North Park Business Park, Dublin 11 Iroko Zen, a French real estate investment trust, has acquired J5 Plaza in Dublin 11 from Fine Grain Property (FGP) in an off-market transaction. The building in North Park Business Park was sold by FGP for approx. €18m. Comprising 62,211 sq. ft of floorspace and 140 car park spaces, the property was bought by FGP in 2019 and was let to a number of tenants including the HSE. Since its purchase, FGP has undertaken a number of asset management initiatives on the property and has let it entirely to the HSE under a new 15-year lease beginning May 2023. The agreement incorporates five-yearly rent reviews in accordance with CPI and has no break options. React News, 5th October
South Frederick Street, Dublin 2 Just over five years on from the €38m sale of its former Dawson Street headquarters, New Ireland Assurance’s offices on nearby South Frederick Street are being offered to the market. No. 5-9 South Frederick Street, to the rear of the landmark premises acquired in 2018 by Oakmount and Core Capital, is being offered for sale by CBRE at a guide price of €12m. The existing structure consists of five storeys of office space over a basement car park and extends to 38,427 sq. ft. The building has a net area of 22,970 sq. ft. The Irish Times, 4th October
Parkmore East Business and Technology Park, Galway Block 4 Parkmore East at Parkmore East Business and Technology Park in Galway is guiding at a price of €5.5m through Avison Young (NIY 7.77%). Built in 2016, Block 4 comprises a detached three-storey office building of 27,663 sq. ft and comes for sale fully let at a current rent of €470k pa to Business Objects Software Limited, trading as SAP Solutions. The Irish Times, 4th October
O’Connell Street, Dublin 1 Joint sales agents Robert Colleran and Alan Ferris are guiding a combined price of €4.2m for the “Cavenidish Collection”, a portfolio of two Georgian office buildings overlooking the Parnell monument at the top of O’Connell Street in Dublin City Centre. Nos. 1-2 Cavendish Row briefly comprise a four-storey over-basement building facing towards O’Connell Street from its junction with Parnell Street while 5 Cavendish Row comprises a two-bay building facing the entrance to the Gate Theatre. Extending to 11,485 sq. ft and 5,748 sq. ft, the buildings are guiding at prices of €2.7m and €1.5m respectively. The properties briefly comprise a mix of open-plan and individual offices, boardrooms, meeting rooms, breakout areas, kitchen/canteens. The Irish Times, 4th October
Lower Leeson Street, Dublin 2 Colliers is asking €1.9m for 40 Lower Leeson Street, Dublin 2, a vacant Georgian office property which had been guiding at €2.25m. 40 Lower Leeson Street is a vacant four-storey over basement Georgian building recently refurbished to high traditional standards throughout. It provides a mix of impressive reception rooms that can comfortably accommodate open plan configurations, together with smaller rooms, suitable for cellular offices. Extending to 4,295 sq. ft, it also benefits from independent access from the street to the lower ground floor self-contained area. The Irish Independent, 5th October
Ballsbridge, Dublin 4 Iput has secured Ireland’s recently established media commission, Coimisiún na Meán, as a tenant for its offices at One Shelbourne Buildings in Ballsbridge, Dublin 4. The commission, which will be responsible for regulating broadcasters and online media, has agreed to occupy 21,000 sq. ft of space at the building on a five-year lease term at a rent of approx. €50 per sq. ft. The commission’s new self-contained headquarters had been occupied previously and for many years by IBM’s consulting division. IBM relocated recently to WeWork’s serviced office space at Charlemont Exchange. The Irish Times, 4th October
Stripe, the payments company, is looking at more than doubling its footprint in Dublin by either leasing or buying a new office building. According to market sources, the company is in active talks with real estate agents as it recommences hiring after a round of redundancies it announced last year. Stripe’s current European headquarters is the One Building, where it has held a lease for the 45,000 sq. ft property since 2015. It was previously reported that the company paused plans to acquire approx. 400,000 sq. ft of new office space last year due to the weakening global economic environment and changes to working patterns arising from the Covid pandemic. The company has revised its plans and is now sourcing approx. 100,000 sq. ft of property in Dublin. The Business Post, 7th October
South Docklands, Cork Lisney Commercial Real Estate has let an office on its books within Navigation Square 2 in Cork’s South Docklands to professional services firm, Marsh McLennan. The office unit, which comprises a floor area of approx. 6,000 sq. ft is located on the ground floor of the high profile, Grade A office development overlooking the River Lee. Marsh McLennan will join existing occupiers NetApp, Iconic Offices and Clearstream in the riverside office development. According to market sources, the agreed rent was approx. €32.00 psf. The Business Post, 7th October
Blanchardstown Shopping Centre, Dublin 15 Goldman Sachs has instructed CBRE and Eastdil Secured to handle the sale of Ireland’s largest shopping centre, which is expected to be introduced to investors at the industry conference Expo Real. No formal guide price has been released, although vendor expectations are approx. €700m (NIY approx. 7.5%). Goldman Sachs – which had a mezzanine loan position on the mall – took control of it from Blackstone at the end of 2020, when it was valued at approx. €750m in late 2020. The bank is understood to have invested a further €60m into the asset via upgrading works. The asset comprises the main two-level shopping mall, comprising more than 180 retail units and anchored by several large tenants including Primark and Marks & Spencer. It also includes two adjacent retail parks and external retail units, as well as a five-floor office building spanning approx. 72,000 sq. ft. Approx. 60% of the Blanchardstown’s value is held in the shopping centre component, with the park element accounting for approx. 40%. The split between shopping centre and retail parks could lead to bidders clubbing together. React News, 5th October
Opera Lane Collection, Cork City Centre Cushman & Wakefield is guiding a price of €5.5m (NIY 7.74%) for the Opera Lane Collection, a portfolio of three retail units at the Opera Lane scheme just off St Patrick’s Street in Cork City Centre. The collection is available for sale individually or in one lot, with two of the units on St Patrick’s Street and the third on Emmet Place. Lot 1: Unit 16, Opera Lane comprises a retail unit fronting on to St Patrick’s Street. Occupied by the US fashion retailer Tommy Hilfiger, the unit extends to 6,364 sq. ft over ground, first and mezzanine level. The current NOI is the higher of €271.6k pa or 9% of the store’s turnover.
Lot 2: 17a Opera Lane comprises a retail unit fronting on to St Patrick’s Street. Occupied by Select, the unit extends to 817 sq. ft all of which is located on the ground floor. The current NOI is €100k pa. Lot 3: Unit 19 Opera Lane comprises the historic Queen Anne building which is occupied by Starbucks on a long-term lease. The building extends to 3,573 sq. ft over ground, first and mezzanine levels. The current NOI is €96.8k pa. The Irish Times, 4th October
Hospitality Sector Forecast Dublin hotels are forecast to see average room rates increase by a further 10% next year which is stronger growth than London (9%). This is according to the latest Hotel Monitor 2024 survey from American Express Global Business Travel. It says the Dublin rate rises are being driven by high occupancy rates, the persistent supply shortfall in Dublin, particularly at the luxury end, and a lack of alternative providers around the city. The Amex survey also points out that despite an anticipated softening of leisure travel demand, prices are expected to continue to rise in most locations. The Irish Independent, 5th October
Aston Quay, Dublin 2 19 – 21 Aston Quay is being offered by Savills with full vacant possession. The entire property extends to 18,985 sq. ft and comprises a four storey over basement retail/ office property which was formerly occupied by USIT Student Travel as their head office. Each floor is serviced by two separate stairwells and passenger lift, with separate loading and secondary fire escape access available off Price’s Lane located to the side of the property. Savills, 4th October
CBRE Healthcare October 2023 Report A report from CBRE on senior living stated that while Ireland is noted for its young and productive demographic, the national ‘aged population’ is also increasing significantly. The age bracket with the highest increase in population in Census 2022 was the group aged 70 and above, which increased by 26% during the period 2016-2022. Ireland’s population aged 65 and over is now forecast to reach over 1.5m people (25% of the national population) by 2051.
Only a small percentage of this age group (4.5%) will require nursing home care, meaning the vast majority will age within their own homes and communities; living either independently or with some supports in place. It is this population demographic that ‘Senior Living’ schemes aim to attract, as they provide a “right sized” solution in a low maintenance home with security and social company. The concept of Senior Living is hugely successful in many parts of the world already and has gained popularity particularly in the United Kingdom. The CBRE report takes a closer look at the concept in an Irish context and explores the current and future landscape for senior living schemes in Ireland. CBRE Healthcare Report, 9th October
Sandyford, Dubin 18 The Comer Group’s project to complete the landmark Sentinel building in Sandyford is in jeopardy due to conditions imposed on the developer by the local council. Last month, Dún Laoghaire-Rathdown County Council granted the group, headed by billionaire Galway brothers Luke and Brian Comer, planning permission to complete the 14-storey South Dublin building as an apartment block. The most recent approval for development included a condition that ordered the Comer Group to revise the layout of the apartments in order to double the number of three-bed units that will be in the block. According to sources close to the Sentinel project, this requirement severely impacted the viability of the plan. The Comer Group lodged its recent plans for the Sentinel building in July. The firm has proposed developing the shell-and-core block into 110 apartments, which would be made up of 22 one-bed, 60 two-bed and 28 three-bed units. The Business Post, 8th October
CBRE Q3 Development Land Report CBRE Ireland has confirmed that the total spend on development land in the Irish market during the third quarter of 2023 reached approx. €80m across 18 transactions. This was an increase of approx. 30% in the three months to the end of September compared to the previous quarter. According to the agent, the increase reflects some positive signs of developers and investors starting to adjust to new pricing levels that have been the result of higher financing costs. The Business Post, 8th October
Landlord Tax Relief Government leaders are preparing a landlord package in Budget 2024 that will offer up to 20% tax relief on a portion of their rental income on condition that their properties stay on the market for a specified period. The details on the cut-off rate at which landlords will be able to claim their 20% annual tax relief have yet to be decided, but €3k to €4k “would be the range”, a source said. It is understood that landlords will be required to guarantee that their properties will remain on the rental market for a specific period, potentially up to two or three years. It is hoped that relief for small landlords will encourage them to stay in the market. The Sunday Times, 8th October
Residential Property Tax Councillors in Dún Laoghaire-Rathdown and South Dublin County Councils have voted for the maximum discount allowable for Residential Property Tax in 2024. The Local Property Tax, which is based on the value of a property, has a base rate that can be varied by plus or minus 15% by each local authority. The Irish Times, 9th October
Rising labour and material costs are deterring people from buying fixer-uppers, particularly in South Dublin areas, according to property experts. With the cost of building materials having risen 25% since 2019, buyers are postponing projects or deciding not to buy homes in need of attention. Although there was some relief in the cost of timber in August, energy inputs are still high and have resulted in the prices of cement and block continuing to rise, according to the CSO’s wholesale price index. The price of plaster has increased by 20% in the year to August while cement and steel product prices have risen by 14.6%. The price of a cement block cost €1.04 in August 2019; today it costs €1.79. Where it cost €20k to renovate a bathroom in 2019 to a basic finish, home owners are now paying an extra €5k. The Sunday Times, 8th October
Rathmolyon, Co Meath Receivers have been appointed to a property development company that last month asked home buyers to pay an additional €60k each to complete houses they’d previously signed contracts to buy. Interpath Advisory has now been appointed as receiver over the developer behind the scheme, Meathamatic. The homes are at the Ringfort estate in Rathmolyon, Co Meath. They were sold off the plans in 2020 and 2021 with some families and couples agreeing to pay €275k for a three-bed property. The receivers were appointed by Spudmuckers, a creditor of the company, which extended finance to the developer in June this year. The estate consists of 16 three-bed and four-bed houses. Fifteen families entered into contracts, while one house is under offer. Some went sale agreed in 2020 while others entered into contracts at the beginning of 2021. The four-bed properties were being advertised at approx. €300k three years ago. Buyers were initially told the first phase of the construction would be completed in quarter one of 2022, with the second phase due to be finished in quarter two. But the scheme has been subject to delays and financial overruns. The Irish Independent, 4th October
Airbnb has agreed to provide funding for the development, maintenance and restoration of some of Ireland’s most historic homes which could see some previously off-limits properties appearing on the accommodation platform for the first time. In addition to financial aid, the properties will be given “expert guidance and workshops” from Airbnb “to help them understand how to showcase and maximise their properties’ potential on the platform”. Airbnb noted that a large portion of these homes are in rural areas that rely heavily on tourism. The Irish Times, 5th October
Foxrock, South Dublin Having failed to find a buyer at its initial asking price of €3.25m in February last year, the Grove, a late-1960s bungalow on a 1.48-acre site, returned to the market seven months ago with a new, heavily reduced guide of €2.25m (31% discount). An examination of the Property Price Register shows that The Grove changed hands for €2.875m on September 20th. The price paid represents a premium of 28% on the discounted price tag and a far lesser discount of 12% on the sum that had been sought for the property in 2022. The Irish Times, 5th October
BNP Paribas Real Estate Ireland Report The decline of activity in the construction sector slowed in September after two months of sharp contraction, according to new research from BNP Paribas. The headline BNP Paribas Real Estate Ireland Construction Total Activity Index – which tracks changes in the total volume of construction activity compared with one month previously – fell short of the 50.0 mark last month, posting 48.6 and signalling a reduction in activity. The posting marks the third consecutive month of decline in activity. However, it is up on August’s index (44.9), with BNP noting that last month’s “decline was the softest in the current sequence of decreasing activity”. September saw the pace of rising costs slow after input cost inflation picked up in July and August, with firms noticing reductions in the price of steel, sanitary ware and insulation. The Business Post, 9th October
CBRE Commercial Real Estate Investment Report Commercial property investment in the past three months tracked significantly behind long-term averages that have been recorded by the sector, new data from CBRE has shown. Over the past ten years, an average of €1.1bn has been invested in Irish commercial property in the third quarter of each year. New data from CBRE has shown the rate of investment between July and September of this year was €444m, a decrease of more than €650m on the long-term average. Investment in commercial property during the most recent quarter has brought total spend in the sector up to €1.4bn this year. However, over the past ten years, an average of €4.3bn has been invested per annum in commercial property. CBRE has forecast the Irish market will likely record less than half of the typical level of investment recorded over the past decade. The €444m of investment in commercial property in Ireland during the third quarter was spread across 30 transactions. The Business Post, 4th October
Bremore Port, Co Dublin Fresh details of a proposed new Johnny Ronan-backed billion-euro port development north of Balbriggan are set to be formally unveiled. The high-level vision for the new Bremore Port in Co Dublin has been developed by Copenhagen-based architecture firm Henning Larsen and is expected to detail plans to include facilities for offshore wind turbine storage and assembly, as well as green hydrogen facilities. A full consultation process will now begin, with a planning application expected in 2025 or 2026. The capital investment is expected to exceed €1bn. The Irish Independent, 8th October
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St Stephen’s Green, Dublin 2 Having failed to find a buyer when it was offered for sale for €27m during the Covid-19 pandemic in October 2020, no. 90-91 St Stephen’s Green has returned to the market through CBRE at a new and lower guide price of €18m (NIY 5.56%). The sum being sought on this occasion represents a significant discount of 33.3% and reflects a capital value of €677 per sq. ft. The property, in a prime position overlooking St Stephen’s Green to the front and Iveagh Gardens to the rear, comprises a four-storey over-basement office building extending to 26,590 sq. ft and distributed over-average floor plates of 5,307 sq. ft. The building is fully let to Standard Life on a 10-year FRI lease from September 15th, 2011. The tenant extended their lease to September 2024 and the current passing rent is €1.1m annually (€41 per sq. ft). The Irish Times, 27th September
Cardiff Lane, Dublin 2 Hotel group Dalata’s €22m expansion of its Dublin Docklands location has been greenlit to allow for 117 more bedrooms at its site near Sir John Rogerson’s Quay. Dublin City Council approved plans for a 10-storey extension of the existing Clayton Hotel beside the Ferryman pub on the corner of Cardiff Lane to increase the number of hotel rooms to 421. The development involves the demolition of buildings at 3-5 Cardiff Lane, which are currently occupied by Starbucks and Arena Kitchens. As part of these conditions, Dalata must also pay €425k in development fees for the hotel’s expansion, and an additional €163.5k in supplementary fees as part of a contribution scheme towards the Luas Red Line which operates nearby. The Business Post, 26th September
Aungier Street, Dublin 2 The asking price for The Lucky Duck pub on Aungier St, Dublin 2, which is being sold by Oakmount, has been reduced from the €2.5m quoted 12 months ago to €2m. The pub had been closed for a number of years before being acquired in 2017 primarily as a restoration project with the intention to offer it for sale once the business was established. The Irish Independent, 28th September
Hospitality Sector Demand for hotel accommodation in Dublin is likely to remain robust amid a strong forecast in visitor numbers alongside a simultaneous slide in future hotel room supply. Recent development activity for new hotels in Dublin’s North City Centre has failed to temper the strong demand for hotel rooms. According to CBRE, hotel occupancy levels in Dublin averaged 82.5% in Dublin in the first eight months of the year with the daily rate averaging €180 during the year to the end of August. The latter is a drop on the record-breaking €209 per room per night recorded in the period to mid-May. Meanwhile Tom Barrett of Savills welcomes how latest August occupancy levels reveal a bounce back to normal from the 54% seen in 2021 and 29% in 2020. While he acknowledged that STR (which provides market data on the hotel industry worldwide) forecasts only 76.5% for 2024, he believes that is weak “considering the flights and passenger numbers expected at Dublin Airport.” In relation to supply, Barrett says “there is some new supply opening later this year, but that is small compared to previous years, so I think Dublin occupancy will be about 80% next year.” The Business Post, 30th September
