Starwood Office Portfolio: The Sunday Times reports that Starwood Property Trust has turned down an offer to sell its c. €380m Dublin portfolio at a ‘significant premium’. The company acquired the portfolio, which consists of 12 office blocks and an apartment complex, from Lone Star in 2015, for over €300m. The office assets include the Iveagh Court Complex, the Watermarque building, Marsh House and 11 – 12 Hogan Place. Lone Star is reported to have made a substantial profit from the sale of the portfolio to Starwood, having acquired the portfolio for c. €220m from NAMA in 2014 as part of the agency’s Project Holly loan sale. The Sunday Times, 20th August
Carrisbrook House: A joint venture between Colony Northstar and U+I has purchased Carrisbrook House, the home of the Israeli embassy in Dublin. The property previously made headlines after it emerged the State paid almost €1m p.a. for vacant office space in the building for almost a decade, with the State agency Forfás citing security concerns for failing to find occupants for its space. AIB Investment Manager, the other long-standing leaseholder, vacated the premises in 2008, also citing security concerns. The Israeli embassy, which signed a 30-year lease agreement with Forfas in 1995, has been the only tenant in the building for a number of years. Based on documents referenced by The Sunday Times, Colony and U+I acquired the property from Carrisbrook Unlimited in July. The property was acquired by Bernard McNamara in 2007 for c. €46m, before it was sold by a receiver in 2012 for c. €16.3m. The Sunday Times, 21st August
Cork Business and Technology Park: An unnamed Irish investment company has paid c. €8m (c. €0.75m over guide) to acquire two buildings in the suburbs of Cork City, Unit 8 and Unit 14 in Cork Business & Technology Park. With the current rental income at c. €808k p.a., the properties should offer a return of just over 9% p.a. Unit 8 extends to 24,755 sq. ft. and is occupied by Apple Operations Europe, a subsidiary of Apple. Unit 14 extends to 36,340 sq. ft. and is occupied by Trend Micro (EMEA) Ltd. The combined WAULT of the two units is under four years. The Irish Examiner, 15th August
The Temple Bar Inn: The owner of the Temple Bar Inn, a 101-bedroom, three-star hotel located on Fleet Street in Dublin city centre, is seeking planning permission from Dublin City Council to add an additional 89 rooms to the property, via a six-storey extension. The applicant is Heights Hospitality Operations Ltd, which is an Irish company controlled by Dan Dumitrescu, Thomas Doyle and David Reuter. NAMA Wine Lake, 20th August
Waterford City Development: Waterford City Council is seeking c. €61m of state investment to assist in a project which should double the size of the city centre. In a submission to the Government’s ten-year capital plan, the city council has stated that the funding would unlock a further €500m from Saudi Arabian and Irish investors to regenerate a derelict site on the city’s North Quays. The plans involve the construction of a new bridge across the River Suir for both pedestrians and cyclists, as well as the relocation of the city’s train and bus stations. To date, Waterford has grown almost exclusively on the south of the Suir. The Saudi-based Fawaz Alhokair Group will invest c. €300m in a retail and office development on the north side of the river, but only if the State agrees to fund new infrastructure, while Irish developer Seamus Walsh is planning to redevelop the Ard Rí hotel into a five-star resort. The Sunday Business Post, 20th August
Donaghmede Apartments Application: Midgard Construction Ltd has applied to Dublin City Council for planning permission to construct 209 new apartments in 4 four-to-five storey blocks on the site of the former Columban Missionary on The Hole in the Wall Road in Donaghmede in north Dublin city. The new apartments will consist of 72 one-bedroom units, 102 two-bedroom units and 35 three-bedroom units. The project will require the demolition of the existing building on the site, and the new development will also contain a 2,500 sq. ft. gym, a 3,000 sq. ft. crèche, and basement car and bicycle parking. NAMA Wine Lake, 20th August
Daft.ie Rent Report: The latest Daft.ie report on national rents shows that there are less than 3,000 properties available to rent nationwide, the lowest figure on record. There were also just 1,121 properties available to rent in Dublin on August 1st 2017, which is more than 20% below the number of properties available to rent 12 months’ previously. Rents in Dublin are now c. 18% higher than their peak from the Celtic Tiger, with the average property in the capital costing €1,741 p.m. to rent, representing an increase of 12.3% YoY. Excluding Dublin, national rents have risen by 11.9% YoY. Rents in Cork city and Galway city also saw strong inflation, at 6.8% and 10.0% respectively. The Daft.ie Rental Price Report, Q2 2017
Ronan Planning Applications: Johnny Ronan’s Ronan Group Real Estate (RGRE) has taken additional steps to secure planning permission for two substantial projects in Dublin and Wicklow. RGRE have submitted extensive information to Dublin City Council in relation to a c. 717,000 sq. ft., mixed-use development in Spencer Dock in the north docklands. RGRE had sought planning permission from the council for a 212-bedroom hotel, c. 500,000 sq. ft. of office space and restaurant / retail units, before the council sought further information. RGRE have also appealed Wicklow County Council’s decision to refuse planning permission for a c. €50m, 141-bedroom hotel in St Valery’s, Enniskerry, Co. Wicklow, to An Bord Pleanála. The Irish Independent, 22nd August
Northwest Business Park: IPUT PLC has pre-let Unit 624 Northwest Business Park in Dublin 15 to German logistics operator DB Schenker. The company will occupy the building, which extends to 103,000 sq. ft., later this month after the completion of a substantial extension to Unit 624, which IPUT acquired vacant in 2015. The facility sits on a secure 5.1-acre self-contained site with three gated entrances, and is strategically located close to Dublin Airport, with excellent links to the M2, M3 and M50 motorways. William Harvey & Co advised IPUT on the transaction. IPUT, 14th August
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Permanent TSB Mortgage Sales: The Irish Times reports that PTSB is progressing with its plan to sell a substantial portion of its worst performing mortgages, and is reportedly seeking advisers on potential loan sales in either 2017 or 2018. The bank, which is 75% owned by the State, is facing mounting pressure from regulators to address the problem, as it currently has the highest ratio of non-performing loans amongst Ireland’s bailed-out banks, at 28% of its portfolio as of June 2017. More than 50% of the loans in the c. €5.78bn non-performing loan portfolio are in some form of long-term restructuring or forbearance agreement, but are making a contribution to the profitability of the bank. It is therefore believed that the focus of the loan sales will be the c. €2.68bn of ‘untreated’ bad loans, deemed to be so either because the bank can’t find a viable solution or the borrowers haven’t engaged with the bank. The Irish Times, 11th August
Former Central Bank HQ: US property giant Hines and its Hong Kong based partner Peterson are set to seek permission from Dublin City Council to embark on a c. €75m redevelopment of the former Central Bank HQ in Dublin city centre. The plans include a 300-seat rooftop restaurant and viewing area, c. 129,000 sq. ft. of office space, and shops in the adjoining retail buildings, which they also own. The plans involve changing the roof of the building by removing the current copper cladding and replacing it with a two-storey glass-roofed structure that will house the new restaurant and a viewing area. The application is part of a master plan known as Central Plaza, which includes the annex and commercial buildings on Dame Street, and 6 – 9 College Green. It is hoped that the redevelopment will be completed by Christmas 2018, with the pedestrianisation of College Green scheduled to be completed around the same time. The Irish Times, 9th August
Cork Office Development: JCD Group has been granted planning permission for a c. €8.7m, c. 75,000 sq. ft. office development in Cork city centre. It is expected that construction will commence in Q4 2017 and will take approximately 12 months to complete. The Sunday Business Post, 13th August
Vacant Site Levy: The Irish Times reports on Dublin City Council’s registrar of vacant sites, which contains 70 sites with a combined value in excess of €220m. The owners of the sites include international funds, as well as the OPW and Dublin City Council themselves. The council owns seven sites on the registrar, which have a combined value of more than €27m. There are plans to introduce a levy on vacant sites from 2019, with the levy set at 3% of the value of the site, payable annually. The criteria for the sites to be levied include (i) the site being greater than 0.12 of an acre, excluding gardens (ii) the majority of the site has been vacant or idle for at least 12 months (iii) the site must be in an area zoned for residential or regeneration purposes and (iv) the site must be in an area which is in need of housing. The Irish Times, 15th August
