9th January (Issue 128)
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
Blanchardstown Office Development: Irish developer Channor has recently commenced construction of a 36,000 sq. ft. Grade A office development in Blanchardstown Corporate Park in Dublin 15. The development of Plaza 211, which is scheduled for completion in August 2018, highlights the increase in demand for office space in the area in recent years, largely due to the opening of the N2-N3 link road through the park. Lisney are the sole letting agent for Blanchardstown Corporate Park and have confirmed that there is significant interest from a number of potential occupiers. The Sunday Business Post, 17th December
HOTEL
Hotel Market Review: New figures from Savills Ireland have shown that more than €3bn worth of hotels have changed hands in Ireland since 2012. Savills note that 2017 was the quietest of the last three years with c. €600m of transactions completed, compared to c. €850m in 2016 and c. €1bn in 2015. Among the most notable sales in 2017 were The Gibson Hotel in Dublin which was acquired by Dekabank for in excess of €87m, The Carton House Hotel which was purchased by John Mullen for €57m and The Galmont in Galway which was purchased by the MHL Hotel Group for c. €50m. 2018 is expected to be a busy year for hotel openings in Dublin with the Iveagh Hotel on Harcourt Street, the Aloft Hotel in the Liberties, the Clayton Hotel at Charlemont, The Maldron Hotel on Kevin Street and The Devlin in Ranelagh all expected to open. The Irish Independent, 1st January
Dublin Airport Hotel: A revised planning application for a 421-bedroom ten-storey hotel has been submitted for a site close to Dublin Airport, near the M50 and M1 junction. Carra Shore (Dublin) previously secured planning permission from Fingal County Council for a 427-bedroom hotel in April last year, however they could not secure permission from An Bord Pleanála, following a number of appeals from local residents. The company behind the application is owned by Jalaluddin Kajani and family who own boutique hotels in London and Dublin. The Irish Independent, 22nd December
Cork Hotel Development: Plans for a 120,000 sq. ft. office block and landmark 193-bedroom hotel on a former Revenue Commissioner’s premises on Sullivan’s Quay in Cork have been appealed to An Bord Pleanála. Planning permission was originally granted to BAM for the development by Cork City Council in November. BAM previously suggested that it had secured a premium hotel brand to operate the new hotel, which will feature a 12-storey cylindrical tower and will be one of Cork’s biggest hotels if constructed. It is one of a number of hotel projects underway in Cork, which currently has just under 3,000 available rooms in the city. The Irish Independent, 6th January
RESIDENTIAL / LAND
Daft.ie And MyHome.ie / Davy Housing Reports: The latest reports from Daft.ie and MyHome.ie / Davy highlight the continued recovery in the Irish housing market. The Daft.ie report suggests that residential property prices rose by 9.2% in 2017, while the MyHome.ie / Davy report indicates that prices rose by 10.2% in the same period. According to Daft.ie, property prices have risen by an average of 47% since the bottom of the market in 2013, although areas such as Sandycove in south Dublin have seen a more pronounced recovery, with prices in this area now less than 10% below their 2007 peak. The MyHome.ie / Davy report also highlights the lack of supply in the market at present, with a record low of 18,900 properties listed for sale at the end of 2017, equivalent to less than 1% of the national housing stock. The Irish Times, 2nd January
Goodbody Housebuilding Tracker: The latest figures from Goodbody Stockbrokers show that 8,659 new homes were built in the first 11 months of 2017, a 77% increase YoY. The figures from Goodbody, which are based off Building Energy Rating (BER) certificates, are well below the Irish Government’s figure of 17,309 for the period, which is based off electricity connections. Goodbody also report that 1,191 units were completed in November 2017 alone, a 53% increase on the month of November 2016. The Irish Times, 9th January
Residential Sales 2017: An examination of data in the national Property Price Register by The Sunday Business Post has shown that nationwide residential sales exceeded €12.4bn in 2017, an increase of almost €1bn on 2016. The final figure for 2017 could increase further once late filings are added. Dublin accounted for more than 50% of the total, with c. €6.4bn of properties transacted. The highest amount paid for a property in 2017 was €9.5m for Gorse Hill on Vico Road in Killiney, Co. Dublin. There were 617 properties sold for above €1m in Dublin. The Sunday Business Post, 24th December
NAMA Annual Review: In its recently published annual review, NAMA stated that it has the capacity to fund the construction of 20,000 new homes by the end of 2020. In addition to having already funded the construction of 7,200 houses and apartments between 2014 and 2017, work has commenced on a further 2,500 units and NAMA-funded developers have a pipeline of planning permissions for 8,500 new units. The report also shows that to date NAMA has invested €350m in refurbishing, finishing and buying properties to be used for social housing. The Irish Times, 4th January
Cairn Homes Trading Update: Cairn Homes expect the demand for new residential property will continue to significantly outweigh supply over the next two years. In a trading update, Cairn reported a significant rise in full-year revenues to €149m in 2017, up from €41m in 2016 and the company is starting 2018 with a strong forward sales pipeline of €134m (net sales value). Cairn currently has three sites in prime Dublin city locations under development and expects further apartment commencements in 2018. The company also has a pipeline of 1,700 student accommodation units across five developments. The Irish Times, 5th January
Belfast Build-To-Rent: A 19-storey apartment building in the Cathedral Quarter could become Belfast’s first build-to-rent residential development following the submission of a planning application by joint venture partners Lacuna and Watkin Jones. If planning permission is granted, the £15m development would see the delivery of 105 one and two-bedroom apartments on a site which currently accommodates a derelict building and car park. The Irish Independent, 2nd January
Sandymount Application: Thomas McMullan has sought planning permission to redevelop a Maxol service station site in Sandymount, south Dublin. The application proposes to replace the existing service station and garage and construct a five-storey, over-basement, 130,000 sq. ft. apartment building. The development will facilitate 90 residential units, comprising 23 one-beds, 53 two-beds and 14 three-beds, with underground parking for 90 vehicles. NAMA Wine Lake, 7th January
OTHER
Northern Ireland (NI) 2017 Review: New research from Savills indicates that property investment in NI was c. £325m in 2017, an increase of 25% YoY. The report indicates that demand for city centre-based investments returned last year, with retail assets accounting for 67% of turnover. While the investment figures in the NI market for 2017 were positive, it should be noted that one transaction, the sale of Castlecourt Shopping Centre for £123m skewed the figures, as it accounted for nearly 40% of the total sales amount. There were total sales of £50.3m in the office sector in 2017, down from £75m in 2016, largely due to a lack of supply. Despite this decrease, the outlook for the office sector is positive for 2018, with an increased supply of new office developments expected. RTÉ, 2nd January 2018
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