Racecourse Road, Roscommon Agent Moore Larkin is seeking offers of €2.1m for the Roscommon Business & Enterprise Park on Racecourse Road in Roscommon, a retail/warehousing/office and yard facility on a 4.74-acre freehold site in Co Roscommon. There are 60 car park spaces with ancillary parking, loading areas and yard space at the side and rear of the property. The property extends to approx. 105,174 sq. ft, including approx. 64,475 sq. ft on the ground floor; another 14,100 sq. ft of space at mezzanine level and just over 27,986 sq. ft of secure yard space. The annual net rental income stands at approx. €214.63k with anticipated rental increases at rent reviews and lease renewals. There is also vacant accommodation to be leased. The tenants include Euro Car Parts, P&G Cards, O’Hara’s Bakery, Circet and Roscommon Windows, among others with individual leases expiring from 2024 up to 2030 in one instance and other leases have expired and are rolling over. The Business Post, 30th September
IDA Industrial Estate, Co Waterford CBRE is guiding a price of €17.85m for the former Cartamundi Ireland production facility in Co Waterford. Located in the IDA Industrial Estate on Cork Road, the property extends to 246,646 sq. ft and incorporates ancillary office accommodation of 11,010 sq. ft. Prior to its recent closure, the property had served for many years as the Irish production facility for board games such as Monopoly, Trivial Pursuit, Connect 4 and Cluedo under three different owners, namely MB Games, Hasbro and most recently, Cartamundi. The Irish Times, 27th September
Ulster Bank Branches Cushman & Wakefield is inviting offers for the third and final tranche of properties in Ulster Bank’s former bank branch network. There are 15 premises available for sale in this phase of the process, which is taking place as part of the bank’s ongoing withdrawal from the Irish market. Thirteen of the properties are freehold/long-leasehold while the remaining two buildings are leasehold. The 13 freehold/long leasehold interests range in value from approx. €100k to more than €850k for the bank’s prominent branch building on Winthrop Street in Cork City Centre. The two leasehold interests meanwhile have passing annual rents of €135k and €85k respectively, with the unexpired term of the leases being just under seven years on one and just under six years on the other asset. The leases will be marketed as available by way of assignment or sublease. The Irish Times, 27th September
Dunboyne, Co Meath JLL is guiding a price of €8.95m for a 72.87-acre residential land bank in Dunboyne, Co Meath. The lands comprise a single-storey derelict house with a number of farm buildings including approx. 26.78 acres zoned A2 New Residential under the Meath County Development Plan 2021-2027. While the balance of the lands extending to 46.09 acres is not zoned, the selling agent is of the view that they will be rezoned in the future owing to their proximity to Dunboyne town centre. The lands are available for sale in two separate lots. Lot 1 comprises the residential holding while lot 2 is made up of the unzoned lands in their entirety. The Irish Times, 27th September
Lombard Street and Townsend Street, Dublin 2 Located at 19/20 Lombard Street and 112/114 Townsend Street, a 0.165-acre brownfield site is being offered to the market by JLL on behalf of a private investor at a guide price of €5.5m. The property is zoned Z5 under the Dublin City Development Plan 2022–2028. A broad range of uses are permissible under this designation including hotel, residential and purpose-built student accommodation. The Irish Times, 27th September
Irish Residential Properties Reit has completed the sale of approx. 200 residential units in West Dublin to Tuath Housing for more than €72m. The sale of the properties, which includes apartments, houses and duplex units, was completed ahead of schedule and brings an “attractive return” on the original acquisition costs for the development. The proceeds will be used to strengthen the company’s balance sheet and retire its higher cost debt under its revolving credit facility. The deal included the sale of 91 units in Hansfield Wood in Dublin 15 for €38.1m, with an additional 103 apartments, including Piper’s Court, and a small eight-unit apartment building in Hansfield Wood raising approx. €34m. Originally announced in August, the deal is part of Ires’s €100m asset disposal programme, which now stands at €96.5m delivered. Ires currently owns 3,734 apartments and houses for private rental in Dublin and Cork. The Irish Times, 3rd October
Residential Zoned Land Tax (RZLT) A large majority of landowners, including some of the state’s biggest developers, have failed in their appeals contesting the government’s new land hoarding tax. An analysis of appeals lodged against the new RZLT has shown that An Bord Pleanála has rejected approx. 80% of appeals to date. The planning authority has received 608 appeals challenging the imposition of the new land hoarding tax, which is due to come into effect in February 2024 and will charge owners of vacant land a 3% levy on the site’s market value. Decisions have been made on 322 of these cases, with An Bord Pleanála rejecting 257 of the appeals. An Bord Pleanála’s decisions have prompted some landowners to explore legal challenges in a bid to overturn the planning body’s decision. The Business Post, 27th September
Respond, the affordable housing association, has signed heads of terms with developers to deliver €2bn worth of residential projects. The deals will involve the charity and its development partners commencing construction on approx. 3,400 new homes in the next year, half of which will be cost rental homes at 25% below regular market rents. According to Declan Dunne, chief executive of Respond, the one-off housing projects will range in size from 200 to 725 units on individual sites and be worth a collective €2bn. The charity has 1,400 homes under construction at present. Dunne said the 3,400 new homes will be additional supply to the market and will not involve Respond competing with private buyers. The Business Post, 1st October
The Peter McVerry Trust (PMVT) is reviewing the delivery of its entire social housing programme as it looks to “minimise” its activity in the wake of revelations of financial problems at the homeless charity. The move raises questions over the delivery of hundreds of homes after PMVT said in 2021 that it aimed to deliver 1,200 social homes by 2025. PMVT currently owns, leases or manages more than 1,110 homes across the country. Following the revelations, the Approved Housing Bodies Regulatory Authority appointed inspectors to conduct a statutory investigation of the charity. It emerged that the trust is currently repaying €8.3m in tax debts to the Revenue. All repayments have been met to date, the spokeswoman for the charity said. The Business Post, 1st October
House Prices The latest property price index from the CSO showed that house prices outside the capital had risen by 3.8%, with the southeast of the county experiencing a 4.8% rise. A report from Daft.ie, the property website, for the third quarter of this year, reached a similar conclusion: house prices are increasing across the country but growth is subdued in Dublin. The Sunday Times, 1st October
Tax on Second-Hand House Sale Developers have called for homeowners to be slapped with a new levy on the sale of second-hand houses in a move that could add more than €5k to the cost of a property in Dublin. The Construction Industry Federation (CIF) is pushing the government to introduce a 1% levy in the upcoming budget which would be used to spread the cost of delivering transport and utility infrastructure more evenly. The policy suggestion comes as house prices continue to climb with the cost of a home outside of Dublin jumping by approx. 4% in July compared to 12 months earlier. The average cost of a second-hand home in Dublin currently stands at more than €525k, according to figures from the CSO. With approx. 38,000 second-hand homes sold in Ireland over the last year at an average price of approx. €320k, the introduction of such a levy would raise more than €120m in new taxes. If this funding was ringfenced for transport and utility infrastructure for new homes, CIF believes it will eventually reduce the cost of new homes by lowering costs for developers. The Business Post, 1st October
Derelict Site Levy Unpaid levies of approx. €6.8m are owed to Dublin City Council from the owners of more than 100 derelict properties, new figures show. More than 400 properties around the city are now under assessment by the city council for inclusion on the derelict sites register. The register currently includes 107 sites and buildings which “give out the impression of an area deteriorating, are a magnet for antisocial behaviour, and take valuable housing stock out of circulation”, the council said. More than 12,000 homes and commercial properties are vacant across Dublin, with 40% empty for more than four years – putting them at significant risk of dereliction, a new analysis revealed. The levy is charged at 7% of the market value of the property, with interest charged on unpaid levies at a rate of 1.25% per month. The council is owed outstanding levies of €6.8m but received a significant boost this year with €920k paid to date, up from €490k for the whole of last year, €417.4k in 2021 and, €402.3k in 2020. The Irish Times, 27th September
Housing Obstacles There are “significant obstacles” to providing the state with sufficient housing to meet demand, according to Brendan McDonagh, chief executive of Nama. McDonagh made the comments in his opening statement to PAC, where he cited these obstacles as causing delays in meeting demand. “One of these is the achievement of the appropriate planning approvals. Planning costs are significant and average approx. €3k per residential unit. Achieving a grant of planning continues to be a significant challenge, with many applications awaiting a decision from An Bord Pleanála (ABP) for almost 2 years,” McDonagh said. “In addition, our debtors and other housebuilders deem a judicial review almost inevitable when a planning approval is granted by ABP.” In figures McDonagh shared with PAC, he said that the cost of building an apartment rose by 18% in 2022 while the price of a three-bed house increased by 6%. The Business Post, 28th September
Docklands, Dublin Nama made a €550m profit from its activities in the Dublin docklands Strategic Development Zone (SDZ), its chief executive told the Dail’s public accounts committee. Brendan McDonagh revealed that the state bad bank made big returns from the sale of developments in the North Lotts and Grand Canal areas of the docklands. Nama entered into a number of joint ventures with international investors to develop vast tracts of land. These sites delivered 4.2m sq. ft of commercial space and 2,183 residential units, accommodating 20k office workers and 5k residents in the area. McDonagh also revealed that Nama made a “loss” of €10m on the sale of its remaining 20% stake in the Poolbeg SDZ to Oaktree Capital and Ronan Group Real Estate. The state sold an initial 80% interest in Poolbeg to Oaktree and RGRE for €200m. It is understood that the total take from the former glass bottle factory site is €240m. The Sunday Times, 1st October
Goatstown, South Dublin Irish property investment group Tetrarch has lodged plans to build 114 residential units for “assisted living” on land owned by the Society of Sacred Heart (Irish/Scottish Province) order of nuns beside Mount Anville girls schools in Goatstown, South Dublin. Tetrarch’s large-scale residential development planning application with Dún Laoghaire Rathdown County Council is seeking permission to build 100 apartments (across seven blocks) and 14 houses on a 2.9-acre site known as the “old farm”, on the grounds of Mount Anville. In addition, there would be 76 car parking and 147 bicycle spaces, a gym area, a small cinema and medical and wellness areas on the site. Subject to planning approval, construction could commence in the fourth quarter of 2024, with the first units available for residents in early 2026. The Irish Times, 30th September
Goatstown, South Dublin An Bord Pleanála has rejected a plea by Charjon Investments Ltd for a site adjacent to the Goat Bar & Grill in Goatstown not to be liable for a new land hoarding tax. The appeals board ruled that the site known as the “Goat Pet Farm” on Lower Kilmacud Road in Goatstown, Dublin 14, be subject to the new Residential Zoned Land Tax (RZLT), which comes into force next year. The company had told the council that the site has previously been the subject of numerous other development attempts, most notably the Goat Strategic Housing Development (SHD) project. This €186m, 299-apartment scheme was refused planning permission in 2021. The Irish Times, 28th September
Housing Agency Audit An audit by the State’s spending watchdog has found a scheme run by the Housing Agency to build social housing on former council-owned land has made little to no progress developing half of the sites in its portfolio. A report by the Comptroller and Auditor General (C&AG) said “no viable development options” had been identified for 39 of the 73 sites the Housing Agency took over to build housing. The report said agency officials had assessed that more than 5,000 social housing units could be built on the land, but progress had been made on only a number of sites. The State body had sought expressions of interest from not-for-profit housing bodies to build homes on 15 of the sites, but the report said “no suitable proposals were received”. At present, 14 of the plots of land are leased to farmers, while one site is leased to a GAA club. To date, 676 social housing units had been built across 14 sites under the scheme, it said. The Irish Times, 29th September
Sandyford, Dublin 18 Dún Laoghaire Rathdown County Council has granted planning permission to the Comer Group to convert the Sentinel tower at Sandyford in South Dublin from its previously proposed office use to 110 apartments. While the group had already secured approval in 2017 to redevelop the Sentinel with 294 “office suites” with small work-live studio facilities, the proposed scheme never went ahead, largely due to access issues to the Sentinel’s basement car park, with the access ramp remaining in the ownership of the neighbouring Rockbrook apartment-scheme’s owner Ires Reit. However, the Comer Group recently bought the adjoining “RB Central” site from Ires giving them a majority share of the basement and allowing the Sentinel apartment scheme to progress. The RB Central site has permission for 428 apartments which are already under construction. 60 of the units at the building are set to be two-beds, while the remaining apartments will comprise a mix of 22 one-beds and 28 three-bed units. The Irish Times, 28th September
Mortgage Approvals The number of borrowers approved for home loans in August fell sharply, according to new figures from the Banking and Payments Federation of Ireland (BPFI). Data released shows that the number of mortgages approved fell by 4.5% MoM and by 18.2% compared with the same period last year. The figures published by the banking lobby group also indicate that first-time buyers (FTBs) remain the dominant cohort within the mortgage market with the number of approvals for the group topping 30,000 in the 12-month period to the end of August, a first since the data series began in 2011. Overall, a total of 4,534 home loans were approved in August, a decline of 4.5% from May, which was the busiest month for FTB approvals since 2011. Of the total, 62.4% or 2,829 of the loans approved were for FTBs. The overall value of mortgages approved in August fell 3.9% to €1.3bn, a 14.2% decline on the same period last year. The Irish Times, 29th September
Kildare Street, Dublin 2 The National Library of Ireland (NLI) has lodged a planning application to substantially redevelop the west wing of its building on Kildare St in Dublin city. The proposed redevelopment would refurbish and adapt the existing structure to create public areas across the six levels of the building. The proposal also includes a six-storey extension in the building’s courtyard. Included in the application is a proposal to create exhibition and event spaces along with a café and retail spaces. Delivery of the project is being led by the NLI and the Office of Public Works. The Business Post, 27th September
Dingle, Co Kerry Interest in 1,000 acres of land and 400 acres of forestry on the Conor Pass in Dingle, Co Kerry, one of Ireland’s most scenic and famous locations, has been expressed by two parties, according to the auctioneer involved in the sale. Taoiseach Leo Varadkar has said the State would like to buy the land at a “reasonable price” but will not pay the €10m asking price. The site includes four lakes – Pedlar’s, Atlea, Beirne and Clogharee – along with a waterfall and mature forest. American owner Michael Noonan bought the land in parcels over the years and he farms it with grazing sheep. The Irish Times, 30th September
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Middle Abbey Street, Dublin 1 Turley Property Advisors is guiding a price of €3.75m for 94-96 Middle Abbey Street, a four-bay, five-storey-over-basement mixed-use building in Dublin City Centre. The ground floor and basement are currently laid out as retail at ground level and retail/storage at basement level and as apartment accommodation on the upper three floors. The first floor was formerly occupied by a long-established retail jeweller. The six existing apartments comprise one three-bedroom unit and five two-bedroom units. The upper floors of the property are being sold with vacant possession expected by March 2024. The ground floor and basement are let to a strong covenant, the electrical product supplier City Electrical Factors on a 20-year lease from February 2015. The current rental income is €210k pa with asset-management potential to increase that to more than €300k pa. The Irish Times, 20th September
Ballycoolin, Dublin 11 Savills is quoting a combined rent of €1.405m for a large office headquarters and warehouse facility at Huntstown Business Park in Ballycoolin, Dublin 11. The property comprises a detached two-storey office extending to 30,774 sq. ft and a detached warehouse premises of 78,114 sq. ft, providing a total of 108,888 sq. ft of accommodation. The buildings are available to let in one or more lots. The Irish Times, 20th September
Lower Mount Street, Dublin 2 Businessman Laurence Goodman jnr has completed a €30m deal for Nos. 73 – 83 Lower Mount Street. The price paid by Mr. Goodman represents a 20% discount on the €37.5m Savills had been guiding when it brought the building to the market on behalf of Irish property company Iput last February. The €30m sale price equates to a capital value of just under €500 per sq. ft and will provide the purchaser with a 7% return on his investment based on the property’s current rental income. The purchaser will have the guarantee of 100% government income for just under five years to break and eight years to lease expiry as the building is fully let to the Office of Public Works on FRI leases. Existing tenants include the Revenue Commissioners. Currently the property, which has two separate entrances, is split by way of Timberlay and Ballaugh House. The offices are arranged over lower-ground and four upper floors, extending to a total net internal area of 60,207 sq. ft. Iput secured planning permission from An Bord Pleanála in 2021 for the demolition and redevelopment of the property to incorporate a five-storey over-basement office building extending to 117,177 sq. ft (GIA). The Irish Times, 20th September
Sandyford Business District, Dublin 18 Millbank House, which is occupied by two tenants at present, is being offered to the market by Colliers at a guide price of €3.9m (NIY 6.44%). This would equate to a capital value of €170 per sq. ft, which is substantially below the building’s replacement cost. Millbank House comprises a four-storey over-basement office building extending to a gross internal area of 22,848 sq. ft, along with 40 basement car-parking spaces. The building has open-plan floor plates which range in size from 4,000 sq. ft to 5,500 sq. ft. The building is currently occupied by two tenants. Pro Rugby Championship DAC hold a 10-year lease from 2017, expiring in December 2027. The passing rent in this case is €141.48k pa. The second tenant, Mundipharma Pharmaceuticals, hold a 20-year lease expiring in October 2027. The passing rent here is €134.87k pa (with an outstanding rent review from 2022). The Irish Times, 20th September
Dame Street, Dublin 2 WeWork plans to open its new flexible office space in the old Central Bank building on Dame Street in May 2024 – approx. five years after the initial deadline set for the project’s completion. The co-work space provider has confirmed that the fit-out of One Central Plaza has now commenced ahead of opening the 73,000 sq. ft space next year. The announcement comes weeks after WeWork announced that “substantial doubt exists” over the future of the company and revealed plans to engage with many landlords globally to renegotiate its leases. The Business Post, 19th September
