Rathmines, Dublin 6 Knight Frank is guiding €1.3 million for a 1,991 sq.ft. (€653 psf) Victorian terraced property at No 7 Ormond Road, Rathmines, Dublin 6. Located between both the Beechwood and Cowper Green Line Luas stops, the property is located towards the Palmerston Road end of Ormond Road. The property comprises 4 bedrooms. The Sunday Business Post, 16th August
New Home Completion Figures Figures from the Central Statistics Office (CSO) show there were 3,290 new dwellings completed between April and the end of June 2020, compared to 4,829 in April-June 2019. This was the first year-on-year decrease since the third quarter of 2013. The number of multi-unit developments fell 34.8% to 1,842, while single dwellings fell 33.8% to 872. The State-wide shutdown of construction sites took its biggest toll in the month of April, when completions were 72.7% lower than they were in April 2019. Just 402 homes were completed in April, less than a quarter of the number of completions in March. The Irish Times, 13th August
Tara St, Dublin 2 The Sunday Business Post is reporting that Ronan Group Real Estate has missed the original deadline set by CIÉ to have “substantial works” started on the 23-storey tower it has planned for Tara Street in Dublin city centre. The missed deadline could potentially open the window for CIÉ to renege on the initial agreement it made with Ronan Group which gave it permission to develop the site. CIÉ’s agreement to lease the site to Ronan Group was signed in August 2015 for an initial term of five years. After the initial five-year term, a 300-year ground lease would take effect if certain criteria were met. The Sunday Business Post, 16th August
Housing Requirements As many as 47,000 houses will have to be built each year for the next five years just to meet demand, according to a new report by property economist Ronan Lyons and industry body Irish Institutional Property (IIP). The analysis suggests the main drivers of housing demand in the coming years will be the natural increase in population, net migration and changes in household size. The report also claims that the supply of new homes is determined by viability, effectively the cost of construction, and not affordability for buyers and that viability is “extremely challenging”, particularly for apartments. The Irish Times, 13th August
Old Mallow Rd, Cork Cork City Council is set to redevelop the former Boland Mills site on the Old Mallow Road. Subject to approval, it will consist of 57 housing units, on a c.1.68-hectare site. Of those, 12 will be two-bedroom two-storey terraced houses and 25 will be three-bedroom two-storey terraced houses. There are also four one-bed apartments and 16 two-bedroom apartments proposed as part of three-storey duplex units included in the proposal. Part 8 planning details for the development have been published by the Council. The Irish Examiner, 14th August
House Prices The figures from the CSO’s latest Residential Property Price Index has indicated that property prices in Dublin are now falling by 0.7% per cent as a result of the coronavirus. The figures show prices nationally rose by just 0.1% in the 12 months to June 2020. The latest official figures also point to a 33% drop in the number of transactions compared with last year. The Irish Times highlight that the latest figures primarily reflect activity before the coronavirus-related shutdown and that it may be several months before the full impact of the Covid-19 pandemic is reflected in headline prices. Overall, the national price index is 17.8% lower than its highest level in 2007. The Irish Times, 18th August
Dawson St, Dublin 2 The Sunday Business Post is reporting that BCP International Property Fund, the developers of a high-profile project on the corner of Dawson Street and Nassau Street in Dublin city centre, have significantly scaled back the retail element of their plan due to the pandemic. They secured permission in 2017 to develop a mixed-use office and retail development on the site, which previously accommodated the House of Ireland store. New plans filed by the developers show that they plan to remove a whole floor of retail space from the project. The first floor, which was due to contain retail units, will now be converted into offices. The Sunday Business Post, 16th August
Parkway Valley, Limerick Limerick City and County Council have granted planning for a development for a Singapore investment company Novelty ICAV, which includes a mix of offices and residential space at the long-derelict Parkway Valley in Limerick. The scheme includes 245 residential units in a series of buildings ranging in height from three to 14 stories, four office blocks totalling 131,987 sq.ft, a 152-bed hotel over four storeys, a two-storey commercial building, two restaurants and a petrol filling station, as well as a three-storey community building, which will provide for community facilities, such as a crèche and a multi-use games area. The scheme also includes a 1.12 hectare public park with walkway and parking. The Irish Examiner, 14th August
Yew Grove has reported that 97% of second-quarter rent was collected in the second quarter, with just 1.9% of rents deferred under repayment plans agreed with tenants. It has also collected 98% of third-quarter rents. Yew Grove said its portfolio was now valued at €141.1 million, reflecting an annualised rent roll of €10.4 million. This compares with a €115.8 million valuation at the end of 2019. Yew Grove have noted that their annualised rent roll increased to €11.1 million at the end of June 2020. The Irish property trust predominantly invests in offices and industrial holdings outside Dublin’s central business district. The Irish Times, 14th August
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Lime St, Dublin 2 The Irish Times understands that the Marlet Property Group is to proceed with the construction of 216 apartments at their One Lime Street scheme following the appointment of BAM Ireland as main contractor for the project. The concierge-serviced development will comprise a mix of one- and two-bedroom units complemented by an onsite gym and retail space at street level. The scheme will also include c.13,000 sq.ft. of landscaped communal space. BAM Ireland will begin construction on the apartment blocks this month with a completion date set for the second quarter of 2022. The Irish Times, 5th August
Residential Rent Portfolio The country’s biggest landlord, Ires Reit, has announced that it has significantly increased its portfolio by 35%, year-on-year. The landlord controlled 3,739 rental units in Ireland at the end of June, compared to 2,771 last year, across 42 properties in Dublin and Cork. The company has added a further 95 homes at Hansfield Wood, Dublin, to its portfolio, since the end of June which means they now have 3,834 units under management. The Sunday Business Post, 7th August
Co Wicklow The Sunday Business Post understands that Quanta Capital has acquired the 300 acre Kippure Estate in Wicklow for an undisclosed sum. The estate, comprising Kippure Lodge and 24 self-catering houses on substantial woods and parkland, has been a popular wedding and corporate events location. It is understood that a plan for the future use of the venue is now being put together and may result in it being converted into a Center Parcs-style resort run by a hospitality operator. The Sunday Business Post, 9th August
Harold’s Cross, Dublin 6W AAI Kenilworth has submitted an application to An Bord Pleanála for permission for a build-to-rent shared living strategic housing development at the site formerly known as Kenilworth Motors at No 348 Harold’s Cross Road in Dublin 6W. The site is principally bounded by Laundry Lane to the north, Harold’s Cross Road to the east, Kenilworth Manor to the south, and Rosary Park to the west. The 201 bed-spaces will comprise of 147 single occupancy bedrooms including five accessible bedrooms, and 27 double occupancy bedrooms. A decision is due on the application by November. The Sunday Business Post, 9th August
Residential Development Sector New analysis by Goodbody Stockbrokers has shown that the residential development sector is rebounding at a faster pace than predicted since construction works have resumed at residential developments. New home completions have improved post-lockdown, but commencements of new developments are “substantially” down. Data released by the Department of Housing has shown that housing commencements fell by 46% year-on-year in the second quarter of 2020. The largest decline was in Dublin’s commuter counties. The mid-east of the country recorded a 68% decrease year-on-year. The Sunday Business Post, 4th August
Johnstown, Co Kildare M7 Real Estate has acquired the former Kildare headquarter office and distribution facility of convenience store operator ADM Londis for c.€6.25 million. Located in Johnstown, Co Kildare, the facility comprises 113,603 sq.ft. (€55 psf) of warehouse and office space on a 5.6 acre site (€1.116m per acre). There are eight dock levellers and four extra-large level access doors. The two-storey, grade A, HQ offices were added to the front of the property in 2007. The property is situated just two minutes’ drive from junction 8 on the N7, five minutes’ drive from Naas town centre and 15 minutes’ drive from the M50 motorway. The Irish Times, 5th August
