Project Cyprus: Bids on Project Cyprus, AIB’s book of buy-to-let properties, were lodged last week as the lender prepares for a major disposal of a non-performing c. €1.8bn loan book in advance of its planned privatisation. The Sunday Business Post reports that Cerberus is amongst the most likely buyers for the portfolio. In addition, the lender is considering further disposal options for non-performing loans, including selling personal loans (which include credit card debt and other secured borrowings) and shifting non-performing family home loans into a Special Purpose Vehicle (SPV). The Sunday Business Post, 29th January
Gateway Shopping Park: The new owners of Gateway Shopping Park in Knocknacarra in Galway are to spend c. €20m on the second phase of the park, which will provide a further 120,000 sq. ft. of retail space to accommodate between eight and 12 new traders, bringing the overall retail space in the park to 320,000 sq. ft. The extension, which will also include the construction of 36,000 sq. ft. of Grade A office space, will be completed in 2018. The park, which is managed by Sigma Retail partners, currently produces a rental income of €1.4m from a variety of tenants including Dunnes Stores, B&Q, New Look and McSharrys Pharmacy. The centre benefits from valuable planning approval for open use retailing, and also includes a 3.94 acre adjoining site which is now to be developed, and a further 5.45 acres which is also commercially zoned. The Irish Times, 27th January
Tesco Roscrea: Estate agent TWM has brought the Tesco supermarket in Roscrea to market with a guide price of €12.5m. The supermarket, which is available on a long-term secure income stream, will offer an initial return of 7.25%. This will increase further after July 2021 as the rent is linked to the Consumer Price Index, with the first uplift due on that date. The supermarket is let to Tesco Ireland for €950k p.a. on a 35-year FRI lease from July 2011, with a tenant break option in July 2026. The supermarket is located in the centre of Roscrea and comprises a 46,460 sq. ft. building with the supermarket at ground floor and 224 car parking spaces on a lower floor. The Irish Times, 25th January
St Andrew’s House: CBRE is quoting €8.3m for St Andrew’s House in Dublin 2, a four-storey over basement Victorian block with five shops fronting on to Exchequer street, and a further two retail outlets on South William Street. In addition to the retail units, the property contains three floors of offices extending to 6,943 sq. ft. and three two bedroom apartments. The current combined rent roll on the property is €532k p.a., however this is expected to reach €680k p.a. when the building is fully let, offering the new owners a net return of 7.5%. CBRE expect considerable interest in the property due to its prime location and the demand for properties in the area. The Irish Times, 25th January
Carlow Central Shopping Centre: Penneys has been announced as the anchor tenant of the new c. €70m Carlow Central Shopping Centre which is due to open towards the end of next year, employing 800 full and part-time staff. The new shopping centre will contain 200,000 sq. ft. of retail space, 640 car parking spaces and 10,000 sq. ft. of office space, in what will be the first purpose-built retail development in Ireland in several years. Penneys already has a store in Carlow, which will be incorporated into the new 51,000 sq. ft. unit, and developer Lexeme Properties has stated that negotiations are currently at an advanced stage with a number of national and international retailers to take units in the new centre. The Irish Independent, 27th January
Cherrywood Business Park: US real estate company Hines has reportedly appointed Eastdil Secured to manage the sale of five office blocks at Cherrywood Business Park for c. €160m, in what will be the first major asset sale of 2017. Hines purchased the 400-acre Cherrywood Business Park for €270m just over two years ago in conjunction with another American fund, King Street Capital. The Irish Independent, 29th January.
Riverview House: A landmark office building in Carrick-on-Shannon, Co. Leitrim, which is occupied by the Department of Social Protection, has been sold for over €6.2m, a premium of more than 11% on the €5.47m guided by selling agents TWM. Riverview House is a 40,000 sq. ft., three storey, over-basement office building which is let to the Department on an FRI lease which runs until 2026 with no break options. The annual rent is €600k, offering the purchasers an initial yield of over 9% (assuming standard purchasing costs). It is understood that the buyer of the property is a private investor. The Irish Independent, 29th January.
Former EBS HQ: A private investor has paid almost €8m for the former EBS HQ office building located on Townsend Street in Dublin 2. The purchase price was slightly above the €7.5m guide price, and the new owner has not yet advised as to his intentions for the property. A feasibility study for the previous owner of the block (and the adjoining 0.3-acre site with 16 car parking spaces and an external store) identified a number of potential uses. These include replacing the four-storey block with a nine-storey building containing 119 hotel suites, a scheme of 168 student accommodation beds or a seven-storey, 46,000 sq. ft. office building. Anthony Nicholas Ltd has occupied the building from last summer on a five-year lease with a mutual break option at the end of year two, and a rolling mutual break option thereafter. The Irish Times, 25th January
Dawson Street Offices: An application has been lodged with Dublin City Council to demolish existing buildings on the corner of Dawson Street and Nassau Street in Dublin city centre and replace them with a 6-7 storey 250,000 sq. ft. building consisting of 85,000 sq. ft. of retail space over three levels, with the remainder mainly composed of office space. NAMA Wine Lake, 29th January
RTE Donnybrook Site: RTE has announced that it is to sell a significant portion of its Donnybrook site within the next six months. Although the company has not specified how much land it is selling, it is believed it could be up to 15 acres, almost half of the 31-acre site it currently occupies. Property sources have suggested that the land being sold could be worth at least €70m as a site for a large apartment scheme. The land in question was rezoned Z12 in 2013, which makes housing a ‘permissible use’, meaning that permission should be granted for planning applications for housing that are within the relevant guidelines. The change in zoning followed on from a High Court ruling in 2012 that a ban on private residential development on all institutional lands in the city’s current development plan was overly restrictive. The Irish Times, 26th January
