NAMA Loan Sales: NAMA is expected to proceed with the disposal of loans which have a par value of c. €6.3bn in the coming weeks. NAMA has retained Cushman & Wakefield to sell loans where the par value is €6bn but the market value is understood to be in the region of €500m. The loans were previously to be sold via two portfolio sales, Projects Emerald and Ruby, however they are now being sold as one portfolio. NAMA has also appointed KPMG to sell Project Abbey, which is a loan portfolio with a par value of c. €300m with the loans linked to the developer Pat Doherty. Following the sale of loan portfolios such as Projects Eagle, Jewel and Arrow in recent years, it is understood that less than 10% of the remaining loans held by NAMA are categorised as performing loans. The Irish Times, 13th March
Pairc an Clochair: DTZ Sherry Fitzgerald has set an asking price of over €17m for Pairc an Clochair in Oranmore, Co. Galway. Pairc an Clochair includes retail units let to Tesco (50,000 sq. ft.) and Aldi (18,000 sq. ft.), 1,000 car spaces, 8.9 acres of development land, Thatch Bar and Oranmore House. The development land can facilitate a number of uses including retail, office, hotel and a bar / restaurant. The current rent roll of the complex is c. €1.22m p.a., with Tesco (c. €906k) and Aldi (c. €272k) the key tenants. There is c. 10 years remaining on the Tesco and Aldi leases. The Irish Times, 9th March
The Oval: The German fund Patrizia has purchased The Oval development in Ballsbridge, Dublin 4 in an off-market deal for c. €140m. The Oval, which was developed in 2006 / 2007 by four Dublin-based investors, is fully let and generating c. €7.4m in annual rental income. The development comprises over 180,000 sq. ft. of Grade A office space, ground floor retail units and a gym. Over 59,000 sq. ft. of the office space and 50 car spaces are let to the state owned Eirgrid, on a 25 year lease from 2007. The office space in The Oval is let for c. €42 psf however this should increase as leases expire and rent reviews fall due. The Irish Times, 9th March
One Earlsfort Terrace: Hibernia REIT has completed the purchase of One Earlsfort Terrace for €19.2m. The property is located on the corner of Earlsfort Terrace and Hatch Street Lower in Dublin 2. In total the property comprises 21,700 sq. ft. of office space and 19 car spaces. The law firm Eversheds have leased the entire property until 2026, with upward only rent reviews scheduled for September 2016 and 2021. Hibernia REIT has advised that the current rent of €630k p.a. is set to rise to €1m p.a. (€45 psf) from September 2016, with the increased rent providing for a yield on cost of 5.3%. The Irish Times, 11th March
Project Pegasus: Johnny Ronan’s plan to develop a two-block office complex with c. 560,000 sq. ft. of office space in Ballsbridge, Dublin 4, has been formally objected to by An Taisce and a number of local residents. Mr Ronan intends to build the six-storey scheme, codenamed Project Pegasus, at the front of AIB’s Bankcentre, on a site which he purchased last year for €67.5m. An Taisce has objected on the grounds that the proposed development is excessive and that it would negatively impact the protected structures in the area. The Irish Independent, 9th March
Miesian Plaza: The OPW has signed a lease to occupy over 150,000 sq. ft. of Miesian Plaza in Lower Baggot Street, Dublin 2 for c. €60 psf. Miesian Plaza is owned by Larry Goodman and is currently in the final stages of a c. €100m redevelopment. Mr Goodman purchased the property through Parma Developments for €40m in 2013. Miesian Plaza was previously the headquarters of Bank of Ireland and was owned by a consortium including Derek Quinlan and Paddy Shovlin, who paid €180m for the property in 2008. The Irish Independent, 9th March
Waterford Marina Hotel: The Waterford Marina Hotel has been sold for €4m, c. 25% above the guide price of €3.2m being sought by the agents Christie & Co. The three star, 81 bed hotel is situated on the banks of the River Suir and was developed in 1997, with the previous owner Frontline Asset Management purchasing the hotel later that year. Dave Murray of Christie & Co has advised that the hotel is highly profitable with strong demand for accommodation in the area. The Irish Independent, 10th March