Dublin Industrial Market Take-up in the Dublin industrial market totalled c.480,600 sq.ft. in Q2 2020, a significant reduction on Q2 2019 (-48%) and on Q1 2020 (-49%). Supply remained at a low level at less than 3.17 million sq.ft. At the end of June, there was c.764,237 sq.ft. of new industrial accommodation under construction in Dublin with 60% of this is in the southwest region. Lisney, Dublin Industrial Report Q2 2020
Cork Industrial Market The industrial market has been the least affected property sector by COVID-19. In spite of the pandemic, approximately c.89,340 sq.ft. of space was taken up in Cork in Q2 2020, well ahead of the previous three months (c.8,826 sq.ft.) and in line with the long-term quarterly average (94,184 sq.ft.). Six deals were completed in Q2 at an average lot size at 14,854 sq.ft. At the end of June, there was approximately c.518,800 sq.ft. of accommodation available. Given the very strong levels of activity in Q4 2019, along with the lack of new building completions, supply has reduced by 46% in the past 12 months. The overall Cork vacancy rate was c.3.6% at the end of Q2, the lowest on record. Lisney, Cork Market Report Q2 2020
30-33 Molesworth Street, Dublin 2 The Irish Times understands that German real estate fund manager, KanAm Grund has purchased 30-33 Molesworth Street for c.€60 million from Henderson Park Capital. The property forms part of the Capital Collection, a portfolio of five prime Dublin offices that Henderson Park acquired as part of its €1.34 billion buyout of Green Reit in 2019. The Molesworth Street property comprises 56,921 sq.ft. (€1,065 psf) in two redeveloped and refurbished buildings along with two Georgian buildings. The Irish Times, 6th August
Clonskeagh, Dublin 4 JLL is guiding €12.5 million for Boole House and the adjoining site with full planning permission for a new office development in Clonskeagh. Boole House comprises a three-storey, 42,000 sq.ft. Grade A office block within the Beech Hill Office Campus. There are also 119 dedicated car parking spaces with the building. The current owner has secured planning permission for a five-storey, 34,250 sq.ft. office development on the adjoining site. The Irish Times, 5th August
Shelbourne Road, Dublin 4 Fami, IKEA’s treasury section, has expanded its current office space at 23 Shelbourne Road having signed a short-term lease with U+I and Colony Capital, to expand its existing footprint by an additional c.1,453 sq.ft. Fami signed an initial lease at a newly refurbished 23 Shelbourne Road four years ago, in 2016, when the building was then part of Friends First’s Irish Commercial Property Fund. The Sunday Business Post, 9th August
Dublin Office Market Activity in the Dublin office market slowed considerably in the second quarter of 2020. Just c.157,690 sq.ft. was occupied in the three-month period, compared to the long run quarterly average of c.497,130 sq.ft. At the mid-point juncture of the year, take up sits at c.645,296 sq.ft, a level unseen since 2013. Availability increased by 10% in the three months to c.3.91 million sq.ft. This equates to a vacancy rate of 9.5% overall, or 7.6% in the Central Business District (CBD). A high volume of space remained precommitted at the end of June. A total of c.1.33 million sq.ft. of standing stock and a further c.3.18 million sq.ft. of space under construction was either signed or reserved at the end of the quarter. This signals a healthy level of take up pipeline for the Dublin office market. It also brings the net vacancy rate down to 6.3%, or in the CBD to 4.2%. Cushman & Wakefield, Dublin Office Market Q2 2020
Cork Office Market Office market activity was at very low levels in Q2 2020 with just one deal completed in the Cork market in Q2 2020, 1,345 sq.ft. at 14 Anglesea Street in the city centre, which was a sale. On average, there is normally seven transactions done per quarter in the office market with take-up averaging c.54,000 sq.ft. At the end of June, there was more than 653,000 sq.ft. of office accommodation available, an increase of just over 13%. This was mainly due to the completion of Block B Navigation Square (c.77,800 sq.ft.) during the quarter. The vacancy rate across all of the Cork office market was 10.7% at the end of Q2, up from 9.6%. Lisney, Cork Market Report Q2 2020
Retail Rent Collections Hammerson, the owner of Dundrum Town Centre, recently announced that rental income at the Dublin retail hubs of Dundrum Town Centre, the Ilac Centre and Pavilions in Swords, for the first six months of 2020 was €16.57 million – €4 million lower than in 2019. Less than half of rent for the second quarter had been collected by June 30, compared with 93% collected in the first quarter. Hammerson said that collection rates improved during July. The group said it had reached agreements with tenants on 144 leases to put in place rent waivers. The average rent waiver agreed with tenants was 1.1 months. The Sunday Business Post, 6th August
Greystones, Co Wicklow Greystones Media Campus Limited has submitted a planning application for a new state-of-the-art film/TV studio and media campus on an 18-hectare IDA Ireland site at Killincarrig in Greystones, Co Wicklow. The planning application proposes 14 studios, offices and ancillary production buildings in a landscaped setting – more than doubling the available stage capacity available to film, TV and media crews in Ireland. Subject to planning, and once fully operational, the 18-hectare site is the first step in a process which hopes to deliver up to 1,200 new jobs in the film, media and broadcasting sectors. The Sunday Business Post, 9th August
Irish Investment Market Investment in Irish commercial assets experienced an inevitable slowdown in the second quarter of 2020 amidst COVID-19 uncertainty. The second quarter recorded €378 million worth of transactions, across sixteen deals. This brings total transaction activity in the first six months of the year to €902.5 million across fifty-four deals. A sectoral analysis of the Irish investment market from H1 2020 reveals office assets attracted the highest share of investor interest (66% of turnover). Industrial assets witnessed an uplift in both the volume and value of transactions recorded over the period. Cushman & Wakefield, Irish Investment Market Q2 2020
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Chivers Jam Factory, Coolock An Bord Pleanála have given the go ahead for a 471-apartment complex at the site of the former Chivers jam factory in Coolock. The proposal, by London-based developers Platinum Land, was approved under the new fast-track Strategic Housing Development scheme. While An Bord Pleanála reduced the height from ten to eight and nine storeys as a condition of granting the application, the planning body’s senior inspector Joanna Kelly concluded that the project should not go ahead at all following her inspection last month. However, the board rejected Ms Kelly’s concerns, saying the development would be located “within sufficient distance of several major employment centres”. It also rejected her concerns that the project would set an undesirable precedent for similar developments or that the overall design was “monolithic”. The board said the scale and proposed population density is “fully in accordance” with the new Urban Development and Building Heights Guidelines for Planning Authorities. The Irish Independent, 27th August
Benson Building, Dublin Docklands German fund Patrizia AG has agreed to pay €52.5 million for the Benson Building in Dublin’s Docklands (which is due to be ready for tenants by early 2020) from Targeted Investment Opportunities, an umbrella fund involving Nama, Los Angeles-based Oaktree Capital and Bennett Construction. There are 72 apartments in the complex (€729k per unit) comprising 14 one-bed apartments, 43 two-bed apartments and 15 three-bed apartments. The apartments are located in an 11-storey-over-basement building which will likely have a rental value of c.€2.9 million. Additionally, the building will have two ground-floor retail units as well as accommodation for a gym. Concierge facilities will also be provided as well as underground parking for 72 cars. The Irish Times, 21st August
The Quarter, Citywest Cairn Homes has sold 282 apartments at The Quarter in Citywest to Urbeo for €94 million (c.€333k per unit). Urbeo is an affiliate of US investment company Starwood Capital. The 282 units which are being built across six apartment blocks will be launched to the private rental market on a phased basis from late next year. This is Cairn’s second large private sector rental transaction following the forward sale of 120 apartments at Six Hanover Quay in Dublin city centre. The Irish Independent, 27th August