Navan, Co Meath Athlumney House, which is better known as the headquarter offices of the Garda Human Resources Directorate, is being offered to the market by Colliers at a guide price of €5.7m (NIY 7%). The building is leased in its entirety to the Office Public Works (OPW) under a single, FRI 20-year lease from 2008 and is subject to an outstanding rent review from October 2022, which is on upwards-only terms. Extending to a gross internal area of 29,500 sq. ft, Athlumney House comprises an original two-storey over-basement period property that interlinks with a modern office extension extending to 20,506 sq. ft over ground and first floor. The property sits on a 4.23-acre site and has 112 car-parking spaces. The Irish Times, 20th September
Fenian Street, Dublin 2 TikTok is set to take over the majority of the Dublin office of X (formerly known as Twitter), having agreed a sublease on the Fenian Street premises for up to five years. The Chinese-owned social media giant has signed heads of terms to take four of the five floors at Cumberland House, and aims to take up occupancy by early 2024, it reported. X has dramatically downsized its office space in the past 12 months, following job cuts imposed by new owner Elon Musk last year. The Irish Times, 24th September
Blackrock, South Co Dublin Aviva Life & Pensions Ireland DAC (Aviva) has secured DunPort Capital Management as the second tenant for its recently refurbished offices at Blackrock Village Centre in the south Dublin suburb of Blackrock. DunPort Capital Management has agreed a deal to occupy the second floor of office accommodation (4,316 sq. ft) on a new 10-year lease. The Irish Times, 20th September
Naas, Co Kildare Microsoft is in the early stages of planning for a new data centre in Naas, Co Kildare. The tech giant, which already has 15 data centres in Ireland, confirmed the move in a statement. The company said it has commenced initial pre-planning consultation with authorities for a site that has been specifically zoned for data centre use by Kildare Co Council in its 2021-2027 Naas local area plan. Microsoft said its preferred solution is to use 100% renewable energy to power the planned facility. The Business Post, 21st September
Booterstown, South Dublin Developers Paddy McKillen jnr and Matt Ryan have secured planning permission from An Bord Pleanála for the development of a luxurious wellness facility, spa and interpretative centre on the lands adjacent to Booterstown Marsh and bird sanctuary in South Dublin. The approved scheme will, upon completion, comprise a five-storey building rising to a height of 61 ft and extending across a total area of 68,114 sq. ft. The Irish Times, 20th September
Ballycurreen, Cork A Cork site is up for sale with planning permission for a 158-bed hotel recently secured on the Kinsale Road at Ballycurreen, between the city and the international airport. The hotel site of 2.15 acres is part of an approx. 7-acre mixed use land parcel at Ballycurreen which also include plans for approx. 130 apartments and duplexes in 12 blocks of three storeys each as well as other neighbourhood uses. The Irish Examiner, 21st September
Portumna, Co Galway The site containing the burned down Shannon Oaks Hotel in Portumna, which is owned by the Comer brothers, has been removed from Galway’s derelict site register. The hotel, which was ravaged by a fire in 2011 and went into liquidation soon after, was acquired by Galway brothers and property developers Luke and Brian Comer in 2016. In January of this year, Galway County Council added the lands to its derelict site register. Owners of sites on the register are required to pay a 7% levy on the value of the property to the local council. A spokeswoman for Galway County Council has now confirmed that the site has been removed from the derelict sites register. She said “works were satisfactorily carried out” on the site, but the owners will still face a levy for 2023, with a demand for payment due to be issued to the Comer brothers soon. The Business Post, 25th September
Ballsbridge, Dublin 4 Richmond Homes, the house building arm of real estate investment firm Avestus Capital Partners, is looking to dispose of the former St Mary’s nursing home at Pembroke Park in Ballsbridge, Dublin 4. Having paid in excess of €6m to acquire the property in 2018, Richmond Homes has, since then, secured planning permission for two potential residential schemes on its 0.85-acre site. With approval now in place for the development of either 23 owner-occupier apartments or 64 build-to-rent units, joint agents Cushman & Wakefield and Sherry Fitzgerald Commercial are guiding a price of €7m for the site. The first planning permission was granted to Richmond Homes’ vehicle, the Pembroke Road Partnership, in 2020 for 23 apartments, comprising three one-bedroom apartments, 15 two-bedroom apartments and five three-bedroom apartments over basement car parking for 25 spaces. The second, more recent planning permission meanwhile was granted in May of this year and allows for the development of a basement-free 64 unit BTR scheme, comprising 19 studios, 41 one-bedroom apartments and four two-bedroom apartments. The Irish Times, 20th September
Balgriffin, Dublin 17 Knight Frank is guiding a price of €2.95m for a residential development opportunity at Carr’s Lane in Balgriffin, Dublin 17. The subject site currently comprises a single-storey house with adjoining lands extending to a total of 6.45 acres. The lands are laid out in two divisions separated by a band of trees, with two existing access points off Carr’s Lane which connects to the Malahide Road. The Irish Times, 20th September
Kilkenny Joint agents Cushman & Wakefield and FitzGerald Auctioneers are inviting residential developers to submit expressions of interest to partner with Tesco in the development of the former mart site in Kilkenny city by providing a significant residential element within the site. The brownfield site is located less than 1km north of the city centre and benefits from ample profile onto the Castlecomer Road, New Road and Old Mart Street. Those interested are requested to submit expressions of interest by November 1. The Business Post, 23rd September
Donabate, North Co Dublin A fresh planning application for a housing development of 1,020 residential units, a 32-acre nature park, crèches and links to the Broadmeadow Greenway has been submitted to Fingal County Council. Set to replace the previous SHD application granted by An Bord Pleanála in November 2022, the current proposal represents a significant reduction in the number of apartments in favour of houses with their own back garden. The number of 529 houses proposed in this plan is scheduled to increase by 160 units compared to the original plan. Own-door duplex and triplex units now stand at 356, an increase of four; however, apartments see the greatest change down from 592 units to just 84, a drop of 508 units. The overall plan sees a reduction of over 345 units in total when compared to the original SHD application. The proposed construction period will be over ten years. The site at Corballis, Donabate is being developed by Aledo Donabate, part of the Cannon Kirk Group in conjunction with Lioncor. The Business Post, 22nd September
An Bord Pleanála is now refusing as many homes under fast-track planning rules as it is approving. Since April, when the board was brought up to a full complement of 15 members, it has refused developers permission to build more than 2,200 homes. In that five-month period, the same number were approved. The homes refused permission had applied under the Strategic Housing Development (SHD) scheme, which was created in 2016 to allow developers to bypass local authorities and apply directly to An Bord Pleanála for permission to build large housing projects. An Bord Pleanála has typically approved approx. 80% of SHD cases. The rate of approval has now dropped to 50%. The Irish Times, 24th September
The Irish Property Owners Association (IPOA) has recommended the government introduce a 25% income tax for landlords to help address the housing crisis. In its pre-budget submission, the IPOA has also sought an extension of CGT and a reduction in CAT. The recommendations come ahead of next month’s budget, which has the government divided over tax breaks for landlords. In its submission, the landlord representative group said this recommendation would “encourage the retention of landlords in the residential property market while ensuring adequate availability of stock for rent.” The body is seeking the 25% income tax rate to be inclusive of USC and PRSI charges. The recommendation on CGT was based on property owners committing to retaining rental properties for a minimum of seven years, which it said would ensure stability in the market. The Business Post, 20th September
Residential Rents New renters are paying on average €214 each month more than existing tenants nationwide, according to research by Economic and Social Research Institute. A new study conducted by the institute has found that while the highest difference in rents between new and existing tenancies was in Dublin, at €233 on average, it was the northwest and west of the country which recorded the biggest differences in percentage terms. The percentage difference between new and existing tenants was highest in Waterford on 28.6% and Limerick on 27.4%. Dublin while having the largest euro difference only showed a 13.6% difference in prices. The average rent in Dublin rose to €2,102 in the first quarter of this year, according to the Residential Tenancies Board. The Business Post, 20th September
Harolds’s Cross, Dublin 6 A shovel-ready site in Harold’s Cross, Dublin 6 has been brought to the market. Agent Cushman & Wakefield is guiding over €2m (€100k per unit) for the 0.2-acre site at 146-156 Harold’s Cross Road which currently comprises a terraced block of five mixed-use derelict properties which were previously in residential and commercial use. Last December it was granted planning permission for 20 residential units including 13 one-bed apartments, three two-bed units and four two-bed duplexes. The Irish Independent, 21st September
Rochestown Road, Cork Sherry FitzGerald, jointly with Sherry FitzGerald Reynolds, are guiding the bungalow property called The Orchard near the Fingerpost at €1.75m. It has two sections of frontage, 45m and nine meters, to the Rochestown Road, with a separately owned house also on the road, on the village side of the Rochestown Park Hotel, facing some of the road’s premier private houses behind high stone walls. The joint agents describe it as “the Grade A well-established desirable area of Douglas/Rochestown Road,” and say there’s good access, a range of adjacent services plus a bus stop. The Irish Examiner, 21st September
College Green, Dublin 2 Dublin City Council is considering buying one of the most prominent buildings on Dublin’s College Green, the former Ulster Bank, so it can be converted into social housing. The bank was put on the market in recent weeks with a guide price of €13.5m, as part of the portfolio of sales of the bank’s former branch network following its closure earlier this year. More than 12k homes and commercial properties are vacant across Dublin, with 40% empty for more than four years – putting them at significant risk of dereliction. The Irish Times, 25th September
Monkstown, South Dublin Dún Laoghaire-Rathdown County Council has refused planning permission to US group Greystar for a 488-unit build-to-rent BTR scheme on grounds around Dalguise House on Monkstown Road in South Dublin. Greystar subsidiary GEDV Monkstown Owner Limited’s application was refused after more than 70 objections were lodged against the scheme. The refused scheme comprised 488 new-build units and three two-storey, three-bed terraced units. Ten blocks were to be constructed, with one block reaching nine storeys. The scheme as planned included 288 one-bed units with an estimated average monthly rent of €2.5k, or €30k annually. The Irish Times, 21st September
New Land Tax House buyers could end up paying more for their homes because of the costs incurred by developers seeking to exclude sites from a new land tax, property developer Michael O’Flynn has warned. Mr. O’Flynn, who faces approx. €1m annual tax bill on land he plans to develop off Dublin’s Naas Road, as a result of losing an appeal to An Bord Pleanála, said an “unintended consequence” of the new tax is that it will “add to the cost of housing”. Moreover, when the tax itself – known as the Residential Zoned Land Tax (RZLT) – is aimed specifically at lands which have benefitted from investment in services and are capable of being developed for housing but remain idle. Where lands are taxed, that cost is also likely to be passed on by developers to the end-purchaser. The Irish Examiner, 21st September
Dublin Airport An unnamed Saudi investor is in the hunt for strategic lands at Dublin Airport, as bidders press for reassurance about access to the runways and the road network. Vendors led by brothers UIick and Des McEvaddy have told prospective buyers they will take second-round bids in November, delaying a process that had been expected to culminate in early autumn. As talks continue, bidders have urged the vendors to provide comfort about the right to access to the DAA’s runways and roads in North Co Dublin. In the opening phase of the sale, the vendors provided a senior counsel’s opinion on runway access that they commissioned. That paper cited a European case that underlined the right of private landowners to access State infrastructure if it is deemed necessary for the public interest. An updated legal opinion is now said to be in preparation. The Irish Times, 25th September
Francis Street, Dublin 8 Funding of €9m for essential conservation work to halt the structural decline of the Iveagh Markets in Dublin’s Liberties has been approved by the Government. The Edwardian building on Francis Street, which is at the centre of a legal dispute over its ownership, has been vacant for 30 years and has over the last decade declined into a ruinous condition. Dublin City Council has agreed to undertake structural safety works to the building and said it is currently evaluating tenders for a design team to oversee “essential stabilisation works”. The Irish Times, 21st September
EY Survey According to a survey conducted by EY, 75% of real estate companies are actively preparing to raise or refinance debt in the coming year despite facing macroeconomic headwinds. More than half of these firms are keenly eyeing potential buying opportunities in distressed assets within the same timeframe. Domestically, bank debt remains the preferred funding source for the majority, followed closely by international debt funds. Margin considerations hold significant sway, particularly in the context of rising interest rates. A noteworthy 60% of respondents have already implemented sustainability plans, which could potentially translate into improved access to capital and more favourable terms. Effective debt planning is becoming increasingly paramount in the current dynamic environment, where an ever-changing lending landscape and evolving lender expectations require precise alignment for successful finance raising. EY Real Estate Borrowers Outlook Survey 2023, 25th September
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North Dock, Dublin Cushman & Wakefield is guiding a price of €17m (NIY 3%) for No. 1, Custom House Plaza, an office investment in the IFSC. No. 1 extends to 41,589 sq. ft and is fitted out to a high specification. Internally the ground floor comprises a reception area, three separate office suites and a self-contained retail unit, while the first to fourth floors offer a mix of cellular and open-plan office space with basement car parking for 48 cars. The block, which has multiple tenants, is 60% occupied and is generating a gross income of approx. €951k pa from three tenancies. The net operating income is approx. €558k pa. The tenant line-up includes Zellis, a leading provider of payroll and HR solutions and Kaseya, an American IT and security management multinational. There is potential for the new owners to grow their income return through the letting of the remaining vacant space, which extends to 16,580 sq. ft and includes 21 car parking spaces. Excluding car parking, the current passing office rents reflect an average rate of €34.60 per sq. ft, well below the neighbouring rental levels within the wider Custom Plaza scheme. The Irish Times, 13th September
St Stephen’s Green, Dublin 2 A private Irish investor has paid a figure of approx. €16m for the home of the former Hibernian United Services Club at 8 St Stephen’s Green in Dublin City Centre. The sale of the property comes just over three months after Oakmount pulled back from a deal to acquire it for approx. €17m. The price achieved represents a discount of just over 25% on the €20m Cushman & Wakefield had been guiding when it first offered the property for sale in September of last year. The building comprises a four-storey over-basement townhouse and extends to a total of 28,418 sq. ft of space comprising open-plan and private office accommodation. The Irish Times, 13th September
Herbert Street, Dublin 2 Plantation House, a single-let (WAULT 9.5 years) office property at 29 Herbert Street in Dublin City Centre is being offered to the market by Savills at a guide price of €7.6m (NIY 6.50%). No. 29 Herbert Street comprises a stand-alone office building set over four floors. The property extends to an overall net internal area of 13,435 sq. ft and has six secure on-site, surface car parking spaces. The building rests on site extending to approx. 0.26 acres and is let in its entirety to Windmill Lane Limited. The company has occupied the building since 2008 and is paying an annual rent of €546k. The Irish Times, 13th September
Office Space Audit An audit of State office space to establish if any can be converted for residential use has been sought by Minister for Housing Darragh O’Brien. Amid a deep crisis and mounting pressure as the political system prepares for an electoral cycle where housing will take centre stage, Mr. O’Brien is asking that the Office of Public Works (OPW) review its office stock in an effort to boost housing supply. The OPW, Mr. O’Brien wrote, owns 256 office buildings and has leases in another 285, with a total floor area of approx. 9,687,519. sq. ft. Of this, 61%, or 5,855,567 sq. ft, is owned with the balance leased. The Irish Times, 18th September
Blanchardstown and Tallaght, Dublin AIB is in the process of offloading substantial loans advanced to two of the country’s largest shopping centres. The bank’s action comes while the respective owners of the Dublin malls are trying to sell them. The loans are secured on the Blanchardstown shopping centre, which is controlled by Goldman Sachs, and the Square in Tallaght, which is owned by Oaktree Capital Management. The Blanchardstown loan has a face value of €175m and forms part of a total syndicated senior debt package of €570m. It was reported in June that Goldman Sachs was seeking a buyer for the centre, the largest in the country, with a price of €650m, €100m less than what it paid in December 2020. AIB is the main senior lender to OCM Luxembourg Square Retail, the Oaktree vehicle that owns the Tallaght centre. It owed the bank €191m at the end of 2021. According to market sources, the Square is also expected to come to the market later this year, with a sale price of approx. €170m. The Sunday Times, 17th September
Tallaght, Dublin 24 Colliers is bringing a sale and leaseback opportunity in The Square Shopping Centre in Tallaght in Dublin 24 to the market with a guide price of €1.75m (NIY 6.5%). Unit 165 comprises a predominantly open plan, fully fitted restaurant extending to 3,038 sq. ft. The property is to be sold with the benefit of Graham O’Sullivan Restaurants Limited as tenant who is committing to the property by way of a new long-term lease. The Business Post, 16th September
Drogheda Permission has been granted for a €20m retail park in Drogheda which will include a new supermarket, DIY store and garden centre and drive-through restaurant amongst its ten retails units. The plan is to be developed on lands to the rear of the existing M1 Retail Park, which currently comprises over 20 commercial units, some of which are occupied by high-profile names including Woodies, Power City, EZ Living, Toyota, Volkswagen, Skoda, Lidl and Sports Direct. A total of 311 car parking spaces area proposed to serve the development, including 23 accessible parking spaces, two click and collect spaces and 17 parent and child spaces. The Irish Independent, 19th September
Pub Investment Activity Approx. 13 pubs changed hands in the first nine months of this year worth a combined €35.5m. Of those, seven were in Dublin city and six were in the capital’s suburbs, according to the latest figures from Lisney. Another four worth a combined approx. €7.6m are close to being sold with contracts exchanged and awaiting close. A further 10 have gone sale agreed while as many as 19 others are on the market. A continuing feature of the market is the demand for pubs with alternative use potential. The Business Post, 16th September
Ballincollig, Co Cork Primary Health Properties (PHP), the London-listed primary healthcare investor, has agreed to acquire an enhanced community care facility in Ballincollig, Co Cork, from O’Flynn Construction for €29.6m in its biggest single investment to date in Ireland. The facility, the first of its kind in Ireland, is situated at a vacant office building on Old Fort Road that is being transformed into a centre to treat older patients and those with chronic illnesses. PHP said in a statement that the property is fully leased to the HSE for 25 years and benefits from five-yearly CPI rent reviews. The group said the property will be managed by its Irish property management business, Axis Technical Services. It is one of four enhanced community care facilities the HSE is planning in Cork. The Irish Times, 13th September