Christie’s Hotel Report: A new report from Christie & Co projects 2,000 new hotel rooms being developed in Dublin within the next five years. The introduction of these hotel rooms would increase Dublin’s supply level by 14% and the national level by 10%. Of the 2,000 new rooms, 198 will be provided by the opening of the Holiday Inn Express on O’Connell Street, which is expected to open this June. The lack of new development in recent years has meant that occupancy levels are now close to their ceiling, with occupancy rates for hotels in Dublin rising to 83.9% in 2015. The Irish Times, 9th March
Residential Rents: The latest quarterly report from the Private Residential Tenancies Board has revealed that rents in Dublin have surpassed the levels achieved during the peak of the boom in 2007. Rents in Dublin increased by 9% in 2015, with the average rents for houses and apartments rising by 9.5% (to €1,431) and 8.7% (to €1,314) respectively. Rents in Dublin are now 0.4% above their 2007 peak. On a national level, rents rose by 9.8% in 2015, however rental levels outside of Dublin are still almost 15% below the 2007 levels. The Irish Times, 15th March
Gardiner Street: The student accommodation developer Global Student Accommodation has announced that it will develop almost 500 student accommodation units on the former IDA site in Gardiner Street, Dublin 1. GSA will partner with Carrowmore Property on the project, with Carrowmore responsible for the construction of the complex. The project will be GSA’s second in Dublin after they obtained planning permission for a 400 bed complex last September in Newmarket, Dublin 8. The Newmarket complex is expected to cost c. €41m to develop. GSA hope to have the Gardiner Street development ready for September 2017. The Irish Times, 9th March
Shrewsbury Square: Hooke & MacDonald has set an asking price of €9.5m for the final 13 apartments in the 80 apartment Shrewsbury Square development in Ballsbridge, Dublin 4. The units consist of two one-bed apartments, valued at c. €500k each and 11 two-beds, valued at c. €773k each. The current rental income of the portfolio is €440k p.a., which will offer investors an initial return of 4.7%. Each of the apartments comes with its own underground car space. The Irish Times, 9thMarch
Corn Mill Development: Eoin O’Neill Property Advisers has set a guide price of €3.85m for 11 residential units in the Corn Mill development in Drumcondra, Dublin 3. The units consist of 10 three-bed townhouses and one two-bed apartment. The units are currently generating income of €221k p.a., with potential to increase this figure through active management. The Corn Mill development is well located and just a 20 minute walk from the IFSC. The Irish Times, 9th March
Mortgage Arrears: The latest figures from the Central Bank on mortgage arrears reveal that the number of mortgage holders in arrears for over two years fell by 1,400 in Q4 2015 to 36,500. While the number of mortgages in arrears for over two years has fallen, the value of these mortgages has risen by €124m to over €2bn. The average level of arrears per borrower was c. €57k. The Central Bank figures identified 121,000 mortgage accounts which are in some form of arrears. The Irish Independent, 11th March
Docklands Developments: Two companies linked to the developer Greg Kavanagh have sought planning permission for developments in Dublin’s south docklands. Balark Investments Limited has sought planning for 91 apartments, consisting of one, two and three bed units on Sir John Rogerson’s Quay. The application also includes a gym, parking and a community room at basement level. Separately, CreKav Landbank Investments Limited has sought to develop two adjacent six-storey blocks near Cardiff Lane. The first block would consist of a mix of office and retail space while the second would consist of ground floor retail with 47 apartments overhead. NAMA Wine Lake, 13th March
Construction Activity: Ulster Bank’s Construction Purchasing Managers Index for February 2016 highlights the continued recovery in the construction sector, as the sector recorded its strongest increase since June 2000. The reading for February was 68.6, some 5.2 points above the January reading of 63.6. The 68.6 reading was also the highest reading ever recorded, with the previous best set in November 2004. Ulster Bank has however moved to manage optimism levels following the results, stressing that activity in the sector is still at a low level. The current level of output from the construction sector is c. 50% below the peak level achieved before the economic downturn. The Irish Independent, 14th March