Lehaunstown Park House A 19th century farmhouse and stables on 7.11 acres located in the heart of Cherrywood Strategic Development Zone has been placed on the market with a guide price of €2.75 million. The Lehaunstown Park site is one of a number of large residential plots being sold on by investment firm Hines, which acquired 412 acres at Cherrywood for €270 million in 2014. A feasibility study, prepared by Mahony Architecture, outlines the development potential of Lehaunstown Park House, including a potential scheme of 42,948 sq.ft. subject to planning permission that could incorporate retail, leisure, food and beverage designed around the preservation of the existing protected structures. The property and the majority of its curtilage has been identified as protected structures (about four acres), while a further portion of the site is identified as Green Infrastructure (about three acres). The Irish Times, 21st August
Glenveagh Properties The construction company has reported it completed 158 units in the first half of the year generating revenue of c.€45 million (8% higher than Goodbody forecasts), generating a gross margin of 16.5%. The group is currently selling from 13 sites with 800 units sold, signed or reserved. Of these, 490 units have now been sold or have a signed binding contract in place. Furthermore, 455 of these are now through practical completion. Goodbody Research Report, 27th August
Sandyford, Dublin 18 Ires Reit has received planning permission through the Strategic Housing Development (SHD) planning process to build 428 new units at Rockbrook in Sandyford, Dublin 18. The development will be made up of two apartment blocks containing 32 studio apartments, 122 one-bed apartments, 251 two-bed apartments, and 23 three-bed apartments. There will also be a crèche, four retail units, and a communal space for residents. The Irish Independent, 22ndAugust
Shannon Town, Co Clare BidX1 has gone sale agreed after auction for €2.3m (€52,270 per unit on 44 units) at Brú na Sionna, Shannon Town, Co Clare. The portfolio comprises 26 two-bed units, 17 three-bed units and a four-bed apartment. When offered for auction 43 of the units generated €357,000 in annual rent suggesting a gross initial yield of 15.52%. The Irish Independent, 22nd August
Drogheda, Co Louth Savills are guiding in excess of €1.5 million for a 60.9-acre (€24.6k per acre) residential/open space landholding in Drogheda. Located to the west of Drogheda Town Centre, on the banks of the River Boyne, the site comprises 27.1 acres which is zoned residential and 33.8 acres closer to the river zoned for amenity/ recreational uses. The Irish Independent, 22nd August
St James Gate Redevelopment Scheme The Irish Independent understands that Diageo has decided to partner with UK property firm U+I as the preferred bidder for its St James Gate redevelopment scheme. The 12-acre city centre site to be carved out of the world famous brewery will be worth as much as €1 billion as a mixed commercial and residential district in Dublin city centre. The St James Gate site is one of the biggest ever development schemes in Ireland. The Irish Independent, 26th August
BidX1 Online Auction Up to €19 million worth of commercial, investment and development properties are expected to be among the lots featured in the BidX1 online auction on September 18th and 19th. Among the more valuable investment properties is an Applegreen service station on Main St, Tullamore, Co Offaly which has a €950,000 guide price with a current annual rent of €95,000 (10% gross initial yield). The most significant of the development properties is a site in Kells, Co Meath, which was granted planning permission for 15 two-bed apartments and 15 three-bed apartments in three blocks. The site extends to 1.11 acres and has a €1.2 million guide price (€40,000 per unit). The Irish Independent, 22nd August
GeoDirectory Report A report published by GeoDirectory has highlighted that the vacancy rate of commercial properties has increased across Ireland in the past year with 28,063 units empty (13.3%) by the end of June 2019. Connacht recorded the highest provincial vacancy rate at 16.6%. Leinster, excluding Dublin, had the lowest provincial vacancy rate at 12.9%. However, rural issues still exist with Offaly and Longford recording vacancy rates of more than 15% and the five Connacht counties recorded vacancy rates considerably higher than the national average, with increases in every county except Galway. GeoDirectory found that Edenderry had the highest commercial vacancy rate of 28.8% and Greystones had the lowest vacancy rate at 5.8%. Dublin had just under a quarter of the commercial stock and the vacancy rate stood at 12.1%, flat on the same period last year. The Irish Times, 22nd August
Cushman & Wakefield Development Land Research Report The report has highlighted that the value of development land sales rose to €490 million in the first half of this year in spite of a more than 50% fall in transactions. The 16% increase came as the number of transactions fell from 112 in the first half of 2018 to 54 between January and June 2019. Cushman & Wakefield said the fall in transaction volumes may be linked to rising development costs and mortgage limits for buyers. Dublin and its neighbouring commuter counties accounted for 83% of the overall value transacted in the period. In the second quarter, the largest transaction was Lone Star’s acquisition of 118 acres in Cherrywood for a price reported to be in the region of €127 million. The land has capacity for more than 2,600 homes. The Irish Times, 22nd August
Walls Construction Ltd Pretax profits at Walls Construction Ltd, the firm that built the Central Bank HQ last year declined marginally to €4.1 million. However, revenues increased by 17% from €162.6 million to €190.32 million in the 12 months to the end of December 2018. Walls is one of Ireland’s oldest and largest construction firms and the directors state that the business has a strong order book for 2019 and a good line of sight into 2020 and they expect that the company will continue its growth and build on its financial trading position. The Irish Times, 27thAugust
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Dún Laoghaire Rathdown County Council The first estate of affordable homes to be built by Dún Laoghaire Rathdown County Council in more than a decade is to get under way at a site south of Foxrock. The council plans to build almost 120 social and affordable houses and apartments at Ballyogan Court, on a 2.4-hectare site left over from the construction of the M50 motorway. The Department of Housing this month granted just over €2 million in infrastructure funding for the site to allow 52 of the homes to be used for affordable housing. This number could be increased as the council says the final breakdown between social and affordable homes will be based on tender prices. The Irish Times, 19th August
Donabate, North Dublin An Bord Pleanála has rejected an application by Glenveagh Homes for a large extension to a €75 million residential development at Donabate in north Dublin. The appeals board’s inspector recommended that the 174 apartments should get the green light on the southern edge of Donabate located 300m from the local railway station. However, the recommendation was overruled by the board. The board stated that the proposed development of 174 apartments, due to its blanket approach to height, campus-style building layout and dominance of car-parking, did not represent a satisfactory urban design response for the site. The apartments were to replace 35 houses and 62 apartments already permitted for the site. The Irish Times, 15th August
South Link Road, Cork City It is understood that fast track planning permission is being sought this week for a 17-storey apartment tower on Cork city’s South Link Road. The application for 118 apartments on a 0.8 acre site aimed at the Build to Rent sector will be made directly to An Bord Pleanála. Amenities will include a concierge service, a gym, open gardens and bicycle parking, but no car parking provision is being made. The Irish Examiner, 14th August
Residential Property Prices Data released on Wednesday from the Central Statistics Office (CSO) outlines that residential property prices increased by 2% nationally in the year to June 2019. This compares with an increase of 2.6% in the year to May and an increase of 11.9% in the twelve months to June 2018. In Dublin, residential property prices rose by 0.1% in the year to June 2019. Residential property prices in Ireland excluding Dublin were 3.9% higher in the year to June 2019, with house prices up by 3.6% and apartments up by 6.1%. Overall, the national index is 18.0% lower than its highest level in 2007. CSO Report 14thAugust
Beacon South Quarter, Sandyford 18 IRES Reit has confirmed that it has spent almost €1 million remedying building defects at the Beacon South Quarter development in Sandyford where it owns more than 225 of the 880 apartments. Dublin Fire Brigade had warned the owners of the apartments that they could face legal action if they did not undertake the fire-safety improvement works in their homes. The total bill for the remediation work came to almost €10 million. The Irish Times, 13th August
