8th December (Issue 276)
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.
MIXED USE
18/19 College Green, Dublin 2 Having been acquired by the Mac Group for €4.65m in 2018, the property has returned to the market at a guide price of €5.2m with TWM. The price now being sought reflects a capital value of €515 per sq. ft. based on its net internal area of 10,097sq ft.
Tesco Ireland is the tenant on the ground floor and basement on a 25-year lease from 2013 with tenant break options in 2023 and 2028. The passing rent is €62,426 per annum with five yearly CPI linked rent reviews. The rest of the building is vacant, and a feasibility study done by RKD Architects suggests that the five upper floors could be extended, and a floor could be added, all subject to planning permission. The Irish Times 2nd December
RETAIL
Aldi Store, Rathnew, County Wicklow Ardale Property Group has sold the Aldi store in Rathnew for c€4.82m. The building, on a 0.81-acre site, is 17,308 sq. ft. and has 75 surface car parking spaces. The Aldi lease is 25-year FRI with a tenant break option in year 15. The passing rent is approximately €348,000 and is subject to five yearly CPI linked rent reviews. The purchase price represents a net initial yield of 6.56% and a capital value of €279 per sq. ft. Ardale has planning permission for 40 residential units on the next phase of this scheme and planning for 255 residential units on an adjacent site. Overall, more than 700 residential units will be built on the company’s landholding in the area. The Irish Times, 2nd December
Blanchardstown Shopping Centre The Sunday Times reports that Blackstone Real Estate is facing losses of €211m as Goldman Sachs, the largest holder of the mezzanine debt, takes control of Blanche Holdco SARL, the owner of the shopping centre. The senior lenders are AIB, Morgan Stanley and AIG. The centre was purchased by Blackstone for in excess of €1bn at an LTV of 78%. Blackstone has declined to inject additional capital into Blanche to cure LTV covenants breaches and has ‘handed back the keys’. The Sunday Times, 6th December
OFFICE
76 Sir John Rogerson’s Quay Rabobank has agreed to let 23,500 sq. ft. on the sixth, seventh and eighth floors of the building at a rent of €57 per sq. ft. on a ten-year lease with an option to renew for a further ten years. The entire property, developed by Targeted Investment Opportunities, an umbrella fund involving NAMA, Oaktree Capital and Bennett Construction, consists of two buildings and comprises 75,498 sq. ft. The Irish Times 2nd December
RESIDENTIAL / LAND
Residential Mortgage Approvals Mortgage approvals for house purchases rose to a record high in October, as the Irish housing market continued its impressive rebound from the lockdown period with growth of 20% yoy (+27% yoy in September), with the number of First Time Buyer approvals up 31% yoy in October. Approvals for movers increased by a more subdued 4% yoy in October, while Buy-to-Let approvals continue to be anaemic (-23% yoy). In all cases, the average loan size grew, leading to a 26% yoy increase in the value of approvals for houses in October.
The Central Bank noted last week that the banks initially reacted to the COVID-19 shock by restricting access to exemptions from the loan-to-value and loan-to-income limits. Given the more resilient performance of the market in recent months, it is likely that banks have loosened up on this aspect, thus contributing to the rebound in September and October. Goodbody Stockbrokers, 7th December
Buoyant Year for €1m Plus Houses The Irish Times notes that agents are reporting that there has been a surge in demand for €1m plus houses with demand coming from a mixture of local and expats returning from the UK and to some extent the USA. While the top five Dublin sales this year range between €3.5m and €6.2m, those sales compare somewhat conservatively with recent years, when the range has been closer to between €5m and €10m. The new trend is the volume of €1m-plus sales going through and completing in record time, at or just above the asking price. The Irish Times, 3rd December
Milltown, Dublin 14 The Irish Times reports that Winterbrook has purchased the 3.95-acre Mount St. Mary site in Milltown from the Marist Fathers for c€20m. Funding for the acquisition and development of the site is being provided by Winterbrook’s shareholder, BGF (€4m), and Activate Capital (€35m). Winterbrook has appointed Reddy Architecture + Urbanism to develop plans for a high density apartment scheme with supporting facilities. The Irish Times, 2nd December
Ashtown, Dublin 15 Ruirside Developments has been granted a strategic planning application by An Bord Pleanála for a €159m apartment scheme. The development, which is located on Rathborne Avenue, Ashtown, Dublin 15, will include 725 dwellings, 107 of which will be studio units, 226 will be one-bed units, 376 two-bedroom units and 16 three-bedroom units. The development will also include a licensed discount food store spanning about 2,549 square metres gross, a café/restaurant unit of about 199 square metres, and a creche facility of some 724 square metres. The Business Post, 6th December
Rathcoole, County Dublin. Romeville Developments has been granted a strategic planning application by An Bord Pleanála for a €44.8m housing scheme on a site located to the east of Stoney Hill Road in Rathcoole, Co Dublin. The works include the demolition of five existing residential properties and associated outbuildings and will consist of the construction of a residential development of 204 units, comprising 151 houses (including duplexes) and 53 apartments. The Business Post, 6th December
Milltown, Dublin 14 Rohan Holdings, known for developing office and industrial space, looks set to enter the PRS market via the proposed acquisition of a prime residential site, the former Murphy & Gunn BMW site in Milltown plus the adjoining school building owned by the Jesuit Order. The reported price is approximately €7m which is 8% above the €6.5m quoted by joint agents Knight Frank and Avison Young. The site has 43 metres of road frontage on Milltown Road and is zoned Z1 Residential under the Dublin City Development Plan 2016-2022. According to a feasibility study prepared by Reddy Architecture, the site can accommodate 67 apartments over a basement carpark, subject to planning permission. The Irish Times, 2nd December
Ashbourne, Co. Meath A 241 acre farm in Ashbourne , Co. Meath sold for €7m, nearly €30,000 per acre, through Coonan Property. Located to the south of the town, it straddles the M2 Slane to Dublin Road. While it is farmland, it is considered to have good prospects of being rezoned for residential development with as much as 2km of its borders running alongside existing residential developments. Adjacent lands have also been included in a local authority draft development plan which will facilitate further residential development. Last December, investors bought a nearby farm with long-term development prospects near Ashbourne, for around double agricultural land prices. The Irish Independent, 3rd December
Navan, County Meath Smith Harrington is offering 32.42 acres of development land to the market in Navan, Co. Meath. Located in close proximity to the M3 motorway and the N2, and just 2km from Johnstown and 5km from Navan town centre. The site is zoned E1/E2; Strategic Employment Zone (High Technology Uses & General Enterprise and Employment). Included in the 32.42 acre sale is five acres of good-quality agricultural land and a small section of approximately 0.42 acres zoned F1 Open Space. The land is being offered in one or more lots with guide prices available on request. The Irish Times, 2nd December
Castletroy, County Limerick Lioncor Developments has been granted planning permission for a €44m residential development in Newcastle, Castletroy, Co Limerick. The Strategic Housing Development allows for the construction of 200 residential units comprising 85 houses, 34 duplex units and 81 apartments. The Business Post, 6th December
INDUSTRIAL
Unit 21 Fonthill Business Park. Clondalkin, Dublin 22 The Irish Times reports that industrial specialist, Harvey, is offering the property by way of sublet or lease assignment as the current tenant, Healthcare 21, is relocating to another property. The property consists of 86,252 sq. ft of warehouse and office space. The existing lease expires in in June 2023 and the current passing rent is €650,000 per annum (€7.54 per sq. ft.) with fixed uplifts to €675,000 and €700,000 in June 2021 and June 2022 respectively. The Irish Times, 2nd December
OTHER
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