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Childers Road Limerick: Joint agents HWBC and DTZ Sherry FitzGerald have set an asking price of €44m for Childers Road Retail Park in Co. Limerick. The 257,000 sq. ft. retail park is fully occupied and generating a rent roll of €3.22m p.a. from 14 tenants, which include Burton/Wallis/Evans/Dorothy Perkins (€400k p.a.), Next (€300k p.a.) and Boots (€200k p.a.). Dunnes Stores anchor the retail park and own their unit on a long leasehold basis. The retail park also has 1,000 free car parking spaces and an average unexpired lease term of c. 7.4 years. The Irish Times, 2nd March
Golden Island: Credit Suisse has completed the purchase of the 20 year old Golden Island shopping centre in Athlone, Co. Westmeath, for €43.5m. The 154,000 sq. ft. shopping centre contains 45 retailers and also has a 1,000 space car park. The current rental income is €3.1m p.a. and the key tenants are Argos (€270k p.a.), Elverys (€210k p.a.) and Boots (€200k p.a.). Tesco, Penneys and Lifestyle Sports are also in situ and own their units. The sale of the Golden Island shopping centre is the second significant retail sale in Athlone in the past year, after the nearby Athlone Town Centre sold for c. €61m. The Irish Times, 2nd March
Lynn House: Savills are inviting offers of €2.75m for Lynn House on Lower Rathmines Road, Dublin 6. The 7,864 sq. ft., four story detached office building is being sold by The Medical Council and will be purchased with vacant possession. There are also twelve car parking spaces available with the property. The Irish Times, 2nd March
Marine House: Hibernia REIT has completed the purchase of Marine House in Clanwilliam Place, Dublin 2 for €26.5m. The six storey, 41,000 sq. ft. property is fully let and generating rental income of €1.2m p.a. to tenants including Crowe Horwath, WK Nowlan, LeBruin and Origin Capital. While the sale price reflects an initial yield of 4.3%, there will be opportunities to increase the average rent of c. €23 psf in the short term as leases accounting for 20% of the property are subject to review / expiry over the next 18 months. The Irish Independent, 4th March
1 South Mall: Lisney is guiding €2.75m for 1 South Mall in Cork City. The six storey office block has a net floor area of 17,373 sq. ft. and is currently generating an annual rental income of c. €270k. There is potential to increase this to c. €315k p.a. upon letting of the third floor, which currently lies vacant. PWC are the primary tenant and pay a rent of €176k p.a., while the other tenants include Lisney (€42k) and Royal and Sun Alliance (€40k). The WAULT of the property is c. 4.2 years. The Irish Independent, 3rd March
Development Pipeline: New research from Savills shows that the amount of office space currently under construction in Dublin could facilitate 30,000 workers. In total there are 35 new buildings under development, with the majority of these in Dublin 1, 2 and 4. However given that it typically takes two to three years to complete the development of a new property, Savills expect the current supply shortage to persist and rents should rise to c. €65 psf before the end of the year. Of the office space under construction, c. 33% of it has been pre-committed to a prospective occupier.The Sunday Business Post, 6th March
Room Rates: A recent survey from hotels.com revealed that average hotel room rates rose by 15% to €118 per night in 2015, the fifth consecutive year of growth. The Irish hotel market substantially outperformed the global index, where prices rose by just 1%. The Dublin market was the most expensive Irish market with average prices of €129, while Waterford was deemed the most affordable with an average rate of €84. Additional analysis from HVS also shows that RevPar in Dublin grew by 13.4% in 2015, building on the strong growth of 13.2% in 2014. The Irish Times, 2nd March
Kildare Town: Agents REA Coonan have set a reserve of €3.75m (c. €179k per acre) for a 21 acre site in Kildare town, which is to be sold under auction on April 7th. The site comes with full planning permission for 164 houses, which was granted in April 2013 for 10 years. Given the fact that the site is the only major residential development opportunity in Kildare town and is also within the Dublin commuter belt, REA Coonan is anticipating a competitive bidding process. The Irish Times, 2nd March