43-44 Clarendon Street, Dublin 2 An Bord Pleanála has refused planning permission to Friends First Life Assurance DAC for the temporary use of six apartments at 43-44 Clarendon Street, off Grafton Street, for short-term letting. The board refused permission, stating that permission would be contrary to the city development plan, which recognises residential units as a scarce resource that needs to be managed in a sustainable manner so that the housing needs of the city are met. Friends First argued that “it is compelled to make this appeal for reason of the apparent absence of any method to regularise, under planning statutes, a short tenure of rental for houses and apartments.” The council had refused planning permission earlier this year after its planner stated that permission would result “in an unwanted precedent for similar development in the area, which may then result in the further unacceptable loss of long-term residential rental properties in the locality.” The Irish Times, 13th August
A Cushman & Wakefield Report on the Cork Office Market has outlined that take up reached more than 237,000 sq.ft. at the end of Q2 2019. Furthermore, the vacancy rate fell to 7.9% akin to levels last seen in 2005-2006. The report states that there was 550,000 sq.ft. of office accommodation under construction and that the majority of this was located in the city centre. Cushman & Wakefield Report Cork Office Market Q2 2019
A Cushman & Wakefield Report on the Cork Industrial Market highlighted that Q2 was a relatively strong period. Transaction activity totalled 93,600 sq.ft. across 14 deals, making it the strongest second quarter since Q2 2015. Leasehold transactions accounted for 90% of activity in Q2 2019. The vacancy rate now stands at 5.0% which is significantly lower than the 9.5% vacancy rate witnessed at the same point in 2018. Cushman & Wakefield Report Cork Industrial Market Q2 2019
Dublin Inland Port Dublin Port Company has secured planning approval for the development of the next phase of its inland port near Dublin Airport. The latest stage of the inland port extending over 4 hectares will include a site with capacity to store more than 2,000 shipping containers. The company believes that developments at Dublin Inland Port and at other locations close to the M50 can better meet the requirements for port-related but non-core activities including logistics services. It also envisages that the inland port might eventually lead to a reduction in vehicle movements in the port tunnel, and also at the port. The Irish Independent, 20thAugust
A Cushman & Wakefield Report on the Irish Hotel Market outlines that H1 2019 was a particularly strong period with ten hotels transacted, totalling €172m. This compares to €42.8m across six hotels in the same period in 2018. The two largest sales arose in Co. Wicklow where the 5-star Powerscourt Estate was acquired by the MHL Group for approximately €50m. The second deal saw the the Neville Hotel Group purchasing 5-star Druids Glen Hotel & Golf Resort at a reported €45m. Cushman & Wakefield Report Irish Hotel Market Q2 2019
Henderson Park Capital The Irish Times understands that UK property company Henderson Park Capital who recently agreed to the purchase of the Green Reit portfolio for €1.34 billion will look to dispose of up to 50% of the portfolio once it secures ownership. The Irish Times, 14th August
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
5 Hanover Quay, Dublin Docklands A German based fund manager, Union Investment, has purchased 5 Hanover Quay for over €190m (4.25% NIY). The fund already owns 4 and 5 Grand Canal Square. The property comprises 160,000 sq.ft. over seven floors and is fully let generating €8.75m per annum from Docusign and Aptiv. The property was brought to market in May this year by joint agents JLL and London-based Eastdil Secured. The Irish Times, 12thAugust
Salesforce Tower, Dublin Docklands, Dublin 1Dublin City Council has rejected Johnny Ronan’s second application to increase the height of Salesforce’s new European headquarters. Spencer Place Development Company had sought to add two further floors to the scheme under the Strategic Development Zone (SDZ) guidelines. The council noted that the additional storeys “would not be consistent with the provisions of the North Lotts and Grand Canal Dock SDZ planning scheme and would be unduly dominant and visually incongruous when viewed in the context of the existing quayscape on North Wally Quay, a conservation area, and the surrounding built environment”. The Irish Times, 6th August
19 Acre Site, Drumcondra The Irish Times reports that US commercial property group Hines is the preferred bidder for the 19 acre residential development site in Drumcondra. The site forms part of a larger site which is being sold by the Catholic Archdiocese of Dublin to the GAA for a reported €95m. The GAA will sell the 19 acre section for a reported €105m. The Irish Times, 8th August
Q2 2019 House Building Homes completed in Q2 2019 increased 12% YoY. The Central Statistics Office noted that 4,920 new homes were completed between April and June. There was a 17% increase in number of houses built in the first half of 2019 YoY with 9,185 completions compared to 7,867 last year. Apartments were the fastest growing category rising 55% from 487 in Q2 2018 to 758 in Q2 2019. One-off houses rose by 15%. Scheme dwellings, comprising more than one home, increased by 3%. The Times, Irish Edition, 9th August
Ires Reit Interim Report ResultsIres Reit, the largest landlord in Ireland, recorded profits which have more than halved in the first half of 2019. Profits fell to €34.1m from €69.5m YoY despite a 17.6% increase in rental income. The drop in profit can be attributed to the net movement in fair value of the investment properties which increased by €22.5m due to revaluation but this figure was down on the €57m increase the year before. Ires Reit, established in 2007, has a portfolio of 2,771 residential units with a further 298 units contracted under pre-purchase contracts and development. Those combined with the recently announced acquisition of the Marathon Portfolio of 815 units, increases the overall portfolio to 3,884 units, a 45% growth since December 2018. The Irish Times, 9th August
Green Reit Sale The Irish Times reports that Henderson Park, the UK property company, is set to agree to acquire Green Reit this week. Green Reit, the offices and warehouse group has a rent roll of €73m pa and the market value of the Reit has increased to €1.3bn since it was put on the market for sale four months ago. Green Reit’s share price has increased by 21.5% to €1.86 since being put up for sale. Green Reit was the first real-estate investment trust to float on the Irish stock market in 2013 and has acquired €1.48bn portfolio of office, logistics and development assets. The Irish Times, 13th August
Cathal Brugha College, Dublin 1 The Department of Education paid €24m for the Cathal Brugha College to help deliver a new secondary school for 1,000 pupils in the area. DIT had dropped the original asking price from €15m to €12m to pay for the Grangegorman campus which the department is also funding. The department has identified the need for an extra 1,630 secondary school places in the Drumcondra-Marino school planning area by 2029. A private sector bidder had offered €24m before the department expressed an interest. DIT cancelled the sales process and obtained a value of €24m for the site from the Valuation Office. The Sunday Business Post, 11th August
Fast Track Planning The Sunday Independent reports that An Bord Pleanála have turned down almost a third of applications filed through the fast-track system in 2018. Developers building out sites with 100 or more housing units or 200+ student beds or shared living beds can apply for planning straight from An Bord Pleanála with a decision available within 16 weeks. 39 applications were submitted in 2018 and permission was granted to 27 proposals which will deliver 3,284 houses, 3,818 apartments and 4,479 student beds. 97 valid requests for pre-application consultation relating to large-scale developments were received by the planning body, of which 63 opinions have been offered with the remainder to be offered in 2019. The Sunday Independent, 11th August
Core Reit A US investment fund, Pramerica Real Estate Capital (PRECap) has financed, York Capital, an American Hedge fund out of Core Reit, making PRECap the controlling party. Core Reit is the property fund which came within days of floating on the Dublin and London stock market last year. Core Reit’s portfolio comprise 106 industrial buildings and 167 acres of land of which 35 acres is zoned for development. The Times, Irish Edition, 11th August
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
The Old Punchbowl, Booterstown, Co. Dublin Morrissey’s Lisney are guiding €1.25m for the Old Punchbowl Pub at the junction of Booterstown Avenue and the Rock Road, opposite Booterstown Dart station. The property comprises a public bar, restaurant, function room and an enclosed beer garden. Offers should be delivered to Lisney, incorporating Morrissey’s by 3pm August 29th. The pub is being sold on behalf of the O’Rourke Family who are retiring from the trade. The Sunday Business Post, 4th August