Rialto Cinema Site: The site of the former Rialto Cinema in Dublin has gone on sale through agents BNP Paribas Real Estate with a guide price of €2.5m. The 0.76-acre site fronts onto the South Circular Road and is within walking distance of the Coombe Hospital, St Patrick’s Cathedral and Rialto Luas stop. The selling agent has advised the site would be suitable for a variety of uses including retail, residential, office, hotel and medical centre. The Irish Times, 25th January
Rent Pressure Zones: Rent caps have been extended to a further 24 areas with immediate effect, in an extension of the new rent-pressure zones scheme. The caps, which limit rent increases to 4% p.a., were introduced in Dublin and Cork before Christmas. The new list includes Galway city, as well as 23 towns in Cork and along the Dublin commuter belt, including Bray, Naas, Newbridge, Laytown-Bettystown, Ashbourne and Rathoath. The final list was identified based on recommendations by the Residential Tenancies Board and the Housing Agency. In order for a town to be designated as a pressure zone, the average rent had to have been above the national average, and prices must have increased by 7% in four out of the last six quarters. The Irish Independent, 27th January
Mortgage Approvals: Data released by the Banking and Payments Federation of Ireland (BPFI) shows that the volume of mortgage approvals rose by 29% in December 2016, and rose by 61% compared to November 2015. The statistics show that the average loan size increased by 6% in December 2016, and the annual growth rate in the value of mortgages was 36%. Lending was up 42% in the final quarter of 2016, with the average mortgage valued at €204k. There was a 45% increase in the number of first time buyers entering the market when compared with 2015, along with a 43% spike in the number of mover purchases. Buy to let mortgage approvals increased by 24%, but still account for only 3% of the total number of mortgages. In total, there were approximately 30,000 mortgage approvals over the course of 2016. The Irish Independent, 27th January
Westport House: Westport House in Co. Mayo has been purchased by the Hughes hotel group, in a deal that will see €50m invested in the 455-acre estate. The estate was put on the market in February 2016, with an asking price of €10m (and additional debt of approximately €1m). The new owners run a very successful west of Ireland business dynasty, and also own the four-star Hotel Westport in the county. They have not indicated what they intend to do with the property and surrounding lands, but have stated that they will continue business as usual, and will ultimately invest up to €50m in new facilities over the next five years. The sellers, the Browne family, have run the house since the early 1960s, however difficulties arose after 380 acres of the estate were provided as security on a €6.5m loan taken out by a family member. The loan was subsequently acquired by NAMA, who included it in its Project Arrow portfolio. The property was withdrawn from the portfolio just 24 hours before it was sold to Cerberus following intervention from the Government, amid local fears that the estate could be broken up. The Irish Times, 27th January
DFS Showrooms, Limerick: The DFS showrooms in Limerick City, located on Ballysimon Road, have been sold to a private investor for €2.8m. The high-spec building extends to 22,118 sq. ft. over three floors and contains customer car parking to the front and staff car parking to the rear. DFS currently pay an annual rent of €225k on a 15-year lease running from November 2015. The Irish Times reports that the purchase price will offer the new owners a yield of 7.6% p.a. The Irish Times, 25th January
Howl at the Moon: Press Up Entertainment has purchased the Howl at the Moon pub in Dublin city centre from the Mercantile Group for approximately €3.2m. Press Up acquired the well-known venue on Mount Street in Dublin 2 using a new entity, Shortford. The pub was previously owned by Mercantile company Lunam Management (which had debts of €2.5m), and has 30 employees. The Irish Times, 27th January
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
European Loan Sales: According to US investment bank Evercore, Ireland was the top European country for distressed loan sales for the fourth consecutive year in 2016, fuelled by NAMA’s ongoing loan sales and a large Ulster Bank portfolio sale. 2016 saw c. €12.1bn of Irish loans sold, accounting for almost a quarter of total European loan sales. However, the level of Irish sales declined significantly from the c. €23.3bn of sales in 2015. Cerberus was the most active buyer of loans across Europe for the third year in a row, driven by purchases from NAMA, Ulster Bank and Permanent TSB. Evercore predicts that investors will continue to monitor Ireland due to the possibility of further NAMA loan sales and AIB’s c. €9bn remaining non-core real estate exposure. The Irish Times, 19th January
Project Tolka: US investment firm Colony Capital is due to pay in the region of €455m to acquire Nama’s c. €1.5bn par value Project Tolka loan portfolio, in a deal which is expected to be finalised at the end of January. The deal will see Colony Capital take control of loans linked to developers John Flynn, Paddy Kelly and the Dublin based McCormack family. The portfolio, which reportedly received competing bids from Madison International Realty and Lone Star, includes a number of significant assets, including the Burlington Plaza office complex, the Clarion Hotel in Liffey Valley and Paddy Power’s HQ in Belfield. Although the purchase price suggests a 70% discount on the €1.5bn par value, the Irish Independent reports that the actual discount is less than this, as loans linked to a number of assets were removed before the sale took place. These are believed to include loans linked to Carton House Hotel and a number of development sites (linked to NAMA’s aim to develop 20,000 homes by 2020). The Irish Independent, 19th January
Deane Loan Portfolio: NAMA has sold c. €40m of loans associated with Tony Deane to Ardstone Capital for approximately par value, allowing the businessman to exit NAMA. The loans relate to prime residential sites near Stocking Lane in Rathfarnham, Dublin 16, and the company is planning to begin construction of 350 new homes in May. Mr Dean had previously built up a significant land bank in Rathfarnham over many years, however the economic crisis prevented him from securing finance to complete the development. Ardstone Capital is planning to become one of the biggest housebuilders in the country, with plans to develop c. 3,500 homes. Sunday Business Post, 22nd January
Fumbally Square: Fumbally Square, a complex of offices and apartments