College House / Screen Cinema Site: Marlet Property Group has applied for planning permission to redevelop the former Screen Cinema and the adjacent nine-storey College House building on Townsend Street in Dublin city centre. The group want to demolish the existing properties and replace them with a c. 269,000 sq. ft. office block, with the estimated cost of the development at c. €70m. The block will also contain a 500-seat entertainment venue in the basement, and a bar and restaurant on the ground floor. The site is beside Hawkins House and Apollo House, both of which are set to be demolished and replaced with new buildings, and the new Luas Cross City line will pass by the site. It is anticipated that the planning process could take until mid-2018, with construction expected to take about 18 months. The Sunday Times, 13th August
Culvert Apartments: Bartra is set to purchase the Culvert Apartments complex on Pim Street in Dublin’s inner city. The complex, located near the Guinness brewery, consists of 23 apartments leased to Dublin City Council on a rental accommodation scheme, and four private duplexes. The block was put on the market in late 2014, guiding c. €3.2m. The Sunday Times, 13th August
Ballyfermot Residential Development: Dublin City Council has published a planning application to build a mix of houses and apartments on the former Cornamona Court site in Ballyfermot, west Dublin. The development will contain 61 units in total, consisting of 16 two-storey, two-bedroom terraced houses, a four-to-five storey apartment block containing 12 three-bed ground floor duplexes, and 33 senior citizen apartments (29 one-beds and four two-beds). NAMA Wine Lake, 13th August
Cherrywood Planning Application: William Neville & Sons have submitted a planning application to Dún Laoghaire-Rathdown County Council to construct 242 apartments and 80 houses in the new town of Cherrywood in south Dublin. The application comes just days after the council changed the planning scheme for the Cherrywood Strategic Development Zone (SDZ) to allow smaller apartments to be built in the town. The application is believed to be the first for the new town, despite the fact that the Cherrywood planning scheme, allowing for the development of c. 8,000 new homes, was approved in 2014. In 2015, the then Minister for the Environment, Alan Kelly, introduced new standards which lowered the minimum size of apartments which could be built, after which the council had to return to An Bord Pleanála to have the new standards incorporated into the scheme. The reduction in apartment sizes means that the number of homes that can now be built in Cherrywood will increase from 8,336 to 8,786. Under the fast-track planning scheme, planning permission for the development could be secured from the council in two months. The Irish Times, 13th August
Mortgage Rates: New figures from the Central Bank show that the average interest rate applied to new variable rate mortgages in Ireland was 3.35% in June, against an equivalent Euro area rate of 1.83%. The Irish Times reports that the banks cite relatively higher funding costs, as well as the Irish market being more risky as factors behind the difference in mortgage rates between Ireland and the rest of the Euro area. The latest Central Bank figures also show that while the share of fixed rate mortgages in Ireland is increasing, variable rate mortgages still account for c. 60% of new agreements, compared with a figure of 15% in the Eurozone area. The Irish Times, 11th August
CSO Property Prices: The latest figures from the CSO show that the growth in property prices continues to accelerate, with prices rising by 11.6% in the year to June 2017. This compares with an increase of 11.1% in the year to May, and an increase of 5.5% in the year ending June 2016. The average price paid for a home in the year ending June 2017 was c. €259k, or c. €402k in Dublin. The most expensive place to buy in Ireland was Dún Laoghaire-Rathdown in Co. Dublin, with an average price of c. €581k, while the cheapest was Co. Longford at c. €94k. House prices nationally are now just 29% lower than the highest level reached in 2007, with Dublin property prices 29.9% below their February 2007 peak, and property prices outside of Dublin 34.6% below the peak reached in May 2007. The Irish Times, 9th August
BNP Paribas Real Estate: BNP Paribas Real Estate has announced the acquisition of Strutt & Parker, one of the largest independent property partnerships in the UK. The acquisition is due to be completed in September 2017, and will merge the UK subsidiary of BNP Paribas Real Estate with Strutt & Parker, which has over 60 offices in the UK and covers all real estate asset classes. BNP Paribas Real Estate, 8th August
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Shoreline Portfolio: The Sunday Independent reports that Bank of Ireland has agreed to buy a portfolio of ‘re-performing loans’ from Lone Star. Mortgage holders have received letters in recent weeks advising them that an agreement had been reached between Bank of Ireland and the Lone Star entity Shoreline. It is understood that the loans in the portfolio were previously in difficulty, but are now performing again after engagement between the borrowers and the loan acquirer. The purchase of portfolios from investment funds provides a mechanism for banks to grow their loan books in a market where housing supply remains tight. The Irish Independent, 6th August
Lidl Expansion: Lidl could increase its presence in Ireland to as many as 200 stores, in a potential investment of at least €300m. The company currently has 152 outlets in the Republic of Ireland, and is opening further stores this year in a variety of locations including Cabra and Portmarnock in Dublin and Wilton and Bantry in Cork. In an interview with the Irish Independent, Lidl Ireland Managing Director John Paul Scally stated that the company would continue expanding until there was a Lidl store in close proximity to everyone in the country. The potential €300m spend would be in addition to the €400m the company is investing in its network in Ireland between 2016 and 2018, including c. €80m on a substantial distribution centre the company is hoping to develop in Newbridge, Co. Kildare. The Irish Independent, 3rd August
One Molesworth Street: Green REIT has confirmed that it has signed an agreement with Barclays Bank which could see the bank lease up to 45,000 sq. ft. of space in their new One Molesworth Street development in Dublin city centre. The bank has initially signed a 20-year lease for 37,000 sq. ft. of space, which equates to two and a half floors out of the total of five available floors. The bank also has an option for a further half floor, which, if taken, would bring the letting to 45,000 sq. ft. Barclays will pay a rent of €2.35m p.a., with the bank entitled to a market level rent-free period at the start of the lease. There is also a break option in the lease in year 12. The Irish Times reports that the One Molesworth Street development is set to generate an overall rental income of c. €5m p.a. for Green REIT, and cites a Goodbody client note which states the scheme could add c. €34m of profits once completed, ahead of earlier expectations of c. €29m. The Irish Times, 2nd August
Carton House Resort: The Sunday Business Post provides an update on the bidding for Carton House Hotel, Spa & Golf Resort, reporting that billionaire John Malone and the Guinness family are among those considering bids for the resort. In addition, several Chinese investors have reportedly sought access to the data room. It is also noted that a number of the usual bidders for large scale Irish hotel and resort assets such as Tetrarch, Dalata and Tifco, are not planning to make a bid. It is believed that the earnings after tax of c. €2m against a price tag of €60m – €65m is deterring several players, and several well-known hotel investors also consider the detail available in the data room to be insufficient for progressing a bid. The Sunday Business Post, 6th August
Average Room Rates: New figures from the travel research company STR show that the average daily rate (ADR) for a hotel room in Dublin city in H1 2017 was €132.60. For the State as a whole, the ADR was €122.85. STR also anticipate that the ADR in Dublin will rise by between 5.5% and 7.5% before the end of 2017, increasing the ADR to somewhere between €132 and €140. With regards to occupancy rates, Dublin currently has an occupancy rate of 80.71%, ahead of Paris, Zurich, London and Rome. The occupancy figure for Ireland as a whole (75.4%) was also above cities such as Paris, Zurich and Rome, with occupancy in hotels outside of Dublin rising by 3% in H1 2017 to 67.3%. The Irish Times, 7th August
Cork Development Site: The O’Flynn Group, of which Michael O’Flynn is the Managing Director, has sought planning permission for 515 homes, a crèche, retail units and a community centre on a c. 76-acre site in Ballinglanna, which is to the east of Glanmire in Cork. The development has a value of c. €130m. Under the new fast-track planning legislation, the group can expect a final decision of the planning application within 16 weeks. The Irish Independent, 8th August
EBS / DKM Affordability Index: The latest EBS / DKM Affordability Index shows that the cost of servicing a mortgage, as a percentage of after-tax income, continues to rise. By the end of 2017, a single-person will spend c. 34.5% of their income servicing their mortgage, a level not seen since 2008. For a first-time buyer couple, mortgage repayments accounted for c. 21.2% of their after-tax income in May 2017, having been at c. 18.7% in May 2015. First-time buyer couples in Dublin were spending c. 27.4% of their after-tax income servicing their mortgage in May 2017, up from 25.5% in May 2016 and a low of c. 17% in 2012. The Irish Times, 8th August
Government Mortgage-To-Rent Scheme: The Government has received clearance from Eurostat, the EU’s statistics agency, to proceed with a plan that will allow private equity funds to acquire distressed mortgages from the Irish banks. Under the proposed scheme, private sector entities will be able to purchase the mortgages of thousands of distressed mortgage holders, who can then apply to become social housing tenants, with the State paying a rent top-up to the private sector operators on top of what the mortgage holder can pay. While the borrower will lose ownership of their home under the scheme, instead becoming a tenant of the State, they will be able to re-purchase their home in the future if their circumstances improve. To date, several private sector entities and advocacy groups have expressed an interest in the scheme, including iCare Housing, Merrion Capital, Beacon Capital and Arizun. The Sunday Business Post, 6th August
Mortgage Approvals Vs Drawdowns: The Irish Independent reports on the increasing gap between the number of people who obtain mortgage approval and those who actually drawdown a mortgage. According to figures from the Banking and Payment Federation Ireland (BPFI), c. 8,000 more people were approved for a mortgage than those who actually drew one down in the year ending June 2017 (c. 35,000 vs. c. 27,000). However, both approvals and drawdown numbers continue to rise. The disparity, which is the greatest in percentage terms since the data began in 2011, is attributed to both the chronic shortage of properties for sale, and the fact that many buyers get approval from a number of mortgage lenders in the hope that some will offer them a higher mortgage. The figures from the BPFI show that c. 8,000 mortgages were drawn down in Q2 2017, with a combined value of c. €1.65bn, representing a 17.6% increase YoY. The Irish Independent reports that the first time buyers are driving the rise in the mortgage market, having been boosted by the relaxation of deposit rules from the Central Bank and the introduction of the Government’s Help-to-Buy scheme. First-time buyers and mover-purchasers combined accounted for 85% of the total value of mortgages drawn down. The Irish Independent, 3rd August
Apartment Sales: According to the latest investment property report from estate agents Lisney, over €300m worth of rental apartment blocks and portfolios are expected to be sold in H2 2017. Lisney reports that strong demand has seen the sector become the best performing sector in the year ending June 2017. The yields from private rental sector (PRS) investments dropped by 75 basis points in the year ending June 2017, as the prices being paid for investments rose even more rapidly than the increases in rents. However, at 5.75% gross, yields are still higher than both prime retail and offices. The Irish Independent, 7th August
Dublin Residential Development Scheme: Victoria Asset Management, a UK company connected to Dublin-based property developer Victoria Homes, is reportedly planning to raise up to €50m by issuing bonds, to fund the construction of up to 4,000 new homes around Dublin. The company has said it will work in conjunction with Victoria Homes, which it says has created a robust pipeline of development sites around the capital over the last five years. These sites are located in areas including Enniskerry, Killiney, Foxrock, Ballsbridge, Mount Merrion, Stillorgan, Rathfarnham, Portmarnock and Malahide. The Irish Independent, 4th August
Benbulben Suites: Colliers are guiding €2.5m for ‘the Benbulben Suites’ a residential, tourist and industrial investment in Sligo. The investment consists of two buildings. The first building contains 54 two-bedroom suites and extends to 74,000 sq. ft. (gross). The second building, the industrial building, extends to c. 12,000 sq. ft. (gross). The suites are currently used as serviced accommodation, with a mixture of student accommodation and short-term tourist lettings. In 2016 the suites generated turnover of c. €481k and income of c. €186k. The industrial building is to the rear of the suites and is currently being used by the HSE as a regional laundry, at a rent of c. €63k p.a. The HSE has been in situ since 1992, although their lease has expired. The Irish Independent, 3rd August
Construction Projects: According to the Construction Industry Federation, an audit of every public and private sector construction project in the State (excluding one-off housing) by Construction Information Services has shown that of the new construction projects commencing, 27% are in Dublin, 24% are in the rest of Leinster, 28% are in Munster, 13% are in Connaught and 8% are in Ulster (Republic of Ireland). The report also found that after a 29% increase in the number of projects starting between 2015 and 2016, the number of projects which commenced in H1 2017 was almost static (at 1,325) when compared with the same period in 2016 (1,317). Also notable is that the volume of planning permissions granted in H1 2017 (2,672) was below the corresponding period in 2016, with the number down by 312 projects (10.4%). The Irish Independent, 6th August
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Commercial Property Returns: The Society of Chartered Surveyors’ Ireland and IPD Quarterly Property Index has noted that the value of Irish commercial property investments rose by c. 2.1% in Q2 2017, a figure which is below the c. 3% return in Q2 2016. The index showed that commercial property returned c. 10% YoY to the end of June 2017. According to MSCI, which produced the research, Irish commercial property returns have normalised since the recovery in the market took place. The Irish Times, 27th July
CastleCourt Shopping Centre: The Northern Ireland-based investment firm Wirefox has paid c. £125m (c. €140m) to acquire the 27-year old Castlecourt shopping centre in Belfast. The property, which extends to c. 340,000 sq. ft. of space, was previously owned by the fund manager Hermes. The centre is the third largest in Northern Ireland and is the largest single-asset transaction to take place in recent years. The centre is anchored by Debenhams and has annual footfall of c. 12.5 million. The Irish Times, 28th July
Kildare Village Extension: Value Retail, the owner of Kildare Village, has submitted plans for a c. €50m extension which would add 29 stores and two restaurants to the complex. If the scheme was to be approved, it would increase the number of stores to over 130 and provide employment for several hundred people. To facilitate the extension, an additional 460 car spaces will need to be provided. The Irish Independent, 30th July
Skerries Point Shopping Centre: Skerries Point Shopping Centre in north Dublin has been sold to US investment company Grand Coast Capital for €3.4m, c. €400k above the asking price set by Savills. The purchase price equates to c. €113 psf, and the investment will show an initial yield of c. 7%. The centre, which extends to 68,682 sq. ft., currently produces rental income of c. €335k p.a. from tenants which include Eurospar and Boylesports. The weighted average unexpired lease term is 6.5 years, and the centre currently has a vacancy rate of 57%. The Irish Times, 26th July
Jervis Shopping Centre: AIB has provided JSC Properties, a company controlled by Paddy McKillen and Padraig Drayne, with a seven-year, €155m loan facility to refinance the Jervis Shopping Centre in Dublin city centre. The 385,000 sq. ft. centre, which was developed in 1994, contains over 90 retail units, including Topshop, Tesco, PC World and Next, as well as a dedicated food court. The current rental income is c. €16m p.a., a figure which is due to rise to c. €18.5m p.a. over the next 18 months. The owners of the centre were advised by LeBruin and Eastdil Secured. The Irish Times, 26th July
Dawson Street / Nassau Street Development: An Bord Pleanála has upheld plans for a c. €58m development on the corner of Dawson Street and Nassau Street in Dublin 2. The project will involve the demolition of the existing buildings, and the construction of over 215,000 sq. ft. of commercial and retail space. The Sunday Business Post, 30th July
Beech Hill, Clonskeagh: An unnamed investor has paid c. €8m to acquire one of the original office buildings at Beech Hill office campus in Clonskeagh, Dublin 4. The three-storey, 21,366 sq. ft. property is occupied by Topaz Energy under a 35-year lease from 1991, at a rent of c. €460k p.a. Based on the purchase price, the property offers a net initial yield of c. 5.5%. The property also contains 68 car parking spaces and was recently refurbished. The sale was handled by BNP Paribas Real Estate. The Irish Times, 25th July
Tallaght Land Bank: Bohan Hyland & Associates are guiding €3.5m for a 2.2-acre land bank at Greenhills Road in Tallaght, Dublin 24. The site comes with full planning permission for a 125,000 sq. ft. office development. The selling agents believe that while the current planning permission covers the development of an office building, the site will be of particular interest to nursing home operators and residential developers. The Irish Times, 25th July
Radisson Blu Hotel: Luxor investments has been granted planning permission by An Bord Pleanála for a c. €35m extension to the four-star Radisson Blu hotel on Golden Lane in Dublin city centre. The owners had been seeking an eight-storey extension which would have added 103 bedrooms to the 152-bedroom hotel, however the owners later revised their plan to seek a reduced extension of six-storeys. The targeted completion date for the works is H2 2019. The Irish Independent, 29th July
Dublin 1 Hotel: Weiyu Wu has sought planning permission from Dublin City Council to convert a five-storey, over-basement building located at 72 Middle Abbey Street in Dublin city centre into a 10,000 sq. ft., 17-bedroom hotel. The application will involve a change of use for the premises, which is currently designated for retail use on the ground and basement floors, and retail storage on the upper floors. NAMA Wine Lake, 30th July
The Avalon Inn: Joe and Julie Comerford have been granted planning permission by An Bord Pleanála to convert their bed & breakfast, the Avolon Inn, into a 39-bedroom hotel in Co. Kilkenny. Once the c. €5.4m renovation is complete, it is expected that the property will also feature a wedding venue and ballroom capable of facilitating up to 250 guests. The Irish Independent, 27th July
Dún Laoghaire Apartments: The Irish Times reports that Patrizia, the German real estate fund, is to purchase Ireland’s largest build-to-let apartment development, which is being constructed in Dún Laoghaire in south Dublin. The fund was the top bidder, at c. €132m, for 319 multifamily apartments being constructed in two five-storey blocks on the site of the former Dún Laoghaire golf course off the Upper Glenageary Road. There was substantial interest in the investment from other institutional investors such as Irish Life, AIG, SW3 and Tristan Capital Partners, underlining the continued confidence in the under-supplied rental market. According to selling agent Hooke & MacDonald, the 319 apartments will generate rental income between €7.17m and €7.84m p.a., providing an investment yield of 5.5% – 6%. The Irish Times, 26th July
New Bancroft Hall: The newly formed Dublin Artisan Development Fund has purchased a 131-unit portfolio of one-, two- and three-bedroom apartments in New Bancroft Hall in Tallaght, Dublin 24, from Park Developments for over €30m. The fund, which was set up by Bill Nowlan, is on target to let all 131 apartments by the end of August, and it is expected that over 30% of the apartments will be let to social and affordable tenants. It is believed the newly formed fund is unlikely to be a direct site developer, but will consider pre-funding suitable projects. The Irish Times, 26th July
Shankill Site: CBRE is guiding €2.5m for Eton Brae, a large Victorian house located at Corbawn Lane in Shankill, Co. Dublin. The site of Eton Brae comes with planning permission to convert the 6,675 sq. ft. three-storey mansion into two large apartments, and also for the construction of 14 new houses – eight three-bedroom houses extending to 1,636 sq. ft. and six four-bedroom houses extending to 1,797 sq. ft. CBRE believe the property, which is located beside Shankill train station, has potential to be divided into several more residential units, and are expecting considerable interest in the sale. The Irish Times, 25th July
Craddockstown Development: Cairn Homes has been granted planning permission by Kildare County Council for a c. €30m, 258-unit development located at Craddockstown, Naas in Co. Kildare. Sunday Business Post, 30th July
Dublin Apartment Heights: The Sunday Business Post reports that the government is planning new laws which will allow for higher-rise apartment blocks in certain areas of Dublin city centre. The Minister for Housing, Eoghan Murphy, informed The Sunday Business Post that the government will seek to increase the density in housing and high-rise developments as part of changes to the housing and homelessness plan, Rebuilding Ireland. Mr Murphy stated that it was necessary to ‘go higher’, particularly in Dublin city centre, and that the government was seeking to make changes to current laws to facilitate this. In the same piece, Mr Murphy also outlined that the state will take a greater role in the construction of social housing in the future. The Sunday Business Post, 30th July
Goldenbridge Student Accommodation: Derek Kelly has sought planning permission from Dublin City Council to build a low-rise student accommodation complex at Emmet Court in Goldenbridge, west of Dublin city centre. The three-storey, 10,000 sq. ft. development will provide 31 bed spaces and communal student amenities. NAMA Wine Lake, 30th July
North Dublin: Cairn Homes has applied to Dublin City Council to build 89 homes on a five-acre site at Parkside in Balgriffin, north Dublin. The development will comprise 43 houses between 1,300 – 1,800 sq. ft. (consisting of two detached, 20 semi-detached and 21 terraced units), and 46 apartments / duplexes ranging in size between 950 – 1,300 sq. ft. The development will also contain a 6,000 sq. ft. crèche. NAMA Wine Lake, 30th July
Hermitage Medical Centre: The owners of the Hermitage Medical Centre in west Dublin are planning a 62-bed extension to the private hospital. The new facilities would be located in a two-storey extension on top of an existing three-storey building at the hospital. The c. 29,000 sq. ft. extension will also include nurses’ stations and storage, as well as a multi-storey car park. The centre currently has 112 in-patient beds, 37 day beds and seven operating theatres. The hospital opened in 2006. The Sunday Times, 30th July
Action Health Enterprises: Action Health Enterprises, a new M&G-backed healthcare company, is planning a €250m investment in the Irish healthcare sector, having secured a portfolio of up to 25 primary healthcare centres. While the location of the majority of these centres has not been disclosed, documents filed with the Companies Office show that the company has taken over a care centre in Athenry, Co. Galway. The company, and its property partner Marlet (which is also backed by M&G) have agreed to take over the running of a number of primary care centres from the HSE. In addition, the consortium is refinancing other centres, and has agreed a deal with the HSE to develop its own centres. The Sunday Times, 30th July
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Liffey Valley: South Dublin County Council has approved a planning application from Hines Ireland for the extension of Liffey Valley Shopping Centre in Dublin by 555,000 sq ft. The approval covers the development of a 2,500-seater Olympic sized indoor ice-arena, as well as additional retail and commercial space. The development will see c. 450 full-time and part-time jobs created upon completion. The Irish Times, 23rd August
Elm Park: Declan Taite as Statutory Receiver of Radora Developments Limited has applied for a change of use to Block HH on a four acre site at Elm Park, Ballsbridge, from a previously permitted 212,500 sq ft hotel and private hospital development to a 7-storey 216,000 sq ft office development. NAMA Wine Lake, Issue 169
Ormond Quay Site: CBRE is guiding over €5m for a hotel development opportunity at 34 / 37 Ormond Quay in Dublin city centre. The property, which was formerly the Zanzibar pub premises, has planning permission for the development of an 89-bed hotel. The planning permission allows for the redevelopment of the two front buildings as well as a four-storey extension to the rear. The Irish Times, 24th August
Castleknock Hotel & Country Club: FBD Hotels and Resorts is to invest €7 million in the four-star Castleknock Hotel & Country Club in a refurbishment and expansion plan which includes increasing its capacity by 46 bedrooms to 190. Construction is due to commence in November and be completed in early 2018. 20 permanent jobs are expected to be created on completion of the works. The Irish Times, 24th August
Former Burlington Hotel: German asset manager DekaBank (owned by a group of German savings banks) is reported to be the preferred bidder for the former Burlington Hotel in Dublin, which had an asking price of €180m. The 502-bedroom hotel was acquired by Blackstone Group in 2012 for €67m, and it subsequently spent c. €20m refurbishing the premises. The hotel was rebranded DoubleTree by Hilton in 2013. Dalata Hotel Group has said that it has engaged in exclusive talks to lease and operate the hotel with an unnamed party that was negotiating to purchase the property. The Irish Times, 25th August
Sackville Place: Tetrarch Capital has obtained planning permission from An Bord Pleanála for a budget boutique 158-bedroom hotel at Sackville Place, near O’Connell Street, Dublin 1. The redevelopment of the building will also include retail / restaurant / café use in one unit of 925 sq ft on the ground floor and the addition of three storeys to provide a seven storey building. The development investment is estimated at €16m. The Irish Times, 27th August
Hotel Sales: Figures from DTZ Sherry Fitzgerald show that there were nearly €140m worth of hotel takeover deals in Ireland in H1 2016. The outlook for H2 2016 is strong as hotel deals in excess of €420m are expected to close before the end of the year. These sales include the former Burlington Hotel (c. €180m), the combined sale of the Beacon, Morgan and Spencer Hotels (c. €150m) and the Gresham Hotel (c. €90m), all of which are located in Dublin. The Irish Times, 23rd August
South Dublin: U+I has obtained planning permission for the redevelopment of two sites in south Dublin at Donnybrook House, Dublin 4 and The Avenue, Sandyford with a combined end value of €100m. Permission has been granted for the refurbishment of the 1970s office building at Donnybrook House (currently vacant) to provide 45,000 sq ft of office, 2,000 sq ft of retail units, 4,000 sq ft of restaurant space, and a basement gym of 20,000 sq ft. The property was purchased by U+I in 2014 for €9m and the value on completion is expected to be €45m. The permission obtained for the 2-acre site at The Avenue, Sandyford allows for 147 apartments and c. 10,000 sq ft of commercial space. The site, which currently contains 42,000 sq ft of office and warehouse space was acquired by U+I in 2015 for €6m, and the redevelopment value is estimated at €55m. The Irish Times, 24th August
Sutton: Developer Greg Gallagher has applied for planning permission to develop a three storey over basement block of 22 luxury apartments (4 x 1-beds and 18 x 2-beds) with 27 parking spaces in addition to a new 3,724 sq ft detached house on a 0.95 acre site at 17 Station Road, Sutton. The Irish Times, 25th August
Raheny: MKN Property Group has sought planning permission to construct 52 apartments (8 x 1-bed, 30 x 2-beds and 14 x 3-beds) in two four-storey apartment blocks with 102 parking spaces at basement level on a 2.2-acre coastal site in Raheny. In addition, permission has been sought to build 16 houses comprising of 12 x 3-beds and 4 x 4-beds to the rear of the site. The site was acquired in two tranches for a total price of €3.48m by the group over the period 2014 – 2015. The Irish Times, 25th August
West Dublin: Garlandbrook Limited has sought planning permission to build 219 homes primarily comprising of 3 & 4-bedroom semi-detached and terraced houses on a c. 19-acre site located within the Hansfield Strategic Development Zone. The proposal also includes 8 x 2-bed apartments. It is reported that the company is being backed by Bank of Ireland. The Irish Independent, 30th August
JLL Irish Property Index: The JLL Irish Property Index (based on a sample of 29 Dublin properties) for Q2 2016 shows an increase in overall returns for offices, retail and industrial of 7.4% for H1 2016 and 22.8% YoY. Overall rental values increased by 6.1% for H1 2016 (12.9% YoY) with the largest increases YoY for office (15.7%) followed by retail (10.7%) and industrial (6.6%). The Capital Index shows that office values increased by 14%, retail by 17.8% and industrial by 23.8%. JLL Irish Property Index – Q2 2016
Daft.ie Rental Report: The Daft.ie Rental Report for Q2 2016 states that there were 3,600 homes available to rent nationwide on 1st August, which was 1,000 fewer than the corresponding period in 2015. It also identifies that there has been an 11% increase in the average asking rent nationally to €1,037. The Daft.ie Rental Report Q2 2016
University of Limerick: BAM Building Limited has won the €18m contract for the 77,500 sq ft extension of University of Limerick’s Glucksman Library. The new facility (designed by RKD Architects) is due to open in September 2017 and will comprise of a basement level and four levels of accommodation above ground. Property International Magazine, 24th August
Cairn Homes plc: Cairn Homes published its 2016 interim results on 25th August. The Income Statement for the 6 months ended 30 June 2016 identifies a net loss of €580m on revenue of €16m (72.5% of revenue was generated from the sales of 39 houses at Parkside, Dublin 13). Its loans equated to €148m, and it had undrawn facilities of c. €50m and cash of €117m available. The builder expects to deliver 1,200 units by 2019. Cairn Homes plc 2016 Interim Results
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Debenhams Examinership: The Irish subsidiary of Debenhams has moved closer to exiting examinership after the High Court approved a restructuring proposal submitted by the examiner, Kieran Wallace of KPMG. The restructure, which was also approved by the majority of the subsidiary’s creditors, will result in no compulsory job losses. As part of the restructure, there will be 98 voluntary redundancies from the subsidiary’s c. 1,400 staff. The Irish Times, 20th August
Townsend Street: Carlisle Trust Ltd has submitted a planning application for the development of a seven-storey, 120,000 sq. ft. property on Townsend Street in Dublin city centre. To facilitate the development, an existing five-storey, 70,000 sq. ft. property will be demolished. The key individuals in Carlisle Trust Ltd are John and Ciara Byrne. NAMA Wine Lake, 21st August
16 – 18 Pembroke Road: Planning permission has been sought for the development of c. 45,000 sq. ft. of office space at 16 – 18 Pembroke Road in Dublin city centre. To enable the development, an existing 8,000 sq. ft. extension to the rear of the property will be demolished and a 30,000 sq. ft. extension will be developed instead. The property is owned by Brian Clingen, who paid c. €3m in 2013 to acquire it from the Pembroke Partnership. The Pembroke Partnership acquired the property for c. €26m in 2006. NAMA Wine Lake, 21st August
Ormond Quay: Monteco Holdings Ltd has submitted a new planning application to develop a 121-bed, 65,000 sq. ft. hotel on a site at 7 – 13 Ormond Quay in Dublin city centre. This is the second planning application which Monteco have submitted since acquiring the site in 2013. Their first application sought permission to develop a 170-bed, 70,000 sq. ft. hotel. However, no development occurred following the submission of this application. NAMA Wine Lake, 21st August
Tetrarch Hospitality: Damien Gaffney of Tetrarch Hospitality has revealed that the group may undertake “some form of capital event” in 2018 or afterwards to raise additional capital. Tetrarch has already submitted planning applications for a 158-bed budget boutique hotel at Sackville place and a 159-bed aparthotel off Pearse Street, both of which are in Dublin. The group is also preparing a proposal for a 250 – 400 bed scheme on Townsend Street in Dublin. The Irish Independent, 21st August
Neptune Building: A joint venture between Tristan Capital Partners and SW3 Capital has agreed to acquire the 197-unit Neptune Building in Dún Laoghaire, south Dublin for c. €72.5m. The c. 181,000 sq. ft. property is currently being constructed by the Cosgrave Property Group, who has the backing of NAMA. The transaction is expected to close once the property is completed, with Q2 2017 set as the target completion date. Property Magazine International, 22nd August
Coldcut Park: IRES REIT has agreed to acquire 89 apartments and 145 car spaces in Coldcut Park, Clondalkin, Dublin 22 for c. €18.3m. The apartments have an occupancy rate of 99% and the annualised rental income is c. €1.4m. The 89 units consist of 18 one-beds, 22 two-beds, 32 three-beds and 17 four-beds. The Irish Independent, 23rd August
Q2 2016 Rent Report: The latest report by Daft.ie on the Irish rental market shows that the number of properties available to rent continues to fall. On August 1st 2016, there were only c. 3,600 homes available to rent, a c. 1,000 decrease on the August 1st 2015 figure. Nationally, rents rose by c. 11% YoY in Q2 2016 to €1,037 p.m. and c. 3.9% QoQ. All regions in Dublin saw YoY increases in average rents. In Dublin city centre, rents were up by c. 10% to €1,505 p.m. while in South Dublin City, rents were up by c. 11.3% to €1,642 p.m. The Daft.ie Rental Report, Q2 2016
Docklands Apartments: Oxley Holdings has sought planning permission for 124 apartments in the north Dublin Docklands. The site of the proposed development is c. one-acre and is adjacent to the Central Bank’s new HQ. The apartments will be built in an 11-storey block, which will consist of 25 one-beds, 78 two-beds and 21 three-beds. The application also proposes to develop c. 5,000 sq. ft. of retail / medical / café space within the development. NAMA Wine Lake, 21st August
Binary Hub: The Student Housing Company’s 471-bed Binary Hub student accommodation complex in The Liberties, Dublin is now fully booked up for the 2016 / 2017 college year. Rooms in the complex start at €206 per week, which is significantly above DIT’s estimate of the average weekly rent paid by students at €115.50. The Binary Hub rent covers the cost of bills and the use of on-site facilities such as the gym and laundry. The Irish Independent, 21st August
Household Debt: A new report by the Central Bank shows that household net worth increased by c. €2.1bn (0.3%) to c. €628.7bn and household debt fell by c. €1.1bn (0.7%) to c. €148.5bn in Q1 2016. On a per capita basis, household net worth is at €132,141 while household debt is at €31,216. Household net worth peaked at c. €718bn in Q2 2007 before bottoming out at c. €454.1bn in Q2 2012. Household debt peaked at c. €207.3bn in Q3 2008 and has continued to decline in each of the past 30 quarters. Central Bank of Ireland, Quarterly Financial Accounts Q1 2016
Mater Private: The owners of the Mater Private group have secured a €300m facility which will allow them to refinance their existing debt while also funding capital expenditure necessary to grow the business. The Australian bank Macquarie was the lead arranger in the transaction. CapVest is the majority owner of the hospital group with a 51% shareholding. The Irish Times, 22nd August
POD Nightclub: Clancourt Holdings has paid c. €6m to purchase the former POD nightclub and music venue on Harcourt Street in Dublin 2 from John Reynolds. Following the purchase, the group may look at redeveloping the property into office space, with a multinational technology company already believed to be interested in renting the property as office space. Clancourt Holdings is owned by the Kenny family and was valued at over €200m in 2015. The Sunday Business Post, 21st August
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Project Pluto: Danske Bank is expected to confirm the sale of its Project Pluto loan portfolio to Cerberus this week. The portfolio includes owner-occupier mortgages, buy-to-let mortgages and unsecured personal borrowings. Some of the loans are classified as non-performing. The sale would be one of the biggest residential loan sales in Ireland in recent times and would represent a significant portion of Danske Bank’s c. €2bn Irish mortgage book. No details on the par value or purchase price were disclosed. The Sunday Times, 14th August
Debenhams Liquidation: The Sunday Business Post reports on the proposed strategy which would see the Irish subsidiary of Debenhams exit liquidation. The British parent company will write off debts of over €42m whilst also providing an unsecured three-year loan to the subsidiary. The existing unsecured creditors will be paid c. 5% of their principal amounts whilst preferential creditors will be fully repaid. Creditors are set to vote on the proposal over the next few days. If the proposal is approved, then it will be sent to the High Court for formal ratification. Debenhams voluntarily entered liquidation this year, citing its high lease costs (€25m in 2015) among its chief concerns. The Sunday Business Post, 14th August
One Spencer Dock: AGC Equity Partners has completed the purchase of One Spencer Dock in Dublin’s North Wall Quay for c. €242m. The c. 226,000 sq. ft. property is let to PwC under three separate leases, with each lease running for 25 years from April 2007. The annual rent for the property is c. €11.8m. The sale of the property was managed by receivers Luke Charleton and David Hughes of EY, who were acting on behalf of NAMA. The Sunday Business Post, 12th August
Cherrywood Development: The High Court has over-turned a 2015 decision by Dún Laoghaire-Rathdown County Council to refuse a planning application submitted by O’Flynn Capital Partners (OFCP). The application sought approval for the development of 164 homes in Cabinteely / Loughlinstown. The application has now been referred back to the council who are to make a fresh decision on the application, as their previous reasons for rejecting the application were deemed to be invalid. According to OFCP, the sales value of the development site is in excess of €75m. The site lies within the c. 890-acre Cherrywood site, which is a Strategic Development Zone understood to be capable of providing c. 7,500 homes. The Irish Times, 10th August
Social Housing Fund: The Government’s Housing Agency is to review up to 1,000 homes in the possession of banks and investment companies over the next two years, with a view to acquiring properties for social housing. The agency’s goal is to acquire at least 400 homes a year and they will primarily target large portfolio sales of buy-to-let properties, so as to cause minimal disruption to the property market. The agency has been allocated a c. €70m budget by the Government, however this can operate similarly to a working capital facility. As the agency acquires properties from receivers, they will then sell them on to local authorities / approved housing bodies. The funds received from these bodies can be used to replenish the fund. The Irish Times, 15th August
Cork Student Accommodation: Ziggurat has been granted planning permission by Cork City Council for a 205-bed student accommodation project near UCC on the Western Road, Cork. The development is to be completed on a 0.8-acre site which previously facilitated an Esso Station. The estimated cost of the development is €75m. The council granted planning permission subject to a number of conditions, which are expected to be released shortly. The Evening Echo, 15th August
Dublin Development: CreKav Landbank Investments Ltd has sought planning permission from Dublin City Council for the development of 340 apartments on the site of the Carriglea Industrial Estate, Naas Road, Dublin. The application proposes the development of 70 one-beds, 159 two-beds and 111 three-beds. The gross floor area of the development will be c. 400,000 sq. ft., with the apartments spread across eight blocks ranging from four to five storeys in height. NAMA Wine Lake, 14th August
Kildare Development: NAMA is backing the development of close to 300 homes in Naas, Co. Kildare, which will be developed by Sean Mulryan’s Ballymore Developments. Company filings show that NAMA’s subsidiary, National Asset Loan Management, has secured a charge over the development land. The development is to be completed in two phases, with the first phase seeing the completion of 124 units. A number of the homes being developed will be three and four-bed units. The Irish Independent, 11th August
Dungooley Lodge: Best auctioneers has set an asking price of €4.155m for Dungooley Lodge in Kilcurry, Co. Louth. The c. 27,000 sq. ft. mansion is in a shell condition and is situated on a c. 256-acre site. The house was previously owned by the Northern Irish businessman Edward Haughey, before he passed away in 2014. The property is now being sold by his family. The Irish Times, 11th August
Chapelizod Site: Hooke & MacDonald is inviting offers of €3m for a 2.57-acre site (€1.17m an acre) on Chapelizod Hill Road in Dublin 20. The site comes with planning permission for the development of 33 new houses and the refurbishment of an existing semi-detached house which adjoins the site. The new houses will consist of two two-beds, 16 three-beds, 12 four-beds and three five-beds. The guide price equates to c. €83k for each of the new house sites and c. €250k for the existing house. Shrewsbury Square Ltd is selling the site, having been granted permission by NAMA to do so. The Irish Times, 10th August
Ulster Bank Mortgage Rates: Ulster Bank has announced cuts to its fixed and variable mortgage rates. The bank’s three-year fixed rates now start at 2.99% (down from 3.2%) and are available to customers whose LTV is no greater than 80%. The bank’s variable rates have also been cut from 3.2% to 3.1%. The Sunday Business Post, 11th August
Q2 Dublin Market Review: Savills’ report on the Dublin industrial market for Q2 2016 shows that take-up exceeded c. 570,000 sq. ft. in the period, bringing the H1 2016 take-up figure to c. 1,281,000 sq. ft. Although this is lower than the H1 2015 take-up of 2,368,000 sq. ft., H1 2015 saw an increased level of activity as investors sought to capitalise on expiring CGT incentives. Savills estimate that prime rents are now c. €7.90 psf and prime yields have tightened to c. 6.7%. The report also analyses figures from MSCI and estimates that capital values of prime industrial buildings are c. €74 psf. Savills Dublin Industrial Market, Q2 2016
€850m Data Centre Galway: Apple has been granted planning permission by An Bord Pleanála for the development of a c. 264,000 sq. ft. data centre near Athenry in Co. Galway. The data centre is to be built on a c. 486-acre site and Apple is expected to invest c. €850m in the project. Apple’s planning application also sought permission for the development of an electricity sub-station, which was also approved. Construction of the data centre is expected to create c. 300 jobs, while its operation will require c. 150 jobs. The Irish Independent, 12th August
Galway Clinic: Larry Goodman’s Parma Investments looks set to acquire Jimmy Sheehan’s 25% shareholding in the Galway Clinic for c. €31m. If the sale goes through, Parma will own 75% of the hospital. Parma also recently acquired Brendan McDonald’s 10% shareholding for an undisclosed amount. The hospital is trading very strongly, and accounts for 2014 show that it made a pre-tax profit of c. €12.8m. The Sunday Business Post, 14th August
TV3 Planning Application: TV3 has sought planning permission from South Dublin County Council to convert a logistics facility into a television studio at its Ballymount campus. The logistics facility has a floor area of 24,617 sq. ft. TV3 was acquired by Virgin Media for c. €87m in 2015. The Irish Independent, 14th August
Addison Lodge: The Addison Lodge pub in Glasnevin, Co. Dublin is on the market with a €3.25m price tag. The pub was sold for c. €16m in 2007. The Irish Independent, 11th August
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Project Beara: Deutsche Bank is understood to have been chosen as the preferred bidder for NAMA’s c. €250m par value Project Beara loan portfolio. The portfolio consists of loans linked to Cork’s Love family and their Shipton Group. The assets securing the loans consist of development and retail sites. There have been no indications yet as to the sale price. The underbidders include Avenue Capital, Goldman Sachs and Marathon. NAMA Wine Lake, 7th August
Tetrarch Fund: The ESB pension fund is understood to be in “advanced talks” with Tetrarch Capital over a c. €100m investment in Tetrarch’s new fund. The fund will be used to acquire 12 office properties which Tetrarch already controls, whilst also providing a liquidity event for Pimco, one of Tetrarch’s main backers. Six of the offices are in Dublin’s north city centre (c. 347,000 sq. ft.) and the other six are in Millennium Park, Naas, Co. Kildare. The Millennium Park assets were acquired in July 2015 and are c. 56% let to government tenants. The Sunday Times, 7th August
Carrisbrook House: The IDA has agreed to pay c. €9.4m over three years to exit a lease it inherited from Forfás for Carrisbrook House in Dublin 4. The future lease commitments were c. €22.5m, therefore the IDA has saved c. €13.1m by exiting the lease early. The IDA had been seeking to sub-let the property in recent years, however it was unable to attract a tenant. In their most recent annual report, the IDA mentioned that the significant cost required to refurbish the building was one of the main reasons for not being able to identify a tenant. Another factor was that only 85% of the property was available to sub-let, as another tenant occupies the remainder under a lease until 2025. The Sunday Business Post, 7th August
Liberty Insurance: Liberty Insurance has announced that it is to sell a former Quinn Insurance building in Co. Cavan whilst also sub-letting half of its Blanchardstown office block in Dublin. The moves come following a number of staff layoffs in recent years by Liberty. When Liberty acquired Quinn Insurance in 2011, there were c. 1,500 staff. Once the latest redundancies have been implemented, Liberty will have less than 400 staff. The Cavan property has a floor area of c. 25,000 sq. ft., whilst the space available to let in Blanchardstown consists of c. 100,000 sq. ft. across five floors. The Sunday Times, 7th August
The Friary: An office property in Smithfield, Dublin 7 has been sold for €2.2m, a sale price which reflects a net initial yield of c. 9.7%. The Friary is a four-storey, 10,460 sq. ft. property which has an annual rental income of c. €200k. The current tenants are The Law Society, Enovation Solutions, Detail Design and Friary Solicitors. The Friary also has 10 car spaces, which are located to the front of the property. The Irish Times, 3rd August
Nassau Street: The Irish Times reports that the BCP International Property Fund and Meyer Bergman will shortly seek planning permission to undertake a major redevelopment of a site located on the corner of Nassau Street and Dawson Street in Dublin 2. Nine retail units currently occupy the ground floor of the existing buildings and the proposal would see these replaced with a number of larger retail units where the total floor area would be c. 80,000 sq. ft. The proposal would also see c. 100,000 sq. ft. of office space developed on the upper floors. The funds acquired the site in September 2015 for c. €90m and should they be able to complete their proposed development, the site’s value is expected to exceed €200m. The Irish Times, 3rd August
Radisson Farnham Estate: A fund operated by the Austrian investor Thomas Roeggla has reportedly paid over €26m for the Radisson Farnham Estate in Co. Cavan. The four-star, 158-bed hotel is situated on a 1,250-acre site and was developed by Roy McCabe for c. €85m. The hotel was sold under the instruction of a NAMA-appointed receiver and was available for purchase with or without the Radisson management agreement. The acquisition means that Roeggla’s fund has now spent over €50m on hotels. The fund’s other purchases include the Cavan Crystal hotel in Co. Cavan and the Clarion hotel in Co. Limerick. The Sunday Times, 7th August
Ripley Court Hotel: Austin Kelly has submitted plans for the redevelopment of the three-star, 96-bed Ripley Court hotel on Dublin’s Talbot Street. The plans propose demolishing the existing three-storey hotel and replacing it with a seven-storey hotel. The Sunday Times, 7th August
Smithfield Hotel: Dublin Corporate Apartments Ltd, which is controlled by Brian O’Neill and Yvonne Slattery, has applied for planning permission from Dublin City Council to develop a new 96-bed hotel in Smithfield in Dublin city centre. The application proposes for the development of a six-storey, 45,000 sq. ft. hotel on a 0.25-acre site. To facilitate the development, eight properties on Benburb Street would be demolished. NAMA Wine Lake, 7th August
Morgan Hotel: Aston Quay Property Ltd has sought planning permission from Dublin City Council for an expansion of the Morgan Hotel, which is located in Dublin’s Temple Bar. The company wants to expand the floor space of the 4-star, 132-bed hotel from 80,000 sq. ft. to 100,000 sq. ft., whilst also adding another 56 beds to the hotel. NAMA Wine Lake, 7th August
Kildare Development: The nursing home operator Blockstar has sought planning permission from Kildare County Council for a c. €30m project on the site of the Red House Hotel in Kildare. The application proposes the development of a 68-bed hotel, a nursing home, a c. 70,000 sq. ft. movie studio and a film school. Blockstar acquired the site in 2013. The Sunday Business Post, 7th August
Dublin Infrastructure: Dublin City Council has advised that c. €80m of the Government’s recently announced €200m local infrastructure activation fund would be required to facilitate the development of up to 10,000 homes across six areas in Dublin City. The funding requirement for each area ranges from €4m to €25m. The areas which require the largest funding requirements are the Poolbeg Peninsula (c. €25m) and the docklands area (c. €25m). The Poolbeg Peninsula could facilitate c. 3,000 new homes whilst the docklands area could support c. 2,400 new apartments.The Irish Times, 4th August
Chivers Factory Site: Veni Vidi Vici, a company owned by Andrew and Maurice Gillick, has acquired the nine-acre site of the former Chivers factory in Coolock, north Dublin. The brothers are now seeking to have the zoning of the site changed to residential, to allow them to submit a planning application for c. 250 apartments and duplexes. The site was sold under the instruction of the receiver appointed over Liam Carroll’s company, Danninger. The Sunday Business Post, 7th August
Glenkerrin Apartments: NAMA is understood to be preparing the sale of over 400 Dublin apartments which were previously controlled by Glenkerrin Homes. The first set of apartments to be sold consists of c. 270 apartments at The Grange in Stillorgan, which may sell for in excess of €80m. The second set comprises c. 150 apartments in St Edmunds in Palmerstown, where the sale price may exceed €40m. The Sunday Times, 7th August
Pelletstown Development: An Bord Pleanála has approved a planning application for a c. €65m project which should see over 300 new homes developed along the Royal Canal in Pelletstown, Dublin. The applicant was a NAMA-appointed receiver for Capel Developments. The receiver has obtained planning permission for 317 of the 318 homes in the application. The Irish Times, 8th August
86 – 88 North Wall Quay: NAMA has reportedly paid c. €26m for a 0.25-acre site (c. €104m an acre) at 86 – 88 North Wall Quay in Dublin’s docklands. The site is understood to be of strategic importance to NAMA as it is adjacent to the 600,000 sq. ft. Project Wave development, which NAMA is completing in a joint venture with Ballymore. The 0.25-acre site is believed to have planning permission for a c. 80,000 sq. ft. office block. NAMA Wine Lake, 7th August
Donnybrook Developments: Dublin City Council has approved a planning application from Purleigh Holdings for the construction of 71 apartments in Donnybrook, Dublin 4. The site was previously owned by UCD. The Sunday Times, 7th August
Housing Completions: The latest figures from the Department of Housing show that there were 6,642 units completed in H1 2016, a c. 18% increase on the H1 2015 figure. This figure is also the highest recorded since 2011. There were 1,993 new units in Dublin, a c. 45% increase on H1 2015. One-off homes accounted for c. 41% (2,724 units) of the total units completed. The number of new house starts has also risen by c. 41%, and stands at 5,125. The Irish Independent, 4th August
Planning Applications: New figures from the Department of Housing and Planning show that there were 26,451 planning applications lodged with local authorities in 2015, a c. 20% increase when compared to 2014’s total of 22,001. Dublin City Council recorded one of the largest increases, with a c. 47% rise to 2,734 applications. One of the limitations of these figures is that they do not distinguish between the application type. Therefore, the total amount of fees received by local councils can be a better indicator of activity because larger applications require a larger fee. The fees received by Dublin City Council in 2015 rose by over 90% to c. €2.34m, which suggest that there has been an increase in the number of large-scale applications submitted. The Irish Times, 5th August
Q2 2016 Mortgage Drawdowns: The Q2 2016 report by the Banking & Payments Federation Ireland (BPFI) on mortgage drawdowns shows that there were 6,803 drawdowns in the period, for which the total value was c. €1.29bn. When compared to Q2 2015, the volume of mortgage drawdowns rose by 11.2%, whilst their value rose by 17.9%. The number of mortgage drawdowns was the highest Q2 total since 2010. First time buyers continue to dominate the market, accounting for 48.5% of the volume and 46.9% of the value of all drawdowns. BPFI Mortgage Drawdowns Q2 2016
Seatown Business Campus: An unnamed party has acquired Seatown Business Campus in Swords, Co. Dublin. The industrial park lies on a 2.4-acre site and has a floor area of 47,200 sq. ft., split across 21 units. With 17 of the 21 units occupied, the occupancy rate is c. 81%. The current rent roll is c. €279k and the park has a weighted average unexpired lease term of c. 3.6 years. The industrial park was sold by Kelly Walsh under the instruction of the receiver, Ken Fennell of Deloitte. The Irish Times, 3rd August
Royal Dublin Society (RDS) Expansion: The RDS has applied for planning permission from Dublin City Council to redevelop the Anglesea Stand of the Ballsbridge arena. The cost of the redevelopment is projected at c. €26m. If permission to redevelop the stand is granted, then it should allow Leinster Rugby to increase their capacity from 18,500 to 21,000, while also providing new facilities for concerts and other events. The Irish Times, 4th August
Whitegate Refinery: The Canadian firm Irving Oil has agreed to acquire the Whitegate Refinery in Cork from Phillips 66 for c. €80m. Whitegate is the only oil refinery in Ireland and produces over 70,000 barrels per day. In 2001, Whitegate was sold by the government to Tosco for c. €100m. Tosco was later acquired by Phillips 66. The accounts for the refinery show that it recorded a loss of c. $148m in 2014. The Sunday Business Post, 7th August
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Project Gem: More information is beginning to emerge on NAMA’s Project Gem, which the agency hopes to bring to the market in late 2016. According to industry sources, the portfolio will have a par value of c. €3.4bn and will be secured by commercial properties linked to c. 160 borrowers. There have been no estimates yet on the market value of the assets. NAMA Wine Lake, 31st July
Project Abbey: NAMA is believed to have chosen Apollo as the preferred bidder for the c. €700m Project Abbey portfolio. Apollo reportedly bid just over €300m for the portfolio, which contains loans linked to Pat Doherty. The loans in the portfolio are secured by five Irish shopping centres, two Irish hotels, the Park West development in Dublin City and development sites in Los Angeles and Antigua. The underbidders for the portfolio were Oaktree, Starwood and Davidson Kempner / Deutsche Bank. NAMA Wine Lake, 31st July
Project Beara: Final bids have been submitted for NAMA’s c. €250m Project Beara loan portfolio. According to industry sources, the final bidders are Goldman Sachs, Avenue Capital, Deutsche Bank and Marathon Asset Management. Project Beara includes loans advanced to the Shipton Group, which was the development vehicle of Cork’s Love family. Among the assets in the portfolio is Douglas Shopping Centre in Cork. The Sunday Business Post, 31st July
Clerys Redevelopment: OCS Properties, which is owned by D2 Private and Cheyne Capital, has sought planning permission from Dublin City Council to redevelop the former Clerys department store on Dublin’s O’Connell Street. The c. €150m project would see the former department store replaced with a new six-storey retail and office scheme, with a bar and restaurant also earmarked for the property. The total floor area of the development would be c. 344,000 sq. ft. and would see new floors added to the existing property, along with a second basement. As part of the proposal, OCS also plan on developing a new seven-storey, 176-bed hotel. This hotel would be located behind the site of Clerys at Earl Place. The Sunday Times, 31st July
Gresham Hotel: NAMA has selected RIU Hotels and Resorts as the preferred bidder for the Gresham Hotel on Dublin’s O’Connell Street. RIU is understood to have bid c. €91m for the hotel. The closest underbidder, Tifco, bid c. €88m for the hotel. The 2014 accounts for the 4-star, 323-bed hotel show that it made an operating profit of c. €3.4m on sales of c. €18m. NAMA Wine Lake, 31st July
Lyrath Hotel: The sale of the five-star Lyrath Estate Hotel & Spa in Kilkenny looks to be reaching a conclusion, with reports emerging that Xavier McAuliffe and an overseas partner have been chosen as the preferred bidder. McAuliffe was the original developer of the hotel and is believed to have spent c. €50m renovating the hotel after he originally acquired it. Together with his overseas partner, McAuliffe is now expected to pay c. €20m to reacquire the hotel. When McAuliffe last controlled the hotel, he had loans with Bank of Scotland (Ireland) which were secured by the hotel. In 2012, the bank took control of the hotel and later sold the loans to a Goldman Sachs investment vehicle as part of a portfolio sale. The sale process is being managed by the receiver, KPMG. The Sunday Business Post, 31st July
Poolbeg Peninsula: Dublin Port Company is looking at building two hotels in the Poolbeg West strategic development zone in Dublin City. The first hotel would have c. 600-beds and be located on the Poolbeg Peninsula, while the second hotel would be situated near the 3 Arena. The Sunday Business Post, 31st July
Newcastle House: Hong Kong businessman Hau Yan Lee has obtained planning permission to convert Newcastle House in Co. Longford into a 40-bed hotel. There will also be a further 24 beds on the grounds in different buildings. Newcastle House is situated on a c. 42-acre site and dates back to the 17th century. The target completion date for the work on the property is late 2017. A key selling point for the hotel is that it will be located next to the proposed Centre Parcs holiday development in Longford. The Sunday Business Post, 31st July
Howth Development: An Bord Pleanála has given Grant Thornton planning permission for the development of 200 residential units, six commercial properties and 487 car spaces on a development site in Howth, north Dublin. Following the planning approval, the estimated value of the site is €25m – €30m. The site extends to 10.87-acres and consists of the former Techrete and Teeling Motors sites (6.58 acres) and lands which were previously known as Baltray Park. The planning application allows for the development of 145 apartments (one to three bed units), 51 houses (three and four bed units) and four houses for the traveller community. The commercial units will have a total floor area of 20,214 sq. ft. Grant Thornton is acting as receiver for the site, having been appointed by NAMA. The Irish Times, 27th July
CIÉ Cork Site: Clarendon Properties and BAM Construction have been chosen as the preferred developers for a site owned by CIÉ in Cork City. The 6.1-acre site is alongside Kent Railway Station and fronts onto Horgan’s Quay and Railway Street. CIÉ has agreed to a 300-year ground lease with Clarendon Properties, for which CIÉ will either receive a set annual rent or else 10% of the market rent, whichever is greater. There is no active planning permission in place for the site however it is zoned as a mixed-use site. According to the developers, the site could facilitate office, residential or leisure accommodation. The Sunday Business Post, 31st July
Glenasmole Valley: The Irish Times reports that The State is in advanced negotiations with NAMA to acquire the c. 5,000-acre Glenasmole Valley site in the Dublin mountains. Although NAMA has valued the land at c. €2.5m (c. €500 an acre), the final purchase price remains unclear, with some market sources projecting that the final selling price may be as low as €1m. The majority of the site lies within a special area of conservation and a special protection area, while also being surrounded by c. 494,000-acres of the Wicklow Mountains National Park. The Irish Times, 27th July
Lisieux Hall: Noel Smyth is reportedly seeking to develop 17 houses and 52 apartments on the site of his Lisieux Hall home in Leopardstown, Co. Dublin. The development would include two five-storey apartment blocks and the majority of the houses would have a floor area of up to c. 2,250 sq. ft. The Lisieux Hall site extends to c. 4.6 acres. The Sunday Times, 31st July
H1 2016 Sales Figures: An analysis of the Property Price Register by MyHome.ie shows that the number of residential properties sold in H1 2016 (20,447) was c. 8.2% lower than in H1 2015 (22,273). Most notably, the cities of Dublin (-13.4%), Cork (-3.8%), Galway (-11.6%) and Limerick (-10.8%) all reported decreases in the number of units sold in H1 2016 when compared to H1 2015. Waterford (13.2%) reported the largest increase in the number of units sold, although it was one of only five counties where the number of units sold in the county increased. The Irish Times, 28th July
Mortgage Lending: A new report by the Central Bank on household lending shows that net mortgage lending increased by c. €105m in June 2016. While this increase was the largest recorded since February 2010, net mortgage lending has decreased by c. €1.6bn in the past year. The report also shows that Irish households continue to be net funders to the Irish banking system, as banks hold c. €6.8bn more in household deposits than in loans issued. In early-2009, household loans were greater than deposits by c. €53.5bn. Central Bank of Ireland, Money and Banking Statistics – June 2016
CSO Property Prices: The June 2016 report by the CSO reveals that national residential property prices rose by c. 6.6% for the year ending June 2016. For the month of June, prices decreased by 0.1% after increasing by 0.2% in May. Residential prices in Dublin decreased by 0.7% in June however prices are still 4.5% higher than they were a year ago. Residential prices in Dublin are now 35.6% lower than their peak in February 2007. Similarly, residential property prices for the Rest of Ireland are 35.4% below their peak in September 2007. The CSO’s property price report is based on mortgage drawdown figures. CSO Residential Property Price Index, June 2016
Center Parcs Longford: CP has been granted planning permission by An Bord Pleanála for a c. €232m holiday village in Ballymahon, Co. Longford. The planning permission granted has 21 conditions, including one stipulating that the developer must make a financial contribution towards public infrastructure in the region. The holiday village is to be situated on a 395-acre site and will include 470 lodges, 30 apartments, retail facilities and a “Subtropical Swimming Paradise”. Center Parcs hope to have the development completed by 2019 and the holiday village is expected to create c. 1,000 full-time jobs once completed. The Irish Times, 27th July
Mater Private: The owners of the Mater Private group are reportedly trying to refinance the group’s existing debt. The news comes as the sale of the medical group has been postponed for the second time in 14 months. The majority shareholder in the group is CapVest, who hold a 51% stake. The remaining shares are owned by management and staff. Earlier this year CapVest was believed to have been close to agreeing a c. €500m sale to Fresenius, however the deal was never completed. Approximately 14 months prior to that, CapVest had been in negotiations with Netcare over a potential sale. CapVest acquired their stake in the Mater Private in 2007, when AIB were their main funder. The Irish Times, 29th July
IPD/SCSI Index: The latest report by the MCSI shows that the total return from Irish property in Q2 2016 was c. 3.1%, a slight increase on the return of c. 2.9% in Q1 2016. The best performing sector in Q2 2016 was industrial, which had a total return of c. 5% in the period (income c. 1.8% and capital value growth of c. 3.2%). The office market improved by c. 3.1%, largely due to the Dublin office market rising by c. 5.5%. The return from the Irish property market in Q2 2015 was c. 4.2%. The Irish Independent, 28th July
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