Foxrock Site: Sherry Fitzgerald is guiding €4.75m (€2.58m per acre) for a 1.84 acre site in Foxrock in south Co. Dublin. The site includes two adjoining houses; Mandeville, which is a protected structure, and Carrigmore, which is likely to be demolished. According to Sherry Fitzgerald, a number of developers have already stated their interest in the site, with the consensus being that the site could facilitate a small number of detached houses or apartments. There is also another house adjoining Mandeville on a 1.25 acre site which is for sale through Lisney. To maximise the development value of the sites, it is anticipated that both sites will be purchased by the one developer. The Irish Times, 2nd March
Housing Supply: New research from Sherry Fitzgerald has revealed that there are currently just 26,773 properties (1.4%) available for sale in Ireland, which is the lowest number since records began in 2009. The current figure is in stark contrast to January 2010, when there were 54,121 units available for sale. The 1.4% is well below the generally accepted principle that 3.5% or more should be available for sale for a properly functioning market. In the UK, the current level of housing stock on the market is c. 6%. Sherry Fitzgerald also estimate that up to 50% of the Irish properties presently listed are distressed assets, where a bank is either selling them directly or else they are seeking that borrowers dispose of assets. The Irish Independent, 4th March
Property Prices: The CSO residential property prices for January 2016 highlight how the Central Bank’s new mortgage lending restrictions have played a part in creating a two-tiered residential market. Dublin prices fell by 1% for the month, with apartment prices declining by 2%. On the other hand, properties outside the capital rose by 0.1%. The average price of a home nationally is now c. €208k, with the average price of a Dublin home (€273k) approximately €100k above the average price of a provincial home. The national average home price peaked in September 2007 at c. €314k, before falling by 51% to c. €154k in March 2013. NAMA Wine Lake, 6th March
Cabra Development: Crekav Landbank Investments Limited has sought planning permission for 320 apartments and 35,000 sq. ft. of retail / office space in Cabra in north-west Dublin City. The application proposes that the properties are developed across eight 4-storey blocks on Carnlough Road. The application supersedes a previous application from 2015 which sought permission to develop nearly 400 apartments. NAMA Wine Lake, 6th March
Cairn Homes Acquisition: Cairn Homes is understood to be in talks to acquire the development assets of Argentum Property Holding for c. €75m. Argentum’s land assets include sites in Marino and Portmarnock in Dublin and near Ashbourne, Co. Meath. The Marino site is c. 7.4 acres and has planning for 79 houses and 22 two-bed apartments. The Ashbourne site has planning for 366 units, the majority of which are three-bed homes. Argentum is a JV between the investment fund Anchorage and the builder Newlyn. The Sunday Times, 6th March
Cathal Brugha Street College: Following their decision to relocate six campuses to Grangegorman, DIT has retained WK Nowlan to sell Cathal Brugha Street College in Dublin 1, for between €15m – €20m. The property is a combination of two connected properties (one from the 1940s and one from the 1990s), with a total floor area of 115,716 sq. ft. The 1940s building comprises 76,712 sq. ft. and is for sale with a price range of €10m – €12.5m, while the modern building measures 39,004 sq. ft. and is projected to sell for €5m – €7.5m. As the college adjoins the 323 bed Gresham Hotel which is also for sale at €80m, it may also appeal to potential purchasers of the Gresham, as it could be converted into a hotel with up to 300 beds. The Irish Times, 2nd March
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Goldman Sachs: The latest company records from Beltany Property Finance, who are the main Irish subsidiary of Goldman Sachs, reveal that Beltany spent c. €760m purchasing loan portfolios between March 2014 and March 2015. Beltany’s most significant loan portfolio purchases were c. €313m from IBRC (March 2014), c. €187m from Ulster Bank (October 2014) and c. €172m from Danske Bank in March 2015. The Sunday Business Post, 28th February
Whitewater Shopping Centre: The German fund Deka Immobilien has finalised terms to purchase the Whitewater Shopping Centre in Newbridge, Co. Kildare for c. €180m. Whitewater is currently owned by Sean Mulryan’s Ballymore and the estate of the late Liam Maye, with each party having a 50% stake. Deka are set to pay c. €30m above the €150m guide price for Whitewater, which is understood to be generating annual rental income of c. €11.7m. The purchase will represent Deka’s second shopping centre acquisition in Ireland, with the fund having previously bought Mahon Point in Cork for €250m ten years ago. The Irish Independent, 24th February
Ennis Road: Lisney is guiding €15m for the nine unit, 114,015 sq. ft. Ennis Road Retail Park in Limerick, which lies on an 11.45 acre site. The current rent roll of the retail park is c. €1.48m p.a., however there is potential to increase this to c. €1.63m p.a. upon the letting of two vacant units. The anchor tenant in the retail park is Woodies DIY, who pay c. €876k p.a. under a lease which has 18 years remaining, with no break clauses. Other tenants include Smyths Toys (€310k p.a.) and Showtime Cinema (€225k p.a.).The Irish Times, 24th February
ESB Headquarters: Construction of the ESB’s €150m new HQ on Fitzwilliam Street in Dublin 2 is expected to begin in January 2017 after the ESB agreed a short term letting for its staff while the development is undertaken. The ESB’s existing HQ, which was built in the 1960s, is to be demolished and replaced with a 492,663 sq. ft. development which will rise up to seven storeys high. Of this, 302,692 sq. ft. will be office space, while there will also be space for 440 bicycles and 110 cars. The ESB will occupy 50% of the office space with the balance expected to be let on the open market. The Irish Times, 24th February
Jones Engineering: Jones Engineering has obtained planning permission to develop a 38,000 sq. ft. office block at Waterways House in Dublin’s Grand Canal Quay. The €30m project will see Jones’ existing two storey HQ demolished and replaced with a new seven storey block. Jones is expected to occupy a portion of the new block and lease the remaining space. Jones anticipate that the project will take approximately 20 months to complete. The Sunday Times, 28th February
Albert Quay: O’Callaghan Properties has sought planning permission to develop 360,000 sq. ft. of office space at Albert Quay in Cork City in a €90m project. Under the proposal, the office space is to be constructed across four buildings on a 2.25 acre site. The planning application also seeks to develop underground parking for 300 cars and 200 bicycles, which would bring the total proposed space to 500,000 sq. ft. O’Callaghan Properties are hoping to commence the development in late 2016 with a view to completion by May 2018. The Irish Times, 24th February
Hume House: The US PE fund Blackstone has retained CBRE to sell Hume House in Ballsbridge, Dublin 4, for over €40m. Blackstone is looking to capitalise on favourable market conditions having only purchased Hume House a little over 12 months ago from NAMA as part of the Platinum portfolio. The property is currently generating c. €2.1m of rental income from tenants which include AIB, BOI and Audi. A redevelopment of the 0.86 acre site will appeal to developers as there is planning permission to demolish the existing property and replace it with 181,909 sq. ft. of office space and 53 car spaces. Vacant possession of the office block can also be obtained in 2017. The Irish Times, 24th February
Vodafone HQ: Green REIT has agreed a new lease with Vodafone for their Irish HQ in Central Park, Dublin 18. Per the terms of the lease, Vodafone will continue to pay the existing rent of €7.3m p.a. until 2026 for 263,000 sq. ft. of office space, with twelve months rent free. Vodafone’s previous lease for the property contained a break clause in 2018, however this will no longer apply under the new lease. The Irish Times, 26thFebruary
Clanwilliam Place: JLL is handling the letting process for an eight storey, 51,000 sq. ft. office block under construction in Clanwilliam Place, Dublin 2. Rents of €60 psf are being sought for the property, which is expected to be available for fit out by September. The property is being constructed on a JV basis by Hardwicke and Ardstone Capital with the total cost of the project estimated at €35m. The site was purchased from the Bruce Shaw Partnership for €10m. The Irish Times, 24thFebruary
