8th October (Issue 217)
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
Cedar Portfolio The sale by US property giant Starwood of a portfolio of six prime Dublin office assets with an indicative value of €535 million has attracted offers from six parties in the first round of bidding. The Irish Times understands that Goldman Sachs, Apollo, Blackstone, Tristan Capital, Avestus and Westridge Real Estate have submitted bids for the Cedar portfolio. The portfolio comprises of a number of landmark office properties, including the Watermarque building, 75 St Stephen’s Green, Iveagh Court, Marsh House, 29-31 Adelaide Road, and 1 and 2 Parkgate Street. The properties comprise 600,737sq ft of office accommodation and 45 residential units. The Irish Times, 2nd October
The Reflector Building German global real estate investment group Deka Immobilien has acquired the Reflector office building on Hanover Quay in Dublin’s south docklands for around €155 million. This is Deka’s first purchase in the office market, however, the deal brings its overall investment in Dublin over the past three years to €554 million. Outside of its acquisition of the Reflector, Deka is currently in the process of acquiring the five-star Marker Hotel for c.€130 million. In 2017, the company paid €87 million for the four-star Gibson Hotel, while in 2016, it paid Blackstone €182 million to secure ownership of the former Burlington Hotel in Dublin 4. The Irish Times, 2nd October
Allianz House, Merrion Road Agent TWM is guiding €50 million for the eight-storey, 86,000 sq.ft. (€581 psf) office building, Allianz House on Merrion Road (NIY 5.4%). The property is fully let to Allianz on a 31-year full repairing and insuring (FRI) lease from January 2008 with a tenant break option in December 2033. The annual rent is €2.9million with five-yearly rent reviews from 2019 in line with the consumer price index. The Irish Times, 2nd October
One Kilmainham Square Knight Frank has brought One Kilmainham Square to the market with a guide price of €32 million. The property is located within close proximity to both Heuston Station and Heuston South Quarter (HSQ). The complex comprises a five-storey Grade A office block, and is being offered for sale with the benefit of long-term leases to several leading international occupiers, including Heineken, Parexel Pharma and Klas Telecom. There is also 4,230 sq.ft of vacant office space and the current annual rental income is €2.07 million. The current NIY is 6% with potential to increase this to 7.2% through the letting of the vacant office suite and the completion of a rent review on the first, second and and third floors in early 2020. The Irish Times, 2nd October
RETAIL
4 St Stephen’s Green JLL is guiding €4.25 million for No 4 St Stephen’s Green, a 3,202 sq.ft. four-storey, over-basement building. The ground floor and basement are currently in retail use, and trading as Insomnia Coffee Company. The three upper levels are in office use throughout, and have the benefit of separate access directly from St Stephen’s Green. The subject property is held under a single lease to Insomnia Ltd for 35 years from September 29th, 1988. The 2018 rent review was recently agreed at an increased level of €190,000 per annum. The Irish Times, 2nd October
Millennium Park, Naas, Co. Kildare A newly constructed petrol station in Co Kildare, let to Applegreen, is being offered for sale with a guide price of over €4.75 million through CBRE (NIY 6%). The Millennium Park service station extends to about 4,230 sq.ft. on a 1.41 acre site. Let to Petrogas Ltd trading as Applegreen, its lease extends to 25 years subject to inflation-linked rent reviews. The annual rent for the first five years is fixed at €310,000 per annum and increases to €360,000 per annum from year six to ten. There is a tenant break option at years 15 and 20. The Sunday Business Post, 6th October
Kilcolgan, Co. Galway A neighbourhood centre located in Kilcolgan, Co. Galway has come to the market with a guide price of €1.95 million (NIY 9.8%) through TWM. The centre which extends to more than 30,000 sq.ft, is anchored by a Circle K petrol station, together with an additional 14 retail units laid out over three blocks on a site of 3.0 acres. The total annual rental income is €208,960 per annum. Kilcolgan village is situated 19km southeast of Galway city centre. The Irish Times, 2nd October
OTHER / MIXED-USE
Dublin Road, Celbridge The Rye River Brewing Company has offered their premises to the market by way of sale and leaseback at a guide price of €3.3 million through Colliers International. The property is located on the Dublin Road in Celbridge and is fully let to two separate tenants. Rye River operates its brewery from the ground-floor offices and warehouse by way of a nine-year full repairing and insuring (FRI) lease from October 2019, at a rent of €176,000 per annum. VWS (Ireland) trading as Veolia Water Technologies occupies the offices on the first floor and a small section of the warehouse by way of a 10-year lease from January 2018, at a rent of € 84,000 per annum. The property is located on a 4.9 acre site and comprises a 61,000 sq.ft. (€54 psf) detached light-industrial building with two-storey office accommodation to the front and a substantial warehouse to the rear where the brewery is located. The Irish Times, 2nd October
Grange Castle Business Park US real estate investment trust CyrusOne has paid €10.5m for two sites at the Grange Castle Business Park for a massive data centre being built by the Dallas company. The largest of the sites was bought from South Dublin County Council, which owns the park, for almost €7m. CyrusOne is constructing the €400m-plus co-location data centre which will extend to over 360,000 sq.ft. in three buildings. Newly filed accounts show that CyrusOne paid just under €7m for the “purchase right to use land” at Grange Castle in 2018, and also completed the acquisition of an adjacent parcel of land, which included three residential properties, for €3.5m. The Irish Independent, 4th October