Park West Industrial Park, Dublin 12 Data centre design and manufacturing giant, Silent-Aire, has entered into two new long-term leases on units SB1 and SB2 at Park West Industrial Park in Dublin 12. Silent-Aire’s acquisition of its two new facilities, which extend to 40,000 sq. ft and 67,000 sq. ft respectively, will allow for further growth of the company’s existing Irish business. The Irish Times, 13th September
Finglas, Dublin 11 A development site with planning permission for a mixed-use project in the centre of Finglas village, Dublin 11, has come to the market with a guide price of more than €1.5m. The site known as the former Drake Inn public house, has recently received full planning permission for the development of 25 apartments with a ground floor retail unit and gastropub included. Cushman & Wakefield has been instructed to sell the site. The property currently comprises a two-storey building over basement which extends to approx. 19,224 sq. ft and sits on a site that extends to approx. 0.22 acres. Its planning permission includes seven one-bedroom apartments and 12 two-beds, and the scheme will extend to six-storeys over basement level. The Irish Independent, 14th September
Carrigaline, Cork After a 20 year wait, development of a key five acre site in Cork’s Carrigaline is finally to hand, for a range of mixed uses to include residential, mixed commercial/residential and leisure uses, plus a drive-through restaurant on a profile corner site at a new western relief road junction. The site is being sold by Aldi. At present the plan suggests residential on 0.70 acres, commercial and residential on 1.06 acres, leisure on 1.63 acres and a drive thru on 0.92 acre, with an operator not as yet identified. The Irish Examiner, 13th September
Foxrock, South Dublin Richmond Homes, the housebuilding arm of real estate investment firm Avestus Capital Partners, which grew out of Quinlan Private, is seeking €11.5m through Lisney Commercial Real Estate for a prime development site in the south Dublin suburb of Foxrock. Located on Brighton Road, the 3.13-acre site, which is occupied currently by a large five-bedroom detached residence known as Craughwell, comes for sale with full planning permission for the development of 57 new homes (€202k per site). The approved scheme comprises 21 three- and four-bedroom semi-detached houses along with 36 apartments consisting of a mix of one-, two- and three-bedroom units. The Irish Times, 13th September
Residential property prices decreased for a third consecutive month, bucking the national inflationary trend, according to data published by the CSO. The CSO found that while the national residential property price index (RPPI) increased by 1.5% in the 12 months to July, the RPPI for Dublin had dropped by 1.4% in the same period. The rest of Ireland by contrast had a 3.8% increase in RPPI. The number of purchases in July nationwide were down 6.1% YoY, from 4,443 in July 2022 to 4,174 in July of this year. The Business Post, 18th September
Castletroy, Co Limerick The LDA is to deliver 81 new cost-rental homes in Castletroy, Co Limerick through its Project Tosaigh programme. These comprise 45 two-bedroom and 36 one-bedroom apartments. The LDA’s Project Tosaigh initiative involves the agency stepping in to kick-start stalled or unviable housing projects. It then makes the new homes available to renters on a cost-rental basis or to purchasers at an affordable cost. In this case, all the homes involved are going to be cost rental. This is the first time the LDA has secured Project Tosaigh homes in Limerick. The 81 apartments are located at The Mills, a new development in Castletroy. The LDA’s output at The Mills is part of a total of 138 cost-rental homes with a further 57 being delivered by a separate approved housing body. The Business Post, 16th September
Glenveagh Properties, the listed housebuilder, has recorded an 89% fall in pre-tax profits for the first six months of 2023 as revenues declined by 14%. It reported pretax profits of €1.4m for the January to June period as against €13m a year earlier as revenues fell to €171.6m from €200m. The company reiterated its full-year guidance of an EPS outrun of 7.5 cents to 8 cents. It said it has been granted permissions for approx. 4,000 units so far this year, approx. 700 of which are currently in post-grant appeal periods. The Business Post, 14th September
Rathmolyon, Co Meath A property developer is looking for people who put down deposits and signed contracts on houses in Co Meath a few years ago to each pay €60k more than agreed in order to fund their completion, blaming construction costs and interest rate increases. The Ringfort development in Rathmolyon, Co Meath, consists of 16 three- and four-bedroom houses, most of which were sold three years ago, with deposits paid and contracts signed. However, the developers say that in the period since then they have seen construction costs increase by 31% and funding costs increase by more than 50%, affecting their ability to complete the development. It is understood that the €60k figure is based on an estimate of how much it would cost to complete all the houses and the site work, though houses within the development are at differing levels of completion. The Irish Times, 14th September
Vacant Land Tax Appeal Cairn Homes has lost an appeal to have its site on former RTÉ lands in Montrose excluded from the vacant land tax. The developer is planning to build approx. 700 homes and a major hotel on the site, despite strenuous local objections. An Bord Pleanála has now ruled it must pay the Residential Zoned Land Tax, despite its efforts to build on the site. Cairn submitted a new planning application last year which would have included a 192-room hotel and 688 apartments, comprising 416 build-to-rent apartments and 272 build-to-sell units. This was partially approved by An Bord Pleanála in July. However, it refused permission for the hotel and one apartment block on the site which would have included 80 residential units. Earlier this year, Dublin City Council ruled that the Residential Zoned Land Tax would apply. In a submission to An Bord Pleanála, Cairn argued that the charge should not apply to the Montrose site. One of the reasons it said the levy should not apply was because it has tried to bring the site forward for development since 2019. However, An Bord Pleanála upheld Dublin City Council’s decision. An inspector for the planning body said: “Appeals and judicial review proceedings are not included in the criteria for exclusion, therefore this ground of appeal should be dismissed. The lands are located within an established urban area with services available and no capacity or other reasons have been identified that would prevent the development of these lands in principle for residential purposes.” The Irish Independent, 19th September
BNP Paribas Real Estate Report Commercial building activity has fallen at the sharpest rate in over two years, according to new research from BNP Paribas, a “welcome development” in light of high vacancy rates in the sector. The reduction formed part of a wider contraction of the construction industry, which saw a renewed decline in August, and coincides with input price inflation hitting a four-month high. The headline BNP Paribas Real Estate Ireland Construction Total Activity Index – which tracks changes in the total volume of construction activity compared with one month previously – slipped further away from the crucial 50.0 mark last month, posting 44.9, down from 45.6 in July. The drop in activity was broad-based across the commercial (41.9), housing (46.3) and civil engineering (40.8) sectors. However, the reduction in commercial activity was the sharpest in almost two-and-a-half years while housing activity also fell at a solid rate. The index also highlighted how a weakness in demand, fuelled by interest rate hikes and stubborn inflation, is strangling activity across all three segments of the sector. New orders reduced for the second straight month and to the greatest extent since December of last year. The Business Post, 18th September
Celbridge, Co Kildare The Office of Public Works (OPW) has halted a plan to construct a temporary car park on the grounds of Castletown House and Parklands in Celbridge, Co Kildare following protests led by local residents. The OPW had moved to install the car park after attempts to broker a licencing agreement with Killross Properties, the owners of a 235-acre parcel of land directly adjacent to the estate, broke down. The Irish Times, 13th September
Population Increase Blackwood in Co Kildare is now the fastest growing town in the State having almost doubled its population in the last six years. The town, also known as Coill Dubh, is located 15km north of Naas and 40km from the centre of Dublin. It increased its population by 98% in the six years between census 2016 and census 2022. In 2016 its population was 746. By April 2022 it was 1,476. The population of Dunshaughlin in Co Meath increased by 65% from 4,035 in 2016 to 6,644 in 2022; Lahinch in Co Clare rose by 60% from 638 to 1,018; and Greencastle, Co Donegal rose by 53% from 831 to 1,268. The latest census returns, analysed by location intelligence company Gamma, show strong growth in population among most towns in the State with a population of greater than 1,000 despite two years growth being lost to Covid-19. Dublin city, consisting of the four local authority areas, has the largest overall increase in population. Approx. 90,040 more people live in Dublin than in 2016 bringing the population from 1,173,179 in 2016 to 1,263,219 last year, an increase of 7.6%. This is a slightly lower increase than the State where the population increased by 8% in the census to stand at a post-independence high of 5,149,139. The Irish Times, 15th September
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East Wall, Dublin 3 Landesbank Hessen-Thüringen Girozentrale, the German lender that financed the most recent acquisition of the Beckett Building by South Korean based Kookman Bank, has appointed a receiver over the building, seizing control of the property from the South Korean fund. In recent days, Grant Thornton were installed as receivers over a company called Beckett Acquisition Limited, which is owned by LB Investment, a South Korean asset manager that worked with Kookman Bank on the deal. LB had privately agreed a deal with the German lender to put the property on the market. It was even reported that CBRE had been retained to sell the property and that the owner was looking to bring the Beckett Building to the market at a guide price of €80m. This was less than the €101m it paid for the property in 2018. However, it had pulled in significant rent over the period of its ownership. According to its most recent accounts, for the year to the end of 2021, Beckett Acquisition received rental income from leasing the property on a quarterly basis and income for the period ended on November 30, 2021 was €4.3m. It owed its lender €60m, while it owed related companies a further €41m, accounts show. It has been reported that Meta planned to vacate the building early. The Currency, 11th September
Merrion Road, Dublin 4 With US-headquartered engineering company Jacobs Engineering due to vacate the long-standing base of its Irish operations at Merrion House on Merrion Road in January 2024, joint agents Savills and Hooke & MacDonald have been engaged by Castlethorn to put the office building and its 2.92-acre site up for sale. Merrion House is being offered to the market at a guide price of €19.75m, or €30m less than the €50m Castlethorn paid Bank of Ireland Asset Management when it acquired the property in an off-market deal in 2005. Although Merrion House’s current guide price represents a 61% discount on its Celtic Tiger high, the property had been generating €2m in annual rental income at the time of Castlethorn’s purchase from its then tenant base of Jacobs Engineering, Swiftcall and Combined Insurance. The subject property comprises the Merrion House office building which extends to 86,493 sq. ft over three floors along with 201 surface car-parking spaces on an overall site area of 2.92 acres. The Irish Times, 6th September
Adelaide Road, Dublin 2 Lisney has brought an office building at 19-20 Adelaide Road in Dublin 2 to the market for sale with a guide price of €4.5m. The property is located at the junction of Adelaide Road and Earlsfort Terrace and will be sold with vacant possession. The four-storey over garden level building extends to 8,503 sq. ft (NIA) and is currently laid out as office accommodation which was previously occupied by a trade union. The Business Post, 8th September
College Green, Dublin 2 With 34 properties from its former branch network now on the market, Ulster Bank has instructed agent Cushman & Wakefield to find a buyer for its landmark premises at no. 33 College Green in Dublin City Centre. The property is being offered for sale at a guide price of €13.5m. The property comprises a six-storey over-basement office building, the majority of which was built in 1975. The building occupies a site of approx. 0.30 acres and slopes slightly downwards from Suffolk Street to College Green. The entire building has a gross floor area of 62,861 sq. ft. The Irish Times, 6th September
Lower Baggot Street, Dublin 2 A private Irish investor has paid €3.5m to secure ownership of 73 Lower Baggot Street, a prime Georgian property with development potential. The price paid represents a 17% premium on the €3m Colliers had been guiding when it offered the property to the market on behalf of the Health Research Board in February of this year. The subject property comprises a four-storey over-basement, end-of-terrace Georgian building extending to a net internal area of 3,978 sq. ft. The property, which is currently in office use, sits on an extensive site with original coach house to the rear. The Irish Times, 6th September
Dame Lane, Dublin 2 Located in the Hely Building on Dame Lane and within a short walk of Grafton Street, the REZz, a 51-bedroom property, is being offered to the market as an investment sale on behalf of the building’s owner, Eir, by JLL at a guide price of €10m (NIY 6%). The 90-year lease entered into by the REZz brand and the property’s €650k annual rent roll is expected to see significant interest from both Irish and international investors. The REZz Dublin briefly comprises 51 guest bedrooms, with 30% of these laid out as triple bedrooms furnished with a double and a single bed. The Irish Times, 6th September
Portumna, Co Galway Businesses and residents of Portumna in Co Galway have appealed to the Comer brothers to sell the derelict Shannon Oaks Hotel site. The hotel has been boarded up for more than a decade ever since a fire ravaged large sections of the building. The business behind the hotel went into liquidation soon after the fire, with the property acquired by Galway brothers and property developers Luke and Brian Comer in 2016. In 2020, Dalakhani Unlimited Company, owned by the Comer brothers, secured planning permission from Galway County Council to commence renovation for a 60-bed hotel. The Business Post, 10th September
Press Up Accounts A number of companies in Press Up Hospitality group showed substantial increases in turnover and profits in 2022, freshly filed accounts show. The group doesn’t publish consolidated accounts, but one of the larger companies, Willow Impact Limited, showed a rise in turnover from €16.9m to €45.7m in 2022, as food and beverage sales leapt from €10.6m to €21.7m and revenue from room sales went from €5.8m to €24m. Its pre-tax losses were €8m, down from €11.9m the year before. Another company, Holtend, had a rise in turnover from €1.7m to €7.4m. Its pre-tax profit was €2.3m, from a loss of €1m the year before. According to its company filings, Holtend is the company behind the Dean Hotel on Harcourt Street, the Workman’s Club, and Sophie’s, a restaurant. Brushfield Limited, the company behind the Clarence Hotel in Dublin, had turnover of €2.8m in 2022, up from €434k the previous year. Its costs also rose in that period, from €644.5k to €2.4m, meaning it had a pre-tax profit of €457k, which was an increase on its pre-tax loss of €1.1m the year before. Premier Dale Limited, meanwhile, had a rise in turnover from €1.4m to €5.5m. The Business Post, 8th September
South Mall, Cork One of Cork City Centre’s best-known bars and restaurants, Electric, has been put up for sale with a guide price of €2.5m. Totalling over 6,000 sq. ft over three floors and overlooking the river Lee, it was developed at an overall cost of €3.3m, including an auction purchase price at €1.65m in 2009 after it was sold off by ACC Bank. It has capacity for 330 patrons at ground and first floor and has seating for 150 more on a west-facing outdoor area/beer garden. The Irish Examiner, 6th September
Donnybrook, Dublin 4 Jones Investments is seeking tenants through Agar Commercial Property for the landmark former AIB bank branch building at the junction of Morehampton Road and Marlborough Road in Donnybrook, Dublin 4. Having recently secured ownership of the property, 69-71 Morehampton Road for a figure which is understood to have been below the €2.5m guided by agent Browne Corrigan Chartered Surveyors, Jones’s team have sought planning permission from Dublin City Council for a change of use to retail and food and beverage at ground-floor level, and to office and medical use on the first floor. Under this revised layout, the ground floor will comprise 2,476 sq. ft of open-plan space. The building is being offered to let under the terms of a long-term lease and is guiding a rent of €215k pa for the entire. The Irish Times, 6th September
Ronan Group Real Estate (RGRE), Dublin Developer Johnny Ronan is in talks to sell up to €300m worth of prized property assets including the historic Bewley’s Café building to an international buyer. The RGRE properties include a number of well-known buildings including Connaught House and Percy Place in Dublin 4, Kingram House in Dublin 2 and Kilmore House in Dublin 1. The building housing Permanent TSB on Grafton Street, a number of apartments near the Grafton Street area and the Bewleys building are also included in the proposed sale. The market value of the 12 properties, some of which are co-owned with Davy Stockbrokers, is believed to be between €280 and €300m. The Business Post, 7th September
Ballysimon Road, Limerick Colliers has been instructed to sell a headquarter office and industrial facility on approx. 6.3 acres on the Ballysimon Road in Limerick city on behalf of Roadbridge Ltd (in receivership) care of Grant Thornton. The agent is guiding €2.8m for the property, the former headquarters of Limerick-based construction giant, Roadbridge. The office building measures 14,595 sq. ft and was recently refurbished to a high standard. There are three industrial buildings included: a mechanics workshop, garage and plant stores with a combined floor area of 14,300 sq. ft. The Business Post, 9th September
Planning Permission Delays Aldi has taken aim at An Bord Pleanála over delays processing planning appeals, with a new report published by the German supermarket chain claiming it has been left waiting 91 weeks for one decision over whether it can open a new supermarket. Aldi says that between 2018 and 2022, it faced appeals or objections on 16 of its planning permission applications. An Bord Pleanála did not process 13 of these appeals within its 18-week statutory objective period, resulting in significant delays for the supermarket. In one instance, Aldi had to wait for 91 weeks – one year and nine months – before An Bord Pleanála decided to reject an appeal that had been lodged against its plans to develop a new shopping centre in Castlecomer, Co Kilkenny. In another case in Cootehill, Co Cavan, Aldi has been waiting 60 weeks for An Bord Pleanála to decide whether to accept or reject an appeal against a planning application it has made for a new supermarket in the area. The Business Post, 7th September
St Stephen’s Green, Dublin 2 The owners of St Stephen’s Green shopping centre in Dublin have revised their €100m rejuvenation plan for the centre in response to council concerns. In revised plans lodged with Dublin City Council, Davy Real Estate has added extra retail and food and beverage uses along with a two-screen cinema to the development. A decision is due on the application later this year. The Irish Examiner, 8th September
Little Island, Cork The commercial team at Lisney Cork is offering a detached warehouse/industrial unit to let on a one-acre site in Little Island, Cork for €140k pa. The property at No. 7 Waterfront Business Park extends to 14,000 sq. ft and incorporates a two-storey office/service block. The Business Post, 9th September
Lower Baggot Street, Dublin 2 The 0.149-acre site at James Place East is guiding at a price of €1.7m through agent JLL. The property, currently in use as a surface car park for 24 vehicles, is being sold with the benefit of full vacant possession. It is zoned Z10, the aim of which is “to consolidate and facilitate the development of inner city and inner-suburban sites for mixed uses” under the Dublin City Development Plan 2022-2028. The Irish Times, 6th September