Occupancy Rates: The Irish Hotels Federation’s annual report has revealed that hotel occupancy rates reached 70% in 2015, a ten year high. The total number of foreign visitors increased by 798k (11.2%) to 7.9m in 2015, with visitors from the UK up by 8% to 3.25m. The report estimates that over 33k new jobs have been created in the tourism and hospitality sector since 2011, with the tourism sector now responsible for c. 205k jobs in total. The Irish Times, 29th February
Oisín House: Trinity College has received planning permission from Dublin City Council to develop 278 student accommodation units alongside their campus on Pearse Street, Dublin 2 in a €52m project. The planning permission approves the demolition of the existing Oisín House and replacing it with a seven storey, 148,541 sq. ft. block. An Taisce has appealed the decision therefore the planning application could now be sent to An Bord Pleanála for review. The Irish Independent, 25th February
Leinster Land Banks: Savills and REA Coonan are guiding in excess of €41.75m for six land banks in Dublin and Kildare which have a combined area of approximately 127.6 acres. The sites, which are currently owned by the Albany Group, are also available to be purchased on an individual basis. The key asset is a c. 38.5 acre site in Leixlip, Co. Kildare, which has an asking price in excess of €23m (c. €597k per acre). A 50.8 acre site in Newbridge, Co. Kildare is guiding €6m (c. €118k per acre), having previously sold for €58m in 2006. The only site being sold with an unexpired planning permission is known as Drinan-2 in Swords, which has approval for 153 houses and 24 apartments. The Sunday Business Post, 28th February
Spencer Dock: Joint agents JLL and BNP Paribas have set a price tag of €50m on a six acre site (€8.3m per acre) at Spencer Dock in Dublin 1. The site will suit a mixed use development and already has planning permission for a 169 bed hotel, 340,000 sq. ft. of offices and 165 apartments. The site was previously owned by the state agency CIE before Treasury Holdings obtained an interest in the site. Treasury Holdings has since been wound up and NAMA has appointed EY as receivers to manage the sale. CIE still hold the freehold interest in the ground leases and will benefit from the sale, through either 17.5% of the sale price or else a similar portion of the rental income from the ground leases once the development is completed. The Irish Times, 24thFebruary
Longford Forest: Longford County Council has approved a planning application from Centre Parcs to develop a new €223m resort on a 395 acre site at Newcastle Wood, Co. Longford. The application sought approval for 470 lodges, 30 apartments and over 100 indoor and outdoor activities. Construction of the resort, which will be known as Longford Forest, will generate 750 jobs with the resort likely to employ 1,000 people once operational. Centre Parcs believe that when complete, the project will be worth c. €32m to the Irish economy each year. The Irish Independent, 29th February
Mortgage Approvals: The latest figures from the Banking & Payments Federation Ireland show that when compared to January 2015, both the volume and value of mortgage approvals for first time buyers in January 2016 fell by c. 23%. On a value basis, mortgage approvals fell to €190m while the volume of approvals fell to 1,067. Despite the decline in first time buyer figures, they still represent a significant portion of the market at 50%. The Irish Times, 1st March
Bank of Ireland Drogheda: Real estate agent TWM is anticipating significant interest for a two storey property let to BOI in Drogheda, Co. Louth, for which there is an asking price of €4.08m. BOI occupy the property under a 25 year lease signed in 2006, with no break options on the lease. The current rent of the property is €309k p.a. with the lease also subject to upward only rent reviews. The sale price reflects a net initial yield of 7.25%. The Irish Times, 24th February
Industrial Development: The industrial developer Rohan Holdings has unveiled plans to supply the Dublin market with over 300,000 sq. ft. of speculative warehouse space in 2016 and 2017. In total Rohan Holdings intends to develop ten buildings, ranging in size from 10,000 sq. ft. to 60,000 sq. ft. Four of the new buildings will be in Dublin Airport Logistics Park, ranging in size from 30,000 sq. ft. to 60,000 sq. ft. The remaining six buildings are to be split between sites in North City Business Park and Cheeverstown, with each site to facilitate three buildings. The Irish Times, 24th February
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