5th November (Issue 221)
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.
OFFICE
The Sorting Office The Irish Times understands that Google has entered into talks in relation to the rental of all 202,000 sq.ft. of space at the Sorting Office, the seven-storey office block being developed in the Dublin docklands by Marlet Property Group. The office was recently purchased by Singapore based Mapletree Investments for c.€240 million. Should a deal be agreed, the accommodation at the Sorting Office would provide Google with enough room to grow its existing 8,000-strong Dublin-based workforce by up to 2,000 employees. The Irish Times, 30th October
Eastgate Retail and Business Park, Cork The O’Flynn Group has secured planning permission for further office accommodation on the last remaining commercial site at Park Place in Cork’s Eastgate Retail and Business Park. Joint agents Cushman & Wakefield and Lisney are inviting potential occupiers to express their interest in the scheme, which upon delivery will comprise 130,000 sq.ft. of grade A office space across three buildings. The Irish Times understands that while the entire development can be linked to provide a single headquarter premises, the O’Flynn Group is open to meeting tenants’ requirements for 10,000 sq.ft. and upwards. Park Place is located at the entrance to Eastgate Retail and Business Park. Developed by the O’Flynn Group over the last 18 years, the scheme extends across a total area of 120 acres of commercial and retail accommodation. The Irish Times, 30th October
Sandyford Business Park F.J. Frisby & Associates are guiding €1.2 million for a 3,400 sq.ft. (€352 psf) three storey end of terrace office building located within the Mall, Beacon Court in Sandyford Business Park. The property produces passing rent of €85k per annum and there is a 10 year lease in place with Buy4Now Ltd which commenced in April 2018 with the next rent review being in 2023. The accommodation also comes with the benefit of a decked roof terrace and 5 designated car parking spaces. F.J Frisby & Associates Sales Brochure
Dundrum Business Park Lisney is guiding €1.25 million for two fully-let and self-contained office investments in south Dublin. Units 4A and 4B Dundrum Business Park are occupied by Broadridge Ireland Limited at a passing rent of €55,250 per annum which will rise to € 104,614 per annum in July 2020. The tenant has signed a new 10-year lease commencing on July 24th, 2020, and has a break option on April 1st, 2027. Unit 4A extends to 2,591 sq.ft. and comes with the benefit of seven car-parking spaces, while Unit 4B extends to 1,346 sq.ft. and has five car-parking spaces. The Irish Times, 30th October
Athlone, Co. Westmeath Yew Grove Reit has purchased a 43,570 sq.ft office building at the IDA Ireland Business and Technology Park in Athlone for €12 million (€264 psf). The building has a weighted average unexpired lease term to break of 8.9 years and an expiry of 11.9 years and currently produces €950k per annum in rental income. The price represents a net initial yield of 7.2%. The Irish Times, 30th October
Maynooth Business Park The Irish Times understands that Fine Grain Property has purchased Block C, Maynooth Business Park in Kildare for c.€6 million, increasing the value of its portfolio to €180 million. Some 40,000 sq.ft. of the building is occupied currently by Link Asset Services, while the remaining 20,000 sq.ft. is in shell-and-core condition and it is understood that Fine Grain will invest a significant sum with a view to bringing it to the office rental market in early 2020. The Irish Times, 30th October
Cushman & Wakefield Regional Report Occupier activity in the Cork Office market was modest at 23,680 sq.ft across 6 deals in three months to the end of September 2019, however, take up in the year to date is much stronger at 261,025 sq.ft. The Galway Office market has seen just one deal taking place in Q3 2019, however, take up activity in the Galway office market totalled 102,795 sq.ft. in the nine months to the end of September 2019, across 18 deals. This is significantly higher than the take up levels witnessed in the same period in 2018. The majority of the space (80%) occupied in the year to date has been located in the suburbs.
