7th May (Issue 446)
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
Stillorgan, South Dublin Gresham House Real Estate has instructed CBRE to find a buyer for The Grange office building at Stillorgan. The property is being offered to the market at a guide price of €8m (approx. €177 per sq. ft). The subject property comprises a five-story, over-basement office extending to a gross internal area of 45,142 sq. ft, along with 82 basement car-parking spaces. The building is producing an income of €552.7k pa and is occupied by Samsung and Bayer, with the remaining accommodation available to lease through letting agents CBRE. The Irish Times, 1st May
Grangegorman, Dublin 7 Dublin City Council is set to miss out on €8m in planning contributions arising from Workday’s decision not to proceed with a new headquarters at Grangegorman. The US financial management software company has secured planning permission for the EMEA headquarters on Dublin’s northside – approx. two weeks after announcing it was not going to proceed with the ambitious project. The fate of the site now rests with its owner, the HSE, and with the Grangegorman Development Agency. The Irish Independent, 6th May
Office Supply A report by BNP Paribas Real Estate Ireland showed approx. 904,170 sq. ft of office space development was completed in Dublin from January to April this year while tenants leased just 175,550 sq. ft of purpose-built offices – the lowest amount in three years. In February it emerged three-fifths of the office space under construction in Dublin had no future tenant lined up. BNP Paribas reported the combination of strong supply and weak demand propelled office vacancy in Dublin from 13.1% in December to 14.5% in March this year and that vacancy rates will peak at 16.5% to 17% by the end of 2025. The Irish Times, 7th May
Morrison’s Island, Cork Nos. 11, 12 and 13 Morrison’s Island are up for sale with individual price tags of €1.5m, €1.55m and €1.7m, according to size. The buildings formed the original Moore’s Hotel and have been remodelled into own-door office blocks. The collective price tag is €4.75m. There is also an option to lease, with quoting rent of €26.50 per sq. ft. The Irish Examiner, 1st May
HEALTHCARE / NURSING HOMES
George’s Quay, Limerick Barrington’s hospital is being offered for sale through Bannon at a guide price of €12.5m. The original structure and one modern extension fronting on to the Shannon river extend to approx. 40,000 sq. ft while a third element of the complex, a connecting 15,000 sq. ft leasehold building, sits to the rear of the property. Having operated under the ownership of Bon Secours Health System since 2017, the hospital is being offered for sale with the benefit of vacant possession. The Irish Times, 1st May
MIXED-USE
Rush, Co Dublin Joint agents DNG Commercial and Sherry FitzGerald Cumisky Kelly are guiding €6m for a mixed-use investment portfolio on Main Street in Rush. No. 46-52 Main Street comprises a neighbourhood centre incorporating a mix of retail, grocery, residential apartments and offices. The centre, which extends to 30,764 sq. ft along with a large 40-space surface-level car park, is almost fully occupied by a strong tenant line-up. The total rental income is €526.1k pa (gross yield approx. 8.75%). The centre’s current occupiers are: Cedarglade Ltd Supervalu Rush, Bright Beginners Creche, BoyleSports and Boylan Butchers. The Irish Times, 1st May
Baggot Street, Dublin 2 No. 21 Upper Baggot Street (home of Weirs Home, Gift and DIY store) is being put up for sale with the benefit of vacant possession by TWM at a guide price of €2.5m. It comprises a four-storey over-basement mid-terrace Georgian building that extends to 6,133 sq. ft and is currently in retail use on the ground floor with offices located on the floors above. The ground floor retail space extends to 2,346 sq. ft. There is a large basement which extends to 2,206 sq. ft. The Irish Times, 1st May
RETAIL
South Main Street, Cork BAM is selling a new retail investment property let to Tesco Ireland Ltd in Cork city centre. Joint agents CBRE and Behan Irwin & Gosling are guiding €1.73m (NIY 7.5%) for it. Located on the ground floor of Lee Point, the Tesco unit extends to 5,708 sq. ft and is let on a 20-year lease from 2023 at an annual rent of €142.7k (€25 per sq. ft) with CPI-based rent reviews every five years. The Irish Independent, 2nd May
INDUSTRIAL / LOGISTICS
Tallaght, Dublin 24 Harvey is guiding prices of €1.7m and €1.5m respectively for units 1C and 1D at Broomhill Business Complex in Tallaght. The properties, which are currently interlinked via an internal opening, are being offered for sale separately or as one, and come with 48 designated car-parking spaces in total. Unit 1C is a mid-terrace unit comprising 11,833 sq. ft. Unit 1D is a corner-of-block unit comprising 10,891 sq. ft. The Irish Times, 1st May
