8th September (Issue 11)
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
Dublin Airport Central: The Dublin Airport Authority is formulating a €1bn plan to construct a 3.2 million sq. ft. airport city in north Dublin, according to documents seen by the Sunday Business Post. The project, which will be approximately three times the size of Dundrum Town Centre, is to primarily consist of offices but will also contain hotels, cafes and recreational facilities. In March of this year the DAA purchased the former Aer Lingus headquarters in the airport for c. €10m, representing the first step towards the development of the airport city. It is believed that the DAA already have appointed a team to work on four 100,000 sq. ft. buildings as part of the project. The Sunday Business Post, 6th September
One Spencer Dock: NAMA is expected to bring One Spencer Dock to the market in the immediate future, with an anticipated guide price in excess of €100m. The eight storey property contains five blocks, with 350,000 sq. ft. of lettable space and 143 car spaces. The primary tenant is PWC, who occupy 220,000 sq. ft. of space. Other tenants include ABN Amro and Ecclesiastical Insurance. The property was constructed in 2007 by a consortium led by Treasury Holdings. Hines act as asset manager for the property. The Sunday Times, 6th September
CBRE Report: CBRE’s latest research report estimates that there will be €400m of retail and €400m of office investment opportunities on the market over the next few months, following a summer which saw no let-up in activity in the investment market. The report also assesses the current shortage of prime office opportunities in Dublin. CBRE believe that it will be 2017 before there is a substantial improvement in supply, with rents expected to continue to rise in the meantime. CBRE Bi-Monthly Research Report, September 2015
Allianz Participation: Allianz have made their first investment in the Irish market, by taking a €150m participation in a €300m Morgan Stanley loan which was provided to Starwood Capital earlier this year. Starwood used the loan to purchase 11 office buildings and one residential property in Dublin from Lone Star for €350m, with the assets now securing the facility. Properties in the portfolio include Iveagh Court, the Watermarque Building, Hogan Place and Marsh House. Real Estate Capital News, 3rd September
Nassau House: The European real estate investment fund Meyer Bergman, together with Navan developer Eamonn Duignan, is believed to have acquired Nassau House in Dublin 2 for c. €90m. The c. 100,000 sq. ft. property is a five storey office and retail block with an annual rent roll of c. €3.5m. The previous owners Aviva had the property sold through JLL on an off-market basis. The new owners are expected to be viewing the property as a redevelopment opportunity and a planning application to extend the building to eight stories and up to 200,000 sq. ft. should be forthcoming. The Irish Times, 2nd September
Heron House: JLL are guiding c. €4m for Heron House, a partially let office block in Sandyford, Dublin 18. The 19,215 sq. ft. property is currently occupied by the Grafton Group and Computershare, achieving annual rental income of €231,756. Both these leases run until the end of 2018. There are also 50 car spaces with the property, with the rented car spaces generating annual rental income of €900 each. The vacant first floor of the property is available to rent for €20 per sq. ft., having recently been refurbished. The Irish Times, 2nd September
Sandyford Development: Ardstone Capital have sought planning permission to develop 450,000 sq. ft. of office space in Sandyford, Dublin 18. The project, known as Eden Plaza, will be developed on a c. 5.06 acre site which Ardstone bought from NAMA for €6.5m. The site previously sold for in excess of €70m in October 2007 to Reg Tuthill and Derek O’Leary. The project proposes the development of a number of high specification office buildings, ranging from 35,000 sq. ft. to 150,000 sq. ft. in size. The Irish Times, 2nd September
HOTEL
Stauntons on the Green: JLL are guiding in excess of €12m for the boutique townhouse Stauntons on the Green in Dublin 2. The four star, 51 bed townhouse has an average room rate of €90 and is owned by Jim Staunton, however it is being sold with vacant possession. The property, which comprises three Georgian houses, has a total floor area in excess of 20,000 sq. ft. after an extension at the rear of the asset was installed in recent years. It is believed that both hotel and property investors will be interested in the property as investors may seek to convert the Georgian properties into either residential or office space. The Irish Times, 2nd September
Hotel Rates: The average room rate for hotels in Ireland rose to €116 at the end of June, marking the fifth year in a row in which hotel rates have increased. The latest figures from Hotels.com show that rates in Ireland rose by 15% in H1 2015, whereas rates globally remained relatively flat over the period. Dublin has the highest room rates with an average room rate of €128. Average room rates in Belfast were €123 at the end of H1 2015, an increase of 25% when compared to H1 2014. The Irish Independent, 2nd September
Dalata Capital Raise: The Sunday Independent understands that Dalata are to raise €150m from the issuance of new shares. The funds are to be used to increase their portfolio, with a number of hotel assets expected to be brought to market in the coming months as NAMA and Ulster Bank continue their disposal of loan portfolios. Dalata has raised €500m since floating on the ISE last year, and its share price has risen by 40% since listing. Dalata were recently outbid by developer Joe O’Reilly who bid €170m for Project Trinity. The Sunday Independent, 6th September
RESIDENTIAL
Terenure Apartments: DNG are guiding €11.75m for 40 apartments spread across two blocks in Terenure, Dublin 6. The apartments, which were built in 2008, are fully let and generating annual rental income of €635k. However due to the shortage of rental accommodation in south Dublin and the prime location of the apartments, DNG believe the annual rental income could rise to €750k. The apartments are being sold on the instruction of the receiver, Jim Hamilton of BDO. The Irish Times, 2nd September
Beulah, Dalkey: Sherry Fitzgerald are advertising the sale of Beulah, a c. 5,010 sq. ft. residential property sitting on c. 1.7 acres on Harbour Road, Dalkey. Valued at €6.5m, the property is of Victorian design, having been built in 1844. The six bedroom property also comes with access to the nearby private harbour, Rocklands. The current owners of the property are the O’Sullivan family (former owners of Irish Express Cargo), who bought the property in the late in 1980s from Ted Rogers of Golden Discs. The Irish Times, 3rd September
Fairbrook Development: Gannon Homes have launched their latest tranche of homes in Swords, Co. Dublin, where they hope to develop up to 1,000 homes. Fairbrook is an 85 home scheme of three and four bed properties and follows on from last year’s successful 100 home scheme under Miller’s Glen. Prices start at €264,950 for a three bed townhouse of 1,216 sq. ft. while the detached houses of 1,582 sq. ft. range from €404,950 to €439,950. The Miller’s Glen scheme was launched in September 2014 and all homes had been sold by November. The Irish Times, 3rd September
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