MIXED USE
Crown Square, Galway The 13 acre Crown Square mixed use scheme in Galway has commenced construction. The development which will be ready for occupation in 2021, will include 425,000 sq.ft. of grade A office space distributed across five buildings, a 175-bed hotel, 288 residential units, along with retail, food and medical uses. Upon completion the scheme is expected to accommodate a total workforce of c.3,500 people between its offices, hotel and other facilities. The Irish Times, 30th October
HOTEL
Morissons Quay, Cork City Whitbread, the owner of Premier Inn, working with its development partners Greenleaf Group and Warren Private, has secured a deal for a new Premier Inn hotel in Cork city centre, marking its first site in Ireland outside Dublin. The new 183 bedroom hotel will be situated on Morissons Quay, just off Cork’s South Mall. After signalling its intent to expand into the Irish market last year, Whitbread has secured more than 500 Premier Inn rooms in Dublin city centre in three hotels – at South Great George’s Street, Jervis Street and Castleforbes Business Park, increasing the number of rooms to 3,500. The hotels are planned to open from early 2021 onwards. The Sunday Business Post, 3rd November
Tallaght, West Dublin An Austrian investor has bought the Tallaght Cross hotel in west Dublin, which was developed in 2008 and has remained closed for almost a decade. The investor intends to open the 186 bedroom hotel in early 2020. The most recent purchase brings the number of hotels under the investor’s TMR Hotel Collection banner to 13 in Ireland. The 186-bedroomed Tallaght Cross hotel was sold by an unnamed private investor who bought it from Nama four years ago. An associated apartment development was previously acquired from Nama by IRES Reit. The Irish Times, 30th October
INDUSTRIAL
Ballycoolin, Dublin 15 Joint letting agents Cushman & Wakefield and CBRE are quoting a rent of €220,000 per annum for a 25,000 sq.ft. (€8.79 psf) warehouse unit in Ballycoolin, Dublin 15. Number 47, Rosemount Business Park is a modern detached property located on a self-contained site of 1.26 acres. The property is situated in Ballycoolin, alongside several other established industrial parks and benefits from easy access to the M50 motorway at junction 5 (Finglas) of the N2, or alternatively junction 6 (Blanchardstown) via the Ballycoolin exit on to the M3. The park is also in close proximity to Dublin Airport and Dublin Port Tunnel. The Irish Times, 30th October
Cushman & Wakefield Regional Report The Cork industrial market witnessed a healthy level of take up in Q3 2019 with transaction activity totalling 63,507 sq.ft. across 4 deals, bringing take up in the year to date to 198,594 sq.ft. However, this is 32% below take up levels witnessed at the same point in 2018. In the Galway industrial Market, take up activity totalled 86,649 sq.ft. in Q3 2019, bringing year to date activity to 111,945 sq.ft.
RETAIL
Waterford City The Broad Street Centre, a mixed-use scheme in Waterford City has come to the market with Knight Frank guiding €5 million. The scheme comprises a three-storey over-basement level scheme providing 13,498 sq.ft. of retail space and 16,283 sq.ft. of office accommodation (€167 psf). The centre accommodates seven own-door retail units at ground floor with office and storage accommodation overhead. 65% of the scheme is occupied by high-profile domestic and international tenants with a weighted average unexpired lease term certain for the scheme’s existing tenant base of 5.45 years (NIY 10.62%). The Irish Times, 30th October
RESIDENTIAL / LAND
Kinsealy, North County Dublin Savills is guiding €8 million for a 16 acre site (€500k per acre) with potential for residential development in Kinsealy in north county Dublin. The majority of the site is zoned “Rural Village”, allowing for the delivery of up to 85 new homes (€94k per unit) and a new village square. The rural village zoning relates to c.10 acres of the site, while a further 4 acres is unzoned allowing for a significant element of open space or an opportunity for rezoning in any future development. The site is located in the centre of Kinsealy village on the Malahide Road. The Irish Times, 30th October
Rathmines, Dublin 6 Lambert Smith Hampton is guiding €1.6 million for a 0.19 acre (8,190 sq.ft.) Z4-zoned site at number 10 Wynnefield Road in Rathmines Village (€8.42m per acre). The site comprises two former coach houses currently in use as warehouses and a modern two-storey building which is laid out as a showroom and office space. The existing owners are prepared to remain in situ under a licence for a period of between 12 and 18 months, during which time the purchaser could submit a planning application for the redevelopment of the site. The Irish Times, 30th October
Rush, North Dublin A 15.63 acre residential development opportunity in Rush, north Dublin has been brought to the market through CBRE with a guide price of €1.95 million (€124.7k per acre). The site is zoned RS (residential and open space) under the Fingal Development Plan 2017-2023. It is believed that c.4.3 acres of the land will be relinquished to Fingal County Council for the provision of open space relating to the adjacent Golden Ridge residential schemes. The subject site is accessed from the Skerries Road and is located in close proximity to the recent Golden Ridge and Brookfield Park residential developments. The Irish Times, 30th October
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