Shanganagh, Co Dublin Dún Laoghaire-Rathdown County Council and the State-sponsored Land Development Agency have received permission for the development of 597 new homes at Shanganagh, Co Dublin. The development is currently the Republic’s largest proposed social and affordable scheme to receive planning permission. Two-thirds of the development will be allocated as affordable homes to rent or purchase while the remainder will be used for social housing purposes. The affordable rental homes will be provided through a cost rental model with long-term security of tenure. The site, which sits on c.22 acres will be a 10 minute walk from a proposed Dart station at Woodbrook and will have 546 apartments and 51 houses. There will be space to park 365 cars and more than 1,300 bicycles. The Irish Times, 13th July
North Docklands, Dublin The Irish Times understands that Savills have been engaged to advise on a sales process for Merchant’s Gate in Dublin’s north docklands. The 9 acre site which is zoned for the delivery of a major mixed-use scheme is located almost immediately opposite the entrance to the Dublin Port Tunnel and within close proximity to the 3 Arena, Point Square and the Eastlink Bridge. In 2004 the site’s owners submitted a planning application for a development which was to have included 721 apartments, a four-star hotel with 200 bedrooms, a 20-suite boutique hotel, 409,000 sq.ft. of mainly offices, social and affordable housing, a gym, swimming pool, shops, a community care centre and crèche. The 1,100,000 sq.ft. development also included a proposal for a 19-storey tower block as its centre piece. It is understood the site will be offered to the market at a guide price of up to €100 million. The Irish Times, 8th July
South Dublin BidX1 is to hold a standalone auction next Wednesday for two red-brick period properties. The first property is guiding €1.5 million and is located at 13 Raglan Road in Ballsbridge, Dublin 4. This mid-terrace property is sub-divided into 14 one-bedroom apartments. Five of the units are tenanted currently and are delivering a combined annual rental income of €42,240. The second property, 65 Grosvenor Road in Rathmines, Dublin 6, is guiding €1.35 million. This building is also divided into 14 apartments. Five of the Grosvenor Road units are also tenanted, delivering a combined annual rental income of €41,520. The Irish Times, 8th July
Waterford City REA O’Shea O’Toole is guiding €2.5 million for a commercial and industrial development site in Waterford city. It is located on the Old Kilmeaden Road, next door to the main IDA Industrial Park, and extends to 28.26 acres. Six acres are zoned for technology-based industry. The other 22.26 acres are zoned for C6 mixed/general, commercial/industrial/enterprise use in the Waterford City Development Plan 2013-2021. It benefits from 150 metres frontage onto the old Kilmeaden Road, about 0.5km east of the Outer Ring Road which links with the N25 Euroroute. The Irish Independent, 9th July
Islandbridge, Dublin 8 Kennedy Wilson have just completed 246 new apartments in the third and final phase of the Clancy Quay development in Islandbridge. The delivery of the units marks the conclusion of a seven-year development programme involving the construction of a total of 422 units alongside the restoration and conservation of the former Clancy Barracks. Kennedy Wilson acquired the Dublin 8 development in a partially-completed state in 2013, paying just over €80 million for the scheme’s first phase of 420 apartments and commercial space, and 8.46 acres of undeveloped land set aside for the delivery of residential units in phases two and three. Clancy Quay is now the largest private rented sector (PRS) development in Ireland with 845 units offering capacity for more than 1,800 residents. Kennedy Wilson owns a 50% interest in the scheme, while the remaining interest is owned by Axa Investment Managers. The Irish Times, 8th July
Residential Property Newly listed rent prices have remained stable over the past year, despite a more than 3% fall in asking prices for homes, a Daft.ie study has found. The average listed sales price in Ireland last month was €253,868, a decrease of 3.3% compared with last year. Asking prices for homes dropped by 5.5% between March and April, with sellers said to be nervous about the effects of the Covid-19 outbreak. Daft.ie said that while selling activity picked up last month, it was still lower than normal. By contrast, rent prices have remained effectively the same. The average rent for a property listed on Daft.ie during June was €1,402 per month, up by 0.2% compared with last year. In the first half of 2020, there were almost 15,500 homes put up for rent in Dublin, up 3,000 on the same six months in 2019. The Times Ireland, 8th July
Donnybrook, Dublin 4 19 objections have been lodged to Cairn Homes’ development plan on almost 9 acres of land that it acquired in Donnybrook from RTÉ three years ago. The Project Montrose proposal for the site- purchased for €107.5 million – includes 611 apartments across nine buildings ranging from four to 10 storeys in height. Some of the objections highlighted that the height of the buildings would be unsuitable for the area. A decision on the planning application is due in September. The Irish Times, 13th July
Dublin Office Sector Office take-up in Dublin during Q2 2020 was the lowest ever recorded at under 10,000 square metres due to activity stalling during the Covid-19 lockdown. Several office occupier requirements were put on hold in recent months with demand down 37% since the beginning of the year. The overall rate of vacancy increased quarter-on-quarter to 6.65%. On a positive note, 70% of new office stock due for delivery in Dublin in 2021 has already been pre-let. CBRE Q2 2020 Marketview Report
Rathcoole, Co Dublin Agent Harvey is guiding €2.25 million for Unit J at Aerodrome Business Park. The building is detached and extends to 19,386 sq.ft. (€116 psf) and sits on a site of 1.09 acres. The property is a HQ showroom, office and warehouse, on a self-contained and gated site. There are also 28 car parking spaces. The showroom extends to 1,227 sq.ft. There are two-storey offices and staff facilities to the rear of the showroom and these extend to 5,630 sq.ft. These are fully-fitted and include a passenger lift. There is also a first-floor storage area of 1,475 sq.ft. The main warehouse area extends to 11,055 sq.ft. Aerodrome Business Park is a well-connected, prime, established development in southwest Dublin. Situated just a one-minute drive from the N7 (Naas Road), the scheme offers excellent access to the national roads network via the N7’s links from Dublin to Cork, Limerick and Waterford. The Irish Times, 8th July
Dublin Industrial & Logistics Sector Transactional activity in the Dublin industrial & logistics market in Q2 was supported by a number of short-term Covid-19-related transactions and requirements from Ecommerce & final mile delivery operators. 47,852 square metres of take-up was achieved in the industrial & logistics sector in Q2 2020 – down 45% on the strong volume of activity recorded in the first three months of the year. A shortage of modern accommodation remains the biggest challenge in the industrial & logistics sector, which in turn will support rents in this sector. CBRE Q2 2020 Marketview Report
Hibernia REIT have reported that unpaid commercial property rent stood at 5.5% for the three months to September 30th 2020. Of the 5.5%, 0.5% has been waived. Commercial rent represents c.90% of the group’s contracted rent. The company’s buildings remain open, and it is seeing early signs of growing occupancy as tenant staff begin to return to the office. Hibernia has collected 95% of its residential rent for the month of July, while 99% of rent for May and June has been collected. The Irish Independent, 9th July
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
12 Dawson St, Dublin 2 Knight Frank are inviting prospective occupiers to register their interest now on No 12 Dawson St which is scheduled for completion in 2021. Upon delivery, the property will comprise 60,000 sq.ft. of grade A office space distributed over seven floors, following the addition of two new floors with private landscaped terraces offering panoramic views over St Stephen’s Green and Dublin city centre. The office floors will range in size from 8,200 sq.ft. to 10,700 sq.ft. The building also includes 12,500 sq.ft. of retail/restaurant space at ground and basement levels. At basement level, the property will have 10 car parking spaces, 91 bike parking spaces and seven self-contained shower/changing rooms. The Irish Times understands that the property, owned by Oakmount and Core Capital, is expected to command a rent of c.€65 psf. The Irish Times, 1st July
34 Molesworth St, Dublin 2 Agent Mason Owen & Lyons is expected to seek c.€60 psf for the office accommodation at 34 Molesworth Street, Dublin 2. The property extends to a total of 7,500 sq.ft. of modern office space distributed across five floors behind a listed Georgian facade. The ground floor comprises a large reception and waiting area along with 1,000 sq.ft. of office space, formerly occupied by the Norwegian Embassy. Each floor measures just under 1,500 sq.ft. and is available for letting individually. The Irish Times, 1st July
Dublin Office Market Research by Knight Frank has found that, as expected, Covid-19 curtailed Dublin’s office market in the second quarter of the year with just 83,000 sq.ft. of space being taken up by occupiers. This compares with 817,000 sq.ft. in Q1 and brings total take-up at the midway point of the year to 900,000 sq.ft, just over half the level witnessed in the same period in 2019. Knight Frank expect to see some improvement in deal levels in Q3, with a number of significant transactions due to sign over the coming weeks. However, take-up levels in 2020 will be well back on previous years, but there is confidence that 2021 will be a stronger year. The Irish Independent, 2nd July