Residential Supply, Dublin Kennedy Wilson has recently completed three major residential developments in Dublin totalling 800 units. The schemes at Coopers Cross, The Grange, and Sandford Lodge add to the US multi-national real estate investment company’s Irish multi-family portfolio, which now stands at more than 3,300 units with another 232 units under development. The Business Post, 10th September
Midleton, Co Cork Glenveagh Homes has submitted a Large-Scale Residential Development planning application to Cork County Council to build 270 residential units, 43 garden sheds, a crèche, three ESB substations, a temporary waste-water treatment plant and pumping station and all associated development works at Castleredmond in Midleton, Co Cork. The Business Post, 9th September
Rathgowan, Mullingar A €30m planning application was submitted to Westmeath County Council by Marina Quarter Ltd to build 181 residential units at Rathgowan, Mullingar. The development will form two phases of a larger (three-phase) residential development. The Business Post, 9th September
Centre Park Road and Monahan Road, Cork Cork City Council has granted planning to Leeside Quays Ltd for a 10-year planning permission for a large-scale residential development at the Goulding’s site on Centre Park Road and Monahan Road. Permission was granted for 1,325 residential units, including apartments and duplexes in 10 buildings, and a two-storey, 7,158 sq. ft crèche. The development ranges in height from two to 14 storeys over a single basement and will include four cafés/restaurants, retail units, a convenience store and offices. The scheme will provide 658 one-bed units, 465 two-bed units and 202 three-bed units. The Business Post, 9th September
Ardee, Co Louth An Bord Pleanála granted planning permission with conditions to The Ardee Partnership to build a further 272 residential units comprising 206 two, three and four-bedroom houses and 66 one, two and three-bedroom duplex units at Bridgegate Avenue in Ardee, Co Louth. The new homes will be built on a site of 32 acres adjoining phases 1-3 at Bridgegate (which is already under construction) on lands to the west. Plans include a two-storey crèche and playground, a central community hub, a landscaped public park and open public spaces and cycle lanes. The Business Post, 9th September
Cairn Homes expects to close 1,800 home sales in 2023, 18% higher than last year, as the country’s biggest housebuilder upgraded its revenue guidance for the year after reporting its best-ever period for sales. Announcing half-year results for the six months to June 2023, the company said it had closed 535 new home sales in the period. In the second half of the year, Cairn said it was forecasting more than 1,265 home sale completions, bringing the overall projected figure for the year to 1,800. Overall, between its closed and forward sales pipeline, Cairn has an order book of 2,730 units, with a net sales value of more than €1bn. The Business Post, 7th September
Housing Supply The number of new homes completed in the State could exceed 30,000 this year despite a slowdown in the second quarter and capacity constraints within the construction sector, the Banking and Payments Federation of Ireland (BPFI) has said. In its latest Housing Market Monitor report, the banking sector lobby group said approx. 7,353 units were delivered between April and June, a decline of 3.5% from the same period last year. However, on a rolling 12-month basis, the BPFI said a total of 30,546 new dwellings were completed in the year to the end of June, compared with 24,841 in 2022. Meanwhile, work on 8,212 new units commenced over the period, a 14.8% increase on the second quarter of last year. The Irish Times, 12th September
Housing Approvals There was an annual drop of more than 23% in the number of homes approved for planning permission in the second quarter, according to new data from the CSO. The number of “dwelling units” approved in the three-month period stands at 8,723 compared with 11,374 in the same quarter of last year. The annual fall came in marked contrast to the first quarter when an increase of 38% was recorded. For the six-month period from January to June, there was an overall increase of 3% in the total number of dwelling units approved when compared with the same period in 2022. Apartments accounted for 58% of all dwelling units approved, while housing units made up the remaining 42%. This was the first time since the second quarter of 2022 when more apartments than houses were granted planning permission. The number of houses granted planning permission fell by 18% on an annual basis to 3,702 housing units, while apartment approvals were down by 27% to 5,021 units. There was an annual decrease of more than 36% in the number of one-off houses receiving planning permission in the second quarter, compared with an annual decline of 32% in the first quarter. An annual fall of 6% in multi-development houses receiving planning permission in the second quarter compared with an annual increase of 81% in the first. The Irish Times, 8th September
The Society of Chartered Surveyors Ireland (SCSI) has called for “long-term planning” in Government budgets to drive down the cost of new housing, warning that increased construction costs are leading to many projects being paused or cancelled as they are “no longer financially viable”. Launching its pre-budget submission, the SCSI said that the viability gap that exists between the construction cost and the market price for new home buyers is at “unsustainable levels in many parts of the country”. The society has called on the Government to adopt longer-term plans across several budgets to drive down construction costs. The society also recommended the introduction of a rebate that lowers the capital gains tax rate to 8%, specifically for development land utilised for construction of new housing. The SCSI is also advocating for the establishment of a land price register, similar to the existing property price register, to promote transparency and fairness in land transactions and policy development. The Irish Times, 8th September
Vacant Commercial Real Estate, Ireland The number of vacant commercial properties increased in 20 counties in the 12 months to June 2023, according to the latest Geodirectory survey. It showed 29,798 vacant commercial units recorded in the 26 counties during the second quarter of this year, a rise of 557 when compared with the previous year. The 0.2% rise to 14.1% vacancy in the 12 months was the highest level on record since 2013. Dublin recorded an increase of 0.5% during the year, with the commercial vacancy rate in the capital rising to 13.1%. This trend continued in the Greater Dublin Area where vacancy rates increased from 12.6% to 13% over the 12 months. As many as 180,809 occupied commercial address points were recorded in Q2 2023, representing a net decline of 874 on the Q2 2022 figure. The services sector was hit the hardest, suffering a decline of 876 units, followed by the retail and wholesale sector which suffered a decline of 603 units. The Irish Independent, 7th September
Tallaght, Dublin 24 TU Dublin has opened a €14.7m teaching, research and recreation facility at the university’s Tallaght campus. Opening in time for the academic year, the new building provides an extra 35,327 sq. ft of space and includes classrooms, laboratories and one of the largest multi-purpose sports halls in Dublin 24. The facility is just one of several new developments planned for the university’s Tallaght campus, with a 55,972 sq. ft multi-disciplinary building currently under construction, adding a total of 91,299 sq. ft of additional student space since the establishment of TU Dublin in 2019. The Business Post, 10th September
Cork Event Centre The cost of building the proposed €85m Cork event centre is set to soar again, casting doubt on assurances that construction would finally start this year — more than seven years after the official sod-turning. City councillors were told that the completion of the detailed designs for the proposed 6,000-capacity venue, which is in line for approx. €57m in State investment, has resulted in a cost increase. Talks about the increased costs are ongoing, and a revised timeline for delivery cannot be provided until those talks are completed, they were told. The Irish Examiner, 12th September
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Smithfield, Dublin 7 A private Irish investor is selling three Dublin investment properties. The most valuable of them is a mixed-use investment known as Oxmantown Green, near Smithfield, Dublin 7, which comprises 25 apartments and two commercial units. QRE is guiding €9m (GIY approx. 6.43%) for Oxmantown Green. The Oxmantown complex is fully occupied with the exception of a single apartment and is currently producing a total rent of approx. €560k pa which could increase to approx. €579k upon full occupancy. Its ground floor commercial units are occupied by Fuse Gym and McDermott Creed & Martyn Solicitors. The current owner bought the complex for more than €6m in 2014 from a KPMG receiver and subsequently undertook an asset management programme which resulted in increasing the rent roll from its then level of €385.5k. The other two lots are 11 Main Street, Rathfarnham, Dublin 14, and 69 St Patrick’s Road, Dalkey, Co Dublin, both of which have €600k guide prices. The Irish Independent, 31st August
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Suffolk Street, Dublin 2 JLL has brought a mixed-use investment opportunity to the market for sale at nos. 24 and 25 Suffolk Street in Dublin 2 for €7.15m for the pair. The two buildings, which extend to four storeys over basement, include prime retail/F&B at ground floor level with offices above. Combined, both assets extend to approx. 17,780 sq. ft. No. 24 Suffolk Street is a mid-terraced building constructed in 1919, extending to 6,792 sq. ft. The ground floor retail is occupied by the British and Irish Italian restaurant chain Zizzi, which accounts for 74% of that building’s income. Zizzi signed a 25-year lease, running to January 2042 and currently has a passing rent of €200k pa. Landscape architecture firm Cunnane Stratton Reynolds recently signed a 20-year lease from August 8, 2023 for the first, second and third-floor office accommodation, at a rent of €70k pa.
No. 25 Suffolk Street is an end-of-terrace building, comprising a mix of period and contemporary designs and extending to 10,988 sq. ft. Fáilte Ireland, which leases the ground floor, has vacated the unit and will be exiting upon the expiry of its lease in November 2023. The Bodywise Clinic occupies the second floor on a ten-year term. It had the option to break its lease last year, which it did not exercise. Likewise, the third-floor tenant, FFA Chartered Accountants, has been in occupation on a 35-year lease since 1989. The combined guide price of €7.15 million offers investors the opportunity to achieve a reversionary yield of approx. 8%. The Business Post, 1st September
Hatch Street Lower, Dublin 2 Hotel operator Red Carnation Hotels has completed the sale of Hatch Hall in Dublin to a private investor for €23m (guiding €25m). Located on Hatch Street Lower in Dublin 2, Hatch Hall benefits from full planning permission for a 60-bedroom hotel, alongside two bars and a restaurant. The space spans eight stories over a basement, alongside the former chapel building, spanning approx. 78,490 sq. ft in total. React News, 31st August
Sandyford, Dublin 18 Esprit Investments has been cleared to build a nine-storey aparthotel in Sandyford, Dublin. The positive decision from An Bord Pleanála marks the end of a lengthy planning process for Esprit Investments, which first applied for permission for the development two-and-a-half years ago. Esprit Investments sought permission to demolish a two-storey warehouse and office building at Grafton House in Sandyford Business District in south Dublin. In its place it wants to construct a 124-suite aparthotel, a mix of one and two-bed rooms, of up to nine storeys. It was also seeking to build a 37-space car park and 36 bike-parking spaces. The Irish Independent, 5th September
Airbnb-linked tourism spending totalled €537m last year, the equivalent to 10.5% of all international travel-related spending in Ireland, according to a new report. The study, commissioned by the temporary accommodation provider and carried out by Oxford Economics, shows that employment linked to Airbnb activity accounted for approx. 5% of total tourism employment in 2022. The Business Post, 30th August
Dame Street, Dublin 2 NolaClan, the hospitality company, is set to take over the top floor premises at One Central Plaza. The space, which spreads out across two floors under a glass roof at the top of the Central Bank’s former headquarters, is set to reopen as a bar and restaurant. According to the last filed accounts for Capulat Limited, the holding company for NolaClan, it had post-tax losses in 2021 of €1.72m, down from €2.79m in 2020. The top floor, situated at level 10, extends to 8,923 sq. ft and is the main hospitality and dining area, while the level below covers 8,266 sq. ft and will accommodate the reception area, bar and back-of-house facilities. The Business Post, 3rd September
Cork Road, Waterford French investor Iroko Zen has completed its seventh acquisition in the Irish investment market, paying €9.8m for the premises of DIY retail giant Woodie’s on Cork Road in Waterford city. The property briefly consists of a large high-bay retail warehouse extending to 45,039 sq. ft. The building is let to Woodie’s DIY Ltd with a guarantee in place from its parent company, the Grafton Group PLC, on a 25-year term from June 2007 expiring in June 2032. The lease incorporates five-yearly upwards-only rent reviews. The passing rent is €909.2k pa, with the rent depending on good payment by the tenant. The property comprises a 3.4-acre site. The Irish Times, 30th August
South Anne Street, Dublin 2 Astrid & Miyu, the high-end jewellery brand has agreed a 10-year lease at number 2 South Anne Street, a mid-terrace unit leased from Irish Life Investment Managers (ILIM). The agreement was negotiated on ILIM’s behalf by Savills and joint agent Bannon. The store will sit alongside bespoke pen and watchmaker Montblanc and will also join premium athleisure brand Sweaty Betty, which opened its first stand-alone store in Dublin city centre at 32-33 South Anne Street earlier this year. The Irish Times, 1st September
Moore Street, Dublin 1 57/58 Moore Street in Dublin 1 is currently for sale through QRE Real Estate Advisers with a guide price of €1.65m (NIY 7.72%). The property comprises numbers 57/58 Moore Street along with the rear of No. 56, is currently leased to Eurogiant until April 2026, generating an annual rent of €140k. The three-story over basement mid-terrace building spans approx. 8,858 sq. ft. The capital value of approx. €186 per sq. ft is significantly below replacement cost. The Business Post, 1st September
Clonshaugh, Dublin 17 Principal Asset Management has completed its acquisition of two detached data centres, totalling 81,483 sq. ft, in Dublin for €10m. The deal was made on behalf of its Principal European Data Centre Fund I. Located at Willsborough Industrial Estate, the two facilities are leased to Verizon Ireland and Vodafone Ireland. Unit A, which is leased to Verizon, comprises 35,940 sq. ft of space used as a data centre and storage rooms over two floors. It also includes 8,901 sq. ft of office accommodation across three storeys. The second facility is let to Vodafone and comprises 45,542 sq. ft of warehouse space, with the remainder part-fitted out for data centre use alongside 8,772 sq. ft office space over three storeys. Both facilities generate a passing rent of €585k pa with a WAULT of approx. 5.1 years to break. Terms have been agreed to extend the existing lease on the property used by Verizon to 31st September 2032, and subject to fixed uplift rents of €315k pa beginning 14th February 2025 until 30th September 2029. A tenant break option is included subject to six months’ prior written notice and a six-month rent penalty on 1st October 2029, with the property due for an open market rent review on the same date. React News, 4th September
EY Ireland has narrowed its search for a new headquarters in Dublin city centre to four developments. The Big Four accounting and consulting firm set out earlier this year to find approx. 200,000 sq. ft of office space at a new location. It currently occupies approx. 100,000 sq. ft in a cluster of offices close to the Harcourt Street Luas stop in the capital, which it leases from the Clancourt Group. The shortlist for new, larger offices includes Clancourt’s Four and Five Park Place, overlooking Adelaide Road and Harcourt Road in Dublin 2, which is nearing completion and will comprise 198,000 sq. ft of space across two blocks. EY is also looking at office space being developed by Westridge Real Estate on the old DIT Kevin Street site in Dublin 8, as well as part of the 540,000 sq. ft of offices currently being constructed by Marlet Property Group on the corner site of Tara Street and Townsend Street. Social media group LinkedIn is also in talks to sublet or assign a 25-year lease it took out in early 2020 on Two and Three Wilton Park, which are currently under construction. The Irish Times, 2nd September
Dalkey, South Dublin Four Dalkey residents have brought a judicial review action challenging An Bord Pleanála’s decision to grant Bartra Property Ltd permission to construct a 104-bed nursing home on lands at Ulverton Road and Harbour Road, Dalkey. In its decision, the board overturned Dún Laoghaire Rathdown County Council’s 2021 decision to refuse to grant planning permission to Bartra. The Irish Times, 30th August
Harold’s Cross, Dublin 6 The McGrath Group has commenced the construction of 50 high-end apartments on the former Kenilworth Motors site at Harold’s Cross in south Dublin. The development, which is due for completion in the first quarter of 2025, will comprise a mix of one- and two-bedroom apartments in a single block. The subject site extends to 0.54 acres. News of the new development comes just weeks after the family-owned Irish property firm completed its acquisition of the Harold’s Cross site. The Irish Times, 30th August
Lisney Development Land Report The level of activity in the development land market saw a significant decline in the first half of 2023, with just 26 sites with combined selling prices of €86m sold in the Greater Dublin Area compared to total sales of €279m and €244m respectively in the first and second halves of 2022. Dublin accounted for 77% of total turnover in the development land market in the first half of this year. Out of the 26 sites sold in the first six months, 12 had planning permission, making up 7% of the total land sold by size (by acres) and 54% of the €86m in total turnover. Despite these low levels of activity Lisney reports that more than €170m worth of land was sale-agreed in the Greater Dublin Area at the end of June 2023. The Irish Times, 30th August
Rent Increase The average rent being paid in newly registered tenancies nationally rose to €1,544 per month in the first quarter of this year, up approx. 9% on the same period last year, despite a moderate increase in supply. The latest figures from the RTB indicate the average rent on new tenancies in Dublin, where demand is strongest, rose by 8% to €2,102 per month. The rise in rents nationally and in the capital, which coincided with an increase in the supply of new rental accommodation, underscores the affordability crisis at the heart of the State’s rental market. The index was derived from rents paid under 14,085 private tenancies which were newly registered with the RTB in the first quarter of 2023. This represented a decrease from 15,336 in the same quarter of the previous year. The Irish Times, 31st August
New Planning Guidelines New housing developments in cities near good public transport should be limited to one parking space per household, or have no parking where possible, under new draft guidelines. The draft Department of Housing planning guidelines for local authorities increases the permitted density of housing developments in urban areas, in an attempt to boost housing supply. However, if parking spots are not built for each housing unit, a limited number should be provided in new developments for people with mobility issues. The draft guidelines stipulate housing density in Dublin and Cork city centre should be increased from at least 50 dwellings per hectare (dph) to 100-300 dph. Similarly, housing density in the city centres of Limerick, Galway and Waterford should be 100-200 dph. The Irish Times, 31st August
Dunsink, Dublin 11 Dunsink, formerly home to Dublin’s largest landfill, has been identified for “intensive” residential development, with the potential for more than 7,000 homes, under plans to capitalise on State investment in public transport. The 1,075-acre land bank, to the southwest of Finglas, is one of 14 locations around the capital which could deliver a total of 130,000 higher density homes, according to a report commissioned by the Departments of Housing and Transport.