6.7 acres, Dock Road, Limerick Joint agents Savills and Power Property are guiding €1.2m (€179k per acre) for a 6.7 acre site with 140 meter frontage to Limerick City’s Dock Road. The site is set in a section of 75 acres which was targeted in 2018 for strategic redevelopment. The site is being sold on behalf of Shannon Foynes Port Company with close access to the M20, M7, Shannon Airport and the ports of Limerick and Foynes. The Irish Examiner, 31st July
Grand Canal Harbour Scheme, Dublin 8 Marlet Property Group has lodged plans for an €84m mixed-use development in Dublin 8, close to the Guinness Storehouse. The plans propose over 500 apartments along with office, retail, leisure and medical facilities in a number of blocks rising to 13 storeys. The Sunday Business Post, 4th August
Green Reit Sale Green Reit has entered exclusive talks over a potential sale to Henderson Park. Dublin-listed offices and warehousing group Green Reit’s market value has risen to €1.29bn since putting itself on the market earlier this year. Henderson Park, was set up in 2016 by former Goldman Sachs and Mount Kellett partner Nicholas Weber. Henderson Park Capital entered the Irish market in recent months when they teamed with Chartered Land to purchase Heuston South Quarter for €222m. Green Reit’s portfolio includes One Molesworth Street, the Central Park office complex in Sandyford and Horizon Logistics Park, close to Dublin Airport. The Irish Times, 31st July
Co-Living, Dun Laoghaire, Co. Dublin Bartra Capital’s €45m shared living development in Dun Laoghaire has been approved by An Bord Pleanála. The scheme will comprise 208 bed spaces, rooftop terrace and other communal facilities. The Sunday Business Post, 4th August
AirBnb Rental Conversion Rejections Dublin City Council has rejected over a dozen applications to convert apartment blocks to AirBnb-style holiday rentals in the last number of months. From July 1st, owners of properties in rent pressure zone must get planning permission to use their housing for short-term lets for more than three months each year. All of the applications made were in advance 1st July and in most cases, Dublin City Council referenced the need to preserve “residential units as a scarce resource”. The Irish Times, 31st</sup July
Industrial Take Up Q2 2019 JLL reports that industrial take up in Q2 was over 1,000,000 sq.ft. across 50 deals, representing a 57% increase YoY. This increase was driven by a number of larger-sized deals with eight deals greater than 50,000 sq.ft. compared to six in Q1 2019 and one in Q2 2018. 50% of the deals in Q2 2019 were for space less than 10,000 sq.ft. In terms of location, 38% was in the south-west and 36% in north-west. Q2 2019 take up was mainly focused on secondary-grade space, accounting for 71% with prime-grade making up the remaining 29%. JLL note that while this suggests that demand is for secondary, this is not the case. Greatest demand is for prime industrial space but limited availability of good quality space is impacting on decisions. The Sunday Business Post, 4th August
Investment Property Market Lisney reports that total spend in the investment property market reached €1.83bn in the first half of 2019. Q2 2019 activity was more than double QoQ with €1.22bn spent in April to June. The private rented sector accounted for 58% of all turnover in Q2 2019, equating to €707.4m across 11 deals. The office segment represented 25% equating to €303.8m. Retail accounted for 12%, mixed use 4% and industrial 1.4%. Investment in Dublin accounted for 84%. There was a noticeable increase in off-market transactions accounting for 25% of total spent and two of the five largest transactions. The purchase of XVI portfolio of 815 homes represented the largest deal at €285m followed by €222m paid by Henderson Park for Heuston South Quarter. The Irish Times, 1st August
Cinema, Dawson Street, Dublin 2 Green Reit has notified Dublin City Council of its intention to apply for planning permission for a cinema next to the Ivy restaurant on Dawson Street. Planning was previously obtained for a retail unit as part of wider plans for the site formerly occupied by Royal and Sun Alliance House. Green Reit has sought a change of use to a 5,102 sq.ft. licenced cinema accommodating two auditoriums with ancillary food and beverage provision. The Sunday Independent, 4th August
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Donnybrook Hotel Planning permission has been granted for a 71 bed, six storey hotel beside Donnybrook fire station. The planning has been granted to Emmet O’Neill’s firm Kouchin. Emmet O’Neill is the former head of Topaz and founder of Smiles Dental. Kouchin reduced rooms from 78 to 71, amongst other measures, in response to local concerns. The Irish Independent, 24th August
16-18 Pembroke Street Revised planning permission has been submitted to an Bord Pleanála for a five storey over basement, 108 bed hotel. Plans have been lodged by a consortium including US businessman Brian Clingen. The Irish Lights building was purchased in 2013 for €3.5m but previous plans to convert it to a hotel were rejected, and subsequent plans to convert it to an office did not proceed. The Sunday Business Post, 26th August
The Hive U+I, a UK property group who are working with Collen Construction, have started work on Ballymoss House site in Sandyford. The company intends to deliver more than 73,000 sqft of office space by redeveloping and refurbishing the existing property. U+I have noted that this project will form part of a pipeline of c 250,000 sqft they are developing in Dublin including Donnybrook House and Carrisbrook House in Dublin 4. Ballymoss House in Sandyford will be rebranded as “The Hive”. The Irish Independent, 23rd August
Dublin Docklands Savills and Owen Reilly are seeking €52.5m for 72 residential units, currently under construction, at Sir John Rogerson’s Quay. Targeted Investment Opportunities, a fund involving Oaktree Capital, Bennett Construction and NAMA, are developing the apartments which will form part of a mixed use development comprising residential, retail & office and will be ready by the first quarter of 2020. It is anticipated the apartments comprising 15 one bed, 43 two bed and 15 three bed apartments will have a total rental value of €2.9m. The Irish Times, 22nd August
313 Cherrywood Homes William Neville & Sons have been granted planning permission by Dun Laoghaire Rathdown County Council for 313 homes in Cherrywood. Once completed, and in addition to other developments, residential houses in Cherrywood will span across 400 acres on both sides of the M50, accommodating c 30,000 people within c 8,000 residential units. The Irish Independent, 23rd August
Hickey’s Site, Parkgate Street The Irish Independent is reporting that the 1.65 acre “Hickey’s site” in Parkgate street, Dublin 8, located beside Heuston Station has sold for in excess of €30m (c€18m per acre), 50% higher than Finnegan Menton’s €20m asking price. The Irish Independent, 26th August
Foxrock, County Dublin A 0.62 acre site, previously part of the grounds at Loreto College Foxrock girls secondary school, has been sold for €3.6m (€5.8m per acre), €600k ahead of Savills €3m asking price. The site has planning permission for 20 luxury apartments which are expected to obtain sales prices of €550,000- €650,000. The Irish Independent also reports that Bowbeck DAC have applied for planning permission for 250 new residential units on a 6.42 acre site on Golf Lane, Carrickmines. The Irish Independent, 26th August
Dublin Docklands Host, a student living specialist, and part of the O’Flynn Group, has launched the first phase of their 966-bed student accommodation next to the 3 Arena in the Docklands which will be named “Tramshed”. Student prices will start at €230 per week based on a 40 week or 51 week contract which will include all bills. The final part of the scheme, a 599-bed complex named “The Woodworks” is due to be completed before year end. Host already operates in 17 cities in the UK. The Irish Independent, 25th August
Charlestown Shopping Centre The Irish Times reports that Eamon Watters, owner of Panda Waste has obtained a significant stake in Charlestown Shopping Centre through Garristown Venture Holdings. The shopping centre and connected site with planning permission for 247 apartments and retail space was sold for in excess of €42m. Bannon and Savills asking price was €35.5m. The shopping centre, with an occupancy rate of 91%, is producing an annual income of €2.8m. Tenants include Dunnes Stores, Heatons, Boots, Leisureplex, Carphone Warehouse and Lifestyle sports. The Irish Times, 22nd August
Retail Growth Colliers note that retail investment transactions have fallen from 50% of all transactions in 2016 to 28% in 2017 and only accounted for 3.3% in the first quarter of 2018. Colliers comment that most shopping centres and retail parks have changed hands in the last five years so some reduction in transactions were to be expected. Colliers further highlight that despite foreign investment demand for retail decreasing yields, there is a lack of new occupier demand to support rental growth. Online shopping is noted as a cause for this with 12.5% of Ireland’s €40bn spend now online, with 60% of this to overseas companies. Despite the decline in retail, the food and beverage sector is increasing with demand deriving from Irish companies such as Press Up Group, Avoca, Fallon & Byrne. The Irish Times, 22nd August