STUDENT ACCOMMODATION
Stephen Street Upper, Dublin 8 Hines is set to buy a student accommodation building close to St Stephen’s Green. It has agreed to pay close to the asking price of €80m for the scheme, which has 298 bed spaces. The vendor, Scape, put its only Irish scheme on the market in February. It offers an income of more than €5.8m (gross yield 7.25%) after the Royal College of Surgeons Ireland agreed to rent the beds on a 51-week basis for 2024-25. The retailer Lidl is also a tenant. The Sunday Times, 5th May
RESIDENTIAL / DEVELOPMENT
Fassaroe, Co Wicklow CRH subsidiary Belgard Estates Ltd is selling a zoned landbank next to the M11 motorway on the Wicklow-Dublin border. The holding extends to 161 acres, with 90 acres of this zoned residential. The remaining 71 acres is zoned as open and active space. Market experts expect to see offers of approx. €25.5m, with the residential and open-space portions of the site commanding approx. €250k and €40k per acre respectively. The Irish Times, 1st May
Ballycullen, Dublin 16 Lagan Homes has purchased a large residential land holding in Ballycullen for more than €16m. The 25.72-acre site at Woodtown will give the Belfast-headquartered housebuilder the capacity to deliver over 500 units (approx. €32k per unit). The Irish Times, 1st May
Kells, Co Meath A 33-acre site with development potential has been brought to the market in Kells. Joint agents Savills Ireland and Hugh Morris Alliance Auctioneers are guiding €7m for the “substantial landmark site in Kells town centre”, which is zoned for residential and mixed-use development under the Meath County Development Plan 2021-2027. The Irish Times, 1st May
Kilcock, Co Kildare Avison Young is seeking offers of more than €3.25m for a residential investment opportunity on Church Street in Kilcock. The property comprises a range of residential buildings including a former 39-bed nursing home, four interconnecting townhouses (11 beds) and two semidetached houses (six beds) on a 2.64-acre site. The Irish Times, 1st May
Dundrum, Dublin 14 The LDA has said it will continue to fight a legal challenge to planning permission for 852 homes in Dundrum, despite An Bord Pleanála conceding the case. The LDA said it had been engaging with the council regarding the preparation of a revised planning application for the site, “with the intention of re-submitting in Q3, 2024”. The Business Post, 2nd May
Glenveagh sold more than 300 homes over the past two months, with the developer now expected to deliver up to 1,440 units for homeowners in 2024. The increase in its order book now means Glenveagh has now forecast it will deliver more than 2,700 homes this year. The firm has been granted permission for more than 1,000 units so far in 2024 and plans to apply for permission to build more than 2,000 units this year. The Business Post, 2nd May
Banking and Payments Federation Ireland (BPFI) Report The average mortgage on a second-hand home has now reached its highest level in almost two decades, new data from the BPFI has shown. First-time buyers who purchased a second-hand property drew down on average €274.5k between January and March of this year, while the rate recorded for mover purchasers was €327k. The Business Post, 3rd May
Delgany, Co Wicklow An Bord Pleanála has refused planning permission to a Johnny Ronan firm to construct 141 residential units in Delgany. In two separate decisions, the planning board issued refusals to J&R Stylebawn Ltd for the mix of apartments and houses on the grounds of Stylebawn House. One application consisted of 20 one-bed apartments and 20 two-bed apartments in a five-storey block. The second application comprised 99 residential units composed of eight one-bed apartments, 18 two-bed apartments, 14 three-bed houses and 59 four-bed houses. The Irish Times, 2nd May
Limerick Planning has been approved for the construction of approx. 167 new apartments in five buildings in Limerick. Tribeca Asset Management Limited has been granted permission by Limerick City & County Council for a large-scale residential development at Ardhu House on Ennis Road, Roses Avenue and North Circular Road in Limerick. The plan includes the development of 167 apartments in five new residential buildings, ranging from three to five storeys. The Irish Examiner, 1st May
Cashel, Tipperary Plans for more than 100 new homes in Cashel have been approved. The town is to see 101 dwellings built after a large-scale residential development scheme was greenlit by local planners. Dulla Developments Ltd has been granted permission for the development at Hughes Lot East, Cashel. The Irish Examiner, 1st May
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