Little Britain St, Dublin 7 Citywide Auctioneers are guiding €700,000 for No 9 Little Britain St in Dublin 7. The property previously had planning for a retail shop and two apartments, and has the potential to extend with an additional floor. The property, which the agents are advertising as a refurbishment project, is a mid-terraced, three-storey-over-basement mixed-use property with an enclosed rear yard. It comprises a ground floor retail space and rear WC, generous front and rear first and second floor rooms, and a WC at mezzanine level between the two. The basement consists of two storage rooms and extends under the pavement to the front. The Sunday Business Post, 5th July
Kevin St, Dublin 2 An Taisce, Senator Ivana Bacik and local residents have raised concerns over the €475m plans to construct a large-scale mixed-use scheme for the redevelopment of DIT’s former Kevin Street campus in Dublin. In May, Westridge Real Estate lodged plans for the development of 571,671 sq.ft. of office accommodation in two 11-storey blocks alongside 299 apartments across three buildings of up to 14 storeys in height. Westridge acquired the 3.57-acre site for €140m in August 2019. The Irish Independent understands that one of the main concerns raised was that the development “will have a deleterious effect on the quality of life for residents in the locality”. The Irish Independent, 1st July
Ringsend, Dublin 4 Nama have said that they expect to be able to recommend a preferred bidder to develop the former Irish Glass Bottle site in Ringsend in Dublin 4 by the end of this month. Ballymore Group and US real estate group Hines have been among parties vying to take an 80% stake in the 37-acre site, which was expected to achieve €130 million before Covid-19 struck earlier this year. Ronan Group Real Estate and Colony Capital also submitted an initial bid last year to partner Nama in building 3,500 homes, 25% of which are earmarked for social and affordable housing, as well as offices and shops on the site. The Irish Times, 1st July
Edgware, London The Irish Times understands that Ballymore has exchanged contracts to acquire the freehold interest of a 190,000 sq.ft. Shopping centre in Edgware, north London, from Aberdeen Standard Investments for a fee of c.€83 million. The centre sits on a 13-acre site that is primed for redevelopment. The developer will now work with the London Borough of Barnet and engage with the local community with a view to devising a plan for the site as part of the wider regeneration of Edgware town centre. The Irish Times, 6th July
Irish Industrial Market Transactional activity in the Dublin industrial & logistics market was supported in recent months by a number of short-term Covid-19-related transactions. Similar to other sectors of the property market, a number of requirements were put on hold during the lockdown period, which will negatively impact Q2 transaction volumes. Demand for modern logistics facilities remains robust in this sector with many companies requiring additional warehouse accommodation to hold inventory as a direct result of Brexit-planning or to support increased online retail sales activity. The biggest challenge facing industrial & logistics occupiers in the short to medium term will be a shortage of modern accommodation. CBRE Bi-Monthly Research Report, July 2020
Hotel group iNua Hospitality is raising more than €10 million in new capital to help stabilise the business and take advantage of potential acquisition opportunities as the industry begins to emerge from the severe Covid-19 lockdown. The subordinated debt is being arranged by BlackBee Investments, which has already raised €46 million in equity funding for iNua from private investors. Investors were due to redeem their equity in 2023 with a target return of 75% after five years. The deadline is being extended for at least two more years to allow iNua time to recover from the effects of the crisis. The Sunday Times, 5th July
Bride St, Dublin 8 Boutique hotel chain CitizenM is planning to build its first Irish property in central Dublin. A company connected to the Dutch chain has applied for permission to construct a 247-room hotel on Bride Street, Dublin 8, near St Patrick’s Cathedral. The building will measure up to nine storeys in height. Its facilities will include a living room-style foyer with a bar, check-in pods, meeting rooms and a landscaped terrace courtyard. The Sunday Times, 5th July
In its annual report, Nama said it has shrunk the size of the €32 billion balance sheet it started off with a decade ago by 96%. It has been left with loans with a carrying value of €1.23 billion (to 198 debtors) as of the end of March 2020, 124 of whom Nama was supporting or offering forbearance to. The remaining 74 were subject of enforcement action, including receivership, repossession or other legal proceedings, to recover owed money. Nama posted €265 million of net income in 2019, its ninth consecutive year of profitability. Total cash generated from 2010 to end-2019 was €45.3 billion, including €39 billion from asset disposals and €6.3 billion from non-disposal income. The Irish Times, 1st July
Irish Commercial Property Market Ireland’s commercial property market has experienced a ‘lost quarter’ as a direct result of Covid-19, with transactional activity in the occupational, development and investment sectors of the market having effectively ground to a halt since campaigns were put on hold in March. CBRE expect to see particularly strong demand for multifamily investment opportunities considering the extent to which this sector has demonstrated its defensive characteristics over recent months. However, it will be later in the year before there is a meaningful rebound in demand in the occupier or development sectors of the market. The outlook for the retail and hospitality sectors is far less promising, however, with both likely to remain “in the eye of the storm” for some time yet. CBRE Bi-Monthly Research Report, July 2020
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
156-158 Capel St, Dublin 1 Agar Commercial Property Consultants is guiding €3.25 million (6% GIY) for 156-158 Capel Street, Dublin 1. The properties comprise three retail premises with eight overhead self-contained apartments with a rear yard with potential to construct a further five two-bed apartments. The properties are currently producing rental income of €195,430 per annum, with a potential uplift of €25,000 as 157 Capel St comes with vacant possession. Agar Commercial Property Report 23rd July
Heuston South Quarter European private equity company Henderson Park has completed its acquisition of Heuston South Quarter (HSQ) in Dublin from Marathon Asset Management for €222 million. The development includes six buildings with office, residential and retail accommodation. Additionally, the purchase comes with a 3.63 acre development site with zoning. The existing 226 residential units are a mix of one, two and three-bedroom apartments and duplexes. The development also has more than 78,800 sq.ft. of office space in addition to retail space anchored by SuperValu. The Irish Times, 23rd July
Dublin Landings Singaporean property developer Oxley has agreed to sell the residential element of its Dublin Landings development for €154.6 million. In a filing to the Singaporean stock exchange, Oxley said its subsidiaries had entered into an agreement with Greystar Europe Holdings to sell part of Blocks B and E in Dublin Landings. Under the agreement, Greystar will acquire the 268 residential apartments and 210 car parking spaces. Greystar has already paid a €15.5 million deposit on the property. The full amount will be paid upon completion of the sale, which will take place from November until June 2020. The Irish Times, 24th July
Public Private Partnership Programme Torc Consortium has been selected as a preferred bidder for the second stage of Ireland’s €300 million social housing public private partnership (PPP) programme, which aims to deliver 465 new social housing units in counties Cork, Kildare, Clare, Galway, Waterford and Roscommon. This is the second bundle of the government’s PPP programme to invest approximately €300 million in social housing. The programme is expected to develop 1,500 housing units as a number of “bundles” of sites with provision of services to the developments over a 25-year period after construction and the return of the asset after this time. The Sunday Business Post, 28th July
Dundrum Town Centre Hammerson, which owns half of the Dundrum Town Centre, is searching for an architect to plan a residential-led scheme on its “Phase 2” land to the north of the shopping centre in Dublin 14. Separately, the retail landlord is also currently in the process of submitting a final planning application in respect of a residential development of over 100 apartments adjacent to Dundrum, which will enable a start on site next year. The Irish Independent 29th July
Green Reit Sale Final bids for Green Reit’s Dublin offices and warehousing group were received by the deadline on Thursday. The Irish Times understands that all three remaining bidders circling the company; Kennedy Wilson, Henderson Park and a unit of German savings bank DekaBank, met the deadline. The Green Reit portfolio includes Horizon Logistics Park, close to Dublin Airport and the M50 motorway; One Molesworth Street in Dublin city centre, which is partly let to British bank Barclays and Canadian investment bank TD Securities; and the Central Park office complex in Sandyford, in south Dublin. The Irish Times, 26th July
Spencer Dock, Dublin 2 Spencer Place Development Company has reapplied to add two floors to a building in Dublin’s docklands, which Salesforce will rent as its Europe, Middle East and Africa headquarters. Dublin City Council had previously refused permission for two extra floors to the building, which is already under construction in the North Lotts and Grand Canal Strategic Development Zone (SDZ) at Spencer Dock. The company are seeking permission to add the two floors at a different point on the building – Station Square – and pursuant to a different set of rules, namely chapter five of the SDZ guidelines. The Irish Times, 26th July
A Cushman & Wakefield report on the Dublin office market has outlined that a total of 680,580 sq.ft. of office space was occupied in Q2 2019, bringing activity levels for H1 2019 to 1,322.346 sq.ft. This reflects an increase of almost 215,278 sq.ft. on the same period last year and is in line with activity levels seen in 2016 and 2017. It also represents the sixth consecutive year that activity is above the long run average. The Central Business District (CBD) accounted for almost 68% of space occupied in the opening six months. Cushman & Wakefield Dublin Office Market Q2 2019
Former Irish Glass Bottle Site A minimum price of €125 million has been set for an 80% stake in the former Irish Glass Bottle site in Ringsend, which sold for more than €400 million at the height of the boom. The successful bidder will have the benefit of fast-track planning following the approval by An Bord Pleanála in April of a “strategic development zone” (SDZ) status for the lands. The project, “Pembroke at Dublin 4” will see NAMA retain a 20% shareholding with bidders invited to submit expressions of interest for the remaining 80% cent stake by Friday, September 13th. According to the expression of interest document, only cash bids above €125 million that are not subject to debt finance will be entertained. The Irish Times, 26th July
Mount St Josephs, Passage West, Cork Lisney is guiding €750,000 for Mount St Josephs in Passage West, Cork. The 6.9 acre site incorporates a two storey detached protected structure residence built in 1855. There is significant development potential, subject to planning permission. The site is located 12km from Cork city centre, 5km east of Rochestown, and 2.5km north of Monkstown. The surrounding area is mainly residential in character, with a series of one-off houses in the vicinity. The Sunday Business Post, 28th July
Doughlcloyne Industrial Estate, Cork Cohalan Downing Associates is guiding €775,000 (8.5% NIY) for a 15,200 sq.ft. commercial building let to Jump Nation, a trampoline centre for adults. The property is let on a 20 year lease from 2014 at €71,000 pa. The Irish Examiner, 25th July
Thomas Fletcher Pub, Naas Town, Co. Kildare Joint agents Jordan Town & Country and John P Younge have sold the Thomas Fletcher Pub for €1.14 million at auction. The 4,900 sq.ft. property includes a public bar, lounge and snug at ground level with the upstairs having potential for residential, office or restaurant. The property was initially guiding €600,000. The Irish Independent, 25th July
A Cushman & Wakefield report on the Irish Investment market has outlined that H1 2019 was a very active period for the Irish investment market with assets attracting both domestic and overseas investors. Total transaction activity in H1 2019 accumulated to €1.74 billion across 69 deals, this represents an 8% increase in value when compared H1 2018. Residential assets accounted for 34% of investment turnover in H1 2019. Appetite from international investors remains strong with overseas capital accounting for €831.2 million of total turnover. Cushman & Wakefield Irish Investment Market Q2 2019
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
BlackBee Healthcare Fund Cork-based financial firm BlackBee Investments has announced details of a €250 million healthcare investment fund which will operate a residential care group under the name Aperee. The investment will see the construction of 1,000 new single en-suite beds at 10 sites around Munster which have already been identified by the group. Construction is due to start in early 2020 and there are also plans to acquire 750 existing beds in 12-14 existing facilities. It is believed that some €30 million has been raised to date with the fund targeted at both institutional and professional private investors. The Irish Times, 22nd July
1 Fitzwilliam Place, Dublin 2 Knight Frank is guiding in excess of €995,000 for a fully-let Georgian investment property at 1 Fitzwilliam Place, Dublin 2. The property is a four- storey over lower garden-level extending to 4,636 sq.ft. in total. The property is currently producing €103k of rental income per annum. The ground, first and third floors extending to 2,729 sq.ft. are occupied by the ESB on a 10-year lease with a break on the expiry of the fifth year (June 1st, 2024). The second floor is let to Guaranteed Irish on a 35-year lease that expires on the February 29th, 2020. There is also a tenant at garden level on a nine-year, six-month lease from June 1st, 2014. The Irish Times, 17th July
Blackrock Village Centre BNP Paribas Real Estate is quoting a rent of €31.50 psf for office space and €2,250 per car space at the new office development in Blackrock Village Centre which will be available for occupation in Q1 2020. The total area spans 16,833 sq.ft. across three floors and also has access to a secure underground car park. The property can accommodate requirements ranging from 5,102 sq.ft. to 16,833 sq.ft. The Irish Times, 17th July
Grand Parade, Cork City A number of objections have been lodged against plans for a 48-room hostel and ground floor bar to be located on the Grand Parade in Cork City. The development would bring an additional 264 bed spaces to Cork City. One of the main reasons for objection was the planned height of three storeys would negatively impact on surrounding buildings and should be reduced to two storeys. The Echo, 22nd July
North Park Business Park, Dublin 11 CBRE is guiding €1.5 million for an industrial and office facility at North Park Business Park in Dublin. The 12,895 sq.ft. property has been owner occupied since its development in 2003. There are three-storey modern offices located to the front elevation totalling 4,187 sq.ft. There is a three-storey steel mezzanine of 13,713 sq.ft. in part of the warehouse. There are two electrically operated loading doors and the property comes with ample customer/staff parking. The business park benefits from direct access to the M50. The Irish Times, 17th July
Eglinton St, Galway JD Wetherspoons have purchased the Carbon Nightclub on Eglinton St in Galway for an undisclosed sum. It is believed that there are plans to invest €2.5 million into the premises which will contain a 1,700 sq.ft. first floor beer garden in addition to the 4,000 sq.ft. of ground floor space. The Irish Independent 17th July
The Central Hotel & Trinity Street Car Park Deutsche Finance International, in a joint venture with BCP Capital in Dublin, have acquired the Central Hotel and Trinity Street car park. The Central Hotel, located on Dublin’s Exchequer Street, was put on the market last October for €40m. It has over 70 rooms across four floors. Meanwhile, Trinity Street car park, within walking distance of the hotel, comprises 171 car-parking spaces with ancillary retail and office use over five floors. The Irish Independent 22nd July
6-12 Sackville Place A tourist accommodation provider has purchased 6-12 Sackville Place just off O’Connell Street for €5.5 million (€252 psf). The premises will remain in educational use by TU Dublin up until the relocation of its operations to its new Grangegorman campus in 2020. The 21, 750 sq.ft. property comprises a mid-terrace mainly four-storey over basement educational building together with some single- and two-storey sections. The Irish Times, 17th July
Poolbeg, Dublin The Irish Times understands that Nama is to begin a search for property developers with which to partner in the development of the former Irish Glass Bottle site and adjacent 12 acre site in Poolbeg, Dublin. The sites combined total 37 acres and have the potential to deliver 3,500 homes for 8,000 people, 10% of which would comprise social housing and a further 15% affordable housing. Up to one million square feet of commercial space as well as school sites and community areas are also envisaged for the site. The Irish Times, 22nd July
Carmelite Site, Gort Muire Irish house builder Lioncor Developments is understood to be closing in on a deal to acquire 8 acres of the Carmelite site at Gort Muire in Ballinteer for up to €35 million. The land is being sold without planning permission, however, a feasibility study prepared in advance of the sale suggests it could accommodate more than 400 apartments comprising a mix of one-, two- and three-bed units along with retail space. The site is located close to Dundrum Town Centre. The Irish Times, 17th July
Cabra and Sandyford Sites A fund managed by Tristan Capital Partners has acquired two ready-to-go development sites in Dublin for €54.5 million, which it will develop alongside local development partners to deliver 663 new homes to the rental market. In two separate deals, the investor has acquired Marlet Property Group’s 9.63 acre site in Cabra, Dublin 7, where planning permission is in place for 420 new homes, and a 7.2 acre site in Sandyford, Dublin 18, which has existing planning permission for 243 new units. The Irish Times understands that the required investment to deliver both schemes is likely to exceed €200 million, making it one of the largest investments in the property market this year. The Irish Times, 22nd July
A new report on the residential property investment market from agent Hooke & MacDonald outlines that Dublin’s private rented sector (PRS) accounted for a record 55% of all property investment transactions in the capital in Q2 2019. Four of the five largest Dublin property investment transactions in Q2 2019 were PRS sales.
In the year to date, Hooke & MacDonald’s report finds that some €703 million in sales were conducted across 12 schemes in the private rented sector. In relation to upcoming sales activity, the report states that there are 18 residential investment transactions with a combined value of €516 million currently at sale agreed stage in Dublin. Six of these deals involve new-build developments, comprising 696 units, while the other 12 are accounted for by existing stock comprising 518 units. Hooke & McDonald PRS Investment Report, Q2 2019
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
Odessa Club, Dame Court Press Up Group have been granted planning permission to convert the former nightclub and members’ club Odessa in Dublin city centre into a boutique hotel. Earlier this year, the group applied for permission to convert the closed-down venue on Dame Court into a 14-bedroom, high-end hotel. The plans have now been given the green light by Dublin City Council. The Odessa club – which had five bars spread across three floors – operated from the property until it closed in 2017. The property also contained a restaurant at the ground floor and a rooftop bar, both of which are due to be retained as part of the new hotel. The Sunday Business Post, 14th July
Custom House Quay Site, Cork City Tower Holdings Group has announced that they will be lodging a planning application later this month to redevelop the Custom House Quay site in Cork to include the restoration of existing structures and the development of a 34 storey hotel comprising 240 rooms and 25 serviced apartments. If planning is granted the 140 metre high tower will be the tallest building in Ireland. The Irish Times, 12th July
No 12 Camden Street Upper, Dublin 2 It is being reported that Brady’s Pharmacy at the junction of Camden Street and Harrington Street has been sold for more than €1.2 million. The four storey over basement 2,734 sq.ft. mixed use property was producing €64k pa from two tenants at the time of the sale. The ground floor had been in use as a pharmacy with a two-bedroom duplex overhead. CBRE, who handled the sale noted there is reversionary potential. The Irish Times, 10th July
Galway City Construction has commenced on the €105 million Bonham Quay project in Galway city docklands. The largest urban regeneration project in Galway, upon completion, Bonham Quay will comprise more than 269,000 sq.ft. of sustainable grade A office space, alongside 20,500 sq.ft of retail and 91,000 sq.ft. of landscaped space. The Irish Times, 10th July
Wilton Park, Dublin 2 Property fund Iput has been granted planning permission for three inter-connecting office buildings at the Wilton Park site in Dublin 2. The 450,000 sq.ft. scheme for Two, Three and Four Wilton Park, centred on a one-acre city park, is one of the largest building projects undertaken in the capital in recent years. The entire development will consist of 600,000 sq.ft. and also includes One Wilton Park where work has already begun and is fully pre-let to Linkedin. The entire development is expected to cost €350 million and is scheduled for completion by 2023. The Irish Times, 12th July
Mahon Point Retail Park, Cork City Iput has purchased Mahon Point Retail Park for a reported €56 million (7% NIY). The property comprises ten fully tenanted units extending to 157,207 sq.ft. and 600 parking spaces. Tenants include B&Q, Argos and PC World. The retail park was developed in 2006 by O’Callaghan Properties. The Irish Times, 10th July
CastleWest Shopping Centre, Ballincollig, Cork A fund managed by Davy has purchased CastleWest shopping centre for a reported €22 million (7.96% NIY). The 141,933 sq.ft. property comprises 43 retail units with c80% of the units occupied and generating rental income of €1.9 million pa. Tenants include Eason, Sports Direct and New Look. The Irish Times, 10th July
Mount Argus, Harold’s Cross, Dublin 6W Patrizia AG, a German Fund, has agreed to pay c€100 million in an off-market deal for 179 apartments (€558k per apartment) currently being developed by Marlet Property Group at Mount Argus, Harold’s Cross. The acquisition represents Patrizia’s third investment in the Irish private rental sector. Patrizia also acquired 63 apartments on the North Circular Road in 2015 and 319 apartments in Honeypark in Dun Laoghaire in 2017. The Irish Times, 10th July
69 Lower Leeson Street, Dublin 2 Knight Frank is seeking €2.4 million (€583 psf) for a mid-terrace, four storey over basement Georgian property. The property extends to 4,118 sq.ft with nine car parking spaces and there is potential to redevelop the mews to the rear subject to planning. The property, which is currently in office use will be sold with the benefit of vacant possession. Knight Frank are guiding the sale of the property for €2.4 million or to be let at €35 psf. The Irish Times, 10th July
Cherrywood, South Dublin An affiliate of US private equity group Lone Star has completed the purchase of almost 118 acres of development land and parks in Cherrywood in south Dublin from investment firms Hines and King Street Capital, in a deal that is believed to be worth more than €120 million. The land, in two plots, is expected to be capable of delivering 2,600 houses and apartments. The land equates to almost 30% of the 412-acre site that Hines and King Street bought in 2014 for €270 million. Work began in early 2017 on the urban centre that will eventually provide 8,000 new homes for 30,000 people. The Irish Times, 12th July
Rathfarnham, Dublin 14 Agent Vincent Finnegan is guiding €3.5 million for a 0.64 acre site (€109k per unit) in Rathfarnham, Dublin 14, with full planning permission for the development of 32 apartments. The scheme will consist of 28 two-bed units, two three-bed units and two one-bed units. The site is located at Loreto Terrace within close proximity to numerous amenities including Rathfarnham and Nutgrove shopping centres, Dundrum Town Centre and the M50. The Irish Times, 10th July
Model Farm Road, Cork The Irish Examiner is reporting that a Cork suburban development site situated on the Model Farm Road which sold for €3.5 million less than two years ago, has been brought to the market at a c€2 million mark-up. The 4.6 acre site has planning for 33 residential units, (€166k per unit) comprising seventeen detached homes, twelve semi-detached homes and four townhouses. The Irish Examiner, 10th July
Rosemount Business Park, Dublin 11 Harvey are guiding €1.3 million for a modern warehouse and office unit extending to 14,380 sq.ft. with a yard to the front at Rosemount Business Park, Dublin 11. The current passing rent is €99k pa (€6.88 psf) with 10 years remaining on the lease and a rent review and tenant break option in 2024. The Irish Independent, 15th July
Bluebell Avenue, Dublin 12 A semi-detached industrial/warehouse and office unit extending to 17,179 sq.ft. with a shared side yard in Bluebell Avenue, Dublin 12 has come to the market through Harvey with a guide price of €995,000. The 0.6-acre site is located in an area proposed for rezoning to ‘Regen.’ There is a 10-year lease from October 2018 at an annual rent of €95,000 (€5.53 psf) and there is both a market rent review and tenant break option in October 2023. The Irish Independent, 15th July
Licensed Premises Sales Morrissey’s Lisney have brokered eight licensed premises deals in the last few months. The largest of these was The Kestrel Pub at the Walkinstown roundabout in Dublin 12 which is sale agreed for more than its €1.8 million guide price, during the boom the pub sold for €7.3m. The Irish Independent, 11th July
Waterford City The Crystal Sports and Leisure Centre in Waterford has come to the market with a guide price of €1.5 million. The 2.4 acre site consists of a sports hall, 25 metre swimming pool, sauna, steam room and toddler pool, four conference rooms, a two-storey building incorporating bar and function hall, two gyms, a spinning room and large cafe/restaurant area. The venue also has a drinks licence. The Irish Independent, 11th July
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
Liffey Portfolio, Dublin Savills is guiding €11.75 million for a portfolio of prime commercial properties distributed across Upper and Lower Liffey Street in Dublin city centre and the suburbs of Ranelagh and Blackrock. The Liffey Portfolio includes eight investment assets in total, extends to 19,989 sq.ft.,(€587 psf) and currently generates a net passing rent of €487,500 p.a. However, there is potential to increase the rent to €850,000 once the vacant elements of the portfolio are leased and forthcoming rent reviews are completed. The Irish Times, 3rd July
Upper Abbey Street, Dublin 1 It is thought that almost €5 million has been paid for a premises let as a Spar store and café at the corner of Upper Abbey Street and Millennium Walkway in Dublin 1 next to the Jervis Luas stop. Extending to 6,846 sq.ft. Spar undertook a major redesign of the convenience store last year. The property generates a passing rent of €392,575 which is guaranteed by the tenant’s parent company BWG Foods. It came with the added benefit of eight underground car spaces. The Irish Independent, 4th July
Glentworth Street and Catherine Street, Limerick City Pery’s Hotel in Limerick city has come to the market with a guide price of €3.5 million. Located a short walk from the city’s main thoroughfare O’Connell Street, the property comprises 61 en suite bedrooms, three conference rooms, a bar and restaurant, gym and sauna facilities and 25 underground car parking spaces. The property which is being sold as a going concern also benefits from €14,000 of rental income from two commercial tenants on Catherine St. The Irish Times, 3rd July
Leeson Lounge, Dublin 4 CBRE is seeking offers in excess of €1.75 million for the Leeson Lounge at 147/148 Leeson Street Upper, Dublin 4. The four-storey over basement licensed premises extends to 5,403 sq.ft. and includes a ground floor of 1,506 sq.ft. comprising the lounge bar and service areas. The basement accommodates a keg store and cold room. The upper three floors are part residential accommodation and part storage. The three residential units are occupied and generate combined rents of about €36,000 a year. With their own separate access from the street, they comprise a one bed apartment and a pair of two-bedroom units. The remaining rooms located on the upper floors are accessed from the bar area and are currently unused. The Irish Independent, 4th July
Howth, County Dublin QRE are quoting €1.25 million for a block of four apartments in Howth, north Dublin. The development comes with the benefit of vacant possession and comprises of 2 two-bedroom single-storey apartments and 2 two-bedroom duplex units. The total estimated rental value is thought to be in the region of €96,000 p.a. The Irish Times, 3rd July
Bishops Square The Irish Times understands that the South Korean real estate investment firm IGIS Asset Management has been selected as the preferred bidder for the 182,774 sq.ft. Bishop’s Square office scheme in Dublin city centre. The firm has agreed to pay in excess of the €180 million guide price. The current rental income is €7.88 million. (Net Initial Yield 4.04%) The current owners, Hines, acquired the building for €92.5 million in 2015 and the building has undergone a significant programme of improvement works since coming under Hines’s ownership four years ago. The Irish Times, 3rd July
Windy Arbour, Dublin 14 CBRE are guiding €1.2 million for TRC House, a detached office building extending to 7,403 sq.ft. over three floors in Windy Arbour, on the Dundrum Road in Dublin 14 (€162 psf). Occupiers can avail of off-street parking at the front and to the rear of the property with a private yard to the rear which can be accessed by a side gate. The building is close to Dundrum Business Park as well as being close to the Central Mental Hospital, which is earmarked for a major residential development. The property comes with the benefit of vacant possession. The Irish Independent, 4th July
North Road, Dublin 11 CBRE are seeking offers in excess of €1.5 million for Unit 7 North Park, North Road, Dublin 11. The entire property spans 12,959 sq.ft. (€115 psf) and comprises to the front, three-storey modern offices extending to 4187 sq.ft. The remainder is a warehouse area with a three-storey steel mezzanine. The building also comes with ample staff and customer parking to the front. The Irish Independent, 4th July
Ashbourne Business Park, Co. Meath Harvey has been instructed by Oasis Group to bring to market a sale & leaseback investment opportunity with a guide price of €5.2 million (€126 psf). The 41,118 sq.ft. warehouse will be let on a new 20 year lease with fixed rental uplifts in years 5 and 10 to the Oasis Group producing rental income of €400,000 per annum. The warehouse is used as a document storage facility and is situated just 10 minutes’ drive from the M50 Motorway in Ashbourne, Co. Meath. The Irish Times, 26th June
Carysfort Avenue, Blackrock QRE are guiding in excess of €2.1 million for a mixed-use investment at 27-29 and 31-33 Carysfort Avenue in Blackrock, Co Dublin. The passing rent from the buildings is approximately €149,000 p.a. with vacant possession of the former licensed premises Dark Horse and several smaller office suites located on the upper floors. The portfolio has a total estimated rental value in the region of €220,000, which reflects a reversionary yield of approximately 9.65%. The Irish Independent, 4th July
Old Navan Road Knight Frank is guiding €1.2 million for a 0.55 acre development site at Clonross on the Old Navan Road. The site is currently occupied by a dormer bungalow. Its planning permission would permit five four-bedroom detached houses, one three-bedroom detached house and one five-bedroom detached house, ranging in size from 1,431 sq.ft. to 2,314 sq.ft. The Irish Independent, 4th July
South Docklands Cork Agri-services group, Origin Enterprises, has agreed to sell 31 acres of land at South Docklands in Cork to O’Callaghan Properties for €47.5 million (€1.532 million per acre). The firm’s existing business on the land will have to be relocated to another location as part of the deal. The Cork Docklands area has been designated for future urban development in the Government’s National Development Plan 2040. RTE News, 9th July
Dublin Office report CBRE’s report shows that a total of 1,638,277 sq.ft. of transactions were signed in the Dublin market in the first half of 2019. CBRE noted that “the Dublin office market continues to perform well with 50 office transactions signed in the last three-month period alone and demand at an all-time high of almost 4.3 million sq.ft. at the mid-year point” CBRE Office Market View, Q2 2019
Dublin Industrial & Logistics CBRE has reported that the take-up in the Dublin Industrial & logistics sector in H1 2019 was up almost 60% on the same period last year. There were 37 industrial transactions in Q2 2019, which brings the total number of transactions in H1 2019 to 70. Prime industrial yields remained steady at 5.1% at the end of Q2, however prime industrial rents are expected to rise by as much as 6.5% in H2 2019. CBRE Dublin Industrial & Logistics Market View, Q2 2019
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
Ashtown, Dublin 15 Ballymore has sold their 26,318 sq.ft. supermarket premises at its Royal Canal Park scheme in Dublin 15 for c€6.3 million (€239 psf) to an Irish family office. The property comprises a retail store, ancillary storage, offices and staff accommodation. There is also a dedicated provision of 75 car parking spaces made up of 52 under-croft and 23 surface spaces. The building is fully-let to Aldi Stores (Ireland) Limited on a 25×5 year FRI lease at an estimated passing rent of €412,320 p.a (€16 psf). The Irish Times, 26th June
Grand Canal Dock Savills is guiding in excess of €5.5 million for the HQ Gastro Bar in Dublin’s Grand Canal Dock. The current owner occupier is offering prospective purchasers the opportunity to acquire the property’s freehold and will subsequently enter into a new long-term (20 year) lease subject to a net annual rent of €300,000 per annum. HQ Gastro Bar occupies 2,842 sq.ft. of the ground floor. This portion of the property features wraparound floor-to-ceiling glazing overlooking Grand Canal Dock and an extensive heated outdoor terrace which allows for year-round outdoor dining. The Irish Times, 26th June
10/11 West Street, Drogheda Quinn Agnew are guiding €1.45 million to acquire a prime investment at 10/11 West Street, Drogheda. This property extends to 6,650 sq.ft. (€218 psf). The ground floor shop, rear stock rooms and yard areas are let to Hickey’s Pharmacy Limited under a Lease for a term of 15 years from February 2019 producing rental income of €130,000 p.a. The property presents potential investors the immediate opportunity to increase the rental income by letting the vacant self-contained offices on the upper floor. Quinn Agnew Report, 27th June
The Clarence Hotel Press Up Entertainment, who recently took over the leasehold of the property has lodged plans to almost double the bedroom capacity of the four-star Clarence Hotel in Dublin. The planning comprises an additional 54 bedrooms at the Clarence which currently has 59 bedrooms. The new rooms are to be located on the second, third and fourth floors of the adjacent Dollard House which is a protected structure. The Irish Independent, 2nd July
Druid’s Glen Hotel and Golf Resort The five-star Druid’s Glen hotel and golf resort has been sold to the Neville Hotel Group in a deal worth €45 million. Druids Glen first opened in 1995, and is located on a 349-acre site in North Wicklow. It has 145 bedrooms and suites, as well as a spa and health club, eight conference and event rooms, and a restaurant that can seat up to 160. The function room overlooking the golf course can accommodate up to 400 people, while the clubhouse at the property, known as Woodstock House, dates back to 1770. The Irish Independent, 28th June
Tallaght, Dublin 24 The Plaza complex in Tallaght has been acquired by Davy on behalf of a private client for €18 million which represents a premium of 20% on the €15 million guide price set by agent Knight Frank. The Plaza consists of a six-storey over double-basement block, comprising the 122-bedroom Plaza Hotel, three floors of office accommodation, three ground-floor retail units and over 500 car-parking spaces provided in the double basement and at surface level. The office accommodation extends to 77,489 sq.ft. over three floors and is let to the OPW under long-term leases at a current rent of €540,200 p.a. (€6.97 psf) The Irish Times, 26th June
Marlin Hotel Dublin Marlin Group, one of London’s largest privately owned hospitality operators, is set to open its first hotel in Dublin 2 next month. Marlin Hotel Dublin, will be a 300-bedroom, €55 million development, located at 11 Bow Lane East, beside St Stephen’s Green Shopping Centre. The building spans almost 110,000 sq.ft. Each bedroom will include the latest technology including 43-inch HD Smart TV. The ground level will comprise a co-working area, an indoor garden, an outdoor terrace, a meeting space for 12 and a 24-hour gym. The Sunday Business Post, 30th June
Dublin Docklands RGRE and Colony Capital are seeking in excess of €250 million in forward funding for a scheme comprising up to 471 new homes in the Dublin docklands. Located immediately adjacent to Salesforce’s new European headquarters, the Spencer Place Residential portfolio is being offered for sale as two private rented sector blocks. Prospective purchasers are being invited to submit offers on both a “current scheme” comprising 349 apartments and a 100-bed aparthotel, and for an “enhanced option” consisting of 471 apartments and 105 co-living units. While planning permission has already been granted in the case of the current scheme, the enhanced offering is currently the subject of a planning application to An Bord Pleanála. The Irish Times, 26th June
Dalkey, South Co. Dublin Sherry Fitzgerald have brought a 3,444 sq.ft. 5 bedroom home on Ardeevin Road, Dalkey to the market with a guide price of €2.275 million (€660 psf). There is a recently converted attic which is currently being used as a sixth bedroom. The detached home also comprises of outstanding grounds of 0.48 acres with landscaped gardens. The property is within walking distance of Dalkey village and surrounding amenities. The Sunday Business Post, 30th June
23 Shelbourne Road, Ballsbridge U+I and Colony Capital have purchased 23 Shelbourne Road for in excess of €25 million. This represents a significant return on the €18 million Friends First paid for the property in 2016. However, the property underwent significant refurbishment and a number of new long term lettings were secured. The Irish Times, 27th June
25 Mountjoy Square, Dublin 1 CBRE is guiding €2 million for a prime Georgian investment property in Dublin city centre. Located at 25 Mountjoy Square the property is a four-storey over-basement building extending to 6,187 sq.ft. The entire of the property is in office use with the lower ground floor/basement accommodation fitted out primarily as canteens with adjacent kitchen and ancillary storage space. The Irish Times, 26th June
Ballast House, Dublin 1 Ballast House, a landmark in James Joyce’s Ulysses, has been acquired by Union Investment, the investment arm of the German DZ Bank Group with the purchase price believed to be in the region of €27 million. The property is fully let on long term leases and comprises both office and retail units across more than 29,000 sq.ft (€929 psf). The Sunday Business Post, 30th June
29/30 Usher’s Quay and 1, 1A & 2 Usher Street, Dublin 8 Knight Frank are currently marketing a superb City Centre located, mixed-use redevelopment site with full planning permission for 27 apartments and ground floor commercial space, at a guide price in excess of €2.75 million. The site benefits from having full planning permission in place for the demolition of all existing buildings and the construction of a new part 6/7 storey building comprising 27 apartments (5 x 1 bed units and 22 x 2 bed units), above ancillary residential amenities and a commercial unit at ground floor level. Knight Frank Report, 26th June
Finglas, Dublin 11 Knight Frank have brought the Jamestown Business Park in Finglas to the market with a guide price of €10.75 million. The portfolio comprises 20 industrial and own-door office units spanning 167,205 sq.ft. with six tenanted land plots (4.5 acres). In addition to this, there is a development site of 6 acres that includes partially-completed warehouse units. The investment is producing rental income of c€919k p.a. with approximately 75% of this income derived from blue-chip tenants. The Irish Times, 26th June
Limerick City Agent Cushman & Wakefield is guiding €3.5 million for a prime 24.41 acre (€143k per acre) residential development opportunity in the Clonmacken area, just 2km from Limerick city. The site has full planning permission for 110 homes. Located adjacent to the North Circular Road, the proposed scheme will comprise a mix of 88 houses and 22 apartments, all of which will be accessed from the Condell Road. The Irish Times, 26th June
CBRE report that Ireland’s commercial property market experienced a “very busy” first half to the year, with demand strong across most sectors. With the exception of the retail sector, CBRE say that prime yields in the Irish market remain stable at the mid-year point, and, in some cases, have potential to harden further during the second half of the year. With the outlook for interest rates to the downside, CBRE believe that this “bodes well” for continued investment. CBRE Half Year Report, 30th June
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 Waterfront: The last remaining waterfront development site in Dublin’s north docklands has been placed on the market by Nama with a guide price of €120m. Project Waterfront, comprising two adjacent sites extending to 4.6 acres with full planning permission for a mixed-use development, is in the docklands strategic development zone (SDZ) and near to the 3Arena. The residential aspect of the site has permission for a scheme with buildings ranging in height from six to 11 storeys, accommodating 420 apartments. Additionally, a crèche, café and retail units are provided for in the planning. The commercial site has permission for four office buildings ranging in height from six to eight storeys and a net office area of around 300,216 sq. ft. The commercial scheme was granted a 10-year planning permission in December 2017, while the residential development has a five-year permission granted at the same time. The Irish Times, 31st July
Tyrrelstown Site, Dublin 15: Listed housebuilder Glenveagh Properties has purchased land capable of delivering c. 1,250 homes, subject to planning permission, for a price in excess of €65m. The 113 hectare site, 39 hectares of which are zoned residential, is located in Tyrrelstown, Dublin 15 and located adjacent to the group’s existing site at Hollystown Golf Club. The Group expect to deliver units from the combined site from 2019. The Irish Independent, 31st July
Magee Barracks Site, Kildare: Developer Ballymount Properties has been refused planning permission to construct 200 houses and 64 apartments, a number of retail units, and a crèche at the former Magee Army Barracks in Kildare Town. The proposal also called for the demolition of 16 buildings on the site. An Bord Pleanála rejected the proposed development, which was submitted under the Government’s fast-track strategic housing development process, on the grounds that the plan contained too many three and four-bedroom homes. The barracks, which has been empty since it was closed by the Department of Defence in 1998, made more than four times its €2 million guide price when it was acquired in early 2017. The Irish Times, 26th July
Maynooth, Co. Kildare: Cairn Homes has secured permission under the fast-track process to build 320 houses, 142 apartments and a 106-unit development offering 483 student bed spaces, in Maynooth, Co. Kildare. Cairn is planning a mix of three and four-bedroom houses and one, two and three- bedroom apartments. Amenities being planned for the site include a crèche with an outdoor play area, a cafe, a gym and a retail unit. The Irish Times, 26th July
Hotel Ibis, Dublin: JLL have completed the sale of the 150-bedroom Hotel Ibis at the Red Cow roundabout in west Dublin for c. €14m (€93k per key). The hotel was sold subject to an existing franchise agreement with Accor, and will continue to be managed by US hotel managers Interstate Hotels & Resorts. The sale comes shortly after a report from CBRE which foresees total hotel transactions in 2018 comfortably exceeding last year’s total of €400m, with €214m already completed in the first six months of 2018. The Sunday Business Post, 29th July
Newmarket Hotel, Dublin 8: An Bord Pleanála has upheld a decision from Dublin City Council to grant planning permission to the developer, Newmarket Partnership Ltd, for a c. €37m hotel and office development at Newmarket Industrial Estate, Dublin 8. The proposed eight-storey development will provide 92 hotel bedrooms and c. 75,000 sq. ft. of office space. The Sunday Business Post, 29th July
Zanzibar Site Hotel, Dublin 1: Work has commenced on a new 165-bedroom hotel overlooking the River Liffey at the former Zanzibar site in Dublin 1. Demolition works are expected to last until Q4 2018 with main construction works to commence in Q1 2019 on the €17m project. The Sunday Business Post, 29th July
Retail Market Update: New figures released by the CSO have shown that retail sales in June rose by 7% year on year but dropped by 3.4% when compared with May. When motor sales were excluded, there was a 0.1% monthly rise in core retail sales and an increase of 4.6% year on year. The number of new vehicles sold in Ireland has been on the slide for much of this year, owing to an increase in the number of second-hand imports from the UK. The weakness in sterling against the euro since the Brexit vote has been cited as the reason for the used-car boom. Leaving motor sales aside, analysts said that the June figures, particularly the strong annual increase of almost 5%, were evidence that the economy was performing well. The Times, Irish Edition, 26th July
Student Accommodation Site, Dublin 8: US-based Invesco Real Estate has agreed to pay €47m in a “forward funded” transaction for a 270-bedroom student accommodation on Brickfield Lane in Dublin 8. The site, which was purchased by Bain Capital earlier this year for €8m, is expected to cost c. €30m to complete and is planned to be open in time for the 2019/20 academic year. The Irish Times, 31st July
College Green, Dublin: An Bord Pleanála has given the green light to the Marlet Property Group to demolish the nine-storey College House on College Green in Dublin and replace it with a 10-storey mixed-use development. The plan is to include a 520-seated venue and Paddy McKillen Jnr’s Press Up is understood to be at an advanced stage of negotiations with Marlet Group to operate the venue. Last December, consultants for the team’s leading the redevelopment of the adjoining Apollo House site and Hawkins House put the College House plans on hold when they appealed the city council planning permission to An Bord Pleanála. Now, in a comprehensive decision giving the project the go-ahead, the appeals board states that the plan will “integrate satisfactorily with the surrounding existing development including the proposed redevelopment of adjoining sites at Hawkins House and Apollo House”. The Irish Independent, 26th July
St. James’ Gate Site, Dublin: Three developers have been shortlisted to partner with Diageo in building a new urban quarter at the historic St. James’ Gate site in Dublin. In total Diageo received 16 expressions of interest in the major rejuvenation project, which has been narrowed down to Sean Mulryan’s Ballymore Properties and their partner Oxley, the London-based U&I Group and US multinational Hines. The development will consist of a mix of residential, office and commercial spaces across 12.6 acres. The Sunday Business Post, 29th July
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
Dublin Docklands: A South Korean fund has emerged as the highest bidder for the second office development at The Landings, in the Dublin Docklands. Selling agents Knight Frank and CBRE were quoting €98.8m for the property, which is expected to sell for c. €105m (€1,055 psf), showing a net initial return of 4.5%. The building has been pre-let to the international services office provider WeWork on a 20-year lease with no break options. The initial rent will be about €4.822m (€47.53 psf). The lease provides for a fixed increase at the first review to €5.327m. The building is being developed by Sean Mulryan’s Irish property company, Ballymore, and its Singapore partner Oxley. The Irish Times, 18th July
South William Street, Dublin 2: Maryland House, a five-storey office and retail building on South William Street in Dublin 2, has been sold for c. €10m (€656 psf), c. €1m above guide price. The 15,244 sq. ft. building is let to AA Insurance until 2024 with a total passing rent of €611,730 (€40 psf), and offers the new purchaser considerable scope for redevelopment as a single large retail venue. The Irish Times, 18th July
30-32 Sir John Rogerson’s Quay: Planning permission has been granted to redevelop a warehouse building in Dublin docklands previously owned by U2 into a new office block. The listed building at 30-32 Sir John Rogerson’s Quay was used as offices by U2’s Principle Management Ltd prior to being acquired by Property fund Iput in late 2016 for c. €20m. The new development will have over 70,000 sq. ft. of river front offices and a new six-storey office block at the rear overlooking an existing public square. Construction is due to commence in the third quarter of this year and is expected to be completed by late 2020. The Irish Times, 24th July
CSO Residential Market Update: Latest figures released from the Central Statistics Office show that residential prices at national level increased by 12.4% in the 12 months to May, down from 13.5% in the 12 months to April. The figures also show a slowdown in residential property prices in Dublin with an increase of 10.7% in the 12 months to May, compared to 13% in April. Prices in the Rest of Ireland, once Dublin is excluded, were 14.1% higher in the year to May. The mid-west region showed the greatest price growth, with house prices increasing at 22.1%, almost double the national average. Dublin residential property prices are 22.5% lower than their February 2007 peak, while residential property prices in the Rest of Ireland are 25.5% lower than their May 2007 peak. CSO Publication, 20th July
Northwood Business Campus, Dublin 9: Two sites at the entrance to Northwood Business Campus in Santry, Dublin 9, have been sold by Knight Frank for c. €10m (€1.4m per acre). The sites, extending to 3.64 acres and 3.43 acres, are zoned for commercial developmentand to support the provision of an appropriate quantum of residential development within the Metro Economic Corridor. Both sites previously held planning permission for mixed-use developments but these have expired. The Irish Times, 17th July
Hansfield, West Dublin: The new west Dublin suburb of Hansfield could get a big increase in housing supply, with developers seeking permission for almost 800 residential units. Developer Garlandbrook has applied for permission for 611 mainly two-bedroom apartments on an almost five-hectare site within the Hansfield Strategic Development Zone (SDZ) while developer Castlethorn has also applied for permission to build 155 units in a different part of the SDZ. Garlandbrook completed the first phase of the Hansfield development, which comprised more than 300 homes. The Irish Independent, 22nd July
Donnybrook Proposed Development: Planners are demanding more information from property group Avestus on proposed plans for an €80m apartment block in Donnybrook, potentially delaying a decision on the scheme by up to six months. Avestus is seeking permission from Dublin City Council to build 94 apartments on a site of c. 1.25 acres on Eglinton Road. The council have received objections from c. 70 local residents to the seven-storey block on grounds including that it is too high, will worsen traffic congestion on already clogged suburban roads and is contrary to proper planning for the area. The council responded to Avestus’ planning application by seeking more information from the company on its proposal, giving the developer 6 months to provide answers. The council will decide whether to allow the company build the apartment block after it has considered the answers. The Irish Times, 23rd July
EasyHotel, Smithfield: Budget hotel operator EasyHotel has acquired a site on Benburb Street in Dublin city centre for €9m. The site currently has planning permission for a 96-bedroom hotel, however the hotel operator believes there is potential to extend this to 130-bedrooms by varying the existing planning permission. A total of €18m is expected to be spent on the investment, which will be funded using cash from the group’s balance sheet, together with local debt financing. The Irish Independent, 20th July
Henry Street Hotels: Property developer Noel Smyth has lodged plans for a 257-bedroom hotel beside Arnotts department store in Dublin city centre. The plan involves demolishing the three top levels of the Arnotts car park at Henry Street, which is owned by the group, and replacing them with hotel floors. The overall hotel development would be nine storeys over basement, with the main access from Middle Abbey Street.
Separately, Noel Smyth was last month granted permission for another hotel in the area, at the corner of Middle Abbey Street and Liffey Street. That plan for a 365-bedroom hotel attracted objections but was approved by Dublin city council after the developer agreed to reduce its height to eight storeys. It is expected work will start on that hotel towards the end of this year and be completed by late 2020. The Motel One chain will operate the venue. The Times, Irish Edition, 22nd July
Mount Street, Dublin: The Press Up Entertainment Group has submitted plans for a hotel at the former Howl at the Moon superpub on Mount Street, Dublin. Its previous plan for a hotel on the site was rejected. Press Up has proposed a 52-bedroom hotel that will costs c. €15m to develop and employ up to 90 people. The proposed venue will include a rooftop restaurant. The Times, Irish Edition, 22nd July
Waterstones Bookshop, Cork: The Waterstones bookshop on Patrick’s Street in Cork city has been sold to a locally based private investor for c. €6.5m. CBRE had been quoting €6.25m for the property, which will show a net initial return of 10.8%. The double-fronted store produces an annual rental income of €770,000 (€68 psf) under a 35-year lease, which has almost five years to run. The building has an overall floor area of 11,367 sq. ft. The Irish Times, 17th July
JLL Property index: The latest JLL Property Index reports that the value of Irish commercial property has almost doubled over the last five years, however it is still below the levels achieved before the crash. It calculates that the capital value section of the index has increased by 91.6% since the trough of the market in 2013, but remains 37.1% below the peak attained in 2007. In the current year however, the rate of growth in capital values has slowed to only 0.7% in the three months to the end of June bringing the 12 month growth rate to 5.0%. For the second quarter in a row, the industrial sector saw the strongest growth in capital values with a 0.8% rise in Q2 2018 and bringing to 4.4% its growth in the first half of this year. While there was a slight pick-up of 0.6% in the second quarter growth of office values which brought first half growth for this sector to 0.9%, nevertheless this curtailed 12-month growth for office values to 6.8%.The Irish Independent, 19th July
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 Lee: Nama has put a €330m portfolio of assets linked to the late Cork property developer, Owen O’Callaghan, up for sale in one of the agency’s last major loan sales. The loans, which have been code-named Project Lee, had been earmarked for sale previously by the agency. The portfolio consists of six loans secured on Irish real estate with a face value of €330m. It is thought that the portfolio is partially performing. The Sunday Business Post, 15th July
Project Beech: AIB is planning to move ahead with its next non-performing loan sale, Project Beech, with a sale expected before the end of the year. Project Beech is unlikely to include any debts secured on family homes, instead consisting primarily of SME debts and buy-to-let properties. Despite the recent sale of Project Redwood, AIB is still carrying bad debts of c. €8bn, down from c. €31bn in 2013. The Sunday Business Post 15th July
Heuston South Quarter: Eir is in advanced negotiations to sublet a substantial part of its Dublin headquarters at Heuston South Quarter (HSQ) to AIB. AIB has agreed a rent of €1.96m p.a. (€35 psf) for Block 2, which has a floor area of 56,000 sq. ft. Car parking spaces will cost an additional €2,500 p.a. per space. The HSQ head office was acquired earlier this year in an off-market deal by the parent firm of mobile phone operator Three for a figure of c. €176m. Eir’s lease of the block is due to run until 2033, giving the new owner a weighted average lease period of 15 years, with a rent review due this month expected to see rent increase from €9.3m to €10.9m. The Irish Times, 11th July
Dublin Office Market Update: A total of 1.76m sq. ft. of office space was taken up in Dublin in the first half of 2018, according to the latest figures from CBRE Ireland. Some 864,438 sq. ft. of this year’s office leasing transactions were signed in the Dublin market in the second quarter, almost matching the volume leased in the first three months. Forty-five individual lettings occurred in Dublin in Q2, with 21 of these transactions (38% of take-up) comprising lettings to Irish companies. Although US companies accounted for only 14 transactions, this accounted for 58% of take-up. There were five lettings to UK companies completed in Dublin in Q2 as Brexit-related mandates continue to boost take-up. The Irish Independent, 12th July
Dawson Street: Biotech start-up company Nuritas is relocating to Dublin’s Dawson Street, where it will occupy the Joshua House office block next to the Mansion House. The five-storey over-basement building is owned by Dublin City Council and has a net internal area of 16,000 sq. ft. The 20-year lease includes a break option in year 10. The Irish Times, 11th July
Dublin Suburb Sites: Agent Savills has brought two sites in the Dublin suburbs with planning permission for a combined 164 residential units to the market. Offers in excess of €13m (€4.6m per acre) are sought for a 2.79 acre site at Oatlands College in Mount Merrion with planning permission for 64 units (33 houses and 31 apartments). Savills are also seeking offers of €15m (€934k per acre) for a 16.06 acre site in Kinsaley, north Dublin, with planning permission for 100 residential units. Savills believe the sales are likely to attract significant national and international interest because of the pent-up demand for housing. The Irish Times, 11th July
Dublin Residential Investment Market: A recent report by Hooke & MacDonald claims that for the first time activity in the residential investment market in Dublin was larger than the office and retail sectors in the second quarter of 2018. However, while residential accounted for 42% of the investment market in the second quarter (followed by offices at 27%, retail at 24% and mixed-use at 7%), it was still behind offices over the first half of the year. The residential investment market has grown strongly since 2016, when the sector opened up on the back of a shortage of rental accommodation and rising population levels. It constituted just 6% of the Dublin investment market in 2016, rising to 17% in 2017 and now standing at 24% over the first six months of 2018.Transactions in the Dublin residential investment market amounted to €294m in the second quarter supported by eight large deals. The largest deal was Irish Life’s c. €120m purchase of 262 apartments at Fernbank in Churchtown, Dublin 14. The Irish Times, 11th July
Navan Site, Co. Meath: Glenveagh Properties have completed the acquisition of a 59-acre site zoned for a high-density residential development, shops and public amenities in Navan, Co. Meath. Glenveagh paid c. €9m (€152k per acre) for the site which is expected to accommodate c. 1,100 houses and a commercial element to include a supermarket, cafes, a primary school and a medical centre. Agent CBRE offered the same lands for sale in 2016 but did not attract a single buyer. The Irish Times, 11th July
Players Square Site, Dublin: Nama is poised to enter into a joint venture agreement with Glenveagh Properties to develop the 10acre former John Player cigarette site on the South Circular Road in Dublin 8. The lands back on to St Teresa’s Gardens, a dilapidated 1950s estate of flats, and any development of the Nama lands would be taken in conjunction with Dublin city council. A total of 1,200 homes, public and private, are expected to be accommodated with up to 20% of the total land expected to consist of open space. The Times, Irish Edition, 15th July
Student Accommodation, Maynooth: Cairn Homes, has received the go-ahead to build accommodation for c. 500 students in Kildare. The company received permission from An Bord Pleanála to develop 483 student accommodation beds, a crèche, a café, a gym and a retail unit in Maynooth near Maynooth University. This is to include 319 houses and just over 140 apartments. Permission for the scheme was granted in spite of several objections from local residents, who complained that local services were already under pressure because of the surge in population in the town over the past decade. The Times, Irish Edition, 16th July
Hard Rock Hotel, Dublin: Irish hospitality group Tifco is bringing the Hard Rock Hotel franchise to Dublin as part of a €30m development. Tifco plans to open an upscale 120-bedroom, four-star hotel under the Hard Rock brand in early 2020. Located on Lord Edward Street, opposite City Hall, the hotel will comprise two buildings – the red brick Exchange Buildings, which dates from 1912, and the adjacent Fashion House Building, which is being rebuilt and will provide the entrance and reception. A new glass link bridge will connect the properties. Tifco owns the buildings and will operate the hotel as a franchise from Hard Rock International. This will be the first Hard Rock hotel in Ireland although there has been a Hard Rock Cafe in Temple Bar since 2004. The restaurant recently reopened after an extensive refurbishment. The Irish Times, 17th July
18/19 College Green, Dublin: The Tesco Express-led building at 18/19 College Green has been sold for €4.65m (€460 psf) – more than €500,000 above the guide price. Tesco pays a rent of €62,000 (€15 psf) for 4,156 sq. ft. for ground and basement level. IT Solutions occupies 5,941 sq. ft. on the five upper floors at an annual rent of €160,000 (€27 psf). Both tenant and landlord have break options in 2022. The Irish Times, 10th July
Food Central Business Park: UK specialist chilled food distributor Oakland has completed a 27,416 sq. ft. warehouse on 4.66 acres in the Food Central Business Park at St Margaret’s near Dublin Airport. Planning and construction of this €4.5m refrigerated food facility was completed in 10 months and delivered on time and below budget. It will be used by Oakland to service retailers such as Dunnes Stores, Aldi, Tesco, BWG and Musgrave. Food Central includes 280 acres and is focused on the food and drinks industry given its proximity to the airport, M50 and Port Tunnel. Businesses already in the park include Keeling’s, Donnelly’s, HPP and Dixon employing over 1,200 people. The Irish Times, 10th July
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