Killarney, Kerry REA Coyne & Culloty has launched an investment property for sale in Killarney Co. Kerry. The property is 12,000 sq. ft and consists of the ground and first floor of Park House, which is located beside the Killarney Plaza Hotel and opposite the Killarney National Park. It is guided at €3 million and is generating rental income of €178,000 (€15.8 psf), on a strong covenant to the Office of Public Works (OPW). The majority of the property is let to the OPW across three separate leases, with expiry in 2028 for two ground floor sections totalling 7,600 sq. ft with a combined rent of €116,000, and 2026 for first floor units 3 and 4, of 3,600 sq. ft, and earning €62,000. Irish Examiner, 18th February
KPMG, Dublin The Irish Times are reporting that KPMG are assessing proposals from 5 developers over the location of their new headquarters. The shortlist includes Johnny Ronan’s Ronan Group Real Estate (RGRE), the Kenny family’s Clancourt Group, Shane Whelan’s Westridge Real Estate, Hibernia Reit, and US real estate firm Kennedy Wilson. KPMG currently occupy buildings on Harcourt St and a building in the IFSC but are looking to accommodate its entire 2,500 workforce in the same location when its leases expire in 2026. The Irish Times, 17th February
Ranelagh, Dublin 6 Cushman and Wakefield has launched office space available to rent by way of a subletting in Ranelagh village, at Westmoreland House for €32.50 psf. Westmoreland House is a three-storey mixed-use development with third-generation grade A office accommodation on the first and second floors. The available space is 4,899 sq.ft and is capable of accommodating up to 40 staff. The Irish Times, 17th February
Citywest, Dublin It is reported in the Business Post that a property development company is lobbying TD’s over the rezoning of 225 acres which are located beside the Citywest hotel. Tetrarch Capital has met with both Eoin Ó Broin, the Sinn Féin housing spokesman and Emer Higgins, the Fine Gael TD for Dublin Mid-West. If Tetrarch are successful it will be one of the largest rezonings in Dublin in years. Tetrarch has also discussed allocating up to 30 per cent of the land for affordable housing in its talks with South Dublin County Council management. The Business Post, 21st February
Clondalkin, Dublin Six unfinished houses on a 0.7-acre site in Clondalkin, Dublin 22, have been sold for €1,415,000 or €165,000 over the €1.25m guide price quoted by Savills. Located on the southern side of Station Road in Clondalkin at a property known as 1 to 6 Station Grove, the three-bedroom, red brick, two storey houses included a terrace of three houses, a pair of semi-detached houses as well as one detached house. The sale took place on Offr.io. The Irish Independent, 18th February
Mungret, Limerick Limerick City and County Council have issued a part 8 application for a €55.6 million social housing development located in Dromdarrig, Mungret, Co Limerick. The application is for the construction of 253 residential units including 36 two-bed houses; 110 three-bed houses; 26 four-bed houses; two six-bed community dwellings; 37 two-bed apartment units; and 42 one-bed apartment units with renewable energy design measures for each housing unit. The Business Post, 21st February
Tallaght, Dublin 24 Steelworks Property Developments has been granted planning permission by An Bord Pleanála for the development of 252 build to rent apartments which will comprise of 50 studios, 96 one-bed apartments, 100 two-bed apartments and six three-bed apartments. The development will range from two-to-nine floors. The development includes concierge and management facilities, communal gym, flexible meeting rooms, library/co-working space, lounge, cinema/multimedia room and external covered game area. The €55 million apartment development is located at Units 66 and 67 Fourth Avenue, Cookstown Industrial Estate, Tallaght, Dublin 24. The Business Post, 21st February
Lansdowne Terrace, Dublin 2 The owner and operating firm of the Aviva stadium have put a property which they own that is located beside the stadium up for sale. 2 Lansdowne Terrace has been put on the market for €1.3m with a representative for the owners stating that the property has been put up for sale to generate funds. Sherry Fitzgerald are managing the sale on behalf of the owners. The four-bedroom 19th-century redbrick house is separated from the stadium by the Dart railway line. It is 220 square metres in size and has been used as an office since 1976. The Business Post, 21st February
Regional Rents Rent increases in all markets outside Dublin in 2020 boosted gross yields in the regions to double-digit levels, according to the latest Daft report. The Daft report showed that nearly all markets outside of Dublin are generating double-digit returns on one-bedroom apartments. The lowest regional yields are Galway City and Co. Waterford which are 9.3% and the highest are 12.6% in Roscommon. Only three areas of Dublin offered yields over 10 per cent: Dublin 17, which includes Clonshaugh; Dublin 22, which includes Clondalkin; and Dublin 24, which includes Tallaght. It is reported that with the banks charging for savings it is encouraging savers and people holding cash in their pensions to consider the buy to let market. The Business Post, 21st February
House Prices A study by the Economic and Social Research Insitute (ESRI) has found that without the Central Banks mortgage rules the price of houses would be 9% higher. The study estimated that the Central Bank’s rules had reduced the average size of mortgage loans here by 8 per cent, mainly since 2018, and that average house prices were 8.8 per cent lower as a result. The study highlighted the relationship between credit and house prices that pertained in the lead-up to the 2008 property crash still applied today. The Irish Times, 23rd February
Dublin Residential The number of potential units in Strategic Housing Developments (SHDs) in Dublin that have either been quashed or held up by judicial reviews jumped by more than 1,000% last year. In its annual report on the construction sector, Construction Consultants Mitchell McDermott said that while only 508 potential housing units were affected by judicial reviews in Dublin in 2019, that figure jumped to 5,802 last year. Nationally, there has been a seven-fold increase from 1,048 units affected in 2019 to 6,969 in 2020. The report noted that almost 65,000 residential units have been granted planning permission under the SHD process since its introduction in 2017 with a SHD application takes about 40 weeks. According to the report, overall construction costs increased by 3.4% last year and are predicted to rise by between 2.5% and 3% this year but this could be higher because of supply chain bottlenecks and Brexit-related disruption. It estimated the value of construction output in the Republic remained unchanged at €23 billion last year despite the impact of Covid-19. Output in 2021 is, however, forecast to fall to €20 billion because of the current lockdown, which has resulted in the closure of most building sites. The Irish Times, 23rd February
New Hotels More than 4,000 new hotel beds will be completed in Dublin this year, boosting overall stock in the city by nearly one-fifth, according to the annual Mitchell McDermott construction sector report. The report predicts that 4,177 new beds are due to be completed in Dublin in 2021, compared to only 380 in 2020. The new beds will increase Dublin’s existing hotel stock, which currently stands at more than 24,000 beds, by 17%. The report also notes that a lot of the new hotel schemes due to start construction in 2021 are currently on hold. The Business Post, 23rd February
AIB Loan Sale AIB has announced that they have agreed to sell a portfolio of mortgages which are deeply in arears. The original value of the portfolio known as Project Oak is reported to be €1bn and with Apollo purchasing the portfolio for c€400m. Some 92% of the loans are against owner-occupied homes, with the remainder secured against buy-to-let and mixed-use properties. The portfolio extends across about 3,500 properties. The average loan stands at €300,000 and is in arrears on payment to the tune of about €95,000. Mars Capital Finance Ireland is contracted to service the loans on behalf of Apollo. The Irish Times, 19th February
Mallow Cork Aedifica, a Brussels-listed healthcare real estate investment company, has acquired the Bridhaven care home in Mallow, Co Cork, for €25m, marking its first investment in Ireland. The care home has 184 rooms (€139k per room). Aedifica has a market valuation of c. €3bn has developed a portfolio of more than 490 sites in Belgium, Germany, the Netherlands, the UK, Finland, Sweden and Ireland. Bridhaven is currently operated by Virtue who are part of the Emera group they currently operate 650 beds in Ireland with 90 more to be added in 2021. They operate the care home on a 25-year lease. The Irish Independent, 21st February
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
St Stephen’s Green, Dublin 2 Kennedy Wilson has submitted a planning application for a campus capable of accommodating thousands of workers on St. Stephen’s Green. The proposed campus would involve the demolition of KPMG’s current Harcourt Street premises and replaced with a new four-to eight-storey building as part of an overall plan to deliver c. 430k sq. ft of new office space. Should it be approved the development would have the capacity to accommodate upwards of 3,000 office workers on site. The Irish Times, 10th February
Blackstone, Dublin 2 Blackstone have been given permission by the Competition and Consumer Protection Commission to proceed with the purchase of the majority interest in two Dublin office buildings. Blackstone is acquiring the stakes held by Colony Capital in Burlington Plaza and the Three Ireland HQ at 28/29 St. John Rogerson’s Quay. The sale is part of Colony Capital’s planned disposal of its wider Irish property interests. Colony acquired its share of Burlington Plaza and Three Ireland’s HQ as part of its purchase for €455m in 2017 of Nama’s €1.5bn Project Tolka. The Irish Times, 10th February
Morrison Hotel, Dublin 1 The owner of the Morrison Hotel has reduced its asking price from €80m to €68m (15% reduction). The hotel originally went up for sale on March 12th 2020, just as the COVID-19 lockdowns commenced. The hotel is owned by Russia’s richest women Yelena Baturina who bought it for €22m in 2012 and spent €10m on a refurbishment. The hotel comprises 145 guest rooms and suites, seven meeting and events facilities capable of accommodating up to 240 guests, as well as a state-of-the-art fitness centre. The hotel also includes a range of bar and restaurant facilities. The Irish Times, 10th February
Celbridge Manor Hotel, Kildare John P Young has launched the sale of the Celbridge Manor Hotel in Kildare for €6.5m. The hotel has 66 bedrooms (€98k per room) and is on a 6.5-acre site, which is zoned mixed use. The hotel underwent a €1.5m refurbishment in 2017 and was purchased in 2013 by a consortium led by Jeff Leo. It is understood that the owners have decided to dispose of the Celbridge Manor Hotel to concentrate on their two other Irish hotel investments, the Dundrum House Hotel in Co Tipperary and the Pillo Hotel in Ashbourne, Co Meath. The Irish Times, 10th February
Donnybrook, Dublin 4 Redrock Developments, a company founded by Keith Craddock, is planning to build a 12 storey build to rent development next to the Energia Park in Donnybrook. The proposed scheme is on the site of the Circle K garage, which is across the road from the stadium. The proposed block will consist of 84 one and two-bedroom units, each with a private balcony/terrace. There will be a shop and café on the ground floor and the development will include a resident’s lounge, gym and concierge services. The Sunday Times, 14th February
Clonskeagh, Dublin 6 Gerry Gannon has sold the Paper Mill site in Clonskeagh to Bain Capital. Knight Frank was seeking €18-20m and it is reported that it was sold for just over €18m with CBRE acting for Bain. State agency Nama will benefit from the deal as it had a charge on the site. The 3.14-acre site (c€5.7m per acre) has planning permission for 126 apartments in blocks rising to four storeys and the deal also included 10 existing terraced period houses on Clonskeagh Road with full planning permission for their refurbishment. Planning permission on the site includes 25 one-bedroom apartments, 98 two-beds and three mews/penthouse units. The Irish Independent, 11th February
Monkstown, Dublin An Bord Pleanála has refused planning permission to fast track plans for an apartment complex for Monkstown in south Dublin. This was following an objection by local objectors against a SHD approved scheme. The appeals board found that the planned 122-unit proposal by Randalswood Construction Ltd would seriously injure the residential and visual amenities of adjoining properties due to overshadowing and overlooking. In refusing planning permission, the board overruled the recommendation of its own inspector to grant planning. The Irish Times, 15th February
