Dublin Airport Central Kellogg, the US multinational food company, has been confirmed as the first tenant in the Dublin Airport Central office scheme currently under construction. Kellogg will pay €33.75 per sqft for 38,750 sqft across two and a half floors of the 91,494 sqft, six storey office block, and €1,750 per car space. The office block is one of two office blocks currently under construction, the second will comprise 123,786 sqft. The Dublin Airport Authority have planning permission for 448,854 sqft of offices and associated facilities across four buildings. Kellogg’s fit out of their office is due to commence in Q2 2019. The Irish Times, 29th August
Office Construction Levels are reported to be back at “boom time” levels being driven primarily by demand from finance and technology firms. WeWork, a US multinational, accounted for 15% of total take up in 2018. HWBC’s half yearly report of the Dublin office market notes that over four million square foot of office space is currently under construction. Of the works due to complete in 2018, 70% have pre-commitments in place with tenants. HWBC note a major concern is the lack of rental accommodation available and this has caused employers such as Google and JP Morgan to purchase office buildings with apartment complexes on site. The report notes that headline rents have remained at €60-€65 per sqft. The Irish Times, 31st August
Donnybrook House Since acquiring Donnybrook House for €10m, U+I, a UK property group along with US investor Colony Capital, have spent c€15m on redeveloping the property, including adding a fourth storey and 2ndfloor basement level. 45,000 sqft office together with 4,000 sqft restaurant and 2,000 sqft café is now available for letting through CBRE and Colliers and is expected to produce an annual income of €2.5m – €3m. Negotiations are in advanced stages for an 18,000 sqft basement level gym. The property, which also offers 27 car spaces is expected to draw interest of high-tech companies. The Irish Times, 29th August
Dublin Docklands The Sunday Times reports that Arthur Molloy and Michael Sherry, owners of Molloy & Sherry Logistics and Warehousing Group are seeking planning permission for a €40m, nine storey office development in Dublin Docklands. It is reported that they plan to restore the façade of 73 North Wall Quay, which is a protected structure, but replace the remainder of the property with a c 40,000 sqft office block. The Sunday Times, 2nd September
Druids Glen Hotel & Golf Resort a 145 bedroom hotel along with 349 acre estate with two 18-hole championship golf courses has been brought to market by Savills guiding €45m, two months after the K Club in Kildare was brought to market guiding €80m. The latter has attracted more than 100 inquiries primarily from Asia and the US. Druids Glen also consists of a health club and spa, eight conference rooms, a 160 seat restaurant and function room which can accommodate 400. The Irish Times, 29th August
Castle Oaks House Hotel, Limerick has been brought to market with CBRE guiding €2.5m to €2.75m. The four star hotel consists of a 20 bedroom Georgian building with an additional 22 bedroom extension to the rear. The Irish Times, 29th August
20 Acre Site, Newbridge, Co Kildare has been brought to market by Jordan Auctioneers and is expected to obtain offers in excess of €4m (€200k per acre). The site which is zoned residential, does not currently have planning permission but has capacity for 255 homes. The Irish Times, 28th August
Irish House Prices An IPAV report notes that residential house prices have fallen by 12.24% or €150,000 and the average cost of a home in Dublin 4 is now €1,225,000. Other areas where values have fallen are in Dublin 1, 3, 4, 6 & 15. House prices have risen in areas such as Malahide and Howth by 9.75%. The largest price rises for four bed were recorded in Laois (18%) and Kilkenny (14%). The Irish Independent, 2nd September
Separately ratings agency S&P have noted that Irish house prices are heading for a “soft landing” but notes this will occur after another three years of growth until supply catches up with demand. It forecasts growth of 9.5% this year reducing to 8% growth in 2018, 7% in 2020 and 6% in 2021. S&P note that the house price growth has been sustained by institutional investors / buyers who accounted for c1/5th of 2017 residential transactions. S&P note the main cause of the house inflation is the supply shortage and note it will take until 2021 before demand is met. The Irish Times, 3rd September
Willsborough Industrial Estate, Dublin 17 Savills are seeking offers in excess of €5.7m for four logistics buildings located at Willsborough Industrial Estate, Dublin 17 which will equate to a yield of 6.5%. The four properties comprise 46,284 sqft along with 68 car parking spaces. The three tenants Three, Virgin Media and Kedington Ltd pay an annual rent of €402,500. The Irish Times, 29th August
Grange Castle Business Park, Lucan EdgeConnex, an American data centre operator is intending to construct two more high-tech facilities totalling 64,583 sqft on 16 acres at its existing site in Grange Castle business park in Lucan. They previously built a 48,437 sqft data centre in 2016 and extended this by a further 16,145 sqft last year. It is reported that the first phase of the data centre cost in the region of €30m and the proposed development will require similar levels of investment. The Irish Independent, 2nd September
Hotel Chocolat, a UK retailer will open its first Dublin store at 1 GPO Buildings Henry Street. The 1,830 sqft retail unit has achieved an annual rent of €170,000 (€92.89 per sqft). The Irish Times, 29th August
BidX1 The Irish Times reports that Pollen Street Capital, a UK private equity house, have bought a c45% – 50% stake in BidX1, the online auction platform, to assist with their expansion into South African, Greek and Spanish markets. The Irish Times, 3rd September
BidX1 will host two online auctions in September. 403 residential and commercial properties will be auctioned with the residential property auction on 18th September and commercial property auction on 20th September. Block C, Emmet Manor Inchicore, Dublin 8, a block of 32 flats, with an 87.5% occupancy rate generating €291,772 p.a, has a guide price of €2.8m. The adjoining Block B, Emmet Lodge sold this year on the BidX1 platform for €3.2m. BidX1 note that this block was fully let, generating €430,080 p.a. A 52 bed tourist / student accommodation and detached light industrial building in Sligo has a guide price of €1.9m. The Irish Independent, 30th August
CBRE Bi Monthly September Report notes 1.7 million sqft of office take up in the first half of 2018 with recent lettings including 59,201 sqft to Google at Grand Canal Quay, and 50,000 sqft to WeWork at 5 Harcourt Road, Dublin 2. The report notes 30 office schemes are currently under construction and prime rents are €65 per sqft in Dublin City Centre.
Irish retail is resisting the decline observed in Europe currently with consumer spending increased by 2.3% and online sales increased by 4.9%. Prime retail rents in Grafton Street are currently €603 per sqft.
1.17 million sqft of industrial and logistics space has been taken up in Dublin in the first half of 2018 and construction of 118,833 sqft and 109,242 sqft due for completion in the coming months in Baldonnell and Greenogue respectively. Prime Dublin industrial rents are €9.49 per sqft, reducing to €5.99 per sqft in secondary Dublin and €5.57 per sqft provincially.
The investment market has seen an investment of €1.86 billion in the first half of 2018. €400m of development land sales completed in the first six months of 2018. 11 Hotels transacted in the first half of the year but hotels such as Druids Glen have been brought to market and refurbishment works have commenced on the first Hard Rock Hotel, formerly the Parliament Hotel. Prime Dublin vacant possession hotel yields are 6% for 5 star hotels, increasing to 6.25% for 4 star and 6.75% for 3 star.
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at email@example.com