million. The property at 2 Burlington Road forms part of the Capital Collection, a portfolio of five prime Dublin offices that Henderson Park acquired as part of its €1.34 billion buyout of Green REIT in 2019. The property is a six-storey building comprising some 86,000 sq.ft. of grade A office space and 33 car parking spaces. The Irish Times, 29th July
Hibernia REIT expects “a modest decline in the company’s net asset value per share over the 6 months to 30th September 2020”. The listed landlord said 98% of its commercial rent for quarter ended September 2020 was now received or on an agreed monthly payment plan. In its residential portfolio 98% of rent for July has been collected. At 30th June 2020 Hibernia had net debt of €235 million and cash and undrawn facilities of €160 million. Irish Independent, 29th July
1 Warrington Place, Dublin 2 Regeneron has agreed to sub lease 14,000 sq. ft. at One Warrington Place from the building’s main tenant Bord Gáis Energy for a term of five years. The Irish Times understands that a rent of €60 psf and €4,000 for each of the basement car parking spaces has been agreed between the parties. The Irish Times, 29th July
Tara Street, Dublin 2 A proposal to build an 11-storey office tower over the Dart line in Dublin city centre has been significantly scaled back. The original proposal by Esprit Investments Limited, submitted last year, would have included c148k sq. ft of office space and 49 apartments over the rail line between Tara and Pearse Street Dart stations. Planners had said they had serious concerns about the height of the building and a revamped design was submitted in July which omitted the residential element of the project and reduced the height from 44m to 35m. However, Dublin City Council has again expressed reservations about the height and design of the building and has asked the developer to submit further information. Business Post, 2nd August
Dublin Office Market Just 83,000 sq. ft. of office space was let in Q2 2020, bringing take-up for the first half of the year to 900,000 sq. ft., which is just over half the level witnessed during the same period in 2019. The vacancy rate stood at 7.3% at the end of Q2, up from 6.5% in Q1 and from 6.4% in Q2 2019. €257.5 million worth of office investments changed hands in Dublin during Q2 bringing volumes for the first half of the year to €621.4 million, 17% ahead of the same period last year. Knight Frank, Dublin Office Market Overview Q2 2020
RETAIL
Blanchardstown Centre The owner of Blanchardstown Centre has said there is likely to be a decrease in rents at its portfolio of shopping centres. Jon Gray, president of Blackstone said the future will be very challenging for enclosed malls like Blanchardstown Centre. The prolonged closure of many malls during lockdown has resulted in Blackstone’s retail business recording rent collections of close to 50%, compared to a 95% collection rate in their residential business. Blackstone acquired Blanchardstown Centre in 2016 for €945 million. Business Post, 2nd August
Hammerson, which owns Dundrum Town Centre, is considering raising capital and selling some of its most prized assets to see out the coronavirus crisis that is battering shopping centres and retailers. Hammerson has collected just over 30% of the rent due for the third quarter and has c£2.4 billion of debt. The shopping centre owners said it is looking to raise £600 million and is also in advanced talks on the terms of a sale of its 50% stake in VIA Outlets to its Dutch pension fund partner. The luxury outlets unit has been one of Hammerson’s best performing businesses in recent years. The Irish Times, 3rd August.
OTHER
St Vincent’s Hospital in Fairview, Dublin 3 is seeking a partner to develop a new purpose-built hospital facility in exchange for a significant undeveloped land holding of c13.4 acres. The new hospital facility will accommodate a mental health campus and a number of day centre facilities in what is known as a “multifunctional mental health facility”, comprising 100 single bedrooms for continuing care. Savills have been instructed to seek a development partner for the 21.4-acre site, which is located in between the residential neighbourhoods of Drumcondra, Marion and Fairview. Business Post, 2nd August
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