The Transport Oriented Development report sets out the areas in Dublin city and county which should have significantly higher levels of housing due to their proximity to high-capacity transport, including existing rail and tram lines, and planned metro, Luas, Dart and BusConnects routes.
It includes areas that have already seen substantial development such as Ballymun, Tallaght, Adamstown and Sandyford, as well as undeveloped or former industrial “brownfield” lands such as the Poolbeg Peninsula, the “City Edge” lands along the Naas Road, and Dunsink.
Nine locations have been identified as having capacity for approx. 60,000 homes in the “short to medium term” due to their proximity to existing high-capacity public transport, or schemes that will be delivered in the short term, by 2030, or medium term, by 2036, under the Transport Strategy for the Greater Dublin Area 2022-2042. The Irish Times, 4th September
Balgriffin, North Dublin An Approved Housing Body (AHB) is pushing on with a deal to buy over 400 residential units from housebuilder Cairn Homes in North Dublin. The deal, understand to be worth north of €150m, is for several blocks of Cairn Homes’ Parkside project in Balgriffin. Should it complete, it would represent the largest upfront sum invested by an AHB to date. Cairn has planning in place for a 730-unit apartment scheme at Parkside. React News, 4th September
Phibsborough, Dublin 7 A five-year planning permission for an apartment scheme for Phibsborough in Dublin is not long enough due to the threat of a High Court judicial review, according to a property developer. A planning appeal has been lodged on behalf of Bindford Ltd against conditions attached to a Dublin City Council planning permission for 184 apartments for its scheme at Cross Guns Bridge in Phibsborough. As part of the Cross Guns Large Scale Residential Development, Bindford had originally proposed a seven-year permission for 196 apartments made up of 118 build-to-sell apartments and 78 build-to-rent units within three blocks, ranging in height from three to 12 storeys. In its decision in July, the council ordered the omission of three floors in the 12-storey block, reducing the number of units to 184 as part of a five-year planning permission. Two third party appeals have also been lodged against the council decision seeking that the permission be overturned. The Irish Times, 4th September
Inchicore and Rathmines, Dublin A land swap between the HSE and Dublin City Council, which the council said is “urgently” required for the regeneration of St Michael’s Estate in Inchicore, has been approved by councillors. The council wants the HSE to vacate the property it owns at the sites of the former flat complex in Inchicore so the council can start work on its flagship cost-rental project. An Bord Pleanála in July granted permission for 441 cost rental homes, which will be available to rent to low and middle-income workers, and 137 social homes on the largely council-owned site. The council will swap the land with a site it owns in Rathmines. The site at Gulistan Terrace, behind the Swan shopping centre, has been in use as a council waste depot. The council plans to use part of the Rathmines land for housing, with the remainder transferred to the HSE for a primary care centre. In the new agreement, the HSE will agree to transfer the Inchicore site to the council and pay the council an additional €2m for the Rathmines site. However, in the event of the primary care centre not going ahead, the council would retain both sites and pay the HSE €3.5m. The Irish Times, 4th September
Dublin Airport Comer Group has said it is “extremely interested” in acquiring 260 acres of land beside Dublin Airport that is being sold by the McEvaddy brothers. The land is estimated to be worth up to €210m. DAA, which operates the adjoining airport, is also in the hunt to buy the property but at a fraction of the price level being touted in the market, it is understood. The DAA, the semi-State company that controls Dublin Airport, is understood to have bid significantly less than €80m for the land, whose owners also include Brendan and Orla O’Donoghue as well as Sean Fox. The Irish Independent, 5th September
Docklands, Cork Cork City Council is seeking economic and financial consultants to prepare the preliminary business plan for approx. half a billion euro in key enabling works for the redevelopment of the Cork Docklands. The aim of the regeneration project is to create capacity to accommodate approx. 20% of Cork City’s population growth up to 2040. The Docklands project has been approved for €471m in funding for various enabling works that are to be delivered by 2030. The Urban Regeneration and Development Fund is supplying 75% of this funding with the remainder to come from other exchequer sources and Cork City Council through development contributions and borrowing. The Irish Examiner, 4th September
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Pub Sector Ireland has lost approx. a quarter of its pubs in the last 18 years as more and more publicans abandon the trade. Approx. 2,000 pubs have shut their doors since 2005, with the decline accelerating since the pandemic. Rural pubs were particularly hard hit and while the country as a whole lost 22.5% of its pubs over the period, Dublin fared best, with 3.4% of the capital’s pubs shutting down. The trends are revealed in a new study from the Drinks Industry Group of Ireland (DIGI), which describes the rate of closures as “alarming”. The industry is calling for a reduction in excise duty on alcohol in the upcoming budget to help boost trade. In total, 1,937 pubs shut down since 2005, an average of 114 a year, although the annual average rose to 152 since 2019. Currently, 6,680 pubs remain in business. The Irish Independent, 23rd August
Dalata Performance Hotel revenues across the Dalata group climbed 29% to €284.4m in the six months to June with room revenues well in advance of the same period last year. Profits before tax slipped 3% to €42m amid a 5% rise in central costs to €7.2m. Looking ahead, Dalata said it expects revenue per available room (Revpar) for July and August to be approx. 5% in advance of the same months last year. The average nightly price of a room across Dalata’s portfolio of hotels in Ireland and Britain jumped approx. 10% to €139.50 from €126.89 last year, with the group achieving like-for-like Revpar of €112.09, up 23% from 2022. Revenues across Dalata’s Dublin portfolio were 35%, or €38.8m, in advance of the first half of 2022 at €149.4m. The Irish Times, 29th August
Ulster Bank Branch Network Ulster Bank has instructed Cushman & Wakefield to dispose of the second tranche of properties from its former bank branch network. The sale of this phase comes just over two months on from the bank’s move to dispose of 18 of its premises as part of its ongoing withdrawal from the Irish market. While the first tranche was largely comprised of buildings in suburban Dublin and large provincial towns, the latest phase of 16 properties includes a number of landmark premises in Dublin city centre. The sale comprises 14 freehold/long-leasehold interests in high-profile pitches across the country. In Dublin these include: Baggot Street Lower; Camden Street; Walkinstown Cross; Tallaght, and Dún Laoghaire. Moving beyond the capital there are properties available in Naas and Newbridge in Co Kildare; Mullingar, Co Westmeath; Blessington, Co Wicklow; Longford; Monaghan; Limerick; Nenagh, Co Tipperary; and Sligo. The subject properties range in value from approx. €250k to more than €2m for the significant corner profile building on the corner of Baggot Street Lower. The Irish Times, 23rd August
Tesco Ireland is to spend €80m in its current financial year on eight new store openings and the upgrade of dozens of existing shops. The investment will be used to open eight new Tesco Express stores, carry out significant upgrade projects for 50 stores, and for maintenance across the store network. A Tesco Express will open at a new large apartment development, Two Oaks, in Rathfarnham, Dublin, next month, bringing Tesco’s estate to 167 shops in Ireland. Three more Express stores will open in Dublin by the end of the year, as well as other stores in Cork and Waterford. The Irish Independent, 27th August
Exchequer Street, Dublin 2 American Vintage, a French fashion brand, is to open its first standalone store in Dublin. The company has taken a lease of 32 and 34 Exchequer Street, close to the shopping strip of Grafton Street. A planning application to Dublin city council last week sought permission to add the American Vintage branding to the front of the store. The Sunday Times, 27th August
Office Market, Cork An analysis of the Cork office property market for the first half of the year revealed significant growth driven by the expansion of the HSE, according to Savills. New figures show a 19.4% increase in H1 2023 take-up compared to the same period in 2022, with a total of 196,400 sq. ft recorded. The expansion of the HSE played a major role, contributing to 56% of the deals in H1. One of the prominent transactions was at the Westfield Office Quarter, Ballincollig, where the HSE leased 64,000 sq. ft of space which had been vacant since its completion in Q4 2019. Headline rents in Cork remained stable at €32.50 per sq. ft. However, the vacancy rate for H1 2023 stood at 13.7%. The Business Post, 25th August
Grange Castle Business Park, Dublin 22 Data centre REIT CyrusOne has sought planning permission to construct a new data centre in Dublin’s Grange Castle Business Park. The planning application includes a request to demolish a single-storey house to make way for a two-storey data centre, delivery bays and a three-storey office block. Both buildings will have a gross floor area of 381,320 sq. ft. A decision from South Dublin County Council will be made this September. React News, 24th August
Park West Industrial Park, Dublin 12 Silent-Aire has completed two new lettings at Park West Industrial Park, Dublin 12 through CBRE. The company designs, engineers, manufactures and services modular data centres. The company has taken space at adjoining buildings, Unit SB1 and S2 at Park West Industrial Park on the Nangor Road. The units extend to 40,000 sq. ft and just over 67,500 sq. ft respectively. They have both been secured on new long-term leases. The company also occupies several additional buildings in Park West and was already one of the largest occupiers in the campus prior to the latest deals being agreed. The Business Post, 25th August
Housing Commencements Local authorities reported over 500 more homes commenced in July of this year than the same month in 2022, new figures from the Department of Housing show. In total, local authorities received commencement notices for 2,985 new homes in July 2023, an increase of 22.4% on the 2,438 new homes commenced in July 2022. The figure is also an increase on the 2,574 new homes commenced in June of this year. The Department of Housing says that 18,546 homes have been commenced in the first seven months of 2023, an increase of 11.8% on the same period last year. Approx. 11,010 of these are in the Greater Dublin Area. In 2022, 29,957 new homes were commenced in the State throughout the year. In 2021, the Government estimated in its Housing For All plan that 33,000 new homes would be required each year up to 2030. With five months remaining in 2023, 14,454 homes will need to be built to reach that target. The Irish Times, 24th August
Residential Market There is a “strong rationale” for treating the provision of mortgages as separate to other forms of lending, according to the head of the Institute of Professional Auctioneers and Valuers (Ipav) – an industry body representing auctioneers and real estate agents. Pat Davitt, Ipav chief executive, has said the government must give urgent consideration to products outside of those offered by pillar banks in order to make low interest mortgages widely available, as he called for sweeping measures to tackle housing affordability in October’s budget. According to Ipav’s most recent Residential Property Price Barometer, which examined the price of three- and four-bedroom houses and two-bedroom apartments in Ireland, selling prices for such units increased by 2.05% in the first half of this year. The Business Post, 28th August
South Docks, Cork Cork City Council has granted planning permission to O’Callaghan Properties for 1,325 homes on the former Gouldings site, off the South Docks. O’Callaghan Properties – through its subsidiary, Leeside Quays Limited – applied for planning in June for the residential units, comprising apartments and duplexes, on a 14.8-acre site at the former Gouldings fertiliser plant, with the city council granting planning permission in the last few days. The project will involve the construction of 658 one-bedroom units, 465 two-bedroom units and 202 three- bedroom units. The Irish Times, 28th August
Balbriggan, North Co Dublin Residents of Balbriggan have claimed that the North County Dublin region lacks the adequate resources needed to accommodate a new €251.5m residential scheme, which would see over 564 units added to the area. Over 90 objections have been lodged against the Large Scale Residential Development scheme with Fingal County Council. Dean Swift Property Holdings UC is seeking a 10-year planning permission to build 378 houses, 102 apartments and 84 duplex units on a site off Flemington Lane. A decision is due next month. The Business Post, 28th August
New Planning Bill A controversial Bill addressing systemic problems in the planning process and long delays in the completion times of developments will be enacted by Christmas, Minister for Housing Darragh O’Brien has said. The Planning and Development Bill runs to over 750 pages and is the third largest piece of legislation to be published in the history of the State. It includes a number of changes designed to accelerate building during the housing crisis, including fines for breaches of mandatory planning deadlines, and placing new limits related to the standing of parties to take court cases. The draft Bill extends the duration of a development plan from six years to 10 years, with a further two-year extension in exceptional circumstances. It will also provide for a new Coimisiún Pleanála to replace An Bord Pleanála. The Bill also provides that those bringing judicial review applications must have a “sufficient interest”. The Irish Times, 24th August
Mortgage Activity A record number of first-time buyer mortgages were approved in the year to the end of July, according to the latest data from the Banking and Payments Federation Ireland. Approx. 2,918 mortgages were approved for first-time buyers in the month, the industry body said. This brought the volume of first-time buyer mortgages to 29,754 for the year to the end of July, with a combined value of approx. €8.4bn. This represented a record annual high. Of the 4,747 mortgages approved in July, 1,148 (24.2%) were mover purchases. The number of mortgages approved fell by 0.4% MoM, with a 9.7% decline in approval rates when compared with July 2022. The value of mortgages approved for July was €1.36bn, of which €837m (61.7%) was for first-time buyer mortgages. This value of mortgage approvals saw no change MoM but fell by 6.7% YoY. Mover purchasers’ mortgages were valued at €391m (28.9%), bringing the total to €3.9bn for the 12 months to the end of July, the highest figure recorded since this data set began. The Irish Times, 25th August
Tax Breaks The Government will be offering tax incentives to small landlords to remain in the rental market, according to Minister for Finance Michael McGrath, who said the exact details of the plan have not yet been finalised. Mr. McGrath confirmed the details of a report which stated that Minister for Housing Darragh O’Brien was continuing to push for a tax break for small landlords as well as “a backstop” incentive for developers to keep building apartments. Under this backstop measure, the €450m Croí Conaithe scheme announced last year would be extended in an effort to boost the number of apartments for sale, with the State subsidising developers to the tune of €344k per unit. The State would buy apartments that developers cannot sell on the open market and then lease these on a cost rental basis in an attempt to help developers secure funding and increase the rental housing stock. The Irish Times, 28th August
Construction price inflation for commercial developments has moderated significantly over the past year, new figures show. The latest tender price index from the Society of Chartered Surveyors Ireland (SCSI) found that the price surges being driven by spiking energy costs and supply chain issues are beginning to ease. The report found commercial construction tender prices rose by 2.4% in the six months to the end of June 2023. This was down from 3.7% in the second half of 2022. Inflation has fallen significantly over the past year. Between July 2021 and June 2022, commercial construction tender prices rose by 14%. This was the highest 12-monthly inflation recorded since the SCSI started the index 25 years ago. The rise in building inflation had been blamed for cost spikes on major developments such as the National Children’s Hospital in Dublin. The SCSI said the main issue facing commercial building firms is now finding enough skilled staff to man sites. The Irish Independent, 25th August
Construction Contract The contractor behind the National Children’s Hospital, which is at the centre of a dispute over costs, is in the mix to win a €140m public-private partnership contract from the government to design, build, finance and maintain buildings at universities. BAM is one of four shortlisted in June 2021 for the tender process for buildings at universities in Waterford, Limerick, Letterkenny, Galway and Carlow. The National Treasury Management Agency has yet to announce a winner. Enbarr Partnership, a joint venture between contractor JJ Rhatigan and Obrascón Huarte Laine and Macquarie, the Australian investor, was also shortlisted. The other companies shortlisted for Higher Education PPP Bundle 2 are John Sisk, the builder, which teamed up with Equitix; and Sacyr Kajima, a joint venture between Kajima, a Japanese real estate investor, and Sacyr Ireland, a Spanish firm. The Sunday Times, 27th August
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Blanchardstown, Dublin 15 AIB wants to sell its €170m senior debt facility that is secured against Blanchardstown Shopping Centre in west Dublin. The bank has instructed Alantra to solicit offers for the position, which forms part of the wider €550m senior debt syndication on Blanchardstown. Following a sharp fall in value of the centre under its current ownership, AIB is understood to be willing to sell the debt, which matures next year, at a discount. The move comes as Goldman Sachs, the centre’s owner, is considering a sale of the asset for less than the value the US investment bank paid for it just over two years ago. Goldman is expected to seek approx. €650m for the Blanchardstown Shopping Centre, with the sale likely to come forward early next year. React News, 21st August
St Patrick’s Street, Cork Carroll’s Irish Gifts will take over the ex-Oasis property at 48/49 St Patrick’s Street, on the corner with Princes Street. Carroll’s has just started a store fit-out on St Patrick Street at its new ‘Oasis’ base, with 1,900 sq. ft at ground level and return frontage in a prime trading pitch. Bannon acted for owner Irish Life, seeking a rent of over €200k pa on a 10-year lease, with JLL acting for Carroll’s Irish Gifts. The Irish Examiner, 18th August
North Wall Quay, Dublin 1 Retailer Dunnes Stores has begun work on the fit-out of the anchor tenant unit of the Point Village development on North Wall Quay, Dublin, 15 years after the Irish supermarket chain agreed to do so in a deal with developer Harry Crosbie. The dispute between his former company, Point Village Development Ltd (now in liquidation) and Dunnes Stores has raged in the courts ever since, with the High Court at one stage directing that the fit-out begin, but Dunnes then securing a stay on that order. However, a notice that work was finally to commence on the unit was lodged on behalf of Dunnes Stores with Dublin City Council earlier this month. The Irish Times, 18th August