Strandhill, Co Sligo Joint agents DNG Flanagan Ford and Robert Colleran Property Consultants have brought a hostel and surf school with a one-acre development site in the seaside village of Strandhill, Co Sligo to the market with a €1.5m guide price. The development site, at the rear of the existing business, is zoned for mixed use with approval for a three-storey structure, indicating its potential for a hotel. Subject to planning permission, the land has potential to accommodate a 100-bedroom aparthotel or hotel with room for a large reception and co-working or leisure space on the ground floor. The current lodge and hostel has rooms for 45 people and camping facilities for 48 people. The Irish Independent, 3rd October
Old Dublin Road, Stillorgan TWM is guiding a price of €3.915 million for the Slievemore Clinic in Stillorgan, Dublin. The subject property is a leading private general practice and is located on the Old Dublin Road in Stillorgan within a short distance of Stillorgan Shopping Centre and close to both Kennedy Wilson’s proposed 232-unit scheme of apartments on the Stillorgan Leisureplex site and the 548-student bed spaces Cairn Homes is delivering on the adjacent site. The entire clinic spans 6,843 sq.ft. and the total annual rent is currently €318,548 per annum. There is one vacant 596 sq.ft medical suite which is available to let at €40,000 per annum. The Irish Times, 2nd October
INDUSTRIAL
Sandyford Business District No 77 Furze Road, a 24,400 sq.ft. warehouse (14,550 sq.ft.) and office (9,850 sq.ft.) building has come to the market through HWBC at a guide price of €2.5 million (€102 psf). The building also comes with 45 car spaces and sits on a site of 1.2 acres and comes with the benefit of vacant possession. The building requires modernisation for an occupier or could be developed for an alternative use such as car showrooms, subject to planning permission. The Irish Times, 2nd October
Sandyford Business District No 90-91 Furze Road, a 22,750 sq.ft. warehouse has come to the market with a guide price of €2.5 million. The building is fully occupied by the Department of Agriculture on a 35-year full repairing and insuring (FRI) lease from March 1986. The current passing rent is €147,270 per annum (€6.49 psf). The Irish Times, 2nd October
Baldoyle Industrial Estate Unit 67 Grange Close, a detached warehouse and office facility extending to 26,130 sq.ft. has come to the market through Harvey with a guide price of €2.3 million (€88 psf). A self-contained unit within the building comprising 4,894 sq.ft. is let to Liam O’Loughlin T/A New Ireland Motors since 2002, and the tenant is currently over-holding on an existing lease. The current rent of €31,200 is likely to rise at lease renewal. A total of 4,219 sq.ft. of two-storey offices and staff facilities are located at the front of the property. The Industrial Estate is situated 10km northeast of Dublin city centre. The extension to the Malahide Road (N32) provides rapid access to the M50 and M1 motorways, Dublin Airport, Dublin Port Tunnel and all main arterial routes. The Irish Times, 2nd October
RESIDENTIAL / LAND
61 Mountjoy Street A 0.66 acre redevelopment site has come to the market through GVA Donal O’Buachalla at a guide price of €5 million. A feasibility study prepared in advance of the sale by Ryan and Lamb Architects suggests three development options for the site, namely the delivery of 50 private rented sector (PRS) apartments, 124 student bed spaces, or 119 co-living residential units. The property currently includes a range of buildings ranging from single to part three-storey over-basement with a total floor area of 37,135 sq.ft. together with an undeveloped site at the rear offering significant redevelopment potential. A number of the buildings included in the sale are protected structures. The property is positioned at the junction of Mountjoy Street and Wellington Street Upper and Wellington Place. The Irish Times, 2nd October
Carrickmines, South Dublin Planning permission has been granted for a large new retail and residential development in south Dublin. The €75 million project will form part of the existing retail park and office development at The Park in Carrickmines. IPUT has plans for a neighbourhood shopping centre including two supermarkets, retail warehouses, restaurant, café, seven-screen cinema, crèche, offices, car showroom, medical centre and indoor skydiving facility as well as 130 apartments on a 10.5 hectare site close to the M50. The overall development will extend to more than 904,100 sq.ft. in four blocks extending in height from two to six storeys. An Bord Pleanála has set some onerous conditions which could add to the cost of the project. These include a condition that the Ballyogan Link Road would be operational prior to the occupation of any part of the new development. IPUT, in its appeal had claimed that this condition was unreasonable as it would impact on the funding and viability of the scheme and would take nine months to complete and delay the project. The Irish Independent, 3rd October
Stillorgan Road, Foxrock Kingscroft Developments, a subsidiary of Abbey has won a planning appeal to build 28 apartments off the Stillorgan Road in Foxrock after it had been rejected three times. The approval ends a 15-year effort by various owners to build on the site, currently occupied by two derelict houses, Funchal and Garryknock. The development will have six one-bedroom apartments, 14 two-bedroom apartments and eight three-bedroom apartments, and the two existing two-storey houses will be demolished to make way for it. The Irish Times, 5th October
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