House Prices House Prices rose by 2.1% in 2020, according to the latest official CSO data, with the pace of growth picking up in the final quarter of the year. Both the monthly increase of 0.8% and the annual increase of 2.1% in December is the fastest pace since July 2019 and comes mainly due to an increase in the number of mortgage approvals and very little stock available in the market to purchase. Despite the impact of the lockdown, the low level of stock for sale, coupled with a significant stock of undrawn mortgages, is likely to put further upward pressure on prices in 2021. Goodbodys forecast for 2021 is prices to increase by 4%. Goodbody Irish Housing Chart Feb 2021
Clonsilla Site Irish property developer Torca Homes has purchased a development site in Clonsilla, West Dublin for €2.15m. The sale price is 43% higher than the €1.5m which was the price quoted by the joint sale agents Sherry Fitzgerald and Cushman & Wakefield. The site known as “The Lodge” is across the road from the Clonsilla train station and extends to 1.2 acres. A feasibility study prepared by HKR Architects, indicated that it has potential for 63 residential units with surface car parking. That suggests that the price equates to almost €1.8m per acre or €34,127 per apartment unit. The Irish Independent, 11th February
Country Homes According to Sherry Fitzgerald, pent up demand during lockdown created a record breaking run of activity in Country Homes during the summer and autumn of 2020. Their Country Homes, Farms and Estates division sold 30 high end country homes last year for between €800k-€5million, despite the restrictions on movement during Covid. The desire for more space and rural living, and the success of remote working, has driven increased demand from Irish buyers looking to move away from the cities, along with expats looking to move home. The Business Post, 14th February
Rohan Holdings Rohan Holdings, who are currently building 120k sq.ft of industrial and logistics space at Dublin Airport Logistics Park (DALP), has secured a tenant for part of the new development. The development is split into two buildings: the 68,815 sq.ft Cardinal House and 51,288 sq.ft Crane House. Rohan has secured a tenant for the latter property in advance of its scheduled completion in the final quarter of this year. The Irish Times understands that Fisher Scientific Ireland, a subsidiary of US-headquartered life science specialists, the Thermo Fisher Scientific Group, has agreed to occupy Crane House in its entirety on a 10-year term-certain lease at a rent of €10.45 per sq. ft. Separately, it is understood that Cardinal House, which is under construction currently, has attracted a significant level of interest from a number of potential occupiers. The Irish Times, 10th February
UCD Student Accommodation Colbeam Limited, an Irish company backed by British developer Hollybrook Homes, is planning to develop a major student accommodation facility on a site behind Our Lady’s Grove school on Goatstown Road, Dublin 14. The proposed development is only 850m from UCD’s campus and will be able to accommodate 698 bed spaces and a range of facilities located in eight blocks and will be called Grove Court. In 2017 it was reported that the Religious Sisters of Jesus and Mary, who owned Our Lady’s Grove, had sold a 5.3-acre site beside the school for around €13 million to Durkan Estates (c€2.5m per acre). The Business Post, 14th February
AIB Loan Sale It is reported in the Irish Times that Apollo and Lone Star are the final bidders to purchase a portfolio of home loans from AIB which were originally worth €1bn. The loan sale named Project Oak was originally supposed to be launched early last year but due to COVID-19 it was postponed and launched late last year. The preferred bidder is expected to be announced within the coming weeks. The Irish Times, 10th February
Clancy Quay, Dublin 8 Kennedy Wilson has announced two new commercial lettings at their Clancy Quay development. The first lease is to Safari Childcare who will take 8,500 sq. ft in the Ridge building on a 20-year lease, while the second deal will see BWG, trading as Eurospar taking a 20-year lease on 6,400 sq. ft of space on the ground floor of the Watchtower building. The fitout of the Safari unit has commenced with the facility expected to be open by August. Clancy Quay is the largest PRS development in Ireland with 875 units. Kennedy Wilson own 50% with the remaining interest owned by Axa Investment Managers as part of a joint venture between the parties involving 1,173 units across three of Kennedy Wilson’s Dublin PRS schemes – Clancy Quay, the Alliance building on South Lotts Road in Dublin 4, and Sandford Lodge in Ranelagh, Dublin 6. The Irish Times, 10th February
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
Tik Tok, Dublin The Irish Independent reported that Tik Tok has identified 5 possible locations for their new headquarters in Dublin. Tik Tok have a requirement for 200k sq.ft with space for 2,000 employees. Depending on the pandemic they plan on moving staff to their new office by the end of the year. Among locations being considered are the Sorting Office on the South Docks, Heuston South Quarter Development, and the newly constructed North Dock complex in the financial district. The Irish Independent, 6th February
Ballsbridge, Dublin 4 The Serpentine consortium, a syndicate of private individuals and companies assembled by AIB private banking and Goodbody Stockbrokers, has initiated a process to dispose of its interest in Facebook’s new European headquarters in Ballsbridge. The c.325k sq.ft building is expected to command a price of €380m. It is reported that the consortium has commenced the process in selecting a sales agent for the sale. The consortiums’ holding is fully let to Facebook for another 9 years and the building forms part of Facebooks new HQ, which is currently under construction. The Irish Times, 5th February
Baggot St, Dublin 2 Masons Owens & Lyons is guiding €5m for the former Latchfords townhouse on Lower Baggot Street. The investment comprises vacant possession of the hotel measuring 11,368 sq.ft., and there is also annual rental income derived from a well-known restaurant (Chai-Yo) at basement level, and a rear car park. The restauraunt is generating €78k p.a with the 10 car spaces let to Bank of Ireland for c.€21k p.a. The property is expected to generate strong interest from hotel operators, private individuals, domestic and international investors, and developers. The Irish Times, 3rd February
Jurys Hotel, Ballsbridge The US embassy has applied to Dublin City Council to rezone the old Jurys hotel in Ballsbridge to allow them to build a new embassy building. The US government is understood to have agreed to buy what is now the Ballsbridge Hotel from Chartered Land. The sale does require a change in zoning from residential to enterprise and employment use. In the request the US government state that their current 1960’s embassy is no longer fit for purpose. The current embassy can cater for 150-200 staff whilst it is reported that the new one will be able to accommodate 400. The Irish Times, 8th February
Docklands, Dublin 1 A 9-acre site in Dublin’s North Docks which is zoned for a major use scheme has launched with a guide price of €80m (€8.88m per acre). The sale is being managed by Savills. The guide price is 47% less then when it last went to market in 2005 for €150m, when the site had planning permission for 901k sq.ft mixed use development including a 19 storey tower and 721 apartments. The combination of the sites positive planning history and location close to the port tunnel is predicted to demand a lot of interest. The Irish Times, 3rd February
Drumcondra, Dublin 9 The Irish Times reported that German fund Patrizia AG is understood to be finalising the forward purchase of up to 475 apartments for more than €200m at Hartfield Place in Drumcondra. The apartments are being developed by Kieran Gannon’s Eastwise Group. The proposed €200m equates to an average of €421k per unit. The Irish Times, 3rd February
Wicklow, Site Knight Frank has launched the sale of a site on Greenhill Road in Wicklow across from the Mariners Point residential scheme. The site is 18 acres and Knight Frank are seeking €1.75m (€97.2k per acre). The majority of the site (12.3 acres) is zoned R4 Residential with the remainder zoned RE1 Residential. The site is within 2km from the train station with a commuting time of 1 hour 10 minutes into Dublin City Centre. The Irish Times, 3rd February
Apartments, Dublin The Business Post reported that the Minister of Housing Darragh O’Brien is investigating measures that would tax landlords who “hoard” vacant apartments. This is following an investigation the Business Post carried out a few weekends ago stating that there were hundreds of high-end new build to rent apartment sitting vacant in Dublin city centre. The Business Post, 8th February
Merrion Row, Dublin 2 Dublin City Council has approved plans for the demolition of the Unicorn Restaurant to make way for a four-storey short stay apartment development. The Italian restaurant has been operating on Merrion Row since 1938. Owners of the building Aviva will turn it into 23 apartments despite objections from local businesses and conservationists. The plans for the new apartment scheme include proposals for a new restaurant on Merrion Row, although the planning documents do not state whether it will have any relationship with the existing Unicorn restaurant. The Sunday Times, 7th February
Reidential Approvals An Bord Pleanala has approved two large-scale residential schemes in Dublin, despite objections from the respective local authorities. They have approved planning for a six storey 239 student bed development on Goatstown Road. The Board approval to Orchid Residential Ltd came after both Dun Laoghaire County Council and the Board’s own inspector recommended refusal. Seperately the Board also gave approval to MKN developments to construct four apartment blocks which will result in 265 apartments at Fostertown North in Swords. Fingal County Council recommended the scheme to be refused whilst 180 local residents objected to the scheme. The Irish Times, 8th February
Roscrea, Shannon The sale of both the Tesco supermarket in Roscrea and the Skycourt Shopping centre in Shannon closed recently for €7.8m and €6m. TWM managed the sale of both assets and saw strong interest from a range of potential purchasers. The Tesco in Roscrea was built in 2011 and let to Tesco Ireland on a 35-year lease, with an annual passing rent of €950k and a break in 2026. The sale of €7.8m will provide the purchaser with a net return of 11%. The Skycourt was acquired off market by a Munster based investment firm. The scheme is anchored by Dunnes Stores and Iceland with more than 90 mall units together with a 240-space surface car park and a 440-space, five-storey car park. The Irish Times, 3rd February
Arrow Capital Arrow Capital Partners has completed the acquisition of three logistical centres in Dublin and one in Longford. The assets were acquired in separate transactions and included the VWR Building, Northwest Industrial Estate, a c. 76k sq.ft unit leased to pharmaceutical company VWR International. They also purchased a unit in the Western Industrial Estate and the Parkwest Industrial Park. In Longford they acquired the Masterlink Building, which is let to Masterlink Distribution one of Ireland leading logistics operators. Arrow has acquired the assets as part of its €3 billion Strategic Industrial Real Estate (SIRE) platform, which invests in strategic industrial and logistics assets across Europe. The Business Post, 7th February
Lisney Q4 Report Lisney reported that 331k sq.m of industrial accomadation transacted in 2020 with 43% of this occuring in Q4. The 2020 figue is slightly below that of 2019 but is well ahead of the long term average of 270k sq.m. It is also reported that there was a lack of suitable supply available. Supply fell to a historic low in Q2 2020 but did improve slightly in Q3 and Q4. At the end of December, the amount of stock available stood at approximately 350,000 sqm, which remains a very low level. Notably, it was close to one-third less than what was on the market at the height of the last property market cycle in 2006 / 2007. The vacancy rate across Dublin was just over 5% at the end of December with the regions at varying levels. Lisney Q4 Industrial Report
Home Solution Initiative Group It is reported in the Business Post that the fund who recently completed the purchase of distressed loans from AIB has up to €1bn available to acquire loans from banks and other institutions. The firm is reportedly in talks with a few other parties about a similar transaction. Cathal O’Leary, director of Arizun Asset Management, which is one member of the Home Solutions Initiative group, said the need for banks to cleanse their balance sheets meant there was an opportunity for them to add to their portfolio. The Home Solutions Initiative consortium is made up of Arizun, mortgage-to-rent scheme operator Home for Life and Everyday Finance, a credit management firm that the loans are transferring to. The Business Post, 7th February