St Stephen’s Green, Dublin 2 Plans for a new 61-bedroom hotel close to St Stephen’s Green in Dublin are facing local opposition. Last month, Grafton Residence UC lodged plans for a new eight-storey hotel on a site known as Textile House at Johnson Place and Clarendon Market. The new hotel would be managed from the nearby 127-bedroom Grafton Hotel and represent an expansion of the Sretaw Hotel Group. The Irish Times, 16th August
Temple Bar, Dublin 2 The owner of The Temple Bar has lodged an application for a new hotel in the area. Chambers Properties Ltd has applied for permission for a new 47-room boutique hotel facing on to Dame Street and Eustace Street in Dublin. The application involves the change of use of a building known as the Shamrock Chambers. The five-storey over basement building currently houses a vacant restaurant, unused offices and a shop. A decision is due on the application next month. The Irish Times, 15th August
Irish Tourism Industry Confederation (ITIC) report The State should help subsidise the construction of thousands of hotel beds in regional areas, the ITIC has said. A report published by the group called for a range of interventions, such as a commercial rates waiver in certain locations. However, the group did not give estimates of how much these measures could cost the State. The ITIC report estimated that 11,500 additional tourism beds will be required in the next decade if Ireland is to meet projected tourism demand. There are approx. 67,000 hotel bedrooms in the country. It estimated that international tourists will jump from the pre-pandemic peak of 9.7m in 2019 to more than 13m in 2032. The measures recommended in the report include tax breaks aimed at regional tourist developments, changes to planning and regulation to facilitate building in “targeted areas” and commercial rates holidays in certain areas. The Irish Independent, 18th August
Rosemount Business Park and Dublin Airport Iput Real Estate is selling two warehouses for in excess of €40m. KKR and partner Palm Capital have agreed terms to buy the assets – a 270,000 sq. ft Dunnes Stores logistics facility at Rosemount Business Park and a warehouse leased to DHL at Dublin airport. The two warehouses, let to the grade A covenants of Dunnes and DHL, will provide ample asset management opportunities to Palm Capital and KKR. Currently let off low rents compared to relevant estimated rental values the duo are expected to enhance each facility with ESG-focused improvements. React News, 18th August
Molesworth Street, Dublin 2 London-headquartered law firm Simmons & Simmons is gearing up to expand its presence in the Irish market, signing a lease on a new office that will give it the capacity to double its workforce here. The firm, which has 55 employees, is planning to relocate to One Molesworth Street, near Leinster House in central Dublin. It has been based at Grand Canal Dock since 2019, having opened in Dublin in May 2018. The 13,100 sq. ft office is located on the fourth floor and will have the potential to accommodate 120 staff, the firm said. The Irish Times, 16th August
Middle Abbey Street, Dublin 1 Primark is preparing to launch a hunt for a development partner to transform Independent House, on Middle Abbey Street in Dublin city centre, a decade after the company bought the 75,000 sq. ft property for approx. €6m. According to market sources, the company wants to turn the 1920s building into a hotel or offices. The five-storey building has remained vacant for 20 years. The Sunday Times, 20th August
Clifden, Co Galway A new State-run nursing home is set to cost four times more than those built by the private sector, a representative group for nursing home operators has claimed. Nursing Homes Ireland (NHI), which represents private operators, has accused the Government of spending “extortionate” amounts of taxpayers’ money to develop public facilities when compared to what their members have spent building new homes. The intervention comes after Minister for Older People announced €35m for development of a 40-bed nursing home in Clifden, Co Galway. NHI said this worked out at around €880k per bed, while a report drafted for the representative group by PWC found private nursing homes in rural areas could be built for €162k per bed. The new facility includes 40 beds comprising 20 long-stay beds, 10 dementia-specific beds, and 10 short-stay beds including for respite and step-down care. The Irish Independent, 21st August
Student Accommodation More than 1,000 new student beds will be provided under a Government scheme to subsidise the cost of accommodation but none will be available for the coming academic year. In November, Minister for Further and Higher Education announced the Government would intervene for the first time in the provision of student accommodation, given the acute shortages in the sector. The priority was to activate projects that had planning permission but were stalled due to rising construction costs and financing. Figures provided by the Department of Further and Higher Education reveal that the State has provided up to €61m in capital and current funding to unlock the development of 1,072 beds in four universities. The Irish Times, 16th August
Housing Construction Two development companies have drawn up plans for two Large Scale Residential Development (LRDs) schemes totalling more than 1,000 units in Dublin commuter counties. In one scheme the Irish arm of the Comer Group is to lodge plans in the coming days for 716 dwellings on lands around Dunboyne in Co Meath. In a planning notice published on behalf of Comer Group subsidiary AZRA Property Company Ltd, the firm is seeking a 10-year planning permission for an LRD comprised of 517 apartments in eight blocks ranging from four to seven storeys. The LRD scheme is to be constructed on a 42-acre site in the townlands of Castle Farm, Ruskin and Clonee. It would also include 155 two-storey houses. There would be eight two-bedroom homes, 69 three-bedroom homes, 74 four-bedroom homes and four five-bedroom homes. In the second major LRD scheme, Glenageary, Co Dublin-based firm Keldrum Limited has lodged plans for a 352-unit residential scheme on a 41.5-acre site at Tinakilly, Rathnew, Co Wicklow. The plan for the site on the northern periphery of Wicklow Town includes 220 houses and 132 apartment/duplex/maisonette units. The Irish Times, 17th August
Crumlin, Dublin 12 Seabren Developments has secured planning permission for a €70m, 152-unit residential scheme for Crumlin in Dublin 12. The award of permission comes after Seabren’s third application in respect of the site to the southwest of St Agnes Rd, Crumlin, Dublin 12. The company has joined with Circle VHA CLG in drawing up the Large Scale Residential scheme. The new permission comes after a community group in January this year brought a High Court challenge to an October 2022 grant of permission by An Bord Pleanála for a fast-track 150-unit Strategic Housing Development (SHD) for the site. The new application confirmed that the October 2022 permission “is currently the subject of a judicial review”. The new scheme consists of 152 apartments comprising 75 one-bed units, 72 two-bed units and five three-bed units, a creche, cafe and the change of use of Glebe House from residential use to a community building for community arts and culture. Two apartment buildings to the rear of Glebe House would range in height from four to six storeys. The Irish Times, 17th August
House prices in Dublin fell at the fastest annual rate in nearly three years in June as higher interest rates curbed affordability. The latest Residential Property Price Index from the CSO indicated that prices in the capital dropped by 0.9% in June, the biggest yearly drop recorded since October 2020. Across the State, house prices continued to grow on an annual basis but at a reduced rate of 2.2%. That was down from 2.6% the previous month and from an annual rate of 14% in June 2022. The latest index pointed to a significant fall-off in transactions with purchases down by more than 9% in June to just over 4,000. Central Bank data showed the average interest rate on new home loans rose above 4% in June – the highest level in almost a decade. The Irish Times, 16th August
The LDA has indicated that at least 13,000 new homes could be delivered if the Government agrees to ramp up funding to the body by up to €8bn. According to market sources, the Government is discussing moves to redirect up to €8bn from a new sovereign wealth fund into housing, as part of a fresh push to boost the supply of social and affordable homes. It is understood that the extra funding would also help to ramp up the delivery of cost rental units, which allow tenants to pay a lower rent. The Irish Times, 16th August
Balgriffin, North Dublin Cairn Homes is in talks to bulk sell more than 400 homes at its Parkside 5B project in Balgriffin in North Dublin to an approved housing body in the largest deal of its kind ever completed by such a body in Ireland. Industry sources have estimated the deal could be worth €200m. Last year, Cairn received permission to build 730 apartments across five blocks at the development. Documents show the unnamed approved housing body in talks with Cairn doesn’t plan to purchase the entire development. It has, however, indicated that it plans to remove 90% of the amenity space in two of the blocks before it agrees to a deal. Cairn Homes said the approved housing body had identified a need for more one- and two-bed apartments to meet demand and therefore had proposed to replace the amenity spaces with an additional 13 apartments. The Business Post, 20th August
Sandford Road, Dublin 18 An Bord Pleanála has granted planning permission to Midsal Homes for a contentious apartment scheme in Sandford Road, Dublin 18 after cutting the number of units by 15%. In granting planning permission for the Strategic Housing Development (SHD), the appeals board has reduced the number of apartments from 137 to 116 “in the interests of residential and visual amenities”. The Irish Times, 18th August
Social and Cost-Rental Homes The approved housing body, Respond, is on track to triple the number of social and cost-rental homes it will have in construction to more than 4,100 in the coming months, it has said. The organisation’s construction programme is to expand to €2bn over the coming year as, supported by local authorities, it has secured fixed-price contracts with a number of leading developers and building contractors to construct large, mixed-tenure housing projects in Dublin and Cork, it said. The organisation’s projects include the final completion of large mixed-tenure developments at Charlestown, Finglas (138 homes) and Enniskerry Road, Stepaside (155 homes). It is also working on a Long Mile Road development, which will provide 153 homes when completed later this year, the organisation said. The body buys sites and finances construction by way of fixed-price contracts, with 85% of its development schemes being construction-led. This model, Respond says, allows it to save up to €60k per unit compared to a housing-acquisition model. The Irish Times, 22nd August
Saggart, Co Dublin A subsidiary of Irish investment group Tetrarch Capital has received planning permission from South Dublin County Council for an 8,047-plot cemetery on the grounds of the former golf course beside the Citywest Hotel, in Saggart, Co Dublin, subject to a number of conditions. Tetrarch had sought permission for the burial plots, columbarium walls (to hold the ashes of those who are cremated), a single-storey reception building, an office and associated facilities alongside a new road to provide access to the N7/M7 Naas Road, 110 car-parking spaces and extensive landscaping, including the reshaping of an existing lake with the provision of a footbridge. The Irish Times, 17th August
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North Wall Quay, Dublin 1 A consortium led by Oaktree Capital Management has launched a Dublin office for sale with a price tag of €155m. Targeted Investment Opportunities – a joint venture incorporating Oaktree, Nama and Irish construction firm Bennett – has instructed JLL to sell North Dock. North Dock, a recently constructed development, provides 200,000 sq. ft of grade A office space across two blocks on North Wall Quay, beside the 3 Arena. The guide price reflects a capital value of €775 per sq. ft with approx. 50% of the asset leased so far. Current tenants include Blueface, a cloud-based telecommunications company that leased 15,000 sq. ft, and Gilead Sciences, a Californian pharma firm – which signed up for 30,000 sq. ft at the scheme in 2020. React News, 9th August
Earlsfort Terrace, Dublin 2 Iput is facing opposition to its plans to demolish Deloitte House and Garryland House on Dublin’s Earlsfort Terrace and replace the buildings with a nine-storey office block. Hibernia Real Estate Group – the former Hibernia Reit – and aircraft leasing giant AirLease Corporation have both lodged objections against the proposed 339,892 sq. ft office space. Manahan Planners, acting for AirLease Corporation which has its Irish HQ at 22, 22a and 23 Earlsfort Terrace along with subsidiary ALC Aircraft Ltd, called on Dublin City Council to refuse planning permission for the development. Hibernia Real Estate Group owns the nearby Hardwicke House and Montague House, and on its behalf IMG Planning says the scheme as currently planned will have a significant and adverse impact on its two properties. The Irish Times, 14th August
West Portfolio, West Dublin M7 Real Estate has taken its Irish industrial platform to north of €500m with the acquisition of a portfolio from Davy. The investment manager – which has one of the largest logistics portfolios in Ireland – has bought the West portfolio from Davy Real Estate for €22.25m (NIY approx. 6%; €120 per sq. ft). The West portfolio comprises 11 assets, totalling 187,441 sq. ft. The properties are located in core urban logistics locations in west Dublin. React News, 9th August
WeWork Shares in WeWork plummeted as much as 36% after it expressed “substantial doubt” about its ability to continue operating. The company cited sustained losses and cancelled memberships to its office spaces amid a slow post-pandemic return to workplaces in major urban centres. WeWork, which went public in 2021, is one of the biggest individual tenants in Dublin. It operates at four locations. It is the anchor tenant at the 120,000 sq. ft former Central Bank of Ireland building on Dame Street, now known as Central Plaza, as well as the 100,000 sq. ft Dublin Landings 2 building in the docklands. In addition, it has locations at Harcourt Road and the Charlemont Exchange near the Grand Canal. The Irish Times, 9th August
Conrad Dublin Performance A return to normal trading conditions following the lifting of tough public health restrictions saw the company behind the Conrad Dublin hotel bounce back into the black last year after losing more than €3.6m in 2021. The hotel, which was sold to Dutch-anchored hotel investor Archer Hotel Capital in 2019 for a reported €118m, generated profits of €2.5m in 2022, a significant turnaround from its 2021 loss. Its cash reserves swelled from €4.6m in 2021 to more than €11m at the end of December 2022. Turnover at the 175-bedroom hotel surged more than 360% to €18.5m, near pre-Covid levels, from €5.1m in 2021 when the hotel was closed between April and July. The Irish Times, 10th August
Swords, North Co Dublin Fingal County Council has emerged as the winning bidder for a 62-acre site with the potential for more than 1,000 homes in Swords, North Co Dublin. It is thought the local authority has paid €40m (€40k per site) for the land, which does not have planning permission but is zoned residential. The site, which came on the market in March through CBRE, is located on the Rathbeale Road, beside Swords community college and less than 2km from the village. The Sunday Times, 13th August
Construction Report There were 520 fewer housing units being built in Dublin in the first three months of this year than in the same period of 2022, according to the latest data from the Dublin Housing Supply Coordination Task Force. The drop in construction came as the number of planned units grew substantially YoY. The task force found 17,483 units were under construction in the first quarter, a 2.9% reduction on 2022. The data showed the number of apartments under construction has now been greater than houses for three consecutive years in Dublin. The latest report from the Government agency also showed an increase of 18,303, or approx. one fifth, to 113,070 in the cumulative number of housing units allowed and proposed under current Dublin planning applications when compared to the first quarter of 2022. It found 55,582 extant planning permissions which had yet to begin construction in the first quarter, up 13.7% on a year earlier. The Irish Times, 11th August
BNP Paribas Real Estate Ireland Report The recovery in construction appeared to stall in July as new orders fell and inflationary pressures picked up again, posing a renewed challenge to the Government’s housing targets. The latest Purchasing Managers Index for construction published by BNP Paribas Real Estate Ireland pointed to a renewed decline in activity in July – it had increased in June – as demand faltered. The decline was broad-based across the three monitored categories, housing, commercial and civil engineering, it said. The company’s report also highlighted an acceleration in input-cost inflation. The company’s latest headline index, which measures construction activity, fell to 45.6 in July from 50.4 in June, dropping back below the 50 threshold, which signals a contraction in activity. The reading was consistent with the data on new orders, which signalled a first reduction in six months, it said. BNP Paribas Real Estate Ireland Report, 14th August
Social and Affordable Homes Supply The Government is discussing moves to divert as much as €8bn from the new sovereign wealth fund into housing, as part of a fresh push to boost the supply of social and affordable homes. The money would go to the State-controlled LDA as it enters new partnerships with private developers to build on public and private land. The plan has not yet received Government approval. But it reflects the view that “multiples” of the LDA’s original €1.25bn budget will be needed to tackle the housing crisis and that building costs will only rise if the agency borrows on private markets to fund its operations. Now Mr. O’Brien is staking a claim to deploy anywhere between €4bn and €8bn of that fund into the agency, whose original budget is fully committed to current housing projects. The Irish Times, 14th August
Milltown, South Dublin Dublin City Council has granted planning permission to Ardstone for a €300m ‘buy-to-sell’ apartment scheme near Milltown in South Dublin. The city council has given the green light to Ardstone subsidiary Sandford Living Ltd’s 636-unit Large Scale Residential Scheme (LRD) application for Milltown Park, Sandford Road, Dublin, despite strong local opposition. The scheme is to be made up of 87 studios, 227 one-bed units, 296 two-bed units and 26 three-bed units across seven apartment blocks, with one rising to 10 storeys. The Irish Times, 11th August
Landlord Exodus Landlords issued 5,735 notices of termination to tenants in the second quarter of 2023, according to new data published by the Residential Tenancies Board (RTB). As well as showing an overall increase in the amount of notices, the new data appears to indicate a growing appetite by landlords to offload rental properties. Approx. 1,000 fewer termination notices (4,753) were issued in the first quarter of the year, between January and March inclusive. According to the RTB, the majority of landlords in the second quarter (3,633 or 63%) cited their intention to sell the property as their reason for issuing the notice. In Dublin, where pressure in the rental sector is particularly acute, 2,298 notices of termination were issued during the second quarter, a rise of 14% on the first three months of the year. The Irish Times, 10th August
Daft Report Rents continued to rise nationally in the second quarter but “stabilised” in Dublin, according to the new data from the Daft.ie website. The company’s latest quarterly rent report, which is based on asking prices on its website, indicated that market rents rose by an average of 2.4% between April and June compared with the first three months of the year. Compared to a year ago rents rose 10.7% to stand at just under €1.8k per month on average, it said. This compares to €1,387 in the first quarter of 2020 and a low of just €765 per month seen in late 2011. Daft’s report noted that availability nationally remains “extremely tight” compared to other years, with fewer than 1,200 homes available to rent nationwide on its website as of August 1st. While the supply of rental homes has increased marginally in recent months, it said the “extraordinary shortage” of rental accommodation continues. The Irish Times, 10th August