Cushman and Wakefield released their 2017 report on Capital Flows in Irish Property, which showed approximately €17.9bn was transacted in the Irish Property Market in 2017. This is across both Residential and Commercial and represents a 1% increase on 2016. The 2017 split between residential and commercial spend was 80:20, compared to a 66:34 split in 2016. While Dublin again accounted for the majority of the spend (€9.9bn), it was down 9% year on year with Cork (€1.6bn) showing a 32% increase on 2016 figures. Galway, Meath and Wicklow also recorded strong increases in transaction volumes in 2017. Cushman & Wakefield, 27th August
While Dublin again accounted for the majority of the spend (€9.9bn), it was down 9% year on year with Cork (€1.6bn) showing a 32% increase on 2016 figures. Galway, Meath and Wicklow also recorded strong increases in transaction volumes in 2017. Cushman & Wakefield, 27th August
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Merrion Square, Dublin: The O’Callaghan Hotel Group is seeking to develop a new office building beside its Davenport Hotel on Merrion Square. The group applied for planning permission to build a five-storey office development at the Merrion building, better known as Morrissey’s, beside the Davenport hotel. The plans include demolishing the existing building and replacing it with a new office in one of Dublin’s most sought after locations. The Irish-owned hotel group rebranded as the O’Callaghan Collection in April after spending more than €30m in the past 18 months to revamp and improve the Dublin hotels. It owns the Alex, Davenport, Mont Clare and The Stephen’s Green hotels in Dublin city centre, which have almost 400 bedrooms between them. The Times, Irish Edition, 18th August
Iput / State Street Asset Swap:Irish property fund Iput has received the green light from the State’s competition watchdog to acquire Deloitte House on Dublin’s Earlsfort Terrace in a multimillion euro asset swap with State Street Corporation. State Street will in return secure ownership of No 40 Molesworth Street from Iput as part of the deal. In approving the proposed deal, the Commission said Iput’s acquisition of Deloitte House would not substantially lessen competition in any market for goods or services in the State. State Street’s acquisition of No 40 Molesworth Street, will see it secure €1.8m (€60 psf) in annual rent from online retailer Jet.com and further rental income from Specsavers, who agreed a 15-year lease for 3,837 sq. ft. of retail space on the building’s ground floor last year. The Irish Independent, 21st August
European Office Market Report: A report on the European office market by Knight Frank shows that €148.6m is spent annually on letting space in Dublin, €65m more than Manchester, Birmingham and Edinburgh combined. In terms of the overall European office market, Dublin ranks as the ninth most valuable city for lettings annually, sitting just behind Moscow (€158.4m) and Warsaw (€150.9m), but ahead of Madrid (€138.8m), Milan (€116.8m) and Amsterdam (€99.0m). The analysis, which is included in Knight Frank’s latest quarterly Dublin Office Market Overview, reaffirms London’s status as Europe’s leading city, with some €1.1bn in office lettings recorded annually. The Irish Independent, 19th August
Eyre Square, Galway: Insurance companyFriends First has bought the mixed-use 76,500 sq. ft. Citypoint building in Eyre Square, Galway, for €22m (€288 psf). The building was completed in 2008 and is fully let producing an annual rental income of c. €1.5m (€20 psf), providing a net yield of 6.3%. The building comprises retail, office and residential tenants with TK Maxx operating from the ground floor. The Irish Times, 21st August
Hotel Market Update: Statistics from hotel market data company STR show the average cost of a hotel room outside Dublin rose by more than 8% in July compared with July 2017. The occupancy of hotel rooms outside Dublin was down 1.8% to 85.2% in July, while the average daily room rate was up 8.1% to €130.87. Revenue per available room (RevPAR), was up 6.2% to €111.45. Occupancy in the capital was also down, dropping 0.6% to 90.1%. The average daily room rate was up 5.3% to €158.45, while RevPAR was up 4.7% to €142.76. In the whole country, occupancy was down 1% to 88.1%, while the average daily room rate was up 6.7% to €147.54, and RevPAR was up 5.6% to €129.96. The volume of visitors from mainland Europe increased 5% to 3.25m last year while the number of North American tourists rose 16% to 1.7m. There has been a decline in UK visitors. The Irish Times, 20th August
Dublin Hotels Pipeline: Figures compiled by Construction Information Services (CIS) show that close to 3,000 hotel bedrooms are in the planning pipeline for Dublin city centre and its immediate environs with plans either submitted or approved for 35 hotels. A further 44 hotels comprising 3,903 bedrooms are at tender award or construction stage in Dublin city, bringing the total number of new hotels due for delivery to 79. The Irish Times, 16th August
Bray Head Hotel: The former Bray Head hotel is set to be transformed into a residential development by IDV Developments, a British property investment company. IDV has applied for permission to refurbish the landmark building as part of a proposal to build 46 apartments. The plans include a new six-storey block and incorporates a restaurant and café at ground floor level. The Times, Irish Edition, 19th August
Sandyford, Dublin: Ires Reit has sought planning permission for the development of a 14-storey apartment block at the Beacon South Quarter in Sandyford, south Dublin. Should the application be approved by Dún Laoghaire Rathdown County Council, it will see the addition of 84 apartments to the 225 units that Ireland’s biggest private landlord already owns at the scheme. An examination of Ires Reit’s latest interim results shows that 636 of the 2,908 apartments in its portfolio are distributed across the six residential developments it owns in the Sandyford Business District (SBD). The Irish Independent, 21st August
Howth Seafront Site: Property development company Marlet Property Group has spent c. €30m acquiring a prime site on the Howth seafront in Dublin. The site has two existing planning permissions, one for 229 apartments and c. 32,000 sq. ft. of commercial accommodation, and another, which is valid until March 2023, for 127 apartments, 51 houses and c. 29,000 sq. ft. of commercial space. Marlet has been very active in recent months having acquired a 3.4 acre site in Dublin 8 for c. €25m and a 16 acre site with potential for 1,500 residential units in Tallaght for c. €16m. The Sunday Business Post, 19th August
Residential Completions: According to the latest CSO figures, c. 7,900 new homes were built in the first half of 2018, a year-on-year increase of 30%. Despite the improvement, the figure is well below the estimated level of demand in the market, which is put at 30,000-35,000 annually. The latest figures show multi-unit schemes accounted for 63% of all the 4,419 new dwellings completed in the second quarter of 2018 with apartments accounting for 11% and single dwellings accounted at26%. The majority of new homes were in the Dublin and the mideast regions accounting for more than 60%. The CSO found 53,578 homes were completed between 2011 and the end of 2017, significantly below previous Government estimates of 84,500. The previous figures based on electricity connections were found to have overstated the number of new homes built in the State for several years. The Irish Times, 21st August
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Project Scariff: Ulster Bank have agreed the sale of a €1.4bn distressed loan portfolio, known as Project Scariff, to US investors, Cerberus Capital Management. The portfolio includes c. 2,300 owner-occupied home loans, as well as c. 2,900 buy-to-let mortgages secured on investment properties. More than half of the portfolio includes buy-to-lets with average arrears of c. €32,000 or 34 months of repayments. The owner-occupied loans in the portfolio are, on average, 83 months, or almost seven years in arrears and behind in their repayments by on average c. €61,000. Each loan has been through at least three forbearance procedures. Project Scariff is expected to be the last big portfolio sale undertaken by Ulster Bank, which has been restructuring its Irish assets for almost a decade, reducing its loan book by c. 60%. The Irish Times, 13th August
KBC Loan Book Sale: KBC has reduced its non-performing loan book from 36.5% to c. 25% following the sale of a portion of its bad loans to Goldman Sachs for €1.9bn. The portfolio comprised soured corporate loans and non-performing Irish and British buy-to-let mortgages. It was previously speculated that the Belgium-based KBC Group, would close down or divest its Irish subsidiary, but last year it announced that Ireland was now part of its core operations. KBC Ireland made a €115.9m net profit after tax and impairments for the first six months of 2018, compared with last year’s €173.1m with the decrease primarily because of reduced impairment provision releases. It has so far added 40,000 new customer accounts and new mortgage lending reached €422m, a 26.7% rise on last year. The Times, Irish Edition, 10th August