SCSI Report According to the latest MSCI/SCSI Ireland Quarterly index average capital values in the office sector fell by 2.5% in 2020. Office rents fell by 0.6% and initial yields moved out by 28bps to 4.8% by the end of the year. Net operating income in the office sector grew by 1% largely due to rent free periods expiring as well as new lettings. This contrasts to declines of 15-20% in retail as closed retailers withheld rental payments or were unable to pay. Retail values fell on average by 19.1% with high street performances even weaker, as Henry Street shops fell 31% and Grafton Street values fell by 26%. Shopping centre values declined by 18.6% in 2020. The Irish Independent, 4th February
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
Chatham House, Dublin 2 Lioncor is set to receive €40m from the sale of the redeveloped Chatham House to the European Parliament. Lioncor purchased Chatham House for a reported €10.6m in 2019. The building is currently being developed and will be occupied by the European Commission’s representation and European Parliament liaison. Lioncor looks to be in line for a significant return on its original investment even after the estimated €20m cost of developing the EU’s new Dublin premises is factored in. The “House of Europe”, as the building will be known, will extend to a total area of 33k sq. ft. The Irish Times, 27thJanuary
2 Central Plaza, Dublin 2 Hines and the Peterson Group have secured another tenant for their redevelopment of the former Central Bank HQ on Dame Street. Japanese company Pokemon has agreed to lease 5k sq.ft across the 3rd and 4th floors. It is reported that they have agreed to pay rent of €60 psf which includes a break option on its lease. The Irish Times, 27th January
Leeson St, Dublin 2 QRE have launched the sale of the upper floors of 1-2 Leeson Street Lower. The accommodation extends to 2,400 sq.ft and is let to several professional tenants by way of a direct licence agreement with the landlord. The property is currently producing €88k of rental income but there is potential to increase this to €110k with the letting of the property’s two vacant office suites. They are quoting a guide price of €1.25m which reflects a gross initial yield of c.7.1%, with a potential reversionary yield in the region of c.9%. The Irish Times, 27th January
Heuston Quarter, Dublin 8 The HSE is taking 43k sq. ft of office space in Unit 1 Heuston South Quarter, which is close to the HSE headquarters. The accommodation which is on the 1st and 2nd floors, is in walk in condition and will be used for contact tracing. The terms of the lease were not made available; however, the agents were quoting €37.50 psf but it is believed that the lease is closer to €36 psf. The Irish Independent, 28th January
Deka Immobilien Deka Immobilien has become the third landlord to sue Easons over unpaid rents. Deka has filed papers initiating legal action in the high court against two Easons stores, one at the Whitewater Shopping Centre in Newbridge Co. Kildare and a second in the Mahon Point Shopping Centre in Cork. The Independent reports that sources say that Easons are paying a portion of rent on each of their units but that paying full rent is challenging given the trading restrictions due to Covid. The Easons group is already facing legal action with two of their other stores, Shop Street in Galway and a unit that they occupy in the Galway Shopping Centre. The Irish Independent, 30th January
Blackrock, Dublin Knight Frank has brought to the market a site located on the Deansgrange Road in Blackrock for €8.5m. The site has full planning permission for 120 apartments, along with five ground-floor commercial units, a crèche and a basement car park. It is expected that the site will operate as a rental scheme, even though it was initially designed as a build to sell scheme. The site extends to 0.75 hectares (1.85 acres) and currently comprises a motor dealership. The Irish Times, 26th January
Docklands, Dublin A report from estate agent Owen Reilly says rents have fallen an average of 13% in the docklands since March 2020 and by even more in the upper end of the market. One bedroom apartments have started to become less attractive to couples as they have too little space to work remotely. While the demand for short-term rental has fallen the supply of long term rentals has more then doubled. Owen Reilly’s average rental was €2,312 per month, 6.97% lower than 2019. The report did note that the outlook for the docklands residential market remains strong with the workforce expected to double over the next 2 years to 80k. The Irish Times, 27th January
Phoenix Park, Dublin IRES Reit have completed the acquisition of 146 apartments at the Phoenix Park Racecourse development for €60m. IRES Reit paid Flynn & O’Flaherty Construction an average of €411k per unit. The deal includes a mix of apartments, duplex units and houses, including 20 1 bed and 113 two-bed units. Most of the residential units were built between 2002 and 2007, with 26 constructed recently in a block overlooking the Phoenix Park. The deal takes IRES Reit, the State’s largest private residential landlord’s portfolio total to 3,834 units The Irish Times, 28th January
Residential Funds Residential Funds continue to be very active in the last year and now own a combined 15,500 homes in Ireland. According to CBRE these funds spent €1.75bn in 2020 buying residential units, which was down on the record year of 2019 but demonstrated again how robust the residential sector has been given the challenging environment. Institutional investors are now the main players in the majority of the new build apartments in Dublin. These funds order entire schemes off plans which makes the development viable for developers. These so-called forward-commit transactions accounted for 54% of spend in residential investment in 2020. The Irish Independent, 27th January
Cherrywood, Dublin 18 Housebuilder Quintain has been granted approval for its first phase to build 1,300 new homes in Cherrywood village by 2025. DLR has granted planning permission for 136 new homes at the Cherrywood site. The 136 homes to receive planning permission comprise 80 two-, three- and four-bedroomed houses and 56 duplexes, with construction due to start as soon as the Covid related lockdown on the sector is lifted. The Irish Times, 2nd February
Yew Grove Reit, Dublin Yew Grove Reit, the listed owner of office and industrial assets mainly outside of Dublin, are planning a €50m share raise this year. They had planned to raise these funds in 2020 but their growth strategy has been pushed out by 12 months due to Covid. Yew Grove’s focus on office and industrial assets let to State entities, IDA-supported companies and large corporates has resulted in the company collecting between 97% and 100% of rent collections since Covid struck the economy last March. The Irish Times, 28th January
Social Housing, Dublin Executives in Dublin City Council (DCC) have raised concerns over the price which DCC are being charged for residential units from private contractors for social housing. It was reported in a new Society of Chartered Surveyors Ireland (SCSI) publication that the local authority has paid building contractors roughly €100k more per unit than the private market rate to develop apartments. One of the reasons suggested for the price difference is the lack of contractors available to do a social housing project. The SCSI report also said that DCC paid between €44k and €54k in professional fees for each project. The Business Post, 31st January
Construction Information Services (CIS), Round Up There was a summary of a number of developments which has received or lodged for planning permission in the Business Post which included: (i) Lioncor receiving planning permission for a 628 BTR scheme in Dundrum, Dublin 16 (ii) Gleanveagh applying for a 140-unit €30m apartment scheme in Blackrock, Co. Dublin (iii) Hines applying for a 730-unit €50m BTR scheme at the former Player Willis site in Dublin 8 (iv) Westar Investments have applied for a 333-unit €65m scheme in Clane, Co. Kildare (v) Marlet received planning for a 224-unit €49m apartment scheme in Saggart, Co. Dublin (vi) Glenveagh applying for a 1,002-unit €220m scheme at the former Ford distribution centre in Cork The Business Post, 31st January
Irish Housing Market Housing Minister Darragh O’Brien has said for every week the country is in lockdown between 700 to 800 units will not be built. The government’s 2021 target was to add 12,750 homes to the public housing stock, 9,500 of which were to be new builds. The lockdown will result in the Ministers housing targets being short between 6,500 and 7,000 units. His department has campaigned to have the ban on construction lifted however the ban was extended to March 5th The Journal, 27th January
AIB Loan Sale AIB has sold a portfolio of underperforming loans to an ethical investment consortium, the first such transaction undertaken by a lender in Ireland. Project Iris which contains 620 owner occupier mortgages in long term arrears has been sold to the Home Solution Initiative group, which aims to find borrower friendly solutions to the outstanding arrears problem. They aim to keep borrowers in their homes where possible. It is reported that the loan sale had an original value of €150m and 95% of the loans had been in default for longer then 5 years. The Irish Times, 29th January
Parnell Square, Dublin 1 The Sunday Times reported that Kenedy Wilson and Dublin City Council have wounded down a joint venture project that was to redvelop Parnell Square West into a new cultural quarter. The redevelopment project was to include a new city library, conference center, music center, educational facilities and exhibition space. It was estimated the cost of the redevelopment was going to be €60m. The funding of the project was to be raised through a philanthropic foundation managed by Kennedy Wilson and the council. It is reported that estimated costs increaed to €130m and fundraising targets were pared back leaving a greater cost burden on the council. The Sunday Times, 31st January
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
Dalata Hotel Group: A trading update from Hotel group Dalata, which owns the Clayton and Maldron chains, has reported that revenue for 2017 rose c. 20% to €348.5m, with pre-tax profits up 75% to €73.3m. The company met its target for the year delivering 1,200 new rooms, spending €129m on new acquisitions in the process bringing its total assets to c. €1bn. The company has five new hotels and four major hotel extensions under construction, with a further four in the planning process. Dalata spent €22.2 million on capital refurbishments in 2017, with €7.6 million related to the upgrade of recently acquired hotels. The group said trading in the first quarter of 2018 was marginally ahead of expectations, and it had a positive outlook for the year. The Irish Times, 27th February
The Citywest Hotel: Irish investment group Tetrarch Capital has announced the completion of a deal to acquire the Citywest Hotel in Saggart, Co Dublin, by buying out the interest of its JV partner, California-based Pimco. Tetrarch and Pimco acquired Citywest for c. €30m in 2014 and have since invested c. €12m upgrading the property. Currently the largest hotel in Ireland, Citywest features 764-bedrooms, 30 different meeting/event venues, a convention centre with capacity for up to 8,000 people and an 18-hole championship golf course. The Irish Times, 26th February
ESB Site Fitzwilliam Street: Construction has commenced on the redevelopment of ESB’s site on Fitzwilliam Street Lower which will see c. 280,000 sq. ft. of new Grade A office buildings being developed. The project will involve the retention and refurbishment of a number of protected Georgian structures and the construction of two new seven-storey office blocks. ESB will occupy one block for its new head office, Fitzwilliam 27, which will be c. 145,000 sq. ft. and will house approx. 1,300 staff. The adjacent block, Fitzwilliam 28, which spans 135,000 sq. ft. of prime Grade A sustainable space, is to be offered to the market. Joint property advisers Savills and Bannon have been appointed to secure a suitable tenant, and will quote a rent of approx. €57 per sq. ft. The Sunday Business Post 25th February
52-55 Sir John Rogerson’s Quay (SJRQ): Savills are guiding €10.8m (€784 psf) in one or two lots for two separate office units at SJRQ in Dublin’s south docklands. The two office units extend to 13,767 sq. ft., and produce a rental income of €673k, showing a net return of 5.5%. The biggest office unit is occupied by Ancestry.com, on a 10-year lease from 2012, with the 2017 rent review agreed at a rent of €595k p.a. (€52.50 psf). A short-term lease was agreed in February 2015 with DAQRI International for the smaller own-door unit, which extends to more than 1,850 sq. ft. at an annual rent of €81.5k p.a. (€44psf). The Irish Times, 21st February