Zoning Decisions Councillors in Co Clare have been directed to reverse 20 zoning decisions in the County Development Plan after an intervention by the office of the planning regulator and the Department of Housing, Local Government and Planning. Minister of State at the department Kieran O’Donnell issued a direction to the local authority over the weekend instructing it to revert lands to their original zoning, which was mainly agriculture. Many of the rezoning decisions were around the villages of Broadford and Cooraclare. However, Clare County Council chairman Cllr Joe Cooney and local Fianna Fáil TD Cathal Crowe have argued there were strong and compelling reasons behind the decisions of councillors with regard to zoning decisions in the areas concerned. They said both villages were in line to get adequate wastewater treatment facilities that would allow them to grow. They said the rezoning decision was in anticipation of those facilities being approved by the Department of Housing this year. The Irish Times, 10th August
Kinsale, Co Cork A planning row has broken out over plans by the owner of one of Cork’s best-known golf courses to develop luxury holiday apartments which local residents claim will cause “irreversible damage to a beautiful quiet area”. Several local families have lodged an appeal with An Bord Pleanála against the recent decision of Cork County Council to grant planning permission for the construction of “farmhouse” tourist accommodation at Ballymackean, Old Head, Kinsale, Co Cork. The apartments are being developed by Ashbourne Holdings, the owner of the nearby Old Head of Kinsale golf course. The company has secured permission to demolish an existing farmhouse and agricultural buildings on the 16.5-acre site and replace them with four, single-storey “farmhouse” apartment units each containing four ensuite bedrooms as well as a two-storey “barn” containing a further two holiday apartments. A ruling by An Bord Pleanála on the appeal is due in early December. The Journal, 14th August
Vacant Site Tax Planners have rejected dozens of appeals against a new tax on vacant housing sites, in a blow to landowners seeking exemptions from a Government clampdown against hoarding. This will have implications for developers Cairn, Glenveagh, Castlethorn, Quintain, O’Flynn Group, Hammerson, Hibernia, Kelland, Ardstone, Bovale and many others. All have appeals pending after local councils said idle land in their control should be taxed. But new data reveals how An Bord Pleanála dismissed the overwhelming majority of appeals already concluded, deeming local authority tax maps robust in such cases. Rulings in 542 cases fall due within weeks, with An Bord Pleanála saying it “will endeavour to finalise as many” as possible by the September 1st target. The board is the final RZLT decision-maker but landowners can still take a High Court judicial review case against rulings. The annual 3% surcharge on the market value of unused land will be levied next year in a bid to discourage hoarding. The Irish Times, 15th August
Smithfield, Dublin 7 The development of a purpose-built family court on a vacant site at Hammond Lane in Smithfield is facing major delays, with construction not expected to start before 2026. The development of the new court complex, expected to cost more than €100m, has been dogged by delays since the site was acquired by the State in the late 1990s. The Office of Public Works (OPW) bought the site of the Maguire and Paterson match factory at the corner of Hammond Lane and Church Street for €4m, outbidding several residential and office developers. In December 2014 the then minister for justice said the complex would be delivered as part of a public-private partnership, with expected completion in 2020 at a cost of approx. €40m. However, early in 2019 the scope of the project changed, with a new Supreme Court facility added and the expected cost jumped to €140m. The Department of Justice had budgeted a maximum of €80m for the project. In mid-2020 the decision was taken not to proceed with the Supreme Court element, bringing the costs back down to €80m. However, construction inflation since then means the project is likely to cost more than €100m. The Irish Times, 11th August
New Refugee Housing Protocol Student accommodation must have been vacant for a year before it is converted for use for housing refugees and asylum seekers, under a new protocol agreed by the Government. It follows reports that purpose-built student accommodation in Sligo had been set to be converted to house those fleeing here from troublespots around the world. The provision of extra student beds as part of the refugee accommodation effort has been a feature of the last two summers, when colleges are out of term time and the need for dedicated student accommodation is significantly lessened. The Irish Times, 9th August
Dublin Airport The state’s competition watchdog has escalated its investigation into the controversial purchase by the DAA of a 6,000-space car park beside Dublin airport. In a statement issued, the Competition and Consumer Protection Commission (CCPC) said it had come to the end of its Phase 1, or preliminary investigation, and would now raise that to a Phase 2 in-depth investigation. The CCPC will not be investigating the manner in which the deal was transacted, only the possible competition effects. The Business Post, 9th August
Ballsbridge, Dublin 4 The Royal Dublin Society (RDS) has secured the green light for a new €50m Anglesea Stand for its arena at Ballsbridge in Dublin. Dublin City Council has granted planning permission for the 6,775 capacity stand after its planner concluded that the new stand “would provide a modern stand facility with enhanced hospitality facilities for visitors and patrons”. No objections were lodged against the new application and a cost-benefit analysis lodged with the plan estimates that the new stand will deliver an estimated additional €254m in tourism revenues over a 25-year period. The application involves the demolition of the existing Anglesea Stand and Anglesea Terrace and the new stand is to consist of three levels along with a two-storey hospitality building. Subject to planning and funding the RDS aims to commence construction in August 2024. The Irish Times, 14th August
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Howth, Co. Dublin Tetrarch Capital, the Irish property investment group, has received planning permission to build a 142-bedroom hotel on the site of the former Deer Park hotel in Howth in North Co Dublin. The new development, which was granted permission last week by Fingal County Council, is described by the property investment group as a “destination hotel” that will include a spa, fitness centre and conference rooms as well as a rooftop restaurant and bar. Under Tetrarch’s plan, the existing Deer Park hotel building, which has been closed since 2004 but currently houses around 150 Ukrainian refugees, will be demolished, and replaced by a new four-storey hotel. The project forms part of a wider redevelopment plan by Tetrarch for the 472-acre Howth Estate, which it acquired in 2019 as part of a €21 million deal. The property group expects the new hotel will create 280 full- and part-time jobs once it is fully operational by 2025. As part of its redevelopment of the Howth Estate, Tetrarch is planning an 18-hole championship golf course adjacent to the hotel. The Business Post, 6th August
Zoom Video communications company Zoom is reported to have ordered staff back to the office on a more frequent basis. The company and its brand became synonymous with remote work during the pandemic. It joins the likes of Amazon and Disney in reducing the number of remote workdays available to employees. The firm said it believed a “structured hybrid approach” was most effective and people living within 80 kilometres of an office should work in person at least twice a week. Zoom said that the new policy, first reported by Business Insider, would put the company in a “better position to use our own technologies, continue to innovate, and support our global customers”. Zoom had said in the past that employees would be able to work remotely indefinitely. The new policy will be rolled out on a staggered timeline over the coming months. Zoom said it would continue to “hire the best talent, regardless of location”. Earlier this year, the company announced that it would be cutting staff numbers by around 1,300 globally. It employed around 8,400 people at the time. Employee numbers at Zoom had grown by over 300% within 24 months to meet rapid demand arising from the push to remote working brought about by the pandemic. RTE.ie, 8th August
INDUSTRIAL
Baldoyle, North Dublin Ready-meal producer Kilbride Classic Cuisine has bought the former Sudocrem factory in north Dublin, where it aims to double its number of staff creating around 100 jobs. In May 2021 Teva Pharmaceuticals announced it was to close its Sudocrem production plant in Dublin, with the loss of more than 100 jobs. Kilbride co-owner and director Jimmy Kilbride Jnr, said the family-owned company would spend around €5.5m overall to acquire and invest in the 42,000 sq. ft facility. The plant is near one of Kilbride Classic Cuisine’s current facilities, which is also in Baldoyle. Kilbride Jnr said the deal for the new facility was closed last month, with plans for it to be opened in January 2024. He also hopes to enhance the company’s sustainability at the new plant. The Sunday Independent, 6th August
Knight Frank Q2 Report Q2 was another healthy quarter of activity in the logistics and industrial sector, bringing the total for H1 to 1,567,548 sq. ft. which is 6% ahead of the same period last year. The largest deal of Q2 was the pre-let of Unit P2, Horizon Logistics Park, Co. Dublin – a 113,129 sq. ft design and build warehouse – by WestRock. The pipeline remains tight. 67% of the space completed in Q2 was already pre- let.While prime rents remained stable within the €12 – €12.50 per sq. ft. range, upward pressure is possible before year-end, driven by tight supply. €48.6m worth of logistics and industrial assets transacted in Q2, 15% of the total investment spend in Ireland in Q2, bringing the total for H1 to €163.3m.The largest transaction of Q2 was the sale of the Davy Portfolio, a collection of assets based in West Dublin, to M7 Real Estate for €22.3m. Investment activity is expected to be constrained into H2 due to tougher lending conditions but also due to a lack of opportunities Knight Frank Quarterly Report, 2nd August
Drumcondra, Dublin 9 The Supreme Court has agreed to hear a developer’s appeal against the High Court’s decision to strike down planning permission for 1,592 apartments in north Dublin’s inner suburbs. A partner fund of developer Hines received fast-track approval in November 2021 to build its €602m build-to-rent scheme on the site of the former Holy Cross seminary on Clonliffe Road in Drumcondra. The 12-block apartment project was judicially challenged by a resident of Foxrock, south Co Dublin. The High Court’s Mr. Justice Richard Humphreys overturned the permission last January after finding An Bord Pleanála failed to follow the required approach to assessing a development’s impact on a protected structure. The developer’s application for leave to appeal to the Court of Appeal was refused by Mr. Justice Humphreys. However, in a determination published, a Supreme Court judging panel found issues of general public importance that warranted a direct appeal to it. The Irish Times, 3rd August
South Circular Road, Dublin 8 The Supreme Court has agreed to hear with “expedition” two locals’ appeal against the dismissal of their challenge to 2020 permission for the construction of 416 homes off Dublin’s South Circular Road. The planning permission, granted to a subsidiary fund of US property group Hines in September 2020, is for five years, so there is a “real risk” it will be undermined by further delay, the developer, An Bord Pleanála and State parties submitted to the court. The judicial review initiated in November 2020 has been the subject of five High Court judgments and a reference to the Court of Justice of the European Union (CJEU). The Hines subsidiary fund (DBTR-SCR1 Fund) also sought leave from the Supreme Court, saying it had “no option” but to have the appeal determined urgently. The “Bailey Gibson” five-block build would range in height from two to 16 storeys, with 10% of the stock going to social housing in line with statutory requirements. The development site adjoins lands of the former Player Wills factory, which has approval for 732 apartments across four blocks, including one with 19 floors. The Irish Times, 2nd August
Mount Merrion, Blackrock. Wellsea Properties has applied for permission to build an apartment block on Foster’s Avenue in Dublin. The project will involve demolishing two existing two-storey detached dwellings at the site in Mount Merrion, Blackrock. A four-storey building comprising 24 apartments will be built in their place. Most of the flats will be two-bed, while the remaining will be one-bed. The project will also include 19 car parking spaces and 40 bike parking spaces. New build flats in the area regularly sell for prices above half a million euro, while many fetch more than €1m. Documents submitted by planning consultants acting on behalf of Wellsea Properties show that Dún Laoghaire-Rathdown County Council, the local authority for the area, requested a justification for the height of the project as part of a planning consultation. A decision on the application is due by the council in September. The Irish Independent, 8th August.
Housing Minister Darragh O’Brien is pushing for the renters’ tax credit to be increased to almost €800, the average monthly rent per renter, along with income-based tax breaks for landlords as part of his Budget demands. Mr O’Brien also wants to extend the Help to Buy scheme for first-time buyers for another two years, and to examine if there is scope to increase the €30,000 tax back limit. In an interview with Independent.ie, Mr O’Brien outlined how he is additionally seeking to enhance his First Home scheme. This would allow homebuyers purchase second-hand homes using the Government’s shared equity programme which is currently only available for newly built houses. He also expects the Tenant In Situ scheme, which lets local authorities buy rental properties to keep renters facing eviction in their homes, to be extended into the coming year. The Department of Housing has a €4.6bn-a-year capital budget for the next two years to ensure funding is available for bricks-and-mortar projects. The Irish Independent, 8th August
Kildare Glenveagh Properties is planning to build two timber-frame manufacturing factories in Co. Kildare, which could lead to the creation of up to 600 jobs. Nua Manufacturing, Glenveagh’s timber-frame construction arm, which was set up this year, has applied for a seven-year planning permission for two factories on Nurney Road, near Kildare town, which will measure more than 656,599 sq. ft in total. Although not confirmed, it is estimated the investment is likely to exceed €75m. The two factories will be three times the size of Glenveagh’s Carlow off-site manufacturing facility, which opened in June. The company bought the old Braun factory site for more than €6m in 2021 and invested €50m in it. The company is in the process of recruiting 200 staff for that site, which will have the capacity to build 1,250 timber frames and 500 light gauge steel frames for new homes each year. The Sunday Times, 6th August
Conor Pass, Co Kerry Lands and forestry on the Conor Pass in Dingle, Co Kerry have been offered for sale for €10m by an American owner. Marketed as the “Connor Pass” the 1,000 acres of land and approx 400 acres of forestry is being advertised on it’s own website: www.connorpass.com. It was previously put on the market in 2007 but the economic crash put an end to any possible State intervention. The site includes four lakes – Pedlar’s Atlea, Beirne and Clogharee – along with a waterfall and mature forest. Its American owner bought the land in parcels over the years and farms it with grazing sheep. The lands in question are accessed from the Conor Pass Road, a public road which forms one of two main access routes to Dingle. The Irish Times, 3rd August
Ires Reit, the State’s largest private residential landlord, said it has agreed to sell 194 residential units in west Dublin to the Tuath Housing Association for just over €72m (approx €371k per unit) as it seeks to raise cash to maintain sufficient headroom over its debt limits at a time of falling property valuations. The group will be left with approx 3,736 units, mainly apartments, once the sales are completed. Ires said that it had seen its debt rise to 45.1% of the value of its properties from 42.6% in June last year amid declining commercial property values at a time of rising interest rates. The company shaved €56.5m off the carrying value of its property portfolio on its books, reducing it to €1.36bn. In the six months to the end of June Ires achieved an average rent across its portfolio of €1,772, up 5% on a year earlier. The occupancy rate on its 3,930 units was 99.5%. The latest deal, which will ultimately lower Ires’s LTV ratio, includes 91 units in Hansfield Wood in Clonsilla, Dublin 15, which are expected to be sold to Tuath by the end of this month for €38.1m. The Irish Times, 3rd August
AirBNB Rentals Analysis carried out by the Irish Examiner shows that there are a total of 18,086 Airbnb rentals nationwide, compared to just 1,299 rental properties available on Daft.ie. That is 14 times more short-term lets compared to long-term rentals. The high proportion of Airbnb’s compared to rental properties is particularly high in counties that are known to attract tourism, particularly Donegal, Clare, Kerry and Cork county. In particular, there were just 31 properties available to rent on Daft across Donegal. This compares to the 1,796 Airbnb rentals in the county. In Clare, there were just 17 rental properties available on Daft, however there were 1,044 properties available on Airbnb. One eighth of all Airbnb’s in Ireland are located in Kerry, where there are 82 times more short-term lets than long-term rental properties. The Government is currently seeking to further regulate the short-term let sector, with legislation agreed by Cabinet in late 2022. Currently, people seeking to let out their property require planning permission if they wish to rent it for more than 90 days a year. This legislation would establish a short-term tourist letting register that would require any homeowner renting their house for more than 21 days to register with Fáilte Ireland. It would also grant Fáilte Ireland the ability to levy fines against households for listing properties without valid registration numbers, with maximum fines of up to €2,000. The Government had estimated that the new rules would bring back an additional 12,000 properties onto the rental market. However, the European Commission ruled that it was too strict and placed aa standstill on enacting the legislation until December 22, 2023. The Irish Examiner, 8th August
Nursing Homes Tadhg Daly, the chief executive of Nursing Homes Ireland, told the Irish Independent that while a report prepared for the sector by PwC earlier this year pointed out that about a third of all public nursing homes had made a loss last year, that figure is now likely around 50pc. In its pre-Budget submission this week, Nursing Homes Ireland called on the Government to make an immediate €191m financial intervention to stabilise the sector. The money would be used to provide additional funds to the Fair Deal system that subvents nursing home costs for residents. Nursing Homes Ireland has pointed out that 34 nursing homes have closed in Ireland during the past three years, cutting more than 1,000 beds from the total available. There are currently about 440 nursing homes in Ireland, providing about 26,000 beds. But soaring costs and just marginal increases in the rates made available under the Fair Deal scheme mean that nursing homes are struggling to survive, according to Mr Daly. The Irish Independent, 5th August
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