Miro Hotel 2, Dawson Street: Plans have been lodged for a €35m project that includes a 117-bedroom hotel and the redevelopment of one of Dublin’s oldest private members’ clubs on Dawson Street. Miro Hotel 2, which owns the Dawson Hotel, has launched plans with Dublin City Council, to develop the Dawson Hotel and adjoining site which is owned by the Royal Irish Automobile Club (RIAC). The automobile club, established in 1901, has two restaurants, a bar and a members’ reading room and library. It is envisaged that the club would vacate the premises by the end of June next year and that the works would be completed within two years. The new facilities would include a restaurant, bar, reading room, meeting rooms, offices for the club, Motorsport Ireland and the Guinness Seagrave Library. The Times, Irish Edition, 14th August
George’s Street Hotel, Dublin: Dublin City Council has approved plans by Grosam Properties for a 100-bedroom hotel on the site of the former Dockrells hardware store at the junction of South Great George’s Street and Aungier Street in the city centre. The development which will consist of five-storey over basement will retain its current façade and include a restaurant and three retail units. The site has lay vacant since late 2015. The Irish Independent, 12th August
Glenveagh Properties: Glenveagh Properties, one of Ireland’s largest housebuilders, has finalised plans to raise more than €200m. The company said that it had closed its offer for a share placing that will raise €213m (€205m after commission, fees and expenses). One third of shares have been allocated to qualifying existing shareholders and the transaction is conditional upon approval from Glenveagh’s shareholder base at an EGM. Glenveagh has previously indicated that the money will be used to take advantage of land-buying opportunities. The company has been one of the most active housing firms since raising €550m through an initial public offering last year. It has a portfolio of 42 sites with the potential for more than 10,000 housing units and it has 700 homes under construction. The Times, Irish Edition, 11th August
Development Land: A new study from Cushman & Wakefield, found that €375m worth of land was bought and sold in the first six months of the year across the greater Dublin area, Cork, Galway and Limerick. This was up by 59% compared to the same period in 2017. The surge was mainly driven by activity in the capital and its neighbouring counties of Kildare, Meath and Wicklow. Deals in this area accounted for 91% of the deals by value. Dublin accounted for the majority, with land worth €321m sold in the county during the first six months of the year. Outside of the capital, Cork is the most active market, with 30 sites worth a combined total of €30m changing hands during the first half of the year, a 25% increase in both volume and value terms year-on-year. The Times, Irish Edition, 10th August
Residential Market Update: According to latest figures from the Central Statistics Office, property price growth eased in June, with house prices advancing by 12%, down from 12.4% in May and 13.3% in April. In Dublin, prices rose by 9% in the year to end-June, with house prices lagging this increase, advancing by 8.4%, while apartment prices soared by 12.8%. Dublin city saw the greatest increases, at 12%, but in south Dublin, house price growth continues to taper, and it rose by just 5.9% over the same period. Across the country and excluding Dublin, prices were up by 15.2%, with house prices rising by 14.6%, and apartments by 20.3%. Prices in the mid-west advanced by a hefty 22.3%, but in the border region, house price growth has stalled, with an increase of 4.9% reported. The latest figures mean that house prices nationally are now 19.5% lower than their peak in 2007, while in Dublin, prices are 22.2% lower than their February 2007 peak. Across the rest of the country, prices are 24.2% off their May 2007 peak. From the trough in early 2013, figures from the CSO show that prices nationally have increased by 79.6%, with Dublin prices almost doubling, up by 92.7% from their February 2012 lows. Across the rest of the country, prices are now almost 75% higher than the low reached in May 2013. The Irish Times, 14th August
Cork Office Market: The latest Cushman & Wakefield Cork office leasing market recorded a very strong opening half to 2018. Following a positive first quarter, the Cork office leasing market activity gathered pace in the second quarter with 26 occupiers taking up space, amounting to c. 281,000 sq. ft. A large portion of this was made up of Apple’s occupation of its own 170,000 sq. ft. expansion in Hollyhill. This has brought take up in the year to date to c. 382,000 sq. ft., compared to just 88,000 sq. ft. recorded in H1 2017. The past twelve months have seen supply levels in Cork decline by 4.3%, to stand at c. 600,000 sq. ft. at the end of June, resulting in the vacancy rate falling to single digits for the first time in a decade, to 9.5%, from 10.2% at the mid-point of 2017. When signed and reserved space is excluded, the net vacancy rate falls to c. 6.7%. As a result of pre-let deals closing in Q2 2018, 87% of the space currently under construction in Cork is now precommitted. Cushman & Wakefield Market Report, 14th August
Belfast Office Market: Lisney, who recently handled the £15m sale of the Obel 68 office block in Belfast, have reported growing interest in the office rental market in the city, with the total rental take-up in the first quarter of 2018 increasing to 270,000 sq. ft. Prime office rents have also moved from c. £12.50 psf. to c. £21.50 in recent years and there are a number of office schemes planned where quoting rents will be upwards of £23 psf. Additionally, investment volumes have increased from £26m in the first half of 2017 to c. £70m in the first half of 2018.The Irish Times, 13th August
Dublin Industrial Market: A Knight Frank industrial market report has found there was c. 471,000 sq. ft. of industrial property transacted in Dublin in Q2, a 37% decrease in comparison to the same quarter in 2017. In total take up for the first six months of the year was c. 1.2m sq. ft. Demand for space was highest in Dublin South-West with the area accounting for 51% of take-up, followed by Dublin North-West with 43%. A number of new builds were delivered to the market in Q2 including at Horizon Logistics Park and Dublin Airport Logistics Park. While prime rents remain unchanged at c. €9.30 psf, secondary rents now stand at c. €5.50 – €6.50 psf. Prime industrial yields are unchanged at 5.25%. Knight Frank Market Report, 8th August
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
119 St Stephen’s Green: Receiver Ken Tyrell of PwC is understood to be close to bringing 119 St Stephen’s Green to the market. The property, which is owned by Peter White, is expected to have a sales price between €4m and €5m. The four-storey Georgian property is currently occupied by the famous steakhouse Shanahan’s on the Green, who will be unaffected by the sale. Shanahan’s have c. eight years remaining on their lease, with no break clauses. The Sunday Business Post, 27th August
Nestor’s Supermarket Group: Joyce’s Supermarket Group is believed to have agreed a deal to acquire the assets of Nestor’s Supermarket Group in Galway, in a deal understood to be in excess of €10m. The assets are being sold under the instruction of the receiver, Grant Thornton. Nestor’s has stores in Father Griffin Road, Oranmore, Ballybane and Doughiska, where they employ c. 190 people in total. The Irish Independent, 27th August
McDonald’s Cork: Cohalan Downing have brought to market a purpose-built McDonald’s drive-thru restaurant which is located in Blackpool, north of Cork city centre. No guide price has been quoted for the property, however it is believed that it will sell for at least €2.5m – €2.6m, a c. 6.3% return based on the rental income of c. €165k p.a. The 3,300 sq. ft. restaurant, which was built in 2000, occupies a 0.8-acre corner site and recently received a substantial refurbishment from the tenant. There is c. 17.5 years left on the 35-year lease, which has no break options. The Irish Examiner, 24th August
Hotel Chocolat: The UK chocolatier Hotel Chocolat is looking to open up to three stores in Ireland. The chocolatier plans to open its first store in the GPO retail building on Dublin’s Henry Street before the end of 2017. BNP Paribas had been guiding c. €175k p.a. for the unit, which extends to 646 sq. ft. on the ground floor with a further c. 1,200 sq. ft. at basement and street level. Stores in Dundrum Town Centre and Blanchardstown are also being considered. The Irish Times, 23rd August
The Exo Building: The Sunday Business Post reports that SW3 Capital is “closing in on a deal” with NAMA for The Exo Building, an unbuilt office block in Dublin’s docklands which will face the East Link Bridge. The purchase price for the property is reportedly c. €120m. It is believed that under the terms of the deal, SW3 will fund the development of the block and assume ownership upon completion. At 73 metres tall, The Exo Building is set to become Dublin’s tallest office block. SW3 is backed by Tristan Capital Partners, a British investment fund. The Sunday Business Post, 27th August
Goodbody 2017 Outlook: The brokerage firm Goodbody reports that 2017 is looking like a very strong year for the Dublin office market. They reference CBRE’s figure of c. 1.6m sq. ft. of take-up in H1 2017, which on its own is 80% of the long-run average take-up per year. H2 2017 also looks promising, with The Sunday Times reporting on the 27th of August that Indeed, the US recruitment company, are looking for c. 250,000 sq. ft. of office space. Goodbody, 28th August
Dublin 1 Hotel: Noel Smyth’s Fitzwilliam Real Estate Properties Ltd has sought planning permission from Dublin City Council for a nine-storey, 365-bedroom hotel at the junction of Upper Liffey Street and Middle Abbey Street in Dublin 1. It is believed that should the development proceed, then the hotel will be operated by Motel One, the German budget hotel operator. There is currently a c. 50,000 sq. ft. property on the site of the proposed 125,000 sq. ft. hotel, which will need to be demolished to make way for the hotel. NAMA Wine Lake, 28th August
Pembroke Road Hotel: The publican Martin Keane, who owns Bloom’s hotel and Oliver St John Gogarty pub in Temple Bar in Dublin city centre, is seeking to develop a new 50-bed boutique hotel on Pembroke Road in Dublin 4. The proposed hotel is still in the early stages, and no planning application has yet been submitted to Dublin City Council. Should the development proceed, Mr Keane has stated that the hotel will be operated by one of his own companies, as opposed to hiring an international operator. The Irish Times, 26th August
Spencer Hotel Expansion: Spencer Leisure Investments Ltd has sought planning permission from Dublin City Council for 40 new hotel bedrooms and a new conference room for the Spencer Hotel in Dublin’s IFSC. The proposed expansion of the four-star, 169-bedroom hotel will be partly facilitated by way of a seven-storey, 11,000 sq. ft. extension. Spencer Leisure is controlled by John Malone, John Lally, Daniel Sierra Junior and Paul Higgins. NAMA Wine Lake, 27th August
Ashton House: A classical period house located on c. 28 acres of land close to Ashtown Railway Station and the Phoenix Park in Dublin has been brought to the market with a guide price of €3.5m. The property, which was previously sold for c. €26m in 2006, was offered for sale by CBRE on behalf of NAMA over two years ago, however it was subsequently withdrawn from the market as it was hoped that the land would be rezoned to accommodate a residential development. However, this rezoning did not take place, and the estate is for sale once again, and is likely to end up as a private residence, nursing home, wedding venue or equestrian centre. The main residence extends to c. 6,500 sq. ft. and includes 12 large bedrooms, while there is also a four-bed lodge and four-bed gate bungalow on the site. The Irish Times, 23rd August
New Dublin Suburb: The Irish Times reports that South Dublin County Council will shortly publish plans for a new Dublin suburb containing more than 8,000 homes. The new suburb will be located on c. 690 acres of land at Clonburris, which is located to the east of Adamstown on the Dublin – Kildare railway line, and will cater for a population the size of Wexford town. Cairn Homes, the largest landowner in Clonburris, has stated that it would be in a position to start building there in early 2018, and that it could provide homes for less than €300k. Mr Eddie Taaffe, the council’s director of planning, has indicated that the land could generate in excess of 500 homes p.a., providing a steady stream of housing over the next 10 to 15 years. The potential for increased traffic in the area from the development is a concern locally, as there is already severe congestion in Adamstown, Lucan and Clondalkin. The Irish Times, 28th August
Sandyford Residential Application: Receivers Farrell Grant Sparks have sought a pre-planning consultation for the development of 482 apartments on the site of Cork developer John Fleming’s Rockbrook scheme in Sandyford, south Dublin. The plans have been submitted under the Government’s temporary fast-track planning application system, and should the scheme be given approval by An Bord Pleanála, the site should see an immediate increase in value, opening up the prospect of its sale to both developers and investors. This application is separate to the one submitted by IRES REIT to develop 467 apartments at Rockbrook. Should both developments proceed, they would bring an additional 949 residential units to Sandyford. The Irish Independent, 27th August
IRES Rockbrook Application: An Bord Pleanála have today postponed the decision date on IRES REIT’s appeal against the decision of Dún Laoghaire-Rathdown County Council to refuse planning permission for its 467-unit apartment scheme at Rockbrook. The decision date has been postponed from the 28th of August 2017 to the 2nd of October 2017. The postponing of the decision has been attributed to capacity constraints at board level. Goodbody, 29th August
Inchicore Apartments Application: Wingthorpe Ltd has sought planning permission from Dublin City Council to construct a 19-unit apartment complex on Emmet Street in Inchicore. The new five-storey, over two-level basement building will contain five one-bedroom units, nine two-bedroom units, five three-bedroom units, a ground floor commercial unit and underground car parking. NAMA Wine Lake, 27th August
Permanent TSB (“PTSB”) Mortgage Product: PTSB is introducing a new product for homebuyers which will see the bank reimburse customers with 2% of each monthly payment made, in addition to the existing offering of a once-off cashback payment of 2% of the value of their mortgage on drawdown. The new product will be available to all future residential mortgage customers who make their monthly mortgage payments from an “Explore Account”, and the reimbursement is set to apply until December 2027. Customers who have recently received mortgage approval but who have not yet drawn down a mortgage will also be invited to avail of the new offer, however it will not be available for customers taking out a buy-to-let mortgage. PTSB increased its share of mortgage lending to 10.8% in H1 2017, having fallen to just 2% during the recession. The Irish Times, 25th August
Castlemanor Nursing Home: The Sunday Business Post reports that Trinity Care is set to acquire Castlemanor Nursing Home and a number of retirement units for between €8m and €9m. Castlemanor is a 71-bed nursing home with 29 retirement cottages located outside Cavan town. The purchase price is believed to reflect a 10x valuation on earnings / EBITDA, with an additional €1m for the retirement units. Trinity Care, which is owned by Anne Heraty and Paul Carroll, already owns nursing homes in north Dublin, south Dublin, Kildare, Meath and Cavan. The Sunday Business Post, 27th August
Dublin 2 Commercial Vacancy Rate: New research from GeoDirectory and DKM Economic Consultants has shown that despite being at the epicentre of Dublin’s commercial property resurgence, Dublin 2 recorded a commercial vacancy rate of 18.3% in Q2 2017, substantially above the 13.6% vacancy rate recorded in Co. Dublin generally. GeoDirectory CEO Dara Keogh stated that with the obvious economic recovery and apparent demand for office space in Dublin 2, the 18.3% vacancy rate suggests a ‘serious mismatch’ between the stock that is available and what is being demanded. The research also showed that Dublin 2 isn’t alone in terms of outstripping the national average of 13.5% for commercial vacancies, as nine of Dublin’s postal code areas have vacancy rates in excess of 14%. At a provincial level, Connacht had the highest average vacancy rate at 15.8% in Q2 2017, followed by Ulster at 14.1%, Munster at 13.1% and Leinster (excluding Dublin) at 12.6%. The Irish Independent, 23rd August
International Construction Survey: Enterprise Ireland and Investec have released a new publication which focuses on developments in Ireland’s major export markets, with their latest publication focusing on the construction sector. The survey finds that 45% of respondents have reduced their exposure to the UK since the Brexit referendum in June 2016. While some firms have withdrawn from the UK market completely, many of those who have maintained operations in the UK have adapted their business models, implementing currency and raw material hedging strategies to mitigate against currency risk. While the UK market remains a key market, there is now an increased focus on Continental Europe, the US and Asia. The Enterprise Ireland / Investec Export Market Watch Survey – International Construction, 29th August
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie