4-5 Dawson Street, Dublin 2:Agent Cushman & Wakefield has sold 4-5 Dawson Street in Dublin 2, to its tenant Trailfinders for €12.4m (€1,158 psf), €4.65m above the asking price of €7.75m. The five storey over basement property extends to 10,709 sq. ft. and produces an annual rent roll of €399,360 (€37.29 psf). The Irish Times, 4th July
New Century House, IFSC:The Irish Times reports that Credit Suisse are currently the top bidder for New Century House in the IFSC at €66m (€825 psf). The 80,000 sq. ft. building comprises seven storeys with 87 car parking spaces in the basement. The property was previously bought by Hibernian Reit four years ago for €47m (€588 psf). The annual rent roll in excess of €2.8m equates to c. €30 psf. A feasibility study carried out believes the property could be extended by a further 31,000 sq. ft. The Irish Times, 4th July
Webworks, Eglington Street Cork:Lisney is seeking €16m (€372 psf) for a 42,964 sq. ft., 4 storey office building on Eglinton Street in Cork with an annual rent roll of €800k, equating to a net initial yield of 4.6%. Webworks has c. 11 years remaining on their lease and it is thought the rent review in May 2019 could increase the current rent of €16.50 psf to €25 psf. The Irish Times, 4th July
Dublin Suburb Office Rents: Goodbody Stockbrokers anticipates Dublin suburb office rents could increase by as much as 14% in the next year as a result of occupiers seeking more economical alternatives to city centre leases. Prime rents in Sandyford and Leopardstown have reached €30 psf, half the €65 psf achievedin the city centre. Brexit-related mandates, of which the IDA confirmed there have been 42, are also thought to be contributors to increasing rents. The Irish Independent, 9th July
Airton Close, Tallaght: The Davy Irish Property Fund has completed contracts to lease One Airton Close in Tallaght, Dublin 24, to the Institute of Technology (ITT). The new tenant has agreed an annual rent of more than €400,000 (€13 psf) for the 30,000 sq. ft. building, which will be used for administration as well as office functions. The 20-year lease includes 83 car parking spaces and a break option in year 15. The Irish Times, 3rd July
Avestus €290m Rental Fund: The Irish Times reports that Avestus Capital Partners have raised €160m of equity for a new fund dedicated to investing in the Irish rental sector. The fund will be leveraged up to €290m through debt. Despite rental increases of 87% and 68% in Dublin and other cities respectively, since the trough of the recession, and demand for rental accommodation doubling in the last five years, Avestus believe the Irish rental market is underinvested. Avestus current Irish portfolio comprises over 800 privately rented properties and has in excess of €1bn in assets under management in Ireland and Europe. The Irish Times, 4th July
The Abbey Quarter, Kilkenny:Ireland Strategic Investment Fund (ISIF) will provide €12.3m in development loan finance for the redevelopment of the former Smithwicks Brewery in Kilkenny City. The redevelopment will include 645,000 sq. ft. of office, residential, retail and educational space and will be known as the Abbey Quarter with the 13thcentury Franciscan Abbey as the focal point. The former Brewery will be developed into 47,850 sq. ft. of grade A office space. The Irish Independent, 5th July
261 Bed Student Accommodation, Arran Quay: Investment fund NTM ROI Seed Capital LP, managed by NTM Capital, have engaged an Bord Pleanála regarding a 261 bed student accommodation on Dublin’s Arran Quay. The company has already invested in sites in Cork and Galway, purchasing the Westwood Hotel in Galway last year with plans to develop a 394 bed student accommodation. The Irish Independent, 6th July
Live at the Marquee Site, Cork:The former 11 acre Ford depot site in Cork has been bought for c. €15m (€1.3m per acre) by Glenveagh Properties PLC. The site forms part of the Docklands project which has been earmarked for redevelopment and it is expected that 1,000 homes will be built on the site. The Irish Examiner 3rd July
Mount Street Crescent: Agent Lisney has brought a Georgian House on Mount Street Crescent in Dublin’s south inner city to the market for €1.4m (€40 psf). Lisney expect considerable interest in the three-storey over basement building which has a 2-bed apartment in the basement and offices on the three overhead floors. The Irish Times, 4th July
CBRE Hotel Market Update: CBRE has forecasted that the volume of hotel sales completed in Ireland in 2018 looks set to comfortably exceed last year’s total of c. €400m, despite only eight sales totalling more than €214m in the first half of the year. Nevertheless, considerable activity is under way in the background, with the Tifco hotel group in the process of selling 23 hotels with 2,400 rooms. Meanwhile, demand for hotel rooms has been so strong, especially in Dublin, that a number of chains have been developing new properties or extending existing ones. New hotels due to open this year include Bam’s 202-bed Aloft in Blackpitts in Dublin 8, Oakmount’s 41-bed Devlin in Ranelagh, and Frankie Whelehan’s 42-bed The Wilder on Harcourt Terrace. Nearby, the McGill family have opened their new 152-bedroom Iveagh hotel on Harcourt Street. Revenue per available room (RevPAR) across the countries hotels increased by 16.1% in the year to May 2018, driven by significant growth outside Dublin. Average daily room rates over the same period grew by 12.7% to €144.55. The Sunday Business Post, 8th July
Clery’s, O’ Connell Street:The first round of bidding is expected to conclude in the next week on the sale of Clery’s department store building on O’ Connell Street in Dublin. Swedish furniture giant Ikea are believed to have expressed an interest in the building, joining c. 30 other interested parties on the €60m development. The first round of bidding is set to be followed up with the launch of the adjoining block at Nos 14-18 on O’Connell Street to the market for a guide price of between €14m and €15m. The Irish Independent, 5th July
Greenfield Shopping Centre, Maynooth: Joint agents Lisney and Hibernian Auctioneers have brought the high-yielding Greenfield Shopping Centre in Maynooth, Co. Kildare, to the market guiding €1.25m. The nine unit shopping centre is 100% occupied with tenants including Centra and St. Vincent De Paul producing a rental income of €154,000, with a weighted unexpired term of c. 8 years. New owners will be set to benefit from an increased rent roll in the short term, with income due to increase to €167,790 in three years due to contracted stepped rental increases. This will allow the current investment yield of 11.34% to rise to 12.38% in 2021. The Irish Times, 4th July
Dublin Crane Count: The Irish Times latest crane count found there were 79 cranes visible over Dublin on 1st July, a rise of 7 (10%) from 1st June, and just one off the record of 80 set on 1st December 2017. July’s total is 155% above the 31 recorded on 1st February 2016 when The Irish Times commenced their survey. In total there were 54 cranes recorded on the Southside, a rise of four on June, and 25 on the Northside, a rise of three on the previous month. The Irish Times, 3rd July
JLL Commercial Property Market Update: Property agent JLL has raised its forecast for the level of investment in Irish property for 2018 from €2bn to just under €3bn following a particularly strong second quarter in which nearly €1bn worth of commercial real estate changed hands. According to JLL, 35 transactions carrying a combined value of €955m took place in the three months to the end of June. While that figure was only slightly more than the €933m invested in the first quarter of this year, it represents a 300% increase on the equivalent period in 2017. The largest transaction in the second quarter saw the off-market sale of a portfolio of Dublin office investments for €160m. The Irish Independent, 10th July
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Wicklow Street, Dublin: New Ireland Assurance has completed the purchase of a high profile investment property off Wicklow Street for €12m (€932 psf). The property consists of 6,328 sq. ft. of retail, 6,544 sq. ft. of office space and a penthouse. The building is producing a rental income of €575,000 (€45 psf) from Cotswold Outdoor, a UK specialist in outdoor clothing, and Tracey Solicitors, giving an initial yield of 4.6%. The Irish Times, 27th June
70 St. Stephens Green: Irish Life, Ireland’s leading property investment company with a portfolio of over €3bn, is in the early stages of replacing Hainault House on St. Stephen’s Green, marking its first redevelopment project for over 20 years. The planned €20m block will be more than 70% larger, with a floor area of 61,820 sq. ft. when it is ready for fit-out in the early months of 2020 and can expect a rent of c. €65 psf. Irish Life has not been involved in any major redevelopment projects since it completed a single phase of Georges Quay in 1995. The Irish Times, 27th June
Ballycoolin Business Park: Agent CBRE has brought two separate detached office buildings at Ballycoolin Business Park to the market guiding €8m (€62 psf) combined. Unit 1 is guiding €2.5m and extends to 42,551 sq. ft. on a low-density site of 3.09 acres, while unit 2 is guiding €5.5m and has a floor area of 85,874 sq. ft. on 4.7 acres. Both buildings are laid out as open-plan call centre spaces with ancillary offices and come with vacant possession. The Irish Times, 26th June
Harcourt Road, Dublin 2: Green Reit is to lease the entirety of 5 Harcourt Road, Dublin 2, to a subsidiary of WeWork for an annual rent of €3m (€60 psf). This newly developed office building in Dublin city centre is due for completion in July and comprises 50,000 sq. ft. of lettable space over seven floors. WeWork, the world’s largest provider of collaborative workspaces, has agreed a 20 year lease with no break options, and has guaranteed the lease obligations. The Irish Times, 3rd July
Sandyford Business Park: Turley Property Advisors is quoting a guide price of €2.9m (€333 psf) for the first floor of a modern office building at Sandyford Business Park in south Dublin. The office facility is let to PrePay Power, a leading provider of prepaid electricity, on a new 15-year lease at €250,000 p.a. (€28.70 psf), rising to €275,000 (€31.60 psf) at the end of year five, with a tenant break at the end of year 10. The Irish Times, 27th June
Earlsfort Terrace, Dublin 2: Agent QRE has brought a period office of 3,000 sq. ft. and four apartments on Earlsfort Terrace to the rental market at €320,000 p.a. The building which has been refurbished to a high standard in recent months was bought by its current owners in 2017 having been on the market at €2.75m. The Irish Times, 26th June
Six Hanover Quay, Dublin: Listed housebuilder Cairn Homes has agreed to sell its Hanover Quay redevelopment to a special purpose company managed by Carysfort Capital for €101m. The development, which is currently under construction, is made up of 120 apartments, a 5,000 sq. ft. restaurant and 1,400 sq. ft. café. The price paid for the development, which is due to be completed in early 2019, represents an average gross sales price of €800,000 for each of the apartments. The Irish Independent, 28th June
Glenveagh Acquisitions: Housebuilder Glenveagh has announced at its recent AGM the acquisition of four new sites capable of delivering 2,780 homes at a combined cost of €120m. The sites are located in the Cork docklands and Greater Dublin area and means Glenveagh’s land bank now comprises of 10,120 homes, 31% of which are shovel-ready with 97% zoned residential. The Irish Times, 29th June
Hazelbrook Square, Churchtown: Cushman & Wakefield has this week brought a portfolio of 54 apartments at Hazelbrook Square in Churchtown, Dublin 14, to the market guiding €16m (€296k per apartment). The eight year old apartments are part of a block of 97 units and currently produce a rent roll of €896,000 p.a., showing an initial return of c. 5.6%. The Irish Times, 27th June
Bishopstown Site, Cork: Joint agents Savills and Agar Commercial Consultants are seeking offers in excess of €6m (€377k per acre) for a superbly located 15.9 acre site in Bishopstown, Co. Cork. The site, which is located 5.5km from Cork city centre, is zoned as an “existing built-up area” and most suitable for mixed-use, office, residential or hotel development. The Irish Times, 27th June
Clondalkin Development Site: DNG Advisory has brought a 7.2 acre site with full planning permission for 63 houses, 20 apartments and a crèche in Clondalkin to the market guiding €5m (€695k per acre). DNG Advisory said the site was an exceptional opportunity to develop a high-quality residential community and the project is will be of particular interest to first-time buyers with apartments starting from c. €220,000 and houses from c. €250,000. The Irish Times, 27th June
Dublin South Docklands Site: Agent Savills has brought two retail units with redevelopment potential on Cardiff Lane in Dublin’s south docklands to the market for €5m. The 4,736 sq. ft. development is currently occupied by Starbucks and Arena Kitchens producing a combined rent roll of €58,000 p.a. (€12.24 psf) with a rent review outstanding. A feasibility study carried out suggests that, subject to planning approval, the site could accommodate 17 apartments above 2,260 sq. ft. of retail space and may also be suitable for office accommodation. The Irish Times, 27th June
K Club Golf Resort: The 550 acre five-star K Club golf resort is being brought to the market by Savills with an expected guide price of €70m – €80m. Located in Straffan, Co Kildare, the hotel comprises of 134 bedrooms, two Arnold Palmer designed courses and two club houses. Accounts last year showed the business made a near €4m loss before tax in 2015, up from €3.2m the previous year. However, its position was expected to have improved significantly since then due to its extended capacity and with a buoyant tourist market. The Irish Times, 29th June
The Grand Social, Dublin: Publican Frank Gleeson has acquired the Grand Social bar and music venue in Dublin city centre for more than €3m. Gleeson bought the venue from the businessman Brian Montague, who also owns the Winding Stair and the Legal Eagle pub. Located on Liffey Street, facing the Ha’penny Bridge, the Grand Social includes two bars, a loft music space and a roof garden. Gleeson has been operating the venue on a management contract. The Sunday Business Post, 1st July
Retail Sector Update: Latest figures from the CSO have revealed an annual increase of 4.3% in the volume of retail sales during May compared with the same month last year. Seasonally adjusted, the volume of retail sales increased by 0.1% in the month of May. Excluding motor trades, there was an increase of 1.5% in the volume of retail sales in May when compared with April, and there was an increase of 4.7% in the annual figure. The sectors with the largest monthly volume increases were hardware, paints and glass (+8.9%), and books, newspapers and stationery (+4.3%). The sectors with the largest month on month volume decreases were furniture and lighting (-4.7%), and bars (-2.9%). The Irish Times, 27th June
52 Henry Street, Dublin: Therapie Clinic, the leading laser, skin and body treatment specialist, is to open a new flagship store at 52 Henry Street, Dublin 2. The company has acquired the building on a sub-lease at a rent of €250,000 p.a. (€62.60 psf) and will occupy all four floors and basement, which extend to 3,993 sq. ft. The Irish Times, 26th June
Savills Dynamic Cities Index: A report from Savills Investment Management has placed Dublin sixth out of 130 European cities for commercial real estate investment. The index analyses and ranks 130 cities across the six categories of infrastructure, inspiration, inclusion, interconnection, investment, and innovation. Home to nine of the top 10 global technology companies, Dublin ranked higher than a number of other financial powerhouses including Zurich, Munich, Frankfurt, and Luxemburg. Despite concerns around Brexit, London topped the list, followed by Cambridge and Paris, with Amsterdam and Berlin completing the top five dynamic cities. The Irish Independent, 27th June
May Mortgage Approval’s: New figures from the Banking and Payments Federation have shown that mortgage approvals passed the €1bn in May, with first time buyers accounting for €506m (49.9%) and mover purchasers €324m (32%). In total 4,473 mortgages were approved in May, up 9.8% year-on-year, and 19.2% month-on-month. Growth in the re-mortgaging category continues to be the stand-out category, with the value of re-mortgaging growing by 106% year-on-year in May. The Irish Independent, 28th June
Amazon Site, Tallaght: Amazon is seeking permission for a second data centre at the former Jacob’s biscuit factory site in Tallaght. The 240,000 sq. ft. data centre will be built next to a similarly sized facility recently completed on the Belgard Road site that it acquired in 2014. A recent report, commissioned by the tech giant, found that its investment in South County Dublin since 2011 has had a cumulative economic impact for the Irish economy in excess of €1.25bn and on average supported over 1,200 full-time jobs each year.The Irish Independent, 1st July
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Tallaght Shopping Centre: NAMA has appointed Cushman & Wakefield and JLL as joint sales agents for the Square Tallaght shopping centre in Tallaght, south Dublin, with the agents expected to begin marketing the complex in September. The centre is one of the final large-scale, stand-alone commercial properties in NAMA’s portfolio, and is expected to be valued at well over €300m. The shopping centre contains over 570,000 sq. ft. of shopping space spread across 130 units, and a cinema. Anchor tenants include Dunnes Stores, Debenhams and Tesco. The centre also has planning permission for a 226,000 sq. ft. extension which will add a further 12 units, a multi-storey car park and a new anchor store. Accounts for Indego, the owner of the Square, indicate that the centre had turnover of c. €17.7m for the year ending June 2016, with operating profits of c. €9.9m. The Sunday Times, 23rd July
Frascati Shopping Centre: Aldi is set to join existing anchor tenants Marks & Spencer and Debenhams in the refurbished and extended Frascati Shopping Centre in Blackrock, Co. Dublin. The complex is due to increase in size from 100,000 sq. ft. to 170,000 sq. ft. by the end of 2018, and Aldi will lease a 13,000 sq. ft. unit. The extension will add 24 new retail units and five food and beverage units in a dedicated restaurant location, while a carpark extension will bring the total number of spaces to 550. The Irish Times, 19th July
Ilac Centre: Regatta Great Outdoors is set to occupy the final vacant retail unit in the newly redeveloped Moore Mall South at the Ilac Centre in Dublin city centre. The c. €1.5m redevelopment in the centre has seen the arrival of four other new tenants – BB’s Coffee & Muffins, The Works, So Nutrition and Nisbets. The Irish Independent, 20th July
Retail Sales: The Grant Thornton / Retail Excellence Ireland (REI) Retail Industry Sales Review for Q2 2017 has shown like-for-like declines in many sectors compared to the corresponding period in 2016. Menswear and IT / computing sales were down over 5% in the quarter, with footwear, ladies fashion and childrenswear among other sectors showing decline. However, overall sales rose by 1.26%, with agri-retail and garden centres performing strongly due to better weather during the quarter. REI have highlighted that volatility remains a key factor within the Irish retail industry with inconsistencies in sales patterns throughout 2017. The body highlighted the impact of ‘excessive’ rents, Brexit and intense competition from European online retailers as feeding into the ‘challenging’ outlook for the sector, and stressed the need for cost containment to assist with competitiveness. The Irish Independent, 23rd July
Dublin Retail Rental Growth: According to CBRE’s latest half-yearly research report on ‘Global Prime Retail Rents’, Dublin was the fifth fastest-growing prime retail location in the world, with year-on-year increases of rents of 10.5% in Q1 2017. London recorded the highest percentage growth at 39.1%, with St Petersburg, Auckland and Sofia taking the second, third and fourth positions. Looking at Ireland’s retail sector more generally, CBRE advised that it remains robust, buoyed by strong job creation, tourist activity and demographic changes. They noted that with 5% growth in retail sales in 2016, there is cautious optimism in the sector, with continued demand for stores in prime locations. However CBRE warned that supply challenges remain, which will cause increases in rents for units in prime locations. The Irish Independent, 20th July
Finglas Motor Dealerships: The Joe Duffy Group has secured planning permission for three substantial motor dealerships at Junction 5 of the M50 at Charleston in Finglas, Co. Dublin. The expansion follows the group’s purchase of an adjoining 5.3-acre site from Bovale Developments, and the three developments will require an investment of c. €20m to facilitate c. 75,000 sq. ft. of space for Volkswagen North Dublin and Porsche. The new premises are due for completion by the end of 2019. The Irish Times, 18th July
The Exchange: The Exchange, the first new building to be constructed in the IFSC since 2003, has a confirmed completion date of 28th September, ahead of schedule. The first tenant in the new 105,000 sq. ft. building is the Food Safety Authority of Ireland (FSAI), who will occupy 19,000 sq. ft. across the first floor at a rent of c. €50 psf. The FSAI will occupy their unit under a long-term lease, which will contain a break option in year 15. An additional 8,000 sq. ft. has been reserved on the ground floor. Joint agents Savills and JLL are continuing to market the remaining 78,000 sq. ft. of space, at a rent of €52.50 psf. The building is being developed by the Cosgrave Property Group, with IPUT PLC forward funding the development. The Irish Independent, 20th July
NTMA HQ: The NTMA has decided to take a lease on a much larger headquarters than initially planned in the new ‘Dublin Landings’ development. The agency had originally agreed to take c. 83,000 sq. ft. of space in Building 1, the first block under construction at the new development, which is located next to the new Central Bank in Dublin’s north docklands. However, it has now decided to rent the entire building, which extends to c. 143,000 sq. ft., an increase of 60,000 sq. ft. of space. The NTMA will pay the same rent, c. €50 psf for both lettings, which will have 25-year leases with break options in year 15. Building 1 is due to be ready for fit out in Q1 2018. The Irish Times, 19th July
Boston Sidings Grand Canal: CIE is expected to capitalise on the strong demand for office space in Dublin’s south docklands, where prime rents are currently c. €50 – €60 psf, by enlisting a partner to develop a high-rise office block at Grand Canal Quay in Dublin 2. CIE owns a 0.87-acre site, known as the Boston Sidings site, which adjoins Grand Canal DART station, and the company is reported to be seeking to secure a long-term income stream, rather than selling the site. The selected developer will be expected to handle the entire planning process, and the development of the office scheme, which is likely to consist of a minimum of seven storeys and have a floor area of at least 120,000 sq. ft. CIE is expected to provide a 300-year ground lease subject to an annual rent linked to the consumer price index, and Lisney estimate that the company should be able to earn either c. €1m p.a. by way of a premium rent, or a 10% share of the rent roll, whichever is greater. Interested parties will be invited to tender for the development opportunity by 12th October. The Irish Times, 19th July
1 and 6 Tuansgate: 1 and 6 Tuansgate, a modern office and retail building in Tallaght, south Dublin, has been sold for €6.5m, c. €700k above the €5.8m guide price. The building, which is producing strong rents, includes a modern office building and retail unit with a combined floor space of c. 40,000 sq. ft. and 105 car parking spaces in a local multi-storey carpark. The office element is fully let to the Dublin and Dún Laoghaire Education and Training Board and Tetra Pak, while the 3,296 sq. ft. retail unit is rented by Royal Foods t/a Spice Bazaar. The combined rental income from the asset is c. €521k p.a. The Irish Times, 18th July
Hotel Supply: New figures from Construction Information Services (CIS) suggest that there will be c. 3,000 extra hotel beds in Dublin by 2020, increasing the number of total hotel rooms in the capital by c. 15%. Two applications alone should increase Dublin’s capacity substantially; the first being Tetrarch’s proposed eight-storey, 393-bedroom hotel in Dublin city centre, and the second being a c. €38m, 427-bedroom hotel adjacent to Dublin Airport. The Irish Times, 24th July
The Marker: Dublin City Council has granted planning permission to GCS Hotel Property for an extension to the Marker Hotel that will involve adding a new floor and an upgraded rooftop bar. The c. €10m investment will involve adding an additional 30 bedrooms on the new floor, bringing the hotel’s capacity up to 217 bedrooms. In addition, there will be a new glass enclosed rooftop pavilion on the 8th floor that will contain a 3,250 sq. ft. restaurant, a 1,410 sq. ft. bar area and a 2,120 sq. ft. function room. Under the terms of the planning permission, the hotel must pay c. €183k in planning contributions. The Irish Independent, 22nd July
Red Cow Hotel: The Moran Family, the owners of the Red Cow hotel in south Dublin, have applied for planning permission to further extend the 275-bedroom complex by constructing an events centre and office block beside the hotel. If approved, the new four-storey building will be developed on the site of a car garage, and will extend to c. 57,000 sq. ft. It will contain an events centre on the ground floor and mezzanine level, a first floor bistro and two floors of offices. The Sunday Times, 23rd July
Fast-Track Planning: The Irish Independent provides details of the new ‘fast-track’ planning regulations which have been introduced for schemes of 100+ residential units and 200+ student bed spaces. The scheme, which became law at the start of July, has been designed to accelerate planning, one of the pillars of the Government’s ‘Rebuilding Ireland’ scheme which was launched last year. Under the previous system, a third party objection could delay an application process by 18-33 weeks, bringing the total process to over 70 weeks. The new process consists of three stages. Stage One consists of consultation with the local authority, which must be completed within four weeks. If the local authority cannot arrange a pre-planning meeting in this time, the applicant can proceed directly to Stage Two, which consists of consultation with An Bord Pleanála (ABP), and is limited to seven to nine weeks. ABP determine whether the application is valid and that it can proceed to Stage Three, while also ensuring that it complies with the Section 28 National Planning Guidelines. They do not comment on details of the application at this juncture. At Stage Three, ABP considers reports from local authorities and any objections, and must grant or refuse permission within 16 weeks. ABP cannot request further information on the application at this point. Further changes to the scheme include allowing an applicant to propose an application (at Stage One) that does not comply with a local development plan, but which meets national planning guidelines. The Irish Independent, 20th July
Aungier Street: Scape, a major international student living operator, has entered the Irish market with the acquisition of a development site on Aungier Street in Dublin 2 for over €20m. In November 2016, An Bord Pleanála granted full planning permission for a mixed-use development containing a 300-bed student accommodation complex on the site, alongside a mix of recreational and study facilities in three-to-seven storey blocks. The units will be divided into 282 bed spaces with communal kitchen facilities between every three and eight en-suite bedrooms. There will also be 18 one-bed studio rooms. Construction is due to commence in January 2018, with completion in mid-2020. The Sunday Business Post, 23rd July
64 Fitzwilliam Square: A Dublin-based senior counsel has purchased 64 Fitzwilliam Square, currently a corporate headquarters, for c. €3.5m, with the intention of converting it into a private residence. The property has an overall floor area of 7,255 sq. ft. and the lower ground floor is fitted out as a self-contained one-bedroom apartment. The Irish Times, 19th July
Baldoyle Development: Planning permission has been granted for a significant residential development in Baldoyle in north Dublin, which will see the construction of 379 apartments and 171 houses. The site, which is located on the grounds of the former Baldoyle Racecourse and Stapolin House which is c. 8km from Dublin city centre, will see the construction of 13 housing blocks of up to six storeys and a commercial ground floor area which will include convenience outlets, a crèche, a café, four retail units and communal courtyard areas. A range of housing will be provided, including one-bed apartments, own-door duplex apartments, two-to-three storey terraced houses and four-bed semi-detached houses. The 53-acre site, which sold for c. €13.5m, is being developed as part of the Baldoyle-Stapolin local area plan, and is zoned under the 2011 – 2017 Fingal Development Plan. The new development, which will have access to the nearby Clongriffin train station, is being undertaken by receivers to a company called Helsingor, which is currently controlled by NAMA. The Irish Independent, 20th July
Leopardstown Planning Application: Developer Michael Cotter is the first house builder in the country to use the Government’s new temporary ‘fast-track’ planning application system for large-scale housing developments. Viscount Securities, a company owned and controlled by Mr Cotter and his family, has submitted a pre-application proposal to An Bord Pleanála for 934 residential units at Clay Farm in Leopardstown, south Dublin. If approved, the scheme will contain 363 houses and 571 apartments on the site which is being developed by Mr Cotter’s Park Developments. Under the new regulations, Mr Cotter should receive a decision on his application by January 2018 at the latest. The Irish Independent, 20th July
Bluebell Avenue: KM Kyle Holdings Ltd has sought planning permission from Dublin City Council to demolish two cottages on Bluebell Avenue, west of Dublin city centre, and to construct a 52-unit apartment block extending to 70,000 sq. ft. The proposed six-storey complex will contain 17 one-bedroom, 26 two-bedroom and nine three-bedroom units. NAMA Wine Lake, 23rd July
Nursing Home Sites: The Irish Times reports that Bartra Capital Property acquired two north Dublin sites in June 2017, both of which have planning permission for nursing home developments. The first site extends to 11.12 acres at Featherbed Lane in Skerries, where Bartra will develop a 123-bedroom facility. The rooms will be single-bed and all will have en-suite facilities. The second site extends to 1.06 acres on the Old Ballymun Road in Santry, where Bartra will soon commence the construction of a 114-bedroom facility. The Santry facility will contain 110 single-bedrooms and four double-bedrooms, all of which will have en-suite facilities. The Irish Times, 18th July
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McDonalds Jervis Street: State Street Global Advisers have paid c. €17m to acquire a three-storey McDonalds fast-food outlet at the junction of Jervis Street and Mary Street in Dublin city centre. This figure is below the guide price of €18.5m quoted by CBRE for the high-profile investment. McDonalds has a 35-year lease on the premises which runs from 1998, leaving c. 16 years remaining on the lease, for which there are no break options. McDonalds is paying a rent of c. €733k p.a. for 5,553 sq. ft. of retail space at basement and ground floor levels, and two floors of high quality offices overhead, which extend to 5,694 sq. ft. The Irish Times, 12th July
Sandymount Premises: Coldwell Banker Commercial has secured a sale price of over €3m for a business premises in Sandymount, Dublin 4. The premises, located at 23/24 Sandymount Green, extends to 5,177 sq. ft. and produces rental income of c. €234k p.a. The rental income is receivable from Spar, Indie Spice and a mobile phone mast owned by Vodafone. The Irish Times, 12th July
Cork Retail / Industrial Units: Four retail and industrial units near Cork city centre, located at the junction of the Kinsale Road and a five-arm junction with the N40 flyover have gone on the market with a guide price of €2.2m through Cohalan Downing Associates. The current rental income from the properties is c. €221k p.a., offering a net initial yield of c. 9.6%. HSS Hire Service Group PLC rent two of the units for a combined rent of €141k p.a., with Egan Electrical Equipment (Ireland) Ltd (€50k p.a.) and Leeside Interiors Ltd t/a Cork Tile & Wood Flooring (€30k p.a.) occupying the other two units. Three of the units are terraces, and one is detached, and they have a combined floor area of 15,600 sq. ft. (with additional mezzanine space), situated on a site of 1.19 acres. The Irish Examiner, 13th July
One Grand Parade: After an extensive bidding process, German fund Quadoro Doric Real Estate has purchased One Grand Parade from Credit Suisse for €26m, paying c. €3m over the property’s guide price. The building contains a floor area of c. 31,500 sq. ft. and 15 car parking spaces. Current rents range from €26 psf to €52.50 psf, therefore the new owners will have the potential to increase the rental income of the property through active management. The weighted average unexpired lease term is approximately three years. Based on the current rental income of just over €1m p.a. and the €26m sales price, the net yield of the property is c. 3.8%. The Irish Times, 12th July
Fonthill Business Park: State Street Global Advisers has paid €11.05m for an office and warehouse block in Fonthill Business Park in Dublin 22. The building, which is adjacent to Liffey Valley Shopping Centre, is let to United Drug PLC on a 10-year lease from June 2015 at €500k p.a., however this can be stepped up to a maximum of €700k p.a. The building contains c. 60,000 sq. ft. of warehouse space, and c. 27,000 sq. ft. of office space. The Irish Times, 12th July
Central Park Leopardstown: Green REIT has begun development of another substantial office building at Central Park in Leopardstown, Dublin 18, having just completed the letting of the newly built Block H to AIB. Their next project, Building 1, is expected to have c. 100,000 sq. ft. of lettable space and contain 156 basement car spaces by the time it is completed, with the fund targeting a completion date of Q4 2018. The building will be available to let either in its entirety or on a floor by floor basis. Central Park has established itself as Dublin’s leading office park, with all 850,000 sq. ft. of the completed space fully let, producing contracted rental income of c. €23.7m p.a. In addition to Building 1, planning permission is also in place for the development of an additional 300.000 sq. ft. of space. The Irish Times, 11th July
Baggot Street Development: Planning permission has been granted for a c. €10m office development by Irish Life Assurance plc in Dublin 2. The new development will be located on 74 – 75 Baggot Street Lower, will extend to over 75,000 sq. ft. and will be six storeys in height. The Sunday Business Post, 16th July
Carton House Resort: Joint selling agents Savills and CBRE are inviting offers of €60m for Carton House Hotel, Spa & Golf Resort, near Maynooth, Co. Kildare. The asset, which is situated on a c. 668-acre site, includes a newly restored 18th century Palladian mansion (Carton House), a separate five-star hotel and extensive sports facilities. The sale has come about after the owners, the Mallaghan family and the Carton Development Partnership, reached a consensual agreement with NAMA to put the asset on the market. The hotel has 165 bedrooms, a strong food and beverage offering, extensive meetings rooms, conference and banqueting facilities and two 18-hole golf courses. Sports facilities include high specification soccer, rugby and GAA training pitches, which have been used by teams such as Real Madrid, AC Milan and the Irish rugby team. The Irish Times, 12th July
Irish Hotels Federation (IHF) Report: A new report from the IHF has found that seven out of ten hoteliers believe that trade has improved dramatically when compared with the same period in 2016, with the outlook for the rest of the year also looking positive. Despite a decrease in the number of visitors from Britain, the number of overseas visits in 2017 is expected to be above the 2016 figure of 8.8 million, due to an increase in the number of visitors from other markets such as Germany, France and the US. Confidence amongst hoteliers is also growing, with the vast majority of hotels and guesthouses reporting that they intend to invest in refurbishment and increased capital expenditure over the next year, while 61% of hoteliers have recruited new staff over the last year. While the report is predominantly positive, it does show that rising insurance costs are an increasing concern for hoteliers. The Irish Times, 17th July
Tara Towers: Dalata has sought planning permission to redevelop the Tara Towers Hotel in Dublin 4, which it acquired last year for c. €13.2m. The application proposes the demolition of the existing hotel, which is situated on a 1.46-acre site. Dalata propose to replace the existing structure with a mixed-use development, which will include a four-star Maldron hotel with 140 bedrooms, and 70 residential units. The Irish Times, 18th July
RTE Montrose Site: After being chosen as the preferred bidder last month, Cairn Homes has announced that it has completed the purchase of RTE’s Montrose Site in Dublin for c. €107.5m. The company is now expected to seek planning permission to build 500 apartments and 10 houses on the site, and is now focused on the design and pre-planning stage of the development. The Irish Times, 17th July
Edward Square Galway: Cushman & Wakefield is inviting offers of €7.5m for all 38 apartments in the Edward Square apartment complex in Galway city centre. The complex is fully occupied and producing rental income of c. €554k p.a. The complex was developed in 2002 and consists of one one-bedroom apartment, three two-beds, 33 three-beds and one four-bed. The guide price reflects a break-up price of less than €200k per apartment. The Irish Times, 12th July
Gorse Hill: Gorse Hill in Killiney, south Dublin, which was formerly owned by solicitor Brian O’Donnell and his wife Mary Pat, has been sold to an undisclosed buyer for c. €9.5m. The sale price for the six-bedroom property, which is situated on a two-acre site, was c. €1m above the €8.5m guide price set by joint agents Sherry FitzGerald and Knight Frank. The instruction to sell the 10,220 sq. ft. property came from Deloitte, who was the receiver for Bank of Ireland. The buyer is reported to be a low-profile businessman who was represented by an investment vehicle. The Irish Times, 13th July
Castletown Cox: Offers in excess of €17.5m are being sought by Knight Frank for Castletown Cox, a restored Palladian mansion in Co. Kilkenny. The Georgian estate is situated on a 513-acre site and has a floor area of 36,630 sq. ft. There are 10 bedrooms in the main building, with all of them being en-suite. The Irish Times, 12th July
House Prices: The Irish Independent reports on the May 2017 residential property price figures released by the CSO, which show that the increase in property prices has picked up pace, with price inflation nationwide of c. 12% in the year to May 2017, compared with an increase of c. 10% in the year to April. Prices rose by 2% in April alone, the highest rate of increase since April 2015. With regards to Dublin, prices rose by 11.2% YoY. Prices outside of Dublin rose by nearly 13% in the year to May, with the biggest increase being recorded in the south-east region, where prices rose by nearly 19% YoY. The Irish Independent, 12th July
Beacon South Quarter: IRES REIT has completed the construction of a new 68-unit apartment complex in Beacon South Quarter, Dublin 18. The cost of the development, known as the Maple at Block B2B, was c. €19.6m. The Irish Times also reports that tenants have been found for all 68 of the apartments, with c. 60% of the leases expected to begin by the end of July and the remainder expected to begin by the end of August. The complex consists of four one-beds, 55 two-beds and nine-three beds, with the rental income projected at €1.64m p.a. The Irish Times, 17th July
Mortgage Rates / Mortgage Exemptions: The Irish Independent reports that Ulster Bank is set to offer a new four-year fixed mortgage rate of 2.6%. The rate is only expected to be on offer for three months, and will be available to new, existing and switcher customers with a loan-to-value of up to 80%. The Irish Independent also reports that Ulster Bank has stated that for the moment, it is not accepting applications for exemptions to the Central Bank’s mortgage lending rules. EBS and Haven have already ceased taking applications looking for exemptions to the mortgage lending rules. The Irish Independent, 15th July
Daft.ie Wealth Report: A new report by Daft.ie has identified Sandycove in south Dublin as the most expensive micro-market in Ireland, with an average property value of c. €787k, with the nearby Foxrock second with an average property value of c. €759k. The report also highlights that there has been over 800 transactions of properties worth €1m or more since the start of 2016, which results in an average of 12 transactions per week. The Daft.ie Wealth Report 2017
Cork Street Student Accommodation: Hines is intending to seek planning permission for a new student accommodation block on Cork Street, which will contain more than 200 bedrooms. The fund has just opened its fourth student accommodation block in Dublin, and intends to spend a total of €600m on student apartment blocks in Ireland and Britain where it owns 14 sites, five of which are in Dublin. The Cork Street project will be the first that Hines will have begun from scratch, as it acquired the other blocks in Dublin either completed or under construction. The Irish Times, 12th July
Department of Housing Figures: The Department of Housing has published its commencement and completion figures for April and May combined. In the two months, 3,099 units were completed nationally, of which 961 were completed in the four local authority areas that comprise Dublin city and county. During the same period, 3,673 units were commenced nationally, with 1,435 being in Dublin. Over the year to May, there were commencement notices for 15,579 units (5,856 in Dublin), compared with 10,986 during the same period last year (5,263 in Dublin). There is some variation in the estimated annual need for new housing units, with figures ranging from 25,000 to 50,000 per annum being quoted by various sources. NAMA Wine Lake, 16th July
Q2 2017 Review: CBRE’s latest report on the Dublin industrial market shows that take-up in Q2 2017 was nearly 753,000 sq. ft., bringing total take-up in H1 2017 to nearly 1,300,000 sq. ft. There were 45 industrial transactions in Q2 2017, with 29 being lettings and 16 being sales transactions. At the end of Q2 2017, prime yields remained at c. 5.5% with prime rents at c. €9.25 psf. CBRE note that prime rents are now close to levels which would justify new developments, and therefore they expect to see an increase in the number of speculative developments in the second half of the year. CBRE Dublin Industrial & Logistics MarketView, Q2 2017
Swords Business Park: A private investor has paid €2.85m for Unit 2 in Swords Business Park, c. €100k over the guide price. The property contains c. 18,000 sq. ft. of warehouse space and c. 6,900 sq. ft. of office space, with the property let to DVS Roads Ltd on a 25-year lease from 1997. The current rent is €280k p.a. The Irish times, 12th July
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AIB Grafton Street: Ireland’s largest property fund, Irish Life, has purchased AIB’s principal branch office, which has frontage onto both Grafton Street and Wicklow Street in Dublin city centre. The fund outbid strong domestic and international interest to emerge as the highest bidder, paying c. €50m for the investment. Irish life is expected to earn a net initial yield of c. 3.5% on the investment, which was previously purchased by the German fund manager GLL Real Estate for c. €28m in 2010. The rent roll on the property is c. €1.8m p.a., and the sale price equates to a capital value of €2,800 psf. The sale was handled by CBRE, and is understood to have attracted bids from IPUT, two European investment funds and an unknown Irish investor. The Irish Times, 5th July
Project Anchor: Joint agents JLL and HWBC are guiding €43m for three successful shopping centres in the Dublin suburbs of Dún Laoghaire, Donaghmede and Clondalkin. The Project Anchor portfolio will also include a three-storey office block at Lock Road in Clondalkin, which is currently let to the Department of Social Protection. The purchase price will provide an initial yield of c. 6.8%, with significant opportunities to increase the return through active management. The portfolio is for sale in either one or more lots, and currently produces a combined rent roll of c. €3m p.a., with a weighted average unexpired lease term of approximately eight years. The Bloomfield Shopping Centre in Dun Laoghaire produces rental income of €830k p.a. from tenants including Argos, Boots, Dealz and Jack & Jones, while anchor Tesco owns its own store. The 59,000 sq. ft. Kilbarrack Centre is also anchored by Tesco, which owns its own 25,000 sq. ft. store. The shopping centre’s tenants, which include Lloyds Pharmacy, Pizza Hut and Clannad Medical Centre, generate rental income of €680k p.a. The Mill in Clondalkin is anchored by Dunnes Stores, which owns its own unit, while 30 other retailers such as Boots, Specsavers and Carphone Warehouse produce rental income of €1.2m p.a. The Irish Times, 5th July
Lidl Castleknock: An Bord Pleanála has granted planning permission to Lidl to proceed with a c. €15m commercial development in Castleknock, north Dublin, despite objections from local residents and politicians, including Taoiseach Leo Varadkar. The mixed-use development will include an anchor Lidl supermarket, a number of smaller retail units, a medical centre and eight apartments. The scheme was previously refused permission by Fingal County Council in 2014. The Irish Times, 6th July
Sports Direct Dunnes Stores: Sports Direct has reportedly approached Dunnes Stores with a view to making an offer on up to seven of the Irish retailer’s premises. The company is believed to have targeted the Dunnes Stores unit next to Sports Direct’s flagship Irish store on North Earl Street in Dublin, and is also reportedly interested in stores in Cork and Waterford. The Sunday Times reports that Dunnes Stores could represent a natural choice for Sports Direct’s expansion, as the company has multiple stores in prime city centre locations, and has reportedly up to 24 vacant units in its portfolio. The approach is believed to be at a preliminary stage, with no deal having been concluded. The Sunday Times, 9th July
The Kiosk, Ballsbridge: Brothers Colum and Ciarán Butler, who run the Starbucks franchise in Ireland, have purchased a landmark Dublin coffee shop – the kiosk at the centre of Ballsbridge. The Butlers outbid several investors for the tiny 37 sq. ft. premises, paying €330,000 to acquire the kiosk, which is located on a prime location at the junction of Lansdowne, Pembroke and Northumberland roads. The purchase price equates to c. €8,918 psf before purchasing costs are taken into consideration. Starbucks has grown rapidly under the control of the Butler brothers, with over 60 outlets now located in the greater Dublin area. The Irish Times, 5th July
Golden Lane: Mm Capital has acquired 31 – 36 Golden Lane in Dublin 2 in a deal worth c. €22m. The 31,000 sq. ft. property is expected to be let to the software analytics company New Relic, who are likely to move in next year. The property will allow New Relic to accommodate up to 300 staff. The Irish Times, 11th July
Sandyford Offices: Melford Property Consultants has brought two Sandyford office investments to the market. The first is a recently refurbished two-storey HQ building located at Sandyford Business Centre on Burton Hall Road. The unit, which is guiding €2.5m, extends to 8,000 sq. ft., and is currently leased to CareWorks from Q2 2017 on a 20-year lease at €183k p.a., with a tenant break option in years 10 and 15. The purchase price will offer a return of c. 7%. Melford is also inviting offers in excess of €850k for a 3,546 sq. ft. third-generation office at Apex Business Centre in Sandyford. The unit is currently let on a five-year lease that expires in July 2020. It is currently significantly under-rented at a rent of €52.5k p.a., with potential to increase this to c. €98k p.a. in 2020. The Irish Times, 4th July
Dublin 8 Development: Newmarket Partnership PM Ltd has applied to Dublin City Council to construct a 110,000 sq. ft. building (including 100,000 sq. ft. of office space), at the junction of Newmarket Street and Mill Street in Dublin 8. The proposed scheme involves the demolition of existing buildings on the site and construction of a new six-storey over-basement building. NAMA Wine Lake, 9th July
Dublin Office Space: New figures by Knight Frank show that the take-up of office space in Dublin exceeded 1 million sq. ft. in Q2 2017. The total space transacted for the quarter was 1,049,356 sq. ft., bringing the total take-up for H1 2017 to 1,491,942 sq. ft., an increase of 30% on the corresponding period in 2016. According to Knight Frank, the high take-up in Q2 could be attributed to a flow of new office stock, as all of the top eight transactions involved new or refurbished office stock. Facebook’s rental of 170,000 sq. ft. of the Beckett Building at East Wall was the largest deal in the quarter, followed by AIB’s agreement to occupy 152,000 sq. ft. of space at Block H in Central Park. JP Morgan’s purchase of a 128,220 sq. ft. building at Capital Dock, Zendesk’s pre-letting of 57,865 sq. ft. at 55 Charlemont and Google’s decision to lease 51,096 sq. ft. of the Velasco building completed the top five transactions. The Irish Times, 4th July
Fernhill Hotel: Savills are guiding €4.5m for the Fernhill Hotel, 10 holiday homes and the private residence of owner Michael Bowes, who has decided to retire from heading up the hotel business. The properties lie on a c. 5.5-acre site on the edge of Carrigaline, and c. 100 metres from the new N28 road to Ringaskiddy. The hotel contains 39 en-suite bedrooms, a resident’s bar, a dining room and a former health club. The Irish Examiner, 29th June
The Millrace Hotel: CBRE are guiding €2m for The Millrace Hotel in Bunclody, Co. Wexford. The hotel, which was constructed in 2004, contains 60 well-appointed guest rooms, including 30 interconnecting rooms suitable for family occupancy. In addition, the hotel features the Slaney Suite, which contains its own bar and kitchen area and has capacity for 120 guests. On the top floor is a rooftop restaurant with views over the countryside. The complex contains 50 car parking spaces and an overflow carpark with capacity for a further 70 to 80 cars, and is situated on a 3.7-acre site. The Irish Independent, 6th July
The Windmill Collection: Cushman & Wakefield are inviting offers in excess of €13.5m for a portfolio of 67 apartments near Kempton Vale in west Dublin, which are located within five minutes’ walk of Coolmine railway station. The current rental income from the portfolio is c. €990k p.a., meaning the sale will offer a net yield of c. 7%. The Windmill Collection includes six one-beds, 60 two-beds and one three-bed. The one-beds currently rent for c. €1,150 p.m., the two-beds rent for c. €1,250 p.m. and the one three-bed rents for €1,400 p.m. The selling agents advise that the market rents for the apartments would be €1,300, €1,550 and €1,800 p.m. The Irish Times, 4th July.
Ballsbridge Residence: Lisney are guiding €3.3m for an elegant Victorian home located at 23 Clyde Road in Ballsbridge, Dublin 4. The two-storey, over-basement house is rented for €96k p.a. on a residential lease running until March 2020, with the tenant having a rolling break option subject to 30 days prior notice. The agents expect a significant uplift in the value of the property, which was refurbished and extended in 2008, to more than €4m once vacant possession has been obtained. The five-bedroom house extends to 6,254 sq. ft., and includes an extension with two bedrooms and a basement gymnasium. The Irish Times, 5th July
Dublin Docklands Apartments: David Carson of Deloitte, the NAMA-appointed receiver to a company previously owned by developer Liam Carroll, is seeking planning permission to build 360 apartments on a site in the Dublin docklands. The development would consist of four buildings of up to seven storeys, with a total floor area of c. 463,000 sq. ft., containing 108 one-beds, 198 two-beds and 54 three-beds. The site extends to 3.7 acres and is located between Sheriff Street Upper and Mayor Street Upper, close to the new Central Bank HQ. The Sunday Times, 9th July
IDA Site Redevelopment, Dublin 8: Newmarket Partnership PM Ltd has submitted a major application to Dublin City Council to demolish all buildings on an IDA site at Newmarket Industrial Estate in Dublin 8 and construct four new buildings. The first building will contain an eight-storey, 90,000 sq. ft. hotel above three lower levels (two basement and one lower ground) containing an unspecified number of hotel rooms. The second building will consist of six storeys and contain 8,500 sq. ft. of retail space at ground floor and 34 apartments on the upper stories (eight one-beds, 20 two-beds and six three-beds). The third building is an eight-storey over lower ground floor and double-basement building containing 58 apartments (15 one-beds, 35 two-beds and eight three-beds). The fourth building will have six storeys over a lower ground floor and basement and contain 85,000 sq. ft. of office space. NAMA Wine Lake, 9th July
Housing Repossessions: The Sunday Business Post reports on the increasing number of housing repossession cases across the country. The number of repossession cases being brought before the courts has increased substantially in the past few years as banks and loan acquirers seek to work through non-performing loan books. According to Central Bank figures, in 2013 there were c. 99,000 family home residential mortgages in arrears of more than 90 days. This figure had decreased to c. 53,000 by Q1 2017. However while a total of 120,894 loans have been restructured so far, this does not always resolve the issue, as figures show that c. 13% of these borrowers are not meeting the revised terms. The Sunday Business Post, 9th July
Emergency Housing Legislation: The government is introducing emergency legislation to ensure that construction doesn’t have to stop on c. 75 housing developments in Dublin’s commuter belt. The majority of the developments are estates which were put on hold during the property crash before being given a five-year extension to their original planning permissions. Although many of them are now under construction, they will not be built by the time the planning extensions expire, so the government is rushing through a planning law to enable the developments to get a further five-year extension. It is believed that the developments, which are mainly located in Dublin, Meath, Kildare and Wicklow, include social housing projects. The Sunday Business Post, 9th July
HP Leixlip: HP Inc has retained CBRE to manage the sale of its 195-acre Liffey Valley Technology Campus in Co. Kildare, which may sell for north of €50m. The facility consists of nine main buildings, six of which are dedicated to high-quality manufacturing, clean room, warehouse and office use. The facility has a cumulative gross floor area of c. 1,460,000 sq. ft., and includes c. 70 acres of undeveloped land which offers development potential. The current rental income from the facility is c. €3.8m p.a., which is being generated from medium-term leases which cover c. 35% of the building area. The Irish Times, 11th July
Grianan Estate: Grianan Estate in Donegal, one of the largest organic farms in Europe, has been sold to Glenmore Estate Farms by the Donegal Investment Group for €17.425m. The farm is located at Speenoge, Burt, less than 20 minutes from Letterkenny, and extends to c. 2,400 acres, consisting of land mainly reclaimed from Lough Swilly. The farm includes c. 1,290 acres of organically farmed prime land, an extensive range of farm buildings and a lake extending to c. 500 acres. The Irish Independent, 6th July
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GE Capital Irish Mortgages: Specialist buy-to-let lender Dilosk has acquired c. €160m of owner-occupied loans that originated from US Group GE Capital’s former Irish subprime loan book. The 1,200 performing mortgages involved will continue to be serviced by the Australian firm Pepper, which bought GE’s c. €600m Irish mortgage portfolio in 2012, at a c. 60% discount. Dilosk previously purchased Bank of Ireland’s ICS Mortgages brand in 2014. The Irish Times, 1st July
Danske Bank Loan Book: The Irish Independent reports that Danske Bank is considering selling more than €2bn of performing Irish home loans and buy-to-let mortgages as it continues to wind down its Irish retail banking business to focus solely on the corporate and institutional markets. The paper reports that Danske Bank is understood to be considering either a portfolio sale or rolling the loans into a securitisation deal, with Morgan Stanley advising the bank. It is believed that any deal is likely to be concluded by the end of 2017. Bank of Ireland is reportedly viewed as a logical purchaser of the loans, given that it has already purchased c. €274m of performing commercial loans from Danske Bank in 2015, as part of a wider c. €540m disposal, with Goldman Sachs acquiring the remaining c. €266m. Sources have indicated that the portfolio will include some buy-to-let loans in addition to primary residential mortgages. It is also believed to include a significant number of tracker mortgages, which could have an impact on the final sale price of the portfolio given the low profitability associated with such loans. The Irish Independent, 29th June
Salamanca Restaurant: Salamanca, a well-known tapas restaurant and bar on Andrew Street in Dublin 2, has been sold to a private investor for slightly over the guide price of €2.8m. Agents Bagnall Doyle McMahon handled the sale of the four-storey over-basement building, which is held on a 25-year lease from 2014, with five-yearly rent reviews. The current rent is €155k p.a., and the first rent review in March 2019 will be linked to the Consumer Price Index, with subsequent reviews determined by open-market rent values. The Irish Times, 27th June
Avoca Expansion: Avoca plans to open two to three new stores in the next 24 months, according to its managing director, Simon Pratt. Mr Pratt announced the intentions for the firm’s expansion whilst commenting on newly filed accounts for the 11 month period ending January 5th 2016, which show that turnover increased by c. 3% to c. €60m. Mr Pratt also advised that the company’s most recent store opening in Dunboyne, Co. Meath, is trading well, and that the business is actively looking for more sites for new openings. The Irish Independent, 1st July
The Sorting Office: CBRE are seeking €152.8m for ‘The Sorting Office’, a 203,700 sq. ft. office development currently under construction on the site of a former An Post sorting depot in Dublin’s south docklands. The building, which is being developed by Irish property group Marlet and M&G investments, will contain office accommodation over eight levels, 26 car parking spaces and room for 318 bicycles. The purchase price equates to c. €750 psf based on vacant possession, however CBRE and Marlet expect a number of letting agreements to be signed before the sale is completed, which will likely push the purchase price up. The sale price would offer a significant return for Marlet and M&G investments, who acquired the site from An Post two years ago for c. €40m. The Irish Times, 29th June
Athlone Research Centre: The long-established Ericsson research and development facility in Athlone, Co. Westmeath has been sold to an international investment firm with Irish links for slightly over the €19m guide price. The property is let to Ericsson on a 25-year lease from 2002. The current rent is c. €2m p.a., offering the investor c. 10 years of secure rental income. The next rent review occurs in 2022, and the lease provides for a minimum rental uplift of 10%, or open market rental value, whichever is higher. The guide price of €19m would provide the purchaser with a minimum net initial yield of c. 10% until 2022, and c. 11% thereafter. The facility is a campus-style development occupying 15.23 acres, which consists of two connecting office and software development facilities and a detached communications building. The Irish Times, 30th June
Plassey Portfolio: Agents Power & Associates are guiding €25m for the Plassey Portfolio, which consists of three modern office buildings in the National Technology Park in Limerick. The buildings, known as Civic House, Hamilton House and Hamilton House Block 2, will show an initial yield of c. 7%, after allowing for purchasing costs of 4.46%. The buildings in the portfolio date from 1998, 2006 and 2015, have a net floor area of 133,432 sq. ft. and are available to purchase in one or more lots. They currently have an occupancy rate of 92% from a strong tenant line up including Northern Trust, Cook Medical, QAD and Icon. The current rent roll is c. €1.84m p.a., however there is scope to increase this in the short term by conducting a number of rent reviews and letting 10,000 sq. ft. of vacant space in Civic House. The Irish Times, 28th June
Park Collection: Cantor Fitzgerald Ireland Ltd, through the Cantor Park Commercial Property Fund (the “Fund”), has successfully completed the acquisition of the Park Collection in Carrickmines, Co. Dublin. The Park Collection comprises of four modern office buildings totalling 130,000 square feet, let to a mixed portfolio of tenants with excellent transport links via access to the M50 and the LUAS. The investment strategy of the Fund is to re-gear the current tenancy profile across the portfolio with the aim of increasing the current passing rent to an average passing rent level of c. €26 psf and improve the weighted average unexpired lease term from the current level of c. 2.5 years. The expected term of the investment should be c. 5 years. The acquisition price for the Park Collection was €41.5m (inclusive of costs) and this was financed by €20m in private equity raised by Cantor Fitzgerald and a €21.5m loan facility from Rietumu Bank. Cantor Fitzgerald, 30th June
Former EBS Offices: The former HQ of EBS Building Society has been sold to a private fund for approximately €9m. The 1980s building, located on Townsend Street in Dublin 2, extends to 24,370 sq. ft. and is located in an area of the city which is expected to undergo significant changes over the next few years. Brown Corrigan Chartered Surveyors, who acted for the new owners, have advised that they plan to upgrade the building, despite it being in generally good condition. The Irish Times, 27th June
Fenian Street: CBRE is guiding in excess of €5m for a five-storey building at 9-10 Fenian Street in Dublin 2. The c. 11,600 sq. ft. building, which is currently let to Hibernia College, has planning permission for a c. 24,000 sq. ft. redevelopment of the site. There is a landlord break option on the current lease in 2018. The Irish Times, 27th June
Molesworth Street: The Irish Times reports that IPUT has pre-let 40 Molesworth Street in Dublin city centre to Jet.com, the US online retailer. Jet.com has reportedly agreed to a 20-year lease for 30,000 sq. ft. at a rent of c. €1.8m p.a. (c. €60 psf). IPUT acquired the property in March 2013 for c. €8.4m. A full redevelopment of the property has since been undertaken, for which the total cost is expected to be c. €13m. Once the redevelopment has been completed, the property is expected to be valued at over €40m. The Irish Times, 4th July
Donnybrook Flagship Centre: Planning permission has been granted for a mixed-use flagship centre in Donnybrook, Dublin 4, which will contain offices, a large restaurant and café and a double basement gymnasium. UK Companies U+I and Colony Northstar made the application to redevelop the existing Donnybrook House after purchasing it in 2014, and now plan to spend c. €16m redeveloping the property, which will have 45,000 sq. ft. of high-quality office space over five floors. In addition, the building will have a 4,000 sq. ft. restaurant, a café of c. 2,000 sq. ft., a 20,000 sq. ft. gym, secure bicycle bays, parking and internal courtyards. Colliers International will quote a rent of c. €45 psf for the office space, which will be ready for fit-out in Q1 2018. The Irish Times, 27th June
Barclays EU Hub: The Irish Times reports that Barclays is likely to settle on Dublin’s Dawson Street as the location for a post-Brexit EU hub if UK finance companies lose easy access to the European Trading block. The bank has agreed rental terms with Green REIT for most of the office space of One Molesworth Street, a high profile building under construction on Dawson Street. Barclays is believed to have agreed a rent of slightly above €55 psf for c. 60,000 sq. ft. of office space in the building, where the total available office space is believed to be c. 71,000 sq. ft. Barclays’ office space is expected to be able to facilitate c. 400 employees. The planned move coincides with the announcement that London-based Caprice Holdings will open a branch of The Ivy Collection on the ground floor of the same building. The company have agreed a rent of €500k p.a. for 5,000 sq. ft. of primary retail space on the ground floor, and a further 4,000 sq. ft. at basement level. The Irish Times, 28th June
Bank of China: Bank of China has opened a Dublin branch, which will focus on corporate lending and target Chinese companies operating in Ireland, Irish groups with interests in China and large multinationals with offices in Ireland. The 64% state-owned bank already has a presence in Ireland through its aircraft leasing operation BOC Aviation (Ireland), which will continue to operate as a separate business. The Irish Times, 28th June
Hotel Sales: New figures from CBRE show that 18 hotels were sold in the first six months of the year, generating cumulative sales proceeds of c. €75m. In the same period of 2016, 29 hotels with combined sales proceeds of c. €136m were sold. Hotels sold as investment sales were excluded from the figures. The most valuable hotel sold in H1 2017 was Mount Wolseley Hotel Spa & Golf Resort, Tullow, Co. Carlow, which had been guiding €14.25m. The Irish Times, 3rd July
Tifco Deutschland: Banesto, the company owned by DID Electrical founder Gerry Houlihan and accountant Aidan Crowe, sold a portion of its shareholding in Tifco Deutschland for c. €6m in 2016. Tifco Deutschland is a hotel operator under which Tifco manages a number of hotels under the Crowne Plaza, Hilton, Travelodge and Holiday Inn Express brands. The Sunday Business Post, 2nd July
Liberties Dublin Redevelopment: Planning permission will shortly be lodged for a c. 400,000 sq. ft. development in the Liberties area of Dublin, which is expected to cost c. €200m. The scheme will include a 239-bedroom hotel, an indoor market, a micro-brewery, retail and office space and residential accommodation. The project will have a regeneration element, which will include the demolition of the 1970s enterprise centre and work on Mill Street. Interest in the area has risen in recent months since Dublin City Council announced its plan to develop a ‘high quality, multi-functional market square and city wide destination’ in the area. The Irish Times, 3rd July
Development Land Transactions: CBRE reports that there has been a sharp drop in the value of development land transactions completed in H1 2017. Their figures show that 50 development land transactions with a combined value of c. €269m took place during the period, compared with 53 transactions totalling c. €489m in the corresponding period last year, when a number of large transactions occurred. The Irish Times, 3rd July
Oaktree Development Fund: The Sunday Business Post reports that Oaktree Capital is aiming to float a large Irish property fund this autumn. The company is reportedly working with Irish developer Bridgedale, with Credit Suisse and Davy retained as advisors. Market sources have estimated the initial fundraising target to be c. €200m, and the aim is to launch a listed Irish homebuilder on the Irish, and possibly London, stock exchange(s). It is believed that the new venture is seeking a linchpin seed asset for the plan. Bridgedale was a close underbidder for the recently sold nine-acre RTE site, and the Sunday Business Post reports it will likely seek to develop an alternative large site, with c. €100m of Cerberus-controlled development prospects suggested as one possibility. The Sunday Business Post, 2nd July
Deepwell, Blackrock: Deepwell in Blackrock, one of Dublin’s best known properties which sits on a 2.38-acre site, has been put on the market with an asking price of €13m. The current owners of the 5,750 sq. ft. property, Cynthia Chua and Nick Holman, are hoping to improve the return on their investment by selling Deepwell as a development opportunity. The owners have engaged Plus Architects to conduct a feasibility study for a 42-unit apartment scheme, which will offer a developer a net revenue of c. €51m. The proposed 42-unit scheme would be pitched at the high end of the market, with prices for 12 one-bed units ranging between €545k – €695k, 22 two-bed units priced between €775k and €1.15m and eight three-bed units priced between €950k and €1.35m. The Irish Times, 29th June
Ballymun Road: A 3.84-acre strategic site at the Ballymun Road entrance to the Northwood Business Campus in Santry, Dublin 9, has been put on the market for more than €3m through Knight Frank. The site is 600m from Junction 4 of the M50, 200m from a planned Metro North stop and has easy access to Dublin Airport, the Port Tunnel and DCU. The site could potentially be developed to facilitate offices, residential, student accommodation or retail, or a combination of all four, subject to planning permission. The Irish Times, 3rd July
Foxrock Residential Site: Savills is guiding €3m for a 0.62-acre site in Foxrock, Dublin 18, which has planning permission for 20 apartments and duplex units. The planning permission permits the development of 16 two-bed apartments extending to 915 sq. ft. and four three-bed duplexes extending to 1,243 sq. ft. Savills have advised that the typical selling prices for the apartments and duplexes range from €575k – €725k, which would give the development a gross value of over €12m. The Irish Times, 28th June
Glenageary House: Colliers International are inviting offers of €2.7m for a 0.98-acre site located within the walls of the former Glenageary House in Glenageary, south Dublin, which was demolished in the 1970s. The site is zoned for residential development, and the agents advise that the site has potential for an exclusive housing scheme, subject to planning permission. The Irish Times, 27th June
Stoneybatter Student Accommodation: Gurtmont Ltd has applied to Dublin City Council to develop a five-storey, 35,000 sq. ft., 96-bedroom student accommodation complex in Stoneybatter. The complex will be located on Mount Street, and will involve the demolition of existing properties on the site. Gurtmont is controlled by Enda Bannon, Niall McHugh, Barry O’Connor and Aoife O’Gorman. NAMA Wine Lake, 2nd July
Malahide Road: Dublin City Council has lodged a planning application to construct 150 new apartments on a three-acre site on Malahide Road in Belmayne, north Dublin city. The development will consist of a number of six-storey blocks, comprising 50 one-bed, 81 two-bed and 19 three-bed units. The application is understood to be the first residential application by Dublin City Council in two years. NAMA Wine Lake, 2nd July
Daft.ie House Price Report: A new report by Daft.ie warns that house prices will continue to rise for the next five to 10 years, unless ‘drastic’ action is taken. The report warns that the market is unlikely to stabilise, and that prices in Dublin will continue to rise more quickly than the rest of the country, because we have ‘regulated ourselves out of the volume of homes that are needed’. Based on the findings of the report, house prices have risen more in the first six months of 2017 than they did in all of 2016, with prices c. 8.8% higher at the end of Q2 2017 than in December 2016. With regards to the types of property the country needs, Daft.ie chief economist Ronan Lyons has stated that Dublin in particular doesn’t necessarily need any more three-bedroom semi-detached properties, but that the properties that are needed, like apartments, are difficult to build and heavily regulated. The Irish Times, 30th June
MyHome.ie House Price Report: A new report from property website MyHome.ie and Davy suggests that house prices are now rising by an average of €4,000 per month. Their figures show that national property prices are up by 8.9% YoY, while Dublin prices are up 10.3% YoY. The average monthly jump in values recorded on newly listed properties in the last six months was more than double that registered by Daft.ie in their recent report, however the disparity may be due to MyHome’s greater focus on Dublin properties, where the monthly price hike was put at over €5,000. The report also warned of a possible ‘rush in transactions’ as first-time-buyers seek to avail of the Help-to-Buy scheme before its likely abolition in the upcoming budget. The Irish Times, 2nd July
May Mortgage Approvals: The May 2017 report by the Banking & Payments Federation Ireland (BPFI) on mortgage approvals shows that there were 4,124 mortgages approved in May 2017, which had a total value of c. €884m. Based on the value of mortgages approved, these figures represent an increase of c. 45.1% YoY (c. €609m May 2016) and an increase of 29.1% MoM (c. €685m April 2017). Based on the value of mortgages approved, the first-time buyer segment grew by 60.7% YoY (c. €448m May 2017 vs c. €279m May 2016). BPFI Mortgage Approvals May 2017
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Project Gem: Bloomberg has reported that NAMA will launch the sale of a c. €4bn par value loan portfolio by the end of 2016. While details on the portfolio, named Project Gem, are not yet available, it is believed that the loans will be some of the lower quality assets held by NAMA. NAMA Wine Lake estimates that the par value of NAMA’s remaining loans on its balance sheet is c. €34bn, for which the market value is c. €6bn. NAMA Wine Lake, 24th July
Project Tolka: The commencement of the sales process of NAMA’s Project Tolka c. €1.5bn par value loan portfolio looks set to be delayed as NAMA try to perfect the title documents on a number of assets in the portfolio. The assets in the portfolio include the Burlington Plaza office complex (reportedly valued at c. €250m), the Clarion Hotel in Liffey Valley and the Belfield HQ of Paddy Power. The borrowers in Project Tolka include Paddy Kelly, John Flynn and the McCormack family. NAMA Wine Lake, 24th July
Liffey Valley: The owners of Liffey Valley Shopping Centre appear to be moving closer towards putting the shopping centre and an adjoining site up for sale, with The Irish Times reporting that they have retained Eastdil to broker the sale. The shopping centre is owned by Hines, HSBC Alternative Investments and the Grosvenor Group. The latest projected sales price reported is c. €600m. The Irish Times, 21st July
Debenhams Leases: Debenhams Retail Ireland has moved a step closer towards exiting examinership after agreeing a rent deal with Marathon Asset Management for four stores where Marathon is the landlord. The stores are in Limerick, Galway, Kerry and Waterford. Debenhams had sought to repudiate the leases in these stores and an additional lease for their unit in The Square in Tallaght, Co. Dublin. The Tallaght unit is managed by Laseda, who manages the entire shopping centre. There has been no update provided on negotiations between Debenhams and Laseda. The Sunday Times, 24th July
Nenagh Retail Park: An unnamed family has acquired Nenagh Retail Park in Co. Tipperary for slightly above the €2.6m asking price. The park consists of seven warehouses which have a combined floor area of 158,000 sq. ft. and 400 car spaces. Two adjoining development sites of c. 3.1 acres are also included, offering the acquirer future development potential. The anchor tenant is Woodies DIY, who pay c. 43% of the current rent roll of c. €240k p.a. The rental income is expected to increase to c. €290k p.a. in the near future following the agreement to let a vacant unit. The Irish Times, 20th July
Carrig Donn Ennis: Sherry FitzGerald McMahon is inviting offers of €2.25m for a 10,710 sq. ft. retail unit (c. €210 psf) occupied by the Carrig Donn Group in Ennis, Co. Clare. Carrig Donn is paying rent of c. €115k p.a. (c. €10.73 psf) under the existing lease, which runs until 2026. The property was previously used as a Bank of Ireland branch. The Irish Times, 20th July
Camden Street Restaurant: FC Hospitality, which is owned by Dublin footballers Diarmuid Connolly and Eamonn Fennell, has sought planning permission for a new restaurant on Dublin’s Camden Street. The property is located beside Cassidy’s Bar and DeSelby’s, a recently-opened restaurant. The Sunday Times, 24th July
Central Bank HQ: The Central Bank is reportedly considering the sale of their existing HQ on Dame Street, along with two other commercial properties on College Green in the coming months. Together the three properties may sell for over €60m. Construction of the Dame Street HQ was completed in 1978, with the official opening occurring in December 1979. On its own, the HQ may command a price tag in excess of €40m on the open market. The other two commercial properties the Central Bank may sell are No’s 6-8 and 9 College Green. The Central Bank is expected to begin moving into their new HQ on North Wall Quay at the end of this year, which has cost c. €140m to develop. The Irish Independent, 21st July
Lower Baggot Street: Larry Goodman’s investment vehicle is understood to be in “advanced discussions” with the pharmaceutical giant Shire over the leasing of c. 76,000 sq. ft. of office space in the former Bank of Ireland HQ on Lower Baggot Street, Dublin 2. With the Department of Health having already agreed to occupy the main office block on the site (c. 143,000 sq. ft.), Shire would occupy the two smaller blocks (c. 45,000 sq. ft. and c. 31,000 sq. ft.). If both the Department of Health and Shire pay the quoted rent of €60 psf sought by the letting agent Knight Frank, then the total rent roll of the complex will be c. €13m p.a. Larry Goodman acquired the site for over €40m in 2013 and has since spent c. €100m redeveloping the complex. The Irish Times, 20th July
Arkle Road: Noel Smyth, through his investment vehicle Wexele, has obtained planning permission to develop three office blocks on a site at 3 Arkle Road in Sandyford, Co. Dublin. The adjoining blocks will range from six to seven storeys in height and have a cumulative floor area of c. 230,000 sq. ft. The development will also include a ground floor café and 186 car spaces. Wexele is now understood to be seeking to either pre-let the office space or else source a funding partner for the development. The cost of the development is projected at €55m – €60m, while the end value is estimated at c. €150m. Wexele is expected to seek rents of €28 – €30 psf for the office space. The Irish Times, 20th July
Docklands Extension: IPUT has sought planning permission from Dublin City Council to extend 25 – 28 North Wall Quay by c. 19,000 sq. ft. The extension would be six storeys tall and located to the rear of the property. A&L Goodbody currently occupy the property. NAMA Wine Lake, 24th July
Capital Dock: Kennedy Wilson (KW) has tasked John Sisk & Son with developing the proposed 660,000 sq. ft. mixed use development on their Capital Dock site in the south Dublin docklands. KW paid c. €106m in 2012 to acquire their interest in the 4.8-acre site. The development of the site is now being undertaken by way of a joint venture with NAMA, who have a 15% interest in the project. The Capital Dock development is expected to include 330,000 sq. ft. of office space across three blocks and 190-high quality apartments in a 23-storey tower. There will also be retail and leisure facilities on-site. The first office block is expected to be completed by the end of 2017, while the target completion date for the apartments is mid-2018. The Irish Times, 22nd July
New Generation Portfolio: Bartra Capital, the company owned by Richard Barrett, is believed to have withdrawn from the race to acquire a development land portfolio being sold by New Generation. Bartra was understood to have been the highest bidder on the 27-site portfolio, for which a price tag of c. €320m was being sought. The sites are believed to be capable of facilitating c. 3,000 homes across 143-acres. The locations of the sites include Dundrum, Blackrock and Harold’s Cross in Dublin. The Sunday Business Post, 24th July
Social Housing Funds: Following the announcement that the Government are to undertake a major social housing development project, two private funds look set to enter the market to part finance the development of social housing units. The first potential funder is Bartra Capital, which is expected to contribute a minimum of €100m. The second potential funder will be led by Donal McManus, the chief executive of the Irish Council for Social Housing. McManus is reportedly trying to raise up to €100m from private investors. The Sunday Business Post, 24th July
Affordable Housing Fund: Bill Nowlan, the former Head of Property Investment for Irish Life, is seeking to establish an investment fund which will target the affordable rental scheme, which was unveiled in the Government’s recent housing action plan. The fund will aim to supply the sector with c. 500 to 1,000 units a year, using land provided by the state. Once the units are completed, the fund will then lease them to an approved housing body where the rent would be dependent upon the development cost. Using this structure, rents for the units may be only c. 70% of market levels. The Sunday Times, 24th July
Ziggurat Sites: The student accommodation developer Ziggurat is reportedly in negotiations to acquire six development sites for student accommodation. It is understood that three of the sites are in Cork and three are in Galway. Ziggurat hope to have a portfolio of 4,000 student beds in Ireland by 2021. Earlier this month Ziggurat announced that they had acquired two development sites in Dublin, which are expected to accommodate c. 800 beds and should be in operation by 2019.The Sunday Business Post, 24th July
Clontarf Development: An unnamed group of investors has acquired a 0.96-acre site in Clontarf, Dublin 3 for €4.25m. The site comes with full planning permission for 17 three-bed family homes, which will range in size from 1,055 sq. ft. to 1,927 sq. ft. Planning permission was granted in June 2014 by An Bord Pleanála. The Irish Times, 20th July
Mars Capital (MC) Repossessions: MC has suffered a setback in their legal proceedings against 583 borrowers which were part of a c. 1,500 mortgage portfolio acquired from IBRC in 2014. The 583 borrowers were already the subject of legal proceedings before MC acquired the portfolio at a c. 58% discount. MC then sought to continue the existing legal proceedings outstanding against each borrower, however the High Court has ruled that they must now restart each repossession order from the beginning. The Sunday Times, 24th July
Dolphin House: The government has given the go-ahead for the first phase of the redevelopment of Dolphin House in Dolphin’s Barn, Dublin City. A funding package of €25m has been allocated by the government, which will be used to develop 100 homes. 72 apartments in three existing blocks will be refurbished to provide 63 bigger apartments, with three more blocks being built to provide an additional 28 apartments. Nine new houses will also be built. Of the 100 new homes, 40% will be one-beds, 41% will be two beds and the balance of 19% will have three or more bedrooms. The proposal will also see the creation of internal courtyards, which should reduce anti-social behaviour in the area. The Irish Times, 21st July
Mortgage Arrears: The Department of Finance’s report on mortgage arrears for May 2016 shows that there are now c. 65k Principal Dwelling House (PDH) accounts in arrears, a c. 19% decrease on the May 2015 figure. Following the reduction of accounts in arrears, 616k PDH accounts (c. 90% of the total) now have no arrears. The number of Buy-to-Let (BTL) accounts in arrears in May 2016 was c. 22k, a c. 21% decrease from May 2015. The total number of BTL accounts outstanding in May 2016 was c. 117k, meaning that c. 95k (82% of the total) had no arrears. Department of Finance Mortgage Restructures Data, May 2016
House Purchases: A new report by the Central Bank shows that nearly 60% of all house purchasers in 2013 and 2014 were cash buyers. When examining the causes behind the increase in the level of cash buyers, the report highlights the decline in mortgage drawdowns and the low levels of construction as some of the influencing factors. Cash buyers include older individuals looking to downsize, private investors and individuals who have received pension lump sums. The Irish Times, 25th July
Pepper Mortgage Rates: Pepper has announced interest rate reductions of up to 0.45% on a number of their variable mortgage rate products. First time buyers who secure a mortgage with Pepper will now be able to borrow at a rate of 3.1%, provided their loan-to-value is no more than 50%. Pepper will also reduce their buy-to-let rates by up to 0.20%. Pepper’s Advantage Product rates will also be cut by as much as 0.35%. The Advantage Product targets borrowers who have previously been in arrears, with these rates now ranging from 3.85% to 5.05%. Pepper, who manage c. 50,000 loans in Ireland on behalf of other lenders, launched their own mortgage products in January 2016. The Irish Independent, 26thJuly
Westlink Industrial Estate: Irish Life has sold the Westlink Industrial Estate in Ballyfermot, Dublin 10, to a joint venture of Ardale Property and C2 Capital for over €7.5m. The 30-year-old industrial estate has a total floor area of 180,000 sq. ft. spread across 31 units. According to The Irish Times, the new owners may look to upgrade the industrial estate now that the sale has been concluded. The Irish Times, 20th July
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Shopping Centre Report: DTZ’s report on the shopping centre market reveals that there have been c. 40 shopping centre transactions in Ireland since 2013, equivalent to c. 20% of the market stock. Of these c. 40 transactions, 24 were sold via portfolio sales. There haven’t been any new shopping centre developments completed since 2012, and 2019 is the first projected year of new developments. Prime shopping centre rents in Dublin Zone A, based on Liffey Valley Shopping Centre, increased from c. €209 psf in Q4 2015 to c. €250 psf in Q2 2016. DTZ Irish Shopping Centre Market Report, July 2016
Henry Street: Fitzwilliam Finance Partners (Noel Smyth’s investment vehicle) in conjunction with Arnotts has submitted a planning application to Dublin City Council to separate numbers 7 – 9 Henry Street, Dublin 1 into a separate building of c. 40,000 sq. ft. The division of the buildings will reduce Arnotts department store to c. 250,000 sq. ft. of retail space but will enable the new standalone premises to be redeveloped to attract a major retailer. The Sunday Independent, 17th July
1 Grand Canal Square: IPUT plc has let 18,500 sq. ft. of penthouse office space in 1 Grand Canal Square, Dublin 2 at €60 psf to Citadel Securities. The c. 120,000 sq. ft. Grade A six storey building is also occupied by Bank of Ireland, HSBC and Accenture. The Irish Times, 18th July
Dunboyne Business Park: Lisney is seeking offers of €3.75m for Dunboyne Business Park (DBP) in Co. Meath. DBP contains a mix of office and warehouse space and has a total floor area of 81,174 sq. ft. The current rental income is c. €412k p.a., of which €100k p.a. is attributable to the chemical company Scott Bader. There is potential to also increase the rental income of DBP in the short term, as c. 20% of the business park lies vacant. The Irish Times, 13th July
Cumberland House: The US travel conglomerate Travelport has agreed to rent the fifth and sixth floors of Cumberland House near Fenian Street in Dublin 2. Travelport will pay a rent of c. €50 psf for c. 33,000 sq. ft. of space. Cumberland House was acquired in 2015 by Hibernia REIT for c. €49m. The property is currently undergoing a c. €27m refurbishment which will see the floor area extended to c. 135,000 sq. ft. Cumberland House is also set to become the Irish HQ of Twitter, who has agreed a 20-year lease at a rent of c. €50 psf. The Irish Times, 13th July
Harcourt Centre: Knight Frank is seeking tenants for two office units of the Harcourt Centre complex near Harcourt Street in Dublin 2. The first unit is the fourth and penthouse level floors of Block 5, which have a floor area of 7,389 sq. ft. The rent being sought for this unit is €60 psf, as it has recently been refurbished. The second unit to let is the lower and upper ground floors of Block 8, which extend to 3,821 sq. ft. The rent quoted for this unit is €49.50 psf. The Irish Times, 13th July
Leopardstown: Ardagh (the global packaging group) is reported to have agreed to rent Pelham House (26,585 sq. ft.) in South County Business Park, Leopardstown, Dublin 18 from Friends First. The rent is believed to be in the early €20s psf (subject to refurbishment of the offices) and also includes 44 on site car parking spaces. The Irish Times, 13th July
Galway: Savills has placed a guide price of €1.8m for an 18,212 sq. ft. office building at Galway Financial Services Centre. The premises is let to a Galway based accountancy firm at €150k p.a. on a 20 year lease from January 2016 with a break option in year 10. There is additional income of €12k p.a. from a mobile phone mast rolling licence agreement. The initial yield on the guide price equates to c. 8.6%. The Irish Times, 13th July
JLL Report: JLL’s report on the Dublin office market for Q2 2016 reveals that the total take-up in the quarter was 536,535 sq. ft. The vacancy rate in the market decreased from 8% to 6.7%, compared to the European average of 8.6%. In the city centre, the vacancy rate is just 3.3%. Prime rents in the city centre range from €55 – €65 psf while prime suburban rents range from €25 – €30 psf. The level of supply will increase in the short term, with 3.5m sq. ft. of new space under construction. A further 1m sq. ft. of space is undergoing refurbishment. 41% of the space under construction has been pre-let, while 52% of the space undergoing refurbishment has been let. JLL Dublin Office Market Report Q2 2016
Dublin City Centre: The British hotel and serviced apartment group, Marlin has sought planning permission to increase the size of its planned Dublin hotel on Bow Lane East (behind the St. Stephen’s Green Shopping Centre) from 190 to 311 bedrooms in a 7-storey over 2-basement development. The larger plan has been facilitated by Marlin recently acquiring three adjoining sites. The extra bedrooms would increase the size of the overall development by c. 33,000 sq ft (to c. 123,200 sq. ft.) on the original plans. The total investment is reported to be c. €60m. The Sunday Times, 17th July
Radisson Blu Hotel & Spa Athlone: iNua Hospitality Group has acquired the four star Radisson Blu Hotel and Spa in Athlone from the receiver Kieran Wallace of KPMG. The sales price is reported as €9.5m for the 128 bedroom hotel. The iNua group already owns Radisson Blu Hotels in Cork and Limerick in addition to the Muckross Park Hotel (Killarney) and the Hibernian Hotel (Kilkenny). The Irish Times, 13th July
House Building: Dublin listed builder, Abbey plc has reported that its sales in south Dublin and north Wicklow are strong but its building sites in Kildare and Laois are on hold due to no growth in demand in these areas. Abbey plc’s Preliminary Statements for FYE 30/04/2016 identify that it completed 597 sales in the year (UK 544, Ireland 23, CZK 30) and pre-tax profits for the year were €61.5m (25.5% YOY increase). Its strong sales in the British market were aided by the government’s help to buy scheme. The growth in pre-tax profits was attributed by Charles Gallagher, Chief Executive of Abbey plc to higher sales margins and an increase in house completions. The builder’s margins in Britain were 400 bps over analysts’ forecasts. The Sunday Business Post, 17th July
Census Figures: Preliminary figures from the 2016 census show that there are almost 260k vacant homes in the State at present, of which 61,204 are holiday homes. With c. 260k homes vacant, it means that the national vacancy rate is c. 12.8%. Leinster has the highest number of vacant homes (over 90k), followed by Munster (over 83k). The Irish Times, 15th July
Roslyn Park: The Department of Education (DoE) has entered into “exclusive talks” to acquire the Rehab Group’s 5.16-acre Roslyn Park site in Sandymount, Dublin 4. Joint agents Lisney and Savills had been inviting offers of over €12m for the site, which attracted significant interest from developers who were attracted to its potential for residential development. It is understood that the DoE may now pay over €21m to acquire the site, which will be used to facilitate an education centre. Cairn Homes had been bidding for the site and its Chief Executive and Founder Michael Stanley had hoped to obtain planning permission for a development consisting of 100 to 120 residential units. The Irish Times, 13th July
Housing Action Plan: The Irish Times reviews a draft copy of the Housing Action Plan (HAP) which is expected to be released shortly by the Minister for Housing and Planning, Simon Coveney. Central to the HAP is a proposal to deliver c. 45,000 social housing units by 2021, while also establishing a c. €70m state fund which will be used to acquire c. 400 distressed housing units from lenders. The HAP also proposes that institutional investors will be invited to establish large scale multi-family units which will facilitate the creation of a new build-to-rent sector of the market. The Irish Times, 14th July
Navan Development Site: Joint agents Lisney and Smith Harrington are guiding c. €4m for 44-acres of residential development land in Navan, Co. Meath. The land, which is owned by the Spicer family, adjoins Academy Street and forms part of the grounds of Belmont, a large period house owned by the family. The site is understood to be able to facilitate between 360 and 400 houses, equating to c. €10k – €11k per site. The Irish Times, 13th July
Ziggurat Acquisitions: The student accommodation firm Ziggurat has announced that they have acquired a number of development sites in north Dublin’s city centre. The sites include one on Upper Dominic Street which is expected to provide a c. 380-bed facility, the site of the former Michael H textile plant and two sites which were previously used as car parks for Arnotts. The co-founder of Ziggurat, Matthew McAdden, has advised that any developments on these sites are not expected to be completed until 2019 at the earliest. The Irish Times, 13th July
Industrial Market Report: CBRE’s report on Dublin Industrial & Logistics market identifies that prime headline rents are currently c. €7.90 psf and yields are stable at c. 5.75%. CBRE also projects c. €8.75 psf for prime Dublin industrial to be achieved in H2 2016. H1 2016 take up volumes in Dublin were c. 1,288,500 sq. ft. which is 35% down YOY. However, CBRE attributes the reduction in take up due to lack of supply of modern accommodation in core locations rather than weakening in demand levels. CBRE, Dublin Industrial & Logistics MarketView, Q2 2016
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Project Jewel: Hammerson and Allianz Real Estate have jointly taken possession of Dundrum Town Centre and three development sites – an undeveloped site at Dundrum Town Centre in Dundrum village, a 16-acre site beside the Pavilions in Swords and Dublin Central and a five-acre plot bounded by O’Connell Street and Henry Street, Dublin 1. The assets were acquired via the €1.85bn NAMA Project Jewel portfolio sale in September 2015. It is reported several retailers have already entered discussions with the new owners about increasing the size of their stores in Dundrum Town Centre. The Irish Times, 9th & 11th July and NAMA Wine Lake, 10th July 2016
Project Tolka: The Sunday Independent reports that negotiations are at an advanced stage in relation to NAMA’s proposed disposal of Project Tolka (par value of €1.5bn), and that it is expected to be marketed for sale in September 2016. Project Tolka comprises of loans linked to property developers and investors Paddy Kelly, John Flynn and the Dublin-based McCormack family. The portfolio’s main investment properties are the Burlington Plaza office complex on Dublin’s Burlington Road, Belfield Office Park and the former Children’s Hospital on Harcourt Street in Dublin city centre. The Sunday Independent, 10th July
Horizon Mall: Capital Assets has acquired the loans associated with Limerick’s Horizon Mall site from Danske Bank. It is reported that the par value of the loans was c. €41m. The purchase price has not been reported. The Sunday Business Post, 10th July
Brasserie Sixty6: The freehold interests in Brasserie Sixty6 restaurant on 66/67 South Great George’s Street, Dublin 2 (4,911 sq. ft.) have been acquired by a private investor for €2.6m (€529 psf). The sale equates to an initial yield of 7.2% based on the contracted rent of €195k p.a. and the weighted average unexpired lease term (WAULT) is c. 15 years. There are two 35 year leases on the premises, both of which expire in 2031. The Irish Times, 6th July
50 Grafton Street: Irish Life has acquired no. 50 Grafton Street, which is currently vacant having been previously occupied by Three Ireland with 7.5 years remaining on the lease. The acquisition means that Irish Life now owns four premises in a row on Grafton Street (nos. 47 – 50), in addition to nos. 7-11, 57-58 and 85-86. The rent roll from nos. 47 – 50 is c. €1.1m and it is believed that the properties could be combined into one or two large outlets to attract big name international traders and maximise returns in the future. The Irish Times, 6th July
Dún Laoghaire Shopping Centre: Coltard has been granted planning permission by Dún Laoghaire-Rathdown County Council for a c. €10m redevelopment of the Dún Laoghaire Shopping Centre (currently 183,000 sq. ft. with a rent roll of c. €2m). The redevelopment is due to be completed by the end of Q1 2017 and includes two additional large anchor stores fronting on to the town’s Marine Road (19,600 sq. ft.) and George’s Street (35,100 sq. ft.). The Irish Times, 11th July
St. Stephen’s Green: IPB Insurance is believed to have acquired Standard Life’s Dublin offices (26,591 sq. ft. office accommodation in addition to 25 car parking spaces) on St Stephen’s Green for €26.825m – 7.3% in excess of the €25m guide price. The initial yield is expected to be 4.7% after a rent review takes place in September, as the current rent of €650k p.a. (€22.11 psf) may increase to c. €50 psf, alongside increased car parking space rental (from €2.5k to c. €4k per space). The offices have been owned and occupied by Standard Life for the past 30 years. However, the company provided an undertaking that it will not seek renewal of its lease on expiry in 5.5 years, enabling the new owner to maximise returns by refurbishing and reletting. The Irish Times, 6th July
Riverview House: TWM is seeking offers in excess of €5.47m for a 40,000 sq. ft. office building in Carrick on Shannon, Co. Leitrim. Riverview House was purpose built in 2005 and is rented by the Department of Family and Social Affairs for €600k p.a. The guide price offers an initial yield of 10.5% with 10 years remaining in the lease. The Irish Times, 6th July
Project Wave: Planning permission for a c. €46m office development on North Wall Quay, Dublin 1 has been granted. This relates to Block A (323,000 sq. ft.) of the Project Wave development by Oakley Holdings and the Ballymore Group, and works are expected to commence in Q4 2016 with construction taking c. 20 months. In addition, the main works on the c. €111m development of Block D in the scheme are commencing following completion of the ground, basement and piling works. The Sunday Business Post, 10th July
4–5 Trinity Street: Savills is guiding €1.725m (€454 psf) for a mixed use retail and office building on 4-5 Trinity Street, Dublin 2. The 3,800 sq. ft. fully occupied four-storey over basement period property has passing rent of €110k p.a. with estate agents Douglas Newman Good occupying the basement and ground floor on a new 20-year lease for €80k p.a. The three upper floors are rented as offices by StoryToys for €30k p.a. (€13 psf) with its lease expiring in less than two years. The selling agent expects the property to provide an initial yield of 6.1%, with the prospect of increased rental income in the short term when the office lease ends. The Irish Times, 6th July
Ormond Quays: Fenergo, an Irish fintech company employing 250 staff in Dublin, is relocating from Ormond House on Dublin quays to the larger Castleforbes House (20,000 sq. ft.) in the northside docklands. The rent is reported to be c. €26 psf. The Irish Times, 6th July
Days Inn Hotel: Wellington Hospitality Limited has applied to Dublin City Council to extend the Days Inn Hotel in Rathmines by c. 17,500 sq. ft. from 66 to 106 bedrooms. NAMA Wine Lake also reports that it is projected that there will be an additional 5,500 hotel bedrooms in Dublin by 2019. There are presently c. 25 live projects in Dublin city centre comprising of both new hotels and extensions. NAMA Wine Lake, 10th July 2016
Receivership Portfolio Sale: Kelly Walsh, on the instruction of receiver Tom Kavanagh of Deloitte, is guiding €7m for a portfolio of sites, unfinished developments and the 34-acre Kill International Equestrian Centre in Kill, Co. Kildare. The portfolio consists of unfinished housing developments at Garristown, north Dublin (18 units), Loughrea, Co. Galway (20 units) and 21 acres at Kilrane in Co. Wexford (which previously had planning permission for 130 houses). The equestrian centre hosted the Special Olympics equestrian events in 2005 and there is potential for residential rezoning on the site in the future. Rutland House, a 2,971 sq. ft. house (in need of refurbishment) in Dún Laoghaire, Co. Dublin is also included in the portfolio and has planning permission for two additional houses on its 0.6-acre grounds. The property was previously offered for sale in Q1 2015 at €1.9m. The Irish Times, 6th July
Southeast Dublin Housing: The Private and Public Housing Supply Report published by Dún Laoghaire-Rathdown County Council (DLR) reports a requirement for 3,300 private and social houses in southeast Dublin to be built each year until 2022 which is 250 houses per year more than the area’s peak housing output in 2007. The report states the average monthly rent for a three-bed house in DLR in June 2016 was €2,291 and the average sales price of a three-bedroom house was €459k for the first five months of 2016.
It is also reported that the Cosgrave Property Group has reached agreement with DLR to provide 124 social housing units (ranging from 1-beds – 3-beds) in Phase 2 of the former Dún Laoghaire golf club. The deal is estimated to be worth €37m. The Irish Times, 6th July
Mount Merrion Development: Balark Investments (controlled by developer Greg Kavanagh) has sought planning permission to demolish a former 21,500 sq. ft. monastery to the rear of Oatlands College, Mount Merrion and build 63 houses on the site comprising of 9 houses, 24 duplex units, and 30 apartments in two blocks. The Irish Independent, 6th July
Cardiff Lane Development: Crekav Landbank Investments Limited (also controlled by Greg Kavanagh) has applied for planning permission to build a 6-storey, mixed use development including 47 apartments off Pearse Street at the existing An Post sorting office at Cardiff Lane. The 2.3-acre site had a face value of €45m and was sold by An Post in 2015. The sale included a requirement to relocate An Post to a similarly sized site within a 2km radius. The Irish Independent, 6th July
Navan Development Site: Joint agents Lisney and Smith Harrington, acting on the instructions of receiver RSM Ireland, are seeking offers in excess of €4m for a 44-acre residential development site in Navan town, Co Meath. The lands are all zoned for residential development in two parts with Part A zoned for immediate development and Part B for future development from 2019. The Sunday Business Post, 10th July
Dublin Luxury Homes: Luxury home sales in Dublin increased by 34% in H1 2016 YOY with 193 sales of houses costing in excess of €1m compared to 137 in H1 2015. The highest ranking sales prices were recorded in Dublin 2, 4 and 6. It was also noted by The Sunday Business Post that the value of nationwide residential transactions increased by 14% to €4.6bn YOY in H1 2016 with Dublin accounting for half of this. The Sunday Business Post, 10th July
House Price Index: The Irish Independent / Real Estate Alliance Average House Price Index for June 2016 shows that the average three-bed semi-detached house now costs €195k in Ireland – an increase of 2.18% since the end of March 2016 and 4.49% YOY. The Index identifies that sales prices have increased by 14% in Roscommon, 8% in Laois, 7% in Kilkenny, 2% in Galway City and 1.4% in Dublin city centre. There were no increases in Cork City or north Co. Dublin. The Irish Independent, 11th July
Royal College of Surgeons (RCS) Development: The RCS is reportedly seeking a €50m loan from the European Investment Bank (EIB) to part-finance the development of their new c. 120,000 sq. ft. property in Dublin city. The property will feature a mix of facilities, such as a surgical and clinical training suite, mock operating theatre, a 540-seat auditorium and a sports hall and fitness area. The total cost of the property is projected at c. €103m, with the RCS hopeful of having the development completed by April 2017. The Irish Independent, 12th July
Grange Castle: US company EdgeConneX is to due build its first data centre in Ireland at Grange Castle, west Dublin, joining existing Microsoft operations on the site. The initial cost is projected at c. €30m for the 61,600 sq. ft. data centre on a 16-acre plot, but this could potentially be expanded to three phases in the future. The Irish Independent, 8th July
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Manor Mills Shopping Centre: Manor Mills Shopping Centre in Maynooth, Co. Kildare, has been brought to the market by DTZ Sherry Fitzgerald, who is guiding €13.4m. The 116,803 sq. ft. shopping centre consists of 26 retail units, four kiosks and a restaurant, with a weekly footfall of more than 50,000. The net operating income is in excess of €1.229m p.a., and tenants include Elverys, Vodafone and Hickey’s Pharmacy. Dunnes Stores anchor the shopping centre, however they own their unit. The shopping centre, which was prefunded by Davy in 2005 for c. €48m, offers a net initial yield of c. 8.77%. The Irish Times, 29th June
Stillorgan Shopping Centre: Kennedy Wilson (KW) has announced that it will spend c. €15m this year refurbishing the Stillorgan Shopping Centre in south Dublin. The refurbishment includes extending the floor area of the shopping centre by c. 15,000 sq. ft. KW purchased the shopping centre in 2013 as part of a portfolio which cost c. €306m in total. KW recently acquired the neighbouring Leisureplex bowling alley. Subject to planning permission, it is KW’s intention to demolish this bowling alley and extend the shopping centre onto the site in the next few years. The Irish Times, 1st July
OranTown Centre: Offers of €5.25m are being sought by agents TWM for OranTown Centre in Oranmore, Co. Galway. The centre was developed in the 1990s, has 35 retail and office units and is anchored by SuperValu, who part-own their unit. The total floor area of the two-storey centre is c. 45,000 sq. ft., with 230 parking spaces available. The annual rental income is c. €540k, and the other tenants include An Post and Coillte. There is scope to increase the rental income in the short term, with c. 11% of the centre vacant. The Irish Times, 29th June
Parnell Street: Four retail units on Dublin’s Parnell Street have sold for over €2.2m. Numbers 3, 4, 5 and 9 Kingscourt are occupied by Star Asia Foods, Subway, Roy Hogan Pharmacy and La Cucina Café. The annual rental income is €261k p.a. The Irish Times, 29th June
Clanwilliam Court: Hibernia REIT has paid London + Regional (L+R) c. €51m to acquire Blocks 1, 2 and 5 Clanwilliam Court near Lower Mount Street in Dublin 2. The properties had been on the market for c. €54m since the end of April. The properties have a combined floor area of c. 93,700 sq. ft., with 220 underground car spaces available. According to Hibernia, the current rental income is c. €2.9m p.a., equating to a net initial yield of c. 5%. Hibernia has also advised that the properties are c. 76% occupied and the tenants include ESB, An Bord Bia and Hines Real Estate Ireland. The Irish Times, 1st July
Baggot Plaza: Kennedy Wilson Europe Real Estate (KWE) has completed the redevelopment of its Baggot Plaza development on Upper Baggot Street, Dublin 4. In March 2015, KWE obtained planning permission to redevelop the property, with the application allowing for the floor area to be extended to 129,300 sq. ft. KWE has agreed to lease the property to Bank of Ireland (BoI) on a 25-year lease at a rent of c. €47.50 psf. BoI will have an 11-month rent-free period and there is a tenant only break option in year 20. The Sunday Business Post, 4th July
Shelbourne House: Savills is seeking offers above €31m for Shelbourne House on Shelbourne Road in Dublin 4. The 64,287 sq. ft., seven-storey block has 51 car spaces, sits on a 0.68-acre site and consists primarily of office space, however the block also includes three penthouse apartments. The current rental income of the property is c. €1.6m p.a., however this can be increased as 8,277 sq. ft. of office space and one of the apartments is vacant. The capital value of the property is €482 psf. The property also offers redevelopment potential as it adjoins two substantial sites being redeveloped in the area. These are the 2.02-acre site of the former Veterinary College and the 6.8-acre Ballsbridge hotel site. The Irish Times, 29th June
Cedarhurst Building: After recently being sold for c. €4m, the Cedarhurst Building in Sandyford, south Dublin is to be refurbished before being relet. The two storey property has a floor area of 17,488 sq. ft. and also has 39 car spaces. Once the works have been completed, agent Browne Corrigan Chartered Surveyors is to seek a rent of €20 psf for the property and €1k each for the car spaces. The Irish Times, 29th June
Scotch House: The Irish developer Castlepark has obtained planning permission from An Bord Pleanála to proceed with a c. €8m redevelopment of Scotch House on Burgh Quay in Dublin. The planning application will see the property redeveloped into a seven-storey block with over 40,000 sq. ft. of office space and 2,000 sq. ft. of retail space. The office space is expected to be completed by the end of 2017 and QRE is quoting rents of €55 psf. There are also 12 car spaces available to rent at c. €4k each. The Irish Times, 29th June
Georgian Market: The Irish Independent reports on the recovery of the Georgian office market. While the prices of Georgian properties can vary considerably, those in good condition and located on Merrion and Fitzwilliam Square can achieve capital values of c. €600 psf. The rental value of Georgians has also improved in the past few years, with rents of c. €35 psf achievable. The Irish Independent, 30th June
Shelbourne Hotel: Kennedy Wilson (KW) is set to undertake a €4m refurbishment of the five-star Shelbourne Hotel in Dublin’s St Stephen’s Green. Some of the €4m will be spent upgrading the best suites in the hotel, the corridors and the common areas. KW paid €112m in 2014 to acquire the hotel. The Irish Times, 1st July
Clayton Hotel: Savills is guiding over €8m for 24 suites in the four-star, 304-bed Clayton Hotel on Cardiff Lane in Dublin 2. The 24 suites have a total of 62 bedrooms, equating to a value of c. €129k per room. The total rental income of the suites is c. €467k p.a., with c. 24 years until their lease expires. The suites are let to Hanford Commercial Ltd, a Dalata subsidiary. The rent is subject to upwards-only rent reviews under the leases, with the next review in January 2018. The Irish Times, 29th June
Dublin Aparthotel: Tetrarch Capital has sought planning permission to develop a 159-unit aparthotel near Pearse Street in Dublin City Centre. The cost of developing the aparthotel is estimated at €25m, and Tetrarch hope to have the project completed by the end of 2018. Should the development be completed, Tetrarch will seek to lease the aparthotel to the serviced apartment company Staycity. The Irish Independent, 3rd July
Hotel Sales: According to CBRE, there were 29 hotels sold in H1 2016, with the sales proceeds exceeding €136m. These figures do not include hotels sold in loan sales, (e.g. NAMA’s Projects Emerald and Ruby). The outlook for H2 2016 is strong, with hotels such The Gresham Hotel, the Doubletree Hotel in Dublin 4 and Lyrath Estate in Kilkenny all at advanced stages in the bidding process. CBRE Ireland Bi-Monthly Research Report, July 2016
Property Prices: New figures from the Central Statistics Office (CSO) show that on a national basis, property prices rose by c. 6.9% in the year to May 2016, with prices rising by 0.2% in the month. In Dublin, prices rose by 4.8% in the year and 0.1% in the month of May. House prices in Dublin rose by 5.7% in the past year, while apartment prices fell by 1.1%. Excluding Dublin, residential property prices rose by 8.5% in the past twelve months and 0.1% in May. The CSO figures are based on property acquisitions financed by mortgages. CSO Residential Property Price Index, May 2016
Daft Report: The Daft.ie House Price Report for Q2 2016 shows that the number of properties on the market has increased for only the second time in five years. In June 2016 there were just over 25,000 properties for sale, a slight increase on the March figure. While an increase in supply is usually seen as a sign of a healthy market, the only other time the supply of properties rose was in Q2 2015. Therefore, it is unclear if this may be due to a seasonal trend. According to the Daft.ie report, property prices rose by 6.3% over the past twelve months. The figures in the Daft.ie report are based on properties advertised on Daft.ie. The Daft.ie House Price Report, Q2 2016
Haven Mortgage Rates: Haven, the AIB subsidiary, has announced cuts to their variable mortgage rates. Haven will reduce their Standard Variable Rate (SVR) mortgage by 0.32% to 3.4%, mirroring the SVR offered by AIB. Haven has also announced cuts to their mortgage rates which are based on loan-to-values. In a further positive for consumers, Haven will also pay a contribution of €2k towards legal fees for borrowers switching to Haven. The Irish Independent, 29th June
Development Land Sales: New research from CBRE for H1 2016 shows that there were 53 development land sales completed in the period, which had a total value of c. €489m. On a value basis, this compares favourably with H1 2015 when 54 transactions were completed for c. €276m. The total value of development land sales in 2015 was c. €770m. The Irish Independent, 5th July
Dublin Land Bank: Knight Frank, under the instruction of the receiver Grant Thornton, is inviting offers greater than €10m for a 166.43-acre land bank in north Dublin. The land bank is located off Junction 4 of the M50, near Dublin Airport. The current zoning of the site is broken down into 126.61-acres for warehouse and distribution, 32.05-acres for rural and 5.17-acres of open space. This may change in the future though, as the draft 2017-2023 Fingal development plan proposes that all but 5-acres may be used for general employment. The current occupant of the land bank is using it for agricultural use. The Irish Times, 29th June
Rosemount Business Park: IPUT has acquired the logistics facility of Dunnes Stores in Rosemount Business Park, Dublin 15 for c. €17.8m. The facility has a floor area of c. 270,000 sq. ft. and lies on a 12.84-acre site. Dunnes is paying a rent of €1.15m p.a. (c. €4.41 psf) for the facility, under a 20-year lease from September 2008. The rent may increase in the short term as there is a rent review outstanding, while there is a tenant break option in the lease in September 2019. The capital value of the property is c. €65 psf, substantially below the replacement cost of €120 psf. The Irish Times, 29th June
Bank of Ireland (BoI) Branches: Murphy Mulhall is guiding €9.34m for five BoI branches in Leinster and Connaught which are producing an annual rental income of c. €574k. The branches for sale are in Ballina, Co. Mayo (rent €216k, value €3.5m), Mobhi Road, Dublin (rent €103k, value €1.85m), Ardee, Co. Louth (rent €114k, value €1.8m), Athy, Co. Kildare (rent €79k, €1.25m) and Edenderry, Co. Offaly (rent €61k, value €940k). The branches are all let on long term leases with no lease expiring in the next 16 years. There are also no break options in the leases and rent reviews are upward only. The properties can either be purchased individually or in one lot. The Irish Times, 29th June
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