Facebook Campus Ballsbridge: The Sunday Business Post reports that Facebook is advancing plans to build a giant campus in Ballsbridge that will extend to over 700,000 sq. ft. and house approx. 5,000 staff. In addition to being in talks to take 450,000 sq. ft. at AIB’s Bankcentre campus, the social media company also wants to take over 325,000 sq. ft. of office space being developed next to AIB’s Bankcentre headquarters by Ronan Group Real Estate. The Sunday Business Post, 25th February
Parkmore West IDA Estate Galway: Agent’s TWM have secured c. €6m (€81 psf) from a private investor for No. 3 at the Parkmore West IDA Estate in Galway. The property extends to c. 74,000 sq. ft. and is fully let to Creganna Medical Devices Ltd on a FRI lease at €431k p.a. (€5.67 psf). The lease currently has 24 years unexpired without any future breaks reflecting a net initial yield of c. 6.6%. The Irish Independent, 22nd February
Parkwest Business Park: Agents Browne Corrigan have brought a high spec Parkwest office building to the market quoting €1.8m (€100 psf). 18 A Parkwest Business Park is a bespoke, self-contained, four-storey office building of c. 18,000 sq. ft., comes with 22 car spaces, and is presented in pristine condition and ready for immediate occupation. Browne Corrigan is quoting a rental of c. €13.50 psf. The building can be let to tenants on a floor by floor basis, individual floor plates being c. 4,500 sq. ft., or it could make for a prestigious company headquarters. The Sunday Business Post, 25th February
Adelaide Chambers: The Irish Independent reports that the high-profile Adelaide Chambers office building, originally the Adelaide Hospital, has been purchased by Chartered Land. The four-storey building whose occupiers include the Croatian embassy and tech firm Decawave, had been up for sale since last year with an €8m (€440 psf) guide price. The building extends over 18,177 sq. ft., and includes 31 basement car-parking spaces. It generates an annual rent roll of €278,188, with a weighted average unexpired lease term of 2.61 years as of the middle of last year. It’s expected that the rent roll from the building could be raised to as much as €600,000 per annum. The Irish Independent, 27th February
One Molesworth Street: TD Securities, a Canadian financial services group, is to lease the top floor of One Molesworth Street, a new office block in Dublin city centre The Company is finalising a deal for c. 11,000 sq. ft. of space, enough room to accommodate 100 staff. The building will also house the Ivy restaurant, bakery Le Pain Quotidien, and offices for Barclays Bank and aircraft lessor Goshawk Aviation. TD Securities, part of Toronto-Dominion Bank, is likely to be paying one of the highest rents in Dublin for the office. Barclays is paying about €62 psf for its space in the building and Goshawk is paying €65 psf. One Molesworth Street will be completed this summer by the quoted property group Green Reit. The Times, 25th February
City Square Cork: Savills have brought a mixed use development in Cork city centre to the market quoting €28m. City Square is a residential, retail and office scheme generating an annual rent roll of c. €2m which equates to an initial yield of c. 5.5%. The development, built in 2007, is in three blocks from two to five storeys and includes 145 residential units (127 form part of this sale) including one, two and three-bed apartments and duplexes. The apartments for sale are all let and generate €1.8m p.a. in rent. There are 16 commercial units at ground and first-floor level with 280 car-parking spaces. The commercial element, which produces a rent roll of €177k (€4.81 psf), extends to c. 36,782 sq. ft. with a mix of retail, offices and a crèche. Tenants include a pharmacy, medical centre and gym. There is potential to increase income from the commercial element by letting out some of the vacant space. The Irish Times, 21st February
Merrion Road, Dublin 4: Hooke & MacDonald have brought a block of 11 apartments at Elmpark Green, Merrion Road in Dublin 4 to the market with a guide price of €3.4m. The 11 apartments which overlook Dublin Bay and the Elm Park Golf Club comprise six one-bedroom and five two-bedroom units. The combined rent from existing tenancies and the previous rents attributed to two vacant units comes to c. €174k p.a. equating to a gross yield of 5.12%. Hooke & MacDonald expect the sale to generate significant interest with the asking price working out at c. €309k per apartment – considerably below the selling prices for individual sales. The Irish Times, 21st February
The Elysian Tower Cork: Kennedy Wilson is expected to complete the purchase of Ireland’s tallest building, the Elysian Tower apartment block in Cork, from private equity fund Blackstone. Blackstone acquired the building from builder Michael O’ Flynn in 2014 and recently sought bids for the high rise tower. It has now emerged that Kennedy Wilson are the preferred bidders for the 17-storey apartment block. If Kennedy Wilson succeeds in buying the Elysian, it would mark its first significant move outside Dublin, where it is one of the capital’s largest landlords with c. 1,000 apartments. The Irish Times, 21st February
Pembroke Road, Dublin 4: Agent Knight Frank has completed the sale of Halcam Court at 61 Pembroke Road in Dublin 4 to a private investor for c. €9m, well in excess of its €6.5m guide price. The house which was built in 1843, was divided into 15 apartments and has three mews houses to the rear, produces an annual rental income of €362k, an initial yield of c. 4%. The Irish Times, 21st February
St. Patricks Street Cork: Agent GVA O’ Buachalla has brought a high end commercial investment property on Cork’s Patrick Street to the market quoting €5.75m. The entire three-storey building is let to Boots Retail (Ireland) Ltd on a 35-year lease from October 1987 (four years and seven months unexpired term).The FRI lease is guaranteed by Boots Chemists Ltd, and incorporated 5-yearly upward only rent reviews. The current rent level is €540,000, showing a net initial yield of 8.65%. The Irish Examiner, 22nd February
Plucks of Kilmacanogue: Lisney’s are seeking €2.25 million for Pluck’s of Kilmacanogue, a well-known bar and restaurant business with planning approval for a large extension on 1-acre of grounds at Kilmacanogue, Co Wicklow. The site marks the gateway to the Wicklow Mountains and the last prominent services location on the N11 before it joins the M50. The business has been trading for c. 200 years and was rebranded by the current owners when they acquired it in 2014. A new kitchen and cold room have since been added and planning permission has been obtained for an additional floor area of c 2,895 sq. ft. to expand the restaurant, bar and function areas as well as the kitchen. The grounds have 92 car parking spaces. The Irish Times, 21st February
One Molesworth Street: Belgian bakers, Le Pain Quotidien are to open a new outlet alongside the Ivy Restaurant at the junction of Molesworth and Dawson streets in Dublin city centre. The international chain with over 230 outlets worldwide have been trading in Kildare Village for over two years and are expected to open at least two additional facilities in the Dublin area. Le Pain Quotidien has agreed a rent of €250k p.a. (€100 psf) for a shop and restaurant on the ground floor of One Molesworth Street, extending to 2,500 sq. ft. The Irish Times, 21st February
Horgan’s Quay Cork: Cork City Council have approved an ambitious €160m mixed use development on Horgan’s Quay in Cork which will deliver more than 230 apartments, a 136-bedroom hotel, and up to 400,000 sq. ft. of office space. The proposed eight buildings on a six-acre dockland site in close proximity to the city’s train station will have the capacity to house up to 5,000 employees. Unlike most of the schemes delivered in the docklands to date which have been office blocks, this scheme includes residential, retail and hotel elements, marking a significant expansion of the city eastwards into the docklands. CIE sold the site last year to joint purchaser Clarendon Group and BAM Ireland and under the terms of the deal negotiated by agents Lisney, CIE will be entitled to 10% of the income from the development. Pending possible appeals, it could take between three and five years to deliver. The Irish Examiner, 24th February
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 Glas: 75% state-controlled Permanent TSB has commenced its strategy to clean up its balance sheet by instructing EY to formally launch a €1.5bn portfolio of loans, dubbed as Project Glas. The sale includes buy-to-let mortgages but not private home loans. The number of loans in the portfolio was cut late in the process after the bank reached a deal with 1,000 buy-to-let investors to consensually settle their liabilities. PTSB’s non-performing loans (NPL) account for 28% of its €21bn portfolio, the highest ratio among the domestic banks. The European Central Bank, in charge of supervising euro-zone lenders, is piling pressure on lenders with high levels of NPLs to come up with credible strategies to reduce them over time. The Irish Independent, 14th February
2-4 O’Connell Street Dublin: International Fund AEW has completed the purchase of the landmark building at 2-4 lower O’ Connell Street, Dublin 1 for €12.5m (€1,036 psf) with an initial yield of c. 4.5%. The 12,060 sq. ft. property is let to Ulster Bank at €580k p.a. (€48 psf), with 19 years left to run. The building was initially sold at the height of the property market in 2007, when Ulster Bank disposed of it on a sale and leaseback basis. AEW last year paid c. €20.5m for another high-profile retail premises at 42-43 Henry Street, showing a return of 4.2%. The Irish Times, 14th February
133 Lower Baggot Street: CBRE have brought a restaurant investment at 133 Lower Baggot Street in Dublin 2 to the market quoting €2.1m (€535 psf). The building is currently let to Chez Max at €90k p.a. (€23 psf) equating to an initial yield of 3.95% however there is significant reversionary potential. The three-storey over basement property occupies a prominent pitch close to the Baggot/Pembroke Street junction and extends to c. 3,919 sq. ft. Ground and basement levels are in use as a restaurant/cafe while upper floors are used as ancillary storage/office space. The Irish Times, 14th February
No. 32 Grafton Street: Irish Life has agreed a rent of €275k p.a. (€123 psf) with Australian stationary giant Smiggle for No. 32 Grafton Street. The store continues Smiggle’s expansion into the Irish market and will be their fourth store in Dublin, with over 100 outlets opened in the UK since 2014. Smiggle joins a number of other high-profile tenants who have moved into the street in the past 15 months, including Urban Decay, Other Stories and Victoria’s Secret. Directly opposite the planned Smiggle store, Irish Life recently completed the purchase of 80 Grafton Street, which is rented by Molton Brown on a 25-year lease from 2014. The Irish Times, 14th February
Boland Quay Dublin: The Irish Independent understands heads of terms have been agreed between Google and the Nama-appointed receiver Savills Ireland, over the development of the €170m Boland’s Quay project by BAM Ireland. Upon completion, Boland’s Quay will include three new landmark buildings, with the tallest rising to c. 173 ft. There will also be a 15-storey apartment block rising to c. 157 ft. and a 13-storey office building extending to c. 161 ft. The scheme will comprise some c. 397k sq. ft. of office, residential, retail and cultural space and accommodate up to 2,500 workers. The project will also include a new pedestrian bridge, two new civic plazas with water frontage to Grand Canal Dock and a cultural/community space of 5,910 sq. ft. The scheme will represent Google’s most significant investment in the Dublin property market to date. The Irish Independent, 15th February
Irish Nationwide HQ: Plans for a multi-million euro refurbishment of the former Irish Nationwide headquarters in Dublin and the construction of 115,000 sq. ft. of new office space on the site, have been appealed to An Bord Pleanala. Dublin City Council approved the plans last month, but now An Bord Pleanala will assess the project, which would result in significant new office space in the capital. The existing office block on the site is more than 50 years old and is a protected structure. The prime location, in the capital’s business heartland at Grand Parade, is situated next to the Grand Canal. The existing eight-storey, 39,200 sq. ft. office block sits on a 1.7 acre site. The remainder of the site includes old warehouses and almost 100 parking spaces. US property investment giant Hines and Hong Kong’s wealthy Yeung family jointly purchased the site in 2016 for €37m, €22m more than the previous owners paid for the site from the special liquidators of IBRC in early 2015. The Irish Independent, 17th February
Shelbourne Plaza: Agent CBRE is guiding a price of €3.75m (€659 psf) for Shelbourne Plaza, a modern office space extending to 5,685 sq. ft. located at Charlotte Quay in the South Docks area within the Dublin Docklands. The South Docklands has established itself as one of Dublin’s leading office districts and is home to some of the world’s largest international corporate occupiers, including Google, Facebook, Accenture and law firm Mason Hayes & Curran. The Irish Independent, 15th February
Trident House Blackrock: BNP Paribas is quoting a rent of €32.50 psf for an office block in Blackrock, Co. Dublin, which will be available in Q3 2018. Trident House, which forms part of Blackrock Shopping Centre, is a four-storey over basement building extending to 18,804 sq. ft. with 21 on-site car spaces. The building which was previously occupied by the OPW for over 30 years is currently being extensively refurbished by landlord Friends First. The company has also just started to redevelop the adjacent 69,965 sq. ft. office site at Enterprise House, where it has secured a pre-let to Zurich Life on a new 20-year lease term, and this will be ready in 2019. The Irish Times, 13th February
Capel Building Dublin: CBRE have brought a penthouse office suite in a modern office building beside the Luas line in Dublin 7 to the market guiding €1.1m (€445 psf). Unit 511 in the Capel Building on Mary’s Abbey extends to c. 2,468 sq. ft. and comes to the market with vacant possession. Some of the features include an open-plan layout, two large meeting rooms, space for 48 desks, large floor-to-ceiling windows and a private balcony with views of the city. The Capel Building is a mixed-use building with multiple tenants on every floor. On-site amenities include a cafe, gym, showers, reception and controlled-access lifts. The Irish Times, 13th February
TIFCO Hotel Group: According to accounts published, the The Goldman Sachs-backed TIFCO hotel group paid €45.7m for the 2016 purchase of the 12-hotel Travelodge business in Ireland. The accounts also confirm that the group paid €13.3m for the Parliament hotel and the adjacent Fashion House building in Temple Bar in Dublin in July 2016. The group has since secured planning permission for a 77-bedroom extension to the hotel. TIFCO has 25 hotel properties in total with over 2,520 hotel rooms. The group’s pre-tax profits increased marginally to €2.8m in 2016 as revenues increased by 38% to €45.26m. The book value of the group’s assets in 2016 increased from €94.3m to €183m through a mix of acquisitions and revaluations. The Irish Independent, 20th February
Aparthotel Market: The Sunday Business Post reports that the supply of short stay apartments for the tourist and corporate markets looks set to increase four fold in Dublin with more than 2,600 units in the pipeline across 13 new aparthotels. At present there are only 16 aparthotels in Ireland, with 672 units – an average of 42 units each. Ten are located in Dublin and Staycity is the largest player in Ireland with 46% of the units. Staycity plans to open four new aparthotels with 734 units in Dublin by 2020. Two of these are currently being developed close to Pearse Street: one at Mark Street, with 142 units, and the other at Moss Street, with 202 units. Next year, the firm will open a 50-unit property at Chancery Lane, near Dublin Castle. The increased supply of aparthotels will compete with the hundreds of private owners who let their apartments let through Airbnb. The Sunday Business Post, 18th December
Dunville Close Ranelagh: Agent Finnegan Menton is seeking offers of €4.9m for a 1.25 acre residential site at Dunville Close, within 500m of the centre of Ranelagh. The south Dublin site, which includes a redbrick house along the entrance, comes with Z1 residential zoning and a feasibility study includes the options of 20 semi-detached and terraced houses or a low-rise development of 45 apartments. The purchaser will have the option of using the side garden of an adjoining house at 1 Annesley Park to widen the entrance to the development site. The four-bedroom end-of-terrace house, which is included in the sale, will still have front and rear gardens. The Irish Times, 14th February
Smithfield Lofts Dublin 7: Savills have sold Smithfield Lofts in Dublin 7, a five-storey over basement mixed-use building containing 57 apartments, six two-storey townhouses and commercial units to US investment firm LRC for c. €10m. The property was sold on behalf of receivers Deloitte for c. €750k above guide price and reflects a gross yield of c. 6.25%. LRC have been active in the Dublin residential market in the last 12 months and now has a residential portfolio here of more than 500 units. They are also contracted to acquire the 323-bed Custom House Dublin Hilton Hotel as part of its expansion into the leisure sector. The Irish Times, 14th February
Navan Road Castleknock: A development site for 36 apartments off the old Navan Road in Castleknock, Dublin 15, is expected to attract considerable interest among developers and investors. Agent Finnegan Menton has brought Brady’s Castleknock Inn to the market quoting €2.85m (€79k per site). The landmark bar is set to be redeveloped to accommodate 36 two and three-bedroom apartments and penthouses. There will be basement parking for 69 car spaces and 50 bicycles as well as a number of storage units. The 0.8-acre site is located along a cul de sac that ends at the Royal Canal beside the 12th Lock boutique hotel. The Irish Times, 14th February
Blackcastle Lands Navan: CBRE have brought a 59-acre site zoned for high-density residential development on the outskirts of Navan, Co Meath to the market guiding €8.5m (€144k per acre). The Blackcastle lands, located between the Slane and Kingscourt roads and currently in agricultural use, form part of the Navan Development Plan, which was originally intended to speed up new housing schemes in the area. The lands which were offered for sale in 2016 but did not attract a buyer, were previously designated in the Strategic Development Zone (SDZ) and could potentially accommodate 1,100 houses, including a new high street with shops and civic buildings, cafes, primary school and a medical centre. The Irish Times, 14th February
Tullyallen Roundabout Site: Agent Knight Frank is guiding a price of €1.5m (€20k per acre) for a 75 acre land holding at the Tullyallen Roundabout Junction of the M1 Motorway near Drogheda town in Co Louth. The lands are divided into four holdings to the east and west of the motorway, and are being made available for sale in their entire or in lots. Under the 2004 North Drogheda Environs Local Area Plan, 17.5 acres are zoned residential, 47 acres are zoned for Tourism & Leisure and the remaining 10.5 acres are unzoned. Irish Times, 14th February
Kilternan Site South Dublin: Receivers Duff & Phelps are seeking planning permission to build 141 dwellings on a site previously owned by Ellen Construction in Kilternan, south Dublin. The receivers have applied to An Bord Pleanala to build 98 houses and 43 apartments on the site under the strategic development rules which could potentially have approval by May of this year. The land is between the Glenamuck and Kilternan roads in a part of south Dublin already earmarked for housing development and the receivers intend building three and four-bedroom homes, one and two-bedroom apartments and a crèche. They are also pledging to build roads into the proposed housing estate and to upgrade a nearby junction in line with the Council’s plan for the area. The Irish Times, 16th February
Core Industrial REIT: Core Industrial REIT has a pipeline of up to €220m in acquisitions under active consideration with c. €14.5m currently under negotiation. The property investment vehicle plans to raise €225m on the Dublin and London stock exchanges in the next month and has identified up to €650m worth of deals in the medium term. This includes over €300m of assets expected to be sold by NAMA and other banks that are looking to reduce their non-performing loan books. The Sunday Business Post, 18th December
Manufacturing Facility Mulhuddart: A manufacturing facility in Mulhuddart, Dublin 15, comprising 96,000 sq. ft. across two buildings on a 6.1 acre site has been brought to the market by agent William Harvey Ltd seeking €3.75m (€39 psf). The site is currently occupied by Rennicks, who manufacture road signage and are moving to another facility, is being offered with vacant possession and has the potential to expand or re-develop, subject to planning permission. The zoning of the property allows for enterprise and employment including manufacturing, distribution, warehousing and other general employment uses. The property is just a nine-minute drive to the M50 motorway and just 15 minutes to the Dublin Port Tunnel. The Irish Independent, 15th February
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
Bank of Ireland Portfolio: Joint agents Murphy Mulhall and Cushman & Wakefield are guiding €28.5m for a portfolio of 17 Bank of Ireland branches located throughout the country. The 17 buildings produce a combined rental income of €2.29m, with all but two of the leases providing for upwards-only reviews on 25-year leases until 2032. While the agents have a preference to offload the portfolio in a single lot, they are willing to divide it into several lots to facilitate early sales. The agents expect strong interest from Irish and overseas pension and investment funds because of the investment grade tenants and attractive lot sizes. The Irish Times, 7th February
Marks & Spencer Merchants Quay Cork: The two-storey 73,000 sq. ft. Marks & Spencer property at Merchants Quay Shopping Centre on Patrick’s Street in Cork has been sold by US fund Kennedy Wilson in an off-market transaction for c. €30m. It has become the second major Cork city centre purchase by Real IS, an international fund, having last year bought the Capital Development on Grand Parade for €58m. M&S have held the space since 1987 with a current rent roll of €1.6m, showing a c. 5.5% return. The Irish Examiner, 8th February
Merchants Quay Car Park Cork: Colliers International have sold the 720-space Merchant Quay car park and adjoining 40,000 sq. ft. Supervalu supermarket for €40m, on behalf of a company associated with the Roche family, who were the original occupier of the building. Supervalu are paying €500k rent p.a. The purchaser of the car park and supermarket is Dutch-based Orange Investment Managers, partnered with Catella Real Estate. The partnership, established in the last year, specialises in European car park investments, and plans to grow to €250m by the end of 2018. The Irish Examiner, 8th February
No. 16 Wicklow Street: Lisney has brought a prime retail investment property in Dublin city centre to the market guiding €2.4m (€930 psf). No. 16 Wicklow Street, which will be offered for sale by public auction, is a four-storey over basement, mid-terraced building extending to 2,580 sq. ft. The entire property is leased to General Health Food Store (Dublin) Limited, trading as Nourish, under a 35-year lease from July 1993 at €125k p.a. (€48.45 psf). The lease allows for two further upward-only rent reviews in March 2021 and March 2026. The tenant, unaffected by this sale, has traded from the property since 2004 and has its head office based on the upper floors of the property. The tenant company has been operational for over 33 years and opened its eighth store in Dublin in October 2017. Lisney expects No 16 Wicklow Street to interest Irish and international investors alike due to the property’s prime city centre location, strong tenant covenant, long unexpired lease term of 10.4 years, and the favourable full repairing lease with upward-only rent reviews. The Irish Independent, 12th February
15/16 St. George’s Street Waterford: Agent TWM are seeking offers in excess of €1.8m (€112.50 psf) for a 16,000 sq. ft. Argos Store in Waterford city. Argos have traded from the store at 15/16 St. George’s Street for more than 20 years, and negotiated a new 10-year lease from last October at an annual rent of €200k (€12.48 psf). Argos’ success has been helped by its close proximity to an enlarged Penney’s store as well as other traders such as Skechers, Clarks, Pandora, Costa and the strong line-up of traders in the City Square shopping centre. The Irish Times, 7th February
Dolphin’s Barn Dublin 8: Joint agents Lisney and Knight Frank have brought a 5,500 sq. ft. ground floor retail unit in Dolphin’s Barn, Dublin 8 to the market guiding €1.8m (€327 psf). The property, which has four storeys of overhead apartments, is let on a 25-year lease from 2006 to well-known convenience store operator Spar at a rent of €160k (€29 psf) p.a. The Sunday Business Post, 11th February
Hibernia REIT: Hibernia REIT have reported in a trading update that good progress has been made on its office portfolio lettings, with vacancy rates reduced to 7%, and likely to reduce to 2% if all space currently under offer complete. Hibernia reported record office take-up of 3.5m sq. ft. of space in Dublin last year. The group sold three assets for €35.8m, while earlier this month Hibernia announced that it had agreed the purchase of 77 Sir John Rogerson Quay in Dublin’s South Docks for €28.7m, which has been pre-let on a 25 year lease. Initial rent on the building will be €1.8m (€50 psf) per annum. As of 31st December 2017, Hibernia had net debt of €182m and cash and undrawn facilities of €263m following the disposal of the Chancery building. Irish Independent, 8th February
32 Upper Fitzwilliam Street: BNP Paribas Real Estate has secured €2.6m (€478 psf) for a 5,435 sq. ft. office building at 32 Fitzwilliam Street, Dublin 2. The four-storey over basement Georgian house is currently let to the Irish Academy of Computer Training at €120k a year until March 2030 with a break option in 2020. The Irish Times, 7th February
36 Upper Mount Street: BNP Paribas are seeking offers in excess of €1.575m (€350 psf) for a 4,500 sq. ft. vacant Georgian office building at 36 Upper Mount Street, Dublin 2. The five-storey over basement has a number of well-preserved Georgian features but is in need of general refurbishment. There are nine designated car parking spaces to the rear. The Irish Times, 7th February
Project Redwood: The Sunday Business Post reports that US fund Lone Star has reignited its interest in the Irish market with a bid for the €2bn AIB bad loan book known as Project Redwood. The fund, which was among the first buyers of Irish loan books, has in more recent times focused on selling down some of its purchases and bidding on smaller assets. However, its engagement in the Redwood process signals renewed interest in the Irish market. Cerberus, which has become the largest buyer of Irish loan books, is also in the running for the AIB book, which is likely to be the first in a series of loan sales by the pillar bank. Other contenders for the portfolio include CarVal, Pimco, Deutsche Bank and Goldman Sachs. The sale process for Project Redwood is set to be completed by the end of April. The Sunday Business Post, 11th February
Lone Star Hotel Portfolio: US fund Lone Star has sold the final 25 hotels from its Amaris Hospitality portfolio, including the Hilton Garden Inn on Dublin’s Custom House Quay, to an Israeli-backed LRC Group for €676m. It brings to a close Lone Star’s foray into the Irish and UK hotel market with Amaris, following the sale in December of the portfolio’s Jurys Inn chain to Swedish investor Pandox for £800m. The sale to LRC of the final tranche of 25 properties includes almost all of the non Jurys Inn-branded hotels in Amaris, which was run for Lone Star from Dublin by Irish hotelier John Brennan. The deal includes 20 Accor-branded hotels in the UK, as well as five Hilton-branded properties, including the Dublin hotel that was Amaris’s last remaining Irish property following the sale of Jurys Inn. Lone Star first entered the hotel market in Ireland and the UK in June 2014 when it bought the Rock and Salt portfolios of distressed property loans from IBRC. This included Anglo Irish Bank loans secured on several Holiday Inn and Thistle branded hotels in the UK. The following year, it paid £680m to buy Jurys Inn, from Oman’s sovereign wealth fund, Royal Bank of Scotland, and an investment group originally put together by financier Derek Quinlan. It followed this with further purchases of Accor hotels, before combining about 90 hotels from its portfolio later in 2015 to form Amaris, installing Mr Brennan as chief executive with Jurys Inn as the linchpin of the group. In 2016, Lone Star started selling down its hotel investments in the UK, and in total it has raised more than £2bn offloading hotel properties in Ireland and the UK in the two years since. The Irish Times, 10th February
Hotel Sales 2017: A new report from Cushman & Wakefield found that while there was increased interest in acquiring regional hotels in Ireland last year, the total value of deals done in the sector tumbled to €270m from a record €720m in 2016. The 2017 figures were boosted in the final quarter of the year by two large hotel sales; the €57m sale of the four-star Carton House Hotel and Golf Resort in Co Kildare and the €87m acquisition of the Gibson Hotel in Dublin’s Docklands by German investment group DekaBank. Despite these large sales, the year was characterised by smaller, single asset transactions and off-market deals. It noted that 63% of the hotel sales last year were for between €1m and €10m each, while 23 sales were for less than €1m each. Regional hotels have seen their economic fortunes broadly lifted as the country’s growth accelerates and the number of visitors to Ireland rises. The Irish Independent, 9th February
Shandon Park Blackrock: Cushman & Wakefield is guiding a reserve of €1.85m for a 0.41 acre residential site in Blackrock, south County Dublin, for its upcoming auction on 22nd February. Shandon Park is an established residential area just 1km south of Blackrock village and 1km west of Monkstown village. The subject site has full planning permission for the construction of seven houses ranging in size from 1,523 sq. ft. to 2,104 sq. ft. however it should be noted that one of the plots is not included in the proposed sale. The Irish Independent, 8th February
Kenilworth Motors Site: The former Kenilworth Motors site in Harold’s Cross which is zoned for residential development has been brought to the market guiding €3.5m. Savills Ireland, who are bringing the 0.54 acre development site to the market expect the site to attract considerable interest. An existing vacant building – the ex-Kenilworth Motors car showroom facility – occupies a proportion of the land and access to the site is via Harold’s Cross Road and Laundry Lane. Recent developments in the area include the Archtree development under construction at Mount Tallant Avenue and the Cairn Homes scheme at Marianella. The Irish Independent, 7th February
St. Mary’s Home Ballsbridge: Richmond Homes, the development arm of Avestus Capital Partners in Ireland, has emerged as the buyer of a prime 0.86 acre site in Ballsbridge, Dublin 4. St. Mary’s Home, a three-storey Victorian nursing home was jointly offered for sale by Lisney and Ganly Walters in November last year, is understood to have sold for c. €6m. The building, which is located in close proximity to Herbert Park and Donnybrook village is not a protected structure and can therefore be demolished subject to planning permission. The vendors commissioned a development appraisal of the site prior to the sale, which indicated that the building could accommodate 11 apartments (of 485 sq. ft. to 1,130 sq. ft.), and nine new houses (of 860 sq. ft. to 1,720 sq. ft.). A development of new houses and apartments on the site is likely to command top prices given the site’s location. The Irish Times, 7th February
Daft.ie Q4 2017 Rental Report: The latest report by Daft.ie on residential rents indicates that average rents in Dublin are likely to hit about €2,500 a month before the market starts to taper. Dublin dwellers are already paying c. €375 more a month than they did during the Celtic Tiger despite the introduction of rent controls in 2016. According to the report, asking prices for rented properties in Q4 2017 rose by 2.4% to an average nationwide rent of €1,227. This translates to a 10.4% rise on an annual basis in addition to increases of 13.5% in 2016, 9% in 2015 and 10.7% in 2014, meaning that on a nationwide basis rents are now 19% higher than their 2008 peak. Rents are up by 52% nationally on the lows of 2010 with increases of slightly more than 65% reported in Cork, Galway and Limerick. In Dublin, the explosion in rents is even more noted, with rents up by 4.5% in the last quarter of the year, and by 10.9% on an annual basis. The Daft.ie Rental Report, 13th February
Core Industrial IPO: US hedge fund York Capital has lined up former executives from NAMA and Applegreen to join the board of an Irish industrial and logistics trust, called Core Industrial, which it plans to float. Core Industrial issued a statement on Tuesday confirming that York Capital plans to list the company on the junior Dublin and London stock markets, raising up to €225m in the process. The New York-based fund, which has about €16.2bn of assets under management, plans to put almost €83m of industrial units into the quoted company. This includes property in locations like Rathcoole, Clondalkin and Finglas in Dublin that it purchased after the property crash. York will also sell about 18 million shares at the initial public offering (IPO) price of €1 each as part of the IPO, leaving it with a remaining 9.9% stake in the company, which will have an initial market value of about €250m. The industrial sector emerged last year as the hottest area of the Irish commercial property market, delivering total returns of about 14.5% for the 12 months to the end of September, according to the MSCI Ireland Property Index. The Irish Times, 13th February
Bid X1 February Auctions: The February BidX1 online auctions will see over 350 lots available for purchase, for which the cumulative sales prices are expected to be c. €60m. Residential properties are going under the hammer on 22nd and 23rd February while the commercial auction will take place on 28th February. The auction’s residential catalogue features more than 250 properties, and includes family homes in prime Dublin locations, period properties, city centre apartments and multi-unit portfolios. The Overlook in Porterstown, Dublin 15, which headlines the catalogue is a detached five-bedroom house on more than two acres overlooking Castleknock Golf Club with a reserve of €1m. In south Dublin, an attractive mid-terrace three-bed house on Sandymount Road in Dublin 4 is going under the hammer with a reserve of €700k, while a semi-detached four bed house on South Lotts Road, also in Dublin 4, is reserved at €630k. A portfolio of nine apartments at Santry Cross, Dublin 9, generating €112k annually is for sale with a reserve of €1.3m. More than 100 commercial properties meanwhile will go up for auction on February 28. The Irish Independent, 8th February
Dublin Crane Count: The Irish Times monthly crane count survey has found there were 79 construction cranes visible over the centre of Dublin on 1st February, down one from the previous month’s total. This number is in contrast to the 34 cranes recorded when the newspaper began its survey in February 2016. Building work is still concentrated on the Southside of the city where there are 61 cranes, compared to 18 on the Northside. Clearance work is proceeding at pace at the 462k sq. ft. ESB headquarters on Fitzwilliam Street in Dublin 2. Building work is just underway on one of the last development opportunities left in the south docklands, an office scheme of 203k sq. ft. at the former An Post site behind the Bord Gais Theatre. The Irish Times, 6th February
Commercial Property Vacancy Rates: The latest GeoView Commercial Vacancy report found that the national commercial vacancy rate in Q4 2017 was 13.3%, only slightly lower than the 13.5% rate in the same period of 2016. Of the almost 212,000 commercial addresses in Ireland, more than 28,000 were vacant with 67.8% of those empty for more than three years. The greater Dublin area accounts for 33.2% of the overall national stock while the entire province of Connacht accounts for 13.7% and Ulster for 7.8%. The report highlights a continued imbalance between Dublin and the rest of the country with 15 counties registering higher vacancy rates than the national average in the last quarter of 2017. Sligo, Galway, Leitrim, Mayo and Longford had the highest vacancy rates while the lowest rates were recorded in Kerry, Meath and Wexford. Across Ireland, GeoView notes that 19,000 commercial units have been vacant for three years or more. The highest proportion of long term commercial vacancies in the State are in Monaghan, at 78.5%, followed by Laois, Limerick and Clare. The lowest long term vacancy rates are in Galway, Dublin and Westmeath, all ranging between 60.5% and 62.2%. The Irish Times, 13th February
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
Central Bank Dublin: A marketing campaign gets under way next month to attract tenants for the former Central Bank building on Dame Street in Dublin city centre. The newly named Central Plaza will provide 134,500 sq. ft. of fashion, food, beverage and office facilities. US property group Hines and Hong Kong-based Peterson Group, which bought the former bank facilities for €67m, plan to spend a further €100m upgrading the building to attract a range of big name traders. The changes under way will see the top floor of the old block converted into a two-level bar, restaurant and viewing area, to provide unrivalled views over the city centre. BNP Paribas Real Estate will handle all retail trading opportunities and Knight Frank have been engaged to handle the office lettings. The Irish Times, 31st January
George’s Quay Dublin 2: Irish Life has landed a second tenant for its newly redeveloped waterfront office building on George’s Quay in Dublin 2. Having previously lined up US Company WeWork, Irish Life has agreed to let the penthouse level to CDB Aviation, a subsidiary of China Development Bank, which owns, leases and manages aircraft. The building which previously served as Ulster Bank’s headquarters and was recently renamed the 1GQ office complex, has been stripped out, modernised and extended at considerable expense. The front of the building has been renovated to accommodate a five-storey glazed extension, increasing the overall floor area by more than 21,000 sq. ft. to 131,333 sq. ft. The building is now one of only ten in Ireland to have achieved LEED Platinum certification. WeWork, which provides office space on flexible leases, agreed a rent of €57 psf for c. 50,000 sq. ft. on the ground and first floors, while CDB Aviation signed a new long-term lease on the penthouse level of c. 23,800 sq. ft. at €60 psf. Irish Life is not expected to have any difficulty in finding a tenant for the two remaining 27,000 sq. ft. of space. The Irish Times, 31st January
The Exchange Office Building: International law firm Walkers will double its Dublin office space when the firm moves to The Exchange office building at the IFSC. Walkers, who have been in Ireland since 2010, will occupy 19,178 sq. ft. on the penthouse floor of the five-storey building under a long-term lease at €50 psf. The Exchange, which fronts onto Mayor Street and is located beside George’s Dock Luas Station, was developed by the Cosgrave Group in conjunction with the IPUT pension fund. JLL advised the landlord while Bannon’s acted for the tenant on this transaction. JLL and Savills will market the remaining three floors (57,500 sq. ft.) which are available at €52.50 psf. The Sunday Business Post, 4th February
77 Sir John Rogerson’s Quay: Hibernia REIT has exchanged contracts to acquire 77 Sir John Rogerson’s Quay for €28.7m. The six storey office building totalling 34,400 sq. ft. is situated at the eastern end of Dublin’s South Docks. Hibernia is acquiring the building vacant and intends to spend €500k on refurbishment works, equating to €850 psf capital value. The REIT has agreed to let the entire building to a subsidiary of International Workplace Group (WG) on a 25-year lease with 15 years term certain. WG’s lease will commence in mid-2018 at an initial rent of €1.8m (€50 psf) and they will receive nine month’s rent free. The net yield for Hibernia will be 5.8pc after expiry of the rent free period, rising to 6.3pc following a fixed uplift in rent after year five. The Irish Independent, 1st February
Barrow Street Dublin: Property development group Jones Investments will spend c. €10m building a hi-tech enterprise centre on Barrow Street in Dublin. Work on the centre is expected to commence in June and likely to take c. 18 months. The project will involve the demolition of a warehouse at 15 Barrow Street, replacing it with the enterprise and innovation hub aimed at technology, media and telecoms tenants. Planning permission was granted in December for a four-storey over basement building with 35,000 sq. ft. in gross floor area. The industrial-style building will have space for about 250 workers, with shared work areas, meeting rooms and break-out spaces. Jones purchased the low-rise Barrow Street warehouse in 2016 for €2m and has engaged Savills to find a tenant for the building. The Sunday Times, 4th February
Hilton Dublin Airport Hotel: JLL has brought The Hilton Dublin Airport Hotel located on the Malahide Road at Northern Cross in Dublin 1, to the market guiding €22.5m. The hotel, with annual trading profits of more than €2m has been offered for sale on a long leasehold title with 475 years still to run at a nominal rent. The 166-bedroom hotel has been operating for nearly 12 years and as well as the strong demand for bedrooms, the hotel trades exceptionally well in the recently refurbished bar and restaurant. The Irish Times, 31st January
No. 77 St. Stephen’s Green: CBRE are seeking offers in excess of €16m for a major hotel development opportunity in the former home of the Loreto nuns at No. 77 St. Stephen’s Green. The property has full planning permission for an 81-bedroom hotel. The planning permission provides for the conversion of the original building to provide eight suites, reception rooms, spa facilities and a restaurant and bar in the formal chapel. A new bedroom block will be constructed to the rear to provide 73-bedrooms and it is envisaged the hotel will operate in the four-star category. A feasibility study undertaken by the vendors indicates a possible office development with a gross internal area of 56,000 sq. ft., subject to the necessary planning permission being obtained. The Irish Independent, 1st February
McWilliam Park Hotel Claremorris: The four-star 103-bedroom McWilliam Park Hotel in Claremorris Co. Mayo has been sold by the agent JLL for €9m. The hotel which was jointly developed in 2006 by Claremorris Tourism and MOPB Developments at a cost of €20m, was the subject of an examinership in 2016. McWilliam Park has one of the largest concert hall venues in the west of Ireland with capacity for 800 guests. It also has an 18m swimming pool and full leisure centre facilities. The Irish Times, 31st January
The Sunday Business Post reports that the Thomas Roeggla controlled SCIF Hotels fund is the new owner of the McWilliams Park Hotel. It brings to nine the number of hotels that he now owns in Ireland, including the Farnham Estate in Cavan and Mount Wolsey in Carlow. His Irish investments have been valued at c. €80m. The Sunday Business Post, 4th February
Camden Court Hotel: The McEniff family, who own the Camden Court Hotel in Dublin city centre have announced plans to add 75 new bedrooms and four conference rooms to the property. The proposed addition of an eight-storey block in the courtyard of the hotel would increase the number of bedrooms to 322, making it one of the largest hotels in the city centre. The company that runs the four-star Camden Court had turnover of €12.5m in 2016 and made €3.5m profit before tax. The McEniff family own several other hotels, including the Grand Canal hotel in Dublin. The Sunday Times, 4th February
Gardiner Street Lower: A portfolio of hotel and guesthouse accommodation on Gardiner Street Lower in Dublin city centre has been sold for over €7.5m in an off-market transaction. CBRE’s hotel division brokered the sale of the Maple Hotel and adjoining Othello Guesthouse, the Glen Guesthouse and Avondale House on behalf of receivers KPMG. The Maple Hotel and adjoining Othello Guesthouse comprises two four-storey over basement Georgian buildings comprising 34-bedrooms. The Glen Guesthouse and Avondale House are similar Georgian buildings with 31-bedrooms each. The Irish Independent, 1st February
National Asset Management Agency: According to the agency’s accounts, NAMA lent €384m to borrowers for ongoing projects during the nine months to September 30th 2017. Its original remit allows them to lend additional funds to borrowers where it is likely to aid them in repaying their debts and delivering a return to the State. The State body is backing several projects in Dublin docklands strategic development zone which includes 22 hectares of sites along the quays on both sides of the river Liffey. At this stage, it and its borrowers are on track to build 1,700 homes and 3.6m sq. ft. of office space. The Irish Times, 31st January
AIB Social Housing Fund: AIB has announced plans to set aside €100m in a social housing development fund which will assist experienced developers deliver newly built stock to the larger Approved Housing Bodies (AHBs) in the State. AIB said that it will review the fund’s initial level of €100m pending demand. Under the terms of the fund, the bank will provide developers with an opportunity to raise an increased level of debt on more flexible terms than available for private schemes. The bank said that it is able to discount the value of the sale, providing 70% of its value as opposed to the more usual 60%-65% of costs available for private schemes, thus decreasing the developer equity required. The Irish Independent, 1st February
Proposed Industrial Park Baldonnell: The Newry-based Mac-group have been hired to develop the first phase of a €40m logistics and industrial park planned for Baldonnell in South Co. Dublin. The joint venture between UK-based property development company Mountpark, and Texas-headquartered USAA Real Estate, received planning permission last year. In total, the Baldonnell project will comprise three purpose-built high-bay logistics facilities, with the first phase, extending to about 120,000 sq. ft. expected to be completed in the fourth quarter of this year. Mountpark Logistics estimates that 120 people will be employed in the construction of the planned park, and up to 850 jobs are expected to be created by companies operating from the location. The Irish Times, 1st February
Manufacturing Plant Tipperary: A substantial manufacturing plant owned by cosmetics producer Coty Inc. at Nenagh, Co Tipperary, will be offered for sale on the international market. Colliers International has set the guide price at €3.4m, a fraction of the cost involved in developing the two large buildings with a total floor area of c. 220k sq. ft. Significant upgrades were made in the past five years to retain the plant’s status as a state-of-the-art manufacturing facility, including the provision of a new laboratory, reroofing of part of the facility, and a new staff canteen. A new waste water treatment plant was also installed, along with a new 4-tonne combination boiler. The plant stands on a site of 19.6 acres with all of it zoned for industrial use. The Irish Times, 31st January
North Earl Street Dublin: Agar Commercial Property Consultants is about to launch a marketing campaign for a high-profile retail building at 13 North Earl Street, Dublin 1. The recently refurbished premises will be brought to the market with vacant possession at €2 million or, alternatively, for rent at €100k p.a. The building was previously rented as a mobile phone outlet by Meteor at €145k p.a. It has an overall floor area of 2,669 sq. ft. including 764 sq. ft. at street level. Neighbouring traders include Sports Direct, Michael Guiney, Dunnes Stores and Peter Mark. The Irish Times, 31st January
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
European Loan Portfolios: The latest report from KPMG on European loan portfolio transactions estimates that there is currently over €32bn of transactions in progress, of which c. €17.5bn is CRE. The largest seller of CRE loan portfolios in Europe is NAMA, with c. €7.2bn of transactions in progress (Ruby – €4bn, Emerald – €2.1bn, Abbey – €700m and Lee – €350m). The next largest seller is Propertize, the Dutch bad bank who represent c. €5.6bn of the current pipeline. CoStar Finance, 17th February
Eyre Square Shopping Centre: The proposed €4m redevelopment of Eyre Square Shopping Centre in Galway is expected to begin in early March 2016. The redevelopment will see the existing entrance demolished and replaced by seven retail units, which will range from 129 sq. ft. to 3,000 sq. ft. The project is expected to be completed later this year to allow future tenants to occupy the units before year end. The shopping centre currently has more than 60 stores, with Dunnes Stores and Penneys the anchor units. The Irish Times, 17th February
Cork / Limerick Portfolio: Downing Commercial has set a combined asking price of over €9.5m for a portfolio of retail and office units in Cork and Limerick. The properties are currently owned by Irish Life and can be purchased on either an individual or cumulative basis. The most valuable asset is a 20,000 sq. ft. office block at the University Technology Centre in Curraheen, Cork, which is producing a rent roll of €115k and guiding €2.25m. The total rent roll of the properties is c. €780k, with the retail units located on Patrick Street in Cork and William Street and Cruises Street in Limerick. The Irish Times, 17th February
Central Quay: Hibernia REIT has agreed to purchase the Central Quay office block from Blackstone for €51.3m. The six storey, 57,700 sq. ft. block is located between Sir John Rogerson’s Quay and Hanover Quay in Dublin 2. The block is currently 88% occupied and generating rental income of c. €2.5m p.a. from three tenants; AWAS Aviation, Indeed Ireland and Invesco. The initial yield of 4.5% is projected to exceed 5.5% upon full occupation of the block and the renewal of expiring leases. The Irish Times, 23rd February
Elm Park: A joint venture between Starwood Capital and Chartered Land will oversee the final development phase of the Elm Park complex in Dublin 4, which is expected to cost c. €35m. The agreement will see Starwood develop a sport and leisure centre and further recreational facilities, while Chartered Land will be responsible for converting the 174,000 sq. ft. Pioneer Building into a high quality office block. There is expected to be strong demand from potential tenants for the Pioneer Building given the quality design and attractive location of the complex. Starwood purchased the 750,000 sq. ft. Elm Park for €190m in January 2016, which has a rental income of c. €9.5m p.a. The Irish Times, 19th February
Lower Baggot Street: The Irish investment advisory firm Alway Consulting Ltd has paid €4.5m for four Georgian offices at 19 – 22 Lower Baggot Street in Dublin 2. Alway purchased the offices on behalf of the QIAIF, Ballybunion Capital Ltd. The four storey Georgians were purchased with vacant possession and could also suit a number of alternative uses, subject to planning permission. The Irish Times, 17th February
Parliament Hotel: Halstonville, a company owned by Goldman Sachs, Gerry Houlihan and Aidan Crowe, has agreed to purchase the Parliament hotel in Temple Bar, Dublin 2. Halstonville is 75% owned by Goldman with the remaining 25% owned by a company called Piershine, which Houlihan and Crowe control. The three star, 63-bed hotel is currently owned by Louis Fitzgerald, who paid c. €20m for the hotel in 2008. Details of the purchase price agreed between Halstonville and Fitzgerald have not been disclosed. The Sunday Times, 21st February
Lower Pembroke Street: US businessman Richard Clingen, through his investment vehicle Plaza on the Square Limited, has sought planning permission for a 108-bed hotel in Dublin 2. Per the terms of the application, Clingen is seeking to convert 16 – 18 Lower Pembroke Street from an office building into a hotel. Clingen purchased the property for c. €3m in 2012 from the Gerry Deane and Paddy Fitzgerald of the Pembroke Partnership, who paid €26m for the property in 2006. NAMA Wine Lake, 21st February
Finglas Apartments: Colliers International has set an asking price of €4.2m for a block of 28 apartments at Prospect Hill in Finglas, Dublin 11. The apartments, known as Block 9, are part of a three storey building which is rented to Cluid Housing Association on a fifteen year lease from April 2013. The current rent roll of Block 9 is c. €258k with rent reviews every four years. Block 9 consists of 14 two-beds (707 sq. ft. each) and 14 three-beds (1,087 sq. ft. each), and each apartment includes a parking space. The Irish Times, 17th February
Thomas Street: Hattington Capital has been granted planning permission by Dublin City Council to undertake a student accommodation development for almost 250 units on Thomas Street in Dublin 8. The development will be located on the site of the former Frawley’s retail store, which closed in 2007 after over 100 years of trading. Hattington are understood to have purchased the site for c. €2.5m from a receiver. The Irish Independent, 19th February
Sandwith Street: BNP Paribas is inviting offers of at least €4m for the long leasehold interest in a 0.66 acre site, which has dual frontage to Sandwith Street and Boyne Street in Dublin 2. Given the Z4 zoning for the site, it could suit a number of development schemes, such as residential, office or hotel. BNP advise that there is also potential to generate short term income from parking licences while planning permission for a development is sought. The Irish Times, 17th February
Residential Rents: The latest inflation figures from the CSO reveal that private residential rents increased by 1.2% in January 2016, the largest increase in a year. Annual rental inflation is now 9.5%. Residential rents peaked in April 2008 and then fell by 26%, with the bottom of the market reached in December 2010. Rents have since increased by 39%, meaning that current rents are now 3% above pre-crash levels. In comparison, residential property prices remain c. 34% below peak levels. NAMA Wine Lake, 21st February
Blanchardstown Distribution Centre: BNP Paribas Real Estate is guiding €18m for a distribution centre in Blanchardstown, Dublin 15. The distribution centre, which is currently owned by Green Property Ltd, consists of Units 1A, 1B and an adjoining administration building at the entrance to Rosemount Business Park. The buildings have a floor area of 266,650 sq. ft., 184 car spaces and are located on a 5.12 acre site. Units 1A and 1B are let under a 20 year lease from September 2008 to Dunnes Stores, for a rent of €1.15m p.a. The lease includes a break option in September 2019. The Irish Times, 17th February
Dublin Recovery: The latest research from CBRE shows that when compared to 53 other cities in the EMEA region, Dublin remained one of the best performing commercial property markets in 2015. Office rents in Dublin rose by 22.3% to €55 psf in 2015, and have now risen by 95.2% since the bottom of the market. Office yields have also recovered strongly, and are now as low as 4.65%. Prime retail rents rose by 14% to c. €249 psf in 2015, and have now risen by 39% from the trough. Zone A retail rents on Grafton Street have also recovered and are now approximately €511 psf. Prime retail yields are now as low as 3.25%, half of what they were at the bottom of the market. The Sunday Business Post, 21st February
Mater Private: The race to purchase the Mater Private hospital in Dublin is believed to have narrowed to three, with the Australian investment bank Macquarie understood to be the front runner. Two South African healthcare operators; Netcare and Mediclinic, are also in the running. The hospital is expected to sell for c. €500m, with the sales process due to finish in approximately one month. The Mater is currently 51% owned by the PE firm CapVest, 32% owned by management and 17% owned by staff. CapVest acquired their stake in 2007, with the purchase price reflecting an overall value of €350m for the Mater at the time. The Sunday Business Post, 21st February
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
Ballsbridge: Johnny Ronan has sought planning permission from Dublin City Council to develop a 600,000 sq. ft. complex on a site adjoining AIB’s Bankcentre in Ballsbridge, Dublin 4. The application outlines Ronan’s intention to demolish the existing 120,000 sq. ft. of office space and replace it with two six storey office blocks. The two blocks will provide 450,000 sq. ft. of office space and once the basement space has been factored in, over 600,000 sq. ft. in total. Ronan purchased the 4 acre site in late 2015 after securing funding from Cardinal Capital and Jefferies LoanCore. NAMA Wine Lake, 14th February
The One Building: The Irish online payments company Stripe are to pay a rent of over €2m p.a. to lease the entirety of The One Building on Grand Canal Street in Dublin 2. Stripe are understood to have paid a rent of €50 psf for the property, which comprises c. 45,000 sq. ft. of space over four floors. Based on the agreed rent and an investment yield of 4.75%, the property is now valued at c. €45m. The current owners of the property are Jones Investments, who paid €4.8m for the property in 2013 and then spent c. €7m renovating the property.The Sunday Times, 14th February
Deansgrange Business Park: Lisney has set an asking price of c. €12.75m for two interconnecting office blocks in Deansgrange Business Park, south Dublin. The properties, which are being sold on behalf of NAMA, are currently producing a rent roll of €1.025m p.a. and have a weighted average unexpired lease term of over 3 years. Each block stands at five storeys tall and there is a combined gross floor area of 69,880 sq. ft. Approximately 80% of the space is let by Baxter, Nutricia and Danone. The Irish Times, 10th February
Fonthill Industrial Park: Savills are inviting offers in excess of €5.25m for two buildings in Fonthill Industrial Park, Dublin 22. Numbers 16 and 16A are fully let and producing a rent roll of €460k p.a., which is set to increase to c. €500k in 2017. The properties were built in 1999 and 2001 and consist of 26,242 sq. ft. of office space and 7,610 sq. ft. of industrial space, with 99 car spaces also available. The weighted average unexpired lease term of the properties is c. 5.4 years. Fonthill was developed by Green Property, who continue to manage the park. The Irish Times, 10th February
Vertium Building: Joint letting agents Knight Frank and Savills are set to launch the marketing campaign for the €170m Vertium Building which is under development on Burlington Road in Dublin 4. The target completion date for the property is Q2 2017 and when completed, the property should comprise six storeys with a total floor area of 172,000 sq. ft. The letting agents will be guiding rents of c. €55 psf for the property, which will have average floor plates of 29,000 sq. ft. The project is being developed by the Ronan Group, U+I and Union Investments. The Irish Times, 10th February
Green Property: After putting Blanchardstown Shopping Centre (c. €1bn) and Project Glas (c. €168m) on the market in recent weeks, Green Property look set to dispose of two further assets in their portfolio for up to GBP£250m (€322m). The properties, 7 and 8 St James’s Square in Central London, were purchased by Green Property in 2008 and comprise a mix of office and residential space. Number 8 consists of 65,000 sq. ft. of prime office space, with the sixth floor let for a record £185 psf in 2015 to Helly Nahmed Gallery Limited. Number 7 is a renovated seven-bed mansion which features its own swimming pool and garden. The Irish Independent, 14th February
Charlemont Clinic: Dalata has completed the cash purchase of a 0.95 acre site in Dublin 2 from U+I for €11.9m. The site, which was previously home to Charlemont Clinic, is located on Charlemont Mall along the Grand Canal. Dalata are now planning to develop a Clayton Hotel on the site, for which planning permission was granted in January 2016 for a four star, 181-bed hotel. The total cost of the project, including the site acquisition, is believed to be in excess of €40m. The Irish Independent, 15th February
Gresham Hotel: As NAMA continues to progress the sales process for the Gresham Hotel, it is reported that the price tag for the four-star hotel has risen to €80m. The hotel, which is located on O’Connell Street in Dublin 1, has seen its projected price tag rise from c. €60m to c. €80m as demand for hotel rooms in Dublin strengthens due to the economic recovery and increased tourism. The Irish Times, 13th February
Hotel Development: Two developers are planning to build a total of 269 new hotel rooms in Dublin. John Malone is seeking to add 117 bedrooms to the Hilton Hotel in Dublin 2. The new rooms would be provided via the construction of a new seven storey extension to the rear of the hotel. Malone paid €31.5m for the hotel in 2014. Separately, Brian and Sally McGill have sought planning permission for a new 152 bed hotel on Harcourt Street in Dublin 2. The McGills plan to convert a number of Georgian properties into a hotel should planning permission be granted. The Sunday Times, 14th February
Magee Barracks: An unnamed Irish developer has reportedly been chosen as the preferred bidder for the 51.4 acre Magee Barracks in Kildare Town, Kildare. The barracks, which was eventually sold for €8.2m at an auction led by Conway Auctioneers, had an opening price of €2.5m. The barracks closed down 18 years ago and a number of derelict buildings still remain. Given that the site is attractively located in the centre of the town, residential development is expected to form a significant portion of any development plan. The Sunday Business Post, 14th February
53 Percy Place: CBRE has completed the sale of a 0.1 acre site with development potential in Percy Place, Dublin 4 for €1.7m. The sale equates to a value of €17m an acre, a new high in Dublin city centre. There is currently a derelict cottage on the site, however as it is unprotected, the new owners will be free to demolish it in a bid to maximise its development potential. The site, which was previously owned by Waterways Ireland, is understood to have been purchased by two un-named investors. The Irish Times, 11thFebruary
Mount Anville: A partnership between the US fund Broadhaven and the Irish builder Maplewood Residential has purchased c. 18.4 acres of development land on Mount Anville Road in Dublin 14 for over €25.4m. The site is located at Knockrabo and comes with planning permission for 85 residential units. There is potential to deliver an additional 85 units which have been outlined under the master plan for the site. Of the 18.4 acres, c. 5.1 acres have been earmarked for the extension of the Eastern Bypass, leaving 13.3 acres available for residential development. The Irish Times, 10th February
Cherrywood Sites: Cairn Homes has reached an agreement with Hines Ireland to acquire two sites in Cherrywood, south Dublin, for €21.5m. Cairn has also agreed to purchase a third Cherrywood site from Hines for €9.2m, with planning permission required before any sale is completed. Provided there are no problems obtaining planning permission, the agreement will allow Cairn Homes to construct over 300 homes. The Irish Independent, 13th February
Transaction Activity: The latest figures from GeoDirectory, who maintain Ireland’s largest property database, reveal that there were just 43,428 residential property transactions in 2015. With over two million residential units in Ireland, this equates to a turnover rate of c. 2.2%, well below the perceived normal level of transactional activity of 4% – 5%. The figures also highlight how second-hand sales continue to dominate transactional activity, accounting for c. 87% of all transactions in 2015. The Irish Times, 10th February
Leisureplex Stillorgan: DTZ Sherry Fitzgerald are guiding €10m for a 2.17 acre site on Lower Kilmacud Road in Stillorgan, south Dublin. The site, which was previously bought by Treasury Holdings for €65m in 2006, could facilitate a mixed-use development, however any planning application will likely be subject to significant local opposition. Treasury Holdings previously tried to redevelop the adjacent Stillorgan Shopping Centre, however they were unable to secure planning permission. Two houses, 62 and 63 St Laurence’s Park, are also included in the sale. DTZ estimate that the short term rental income from the portfolio is c. €250k. The Irish Times, 10th February
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