8th January (Issue 178)
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.
LICENCED PREMISES / HOTELS
Dublin Pubs saw average sale prices rise by 64% in 2018 to €1.68m, almost three times what they were in 2010. Despite this, the number of pubs sold in Dublin is down 21% on 2017 figures and down 35% on 2016 figures. CBRE’s John Ryan has commented that one of the key trends in 2018 was pubs being put on the market with ‘alternative use potential’. Brady’s pub in Castleknock was offered with planning for 36 apartments, The Big Tree on Dorset Street was sold for residential and commercial development and the Black Horse Pub in Inchicore was acquired for residential development. The Irish Independent, 28th December
Bowe’s Pub, Fleet Street, Dublin Planning has been lodged to more than double the size of one of Dublin’s last Victorian pubs; Bowe’s on Fleet street along with the adjacent Times Hostel while slightly decreasing the size of Doyle’s pub. The planning application was lodged following the purchase of 6 College Street by the owner of Doyle’s Pub. Capital Estate Management Limited which controls the Times hostel has applied to develop the site between 6 and 9 College Street and 28 to 31 Fleet Street. The Irish Times, 4th January
34-37 Ormond Quay, Dublin 1 Bennett Construction has commenced the main works on the redevelopment of the former Zanzibar club in Dublin 1 into a 165-bed aparthotel development over seven stories. The €17m project is due for completion in the first half of 2020. The Sunday Business Post, 30th December
21-25 Chancery Street, Dublin 7 MB McNamara Construction has commenced construction on the new eight storey 249-bed hotel at River House, 21-25 Chancery Street. It is reported that the project will be a Hampton by Hilton once completed. The Sunday Business Post, 30th December
Hotel Transactions JLL expect Hotel transaction volume for the last 12 months to reach €750m equating to a 36% increase YoY from 2017. The largest portfolio sale involved the Tifco Hotel Group, totalling 19 hotels and development sites, which were acquired by Apollo Global Management for c. €350m. Another portfolio of Irish and UK Hilton Hotels was acquired for more than €110m by LRC Group. Other large single asset sales included the Hilton Dublin Hotel for €23m and the Ibis Dublin Red Cow for €14m. JLL note challenges expected in 2019 will be the reintroduction of the 13.5% VAT rate, Brexit and the recent forecast by STR Global of a 3% decline in Dublin RevPar. The Sunday Independent, 6th January
RESIDENTIAL / LAND
House Prices Myhome.ie predicts that house prices will rise by 5% in 2019 on account of strong demand, rising wages and assuming Brexit uncertainty is resolved. Their report details that house prices rose nationally by 6.1% in 2018 and 3% in Dublin during the same period. The report further notes that prices dipped nationally by 0.9% in the 4th quarter of 2018, leaving the median cost nationally at €266,000 or €375,000 in Dublin. The Irish Times, 2nd January
Leopardstown, Co Dublin Castdale Ltd, a subsidiary of Michael Cotter’s Park Developments, has obtained consent from An Bord Pleanála to construct 341 new homes surrounding the British Ambassador’s official residence in Leopardstown, Co Dublin. The scheme will comprise 243 apartments across six blocks, 98 houses and a childcare facility. The Irish Independent, 3rd January
Coolock, Dublin 17 Coldwell Banker are seeking €1m for a 0.42 acre site (€2.38m per acre) with development potential on the Malahide Road, Coolock, Dublin 17. The property currently comprises two detached houses but offeres potential for residential redevelopment subject to planning. The Sunday Business Post, 23rd December
Lad Lane, Dublin 2 McGill Construction have started works on a 25 apartment and enterprise scheme at 5/5A Lad Lane, Dublin 2. Main works are anticipated to commence in April 2019 when the development will be built up to basement level. The Sunday Business Post, 30th December
INDUSTRIAL
South Circular Road, Dublin 8 Development firm U+I has purchased the White Heather industrial estate on the South Circular Road in Dublin 8 for an undisclosed sum. The 2.84 acre site, located near the Liberties area of Dublin has huge development potential and was guided at €7m when brought to market by Lisney in September 2018. The site incorporates seven warehouse buildings and a 1,136 sq.ft. three-bed period house and currently produces €542k rent annually from five tenants including An Post. The Sunday Business Post, 30th December
OFFICE
9 – 12 Dawson Street, Dublin 2 Paddy McKillen Jr’s company Goldwing Real Estate Ventures Ltd has sought permission from Dublin City Council to “preserve, refurbish and extend” the former headquarters of New Ireland Assurance at 9-12 Dawson Street. Planners are currently considering proposals for its addition to the Council’s Record of Protected Structures. The proposed addition of two setback floors will increase the building’s size from 72,452 sq.ft. to 99,103 sq.ft. While the majority of the property will remain as offices, there is a change of use application for the ground floor to restaurant. The property was purchased for €38m in June 2018. The Irish Independent, 8th January
The Gateway Offices, Titantic Quarter, Belfast has been brought to market by CBRE guiding €37.7m (€283 psf). The 133,000 sq.ft. Grade A office building is fully let to Citibank. The property was completed in 2009 and comprises three connected blocks. CBRE note that this is one of the most prominent Grade A office buildings in the city with prime rents expected to achieve €24.4 psf by year end. The Sunday Business Post, 23rd December
RETAIL
JYSK Store Openings JYSK, a Danish home retail brand, has announced plans to open 15 stores across Ireland over the next two years, with the first opening in Naas in April 2019, in Drogheda and Navan in May and Portlaoise during the Summer. The company was founded in Denmark in 1979 and has over 2,700 stores in 51 countries. The Irish Independent, 4th January
OTHER
Commercial Property Sales were set to hit €3.5bn for 2018 according to Knight Frank. While the final figure was dependent on the completion of a number of deals pre year end, the overall value will be ahead of €2.5bn in 2017 but behind the record of €4.5bn recorded in both 2014 and 2016. The office market accounted for the largest share of deals done in 2018 with prime office yields in Dublin at 4%. The Irish Independent, 27th December
U2 Visitor Centre, Dublin Docklands U2 have reduced the height of their planned visitor centre in Dublin Docklands by 16.25%. The proposal submitted by Paddy McKillen Snr’s Gold Brook Ltd and U2’s MHEC Ltd is to include a reconstruction of the band’s original studio and various themed exhibit areas. They anticipate it will attract 390,000 U2 fans annually. The Irish Independent, 5th January
Commercial Land Sales reached a 10 year high in 2018 reaching almost €1.5bn. CBRE note that during 2018, 125 transactions were signed. Previously in 2006, 260 sites were transacted totalling €4bn. The office sector was the best performing market sector with take up reaching 2,368,060 sq.ft. and a third of office stock in Dublin in the first nine months of 2018 comprised of pre lettings. The Irish Independent, 21st December
Build to Rent Schemes 2018 saw a rise in build to rent schemes acquired. In May, Irish Life Investment Managers purchased 262 apartments at Park Developments’ Fernbank scheme in Churchtown, Dublin. The same month, Ires Reit purchased 128 apartments in Hampton Wood Square in Finglas for €40m. In June, Kennedy Wilson and AXA Investment Managers purchased 274 apartments of the 507 at the Grange Stillorgan and Cairn Homes secured €101m for 120 apartments and two retail units at 6 Hanover Quay. In October, European real estate investor Tristan Capital Partners forward purchased 372 apartments under development at Clongriffin in Dublin 13 for €140m. Irish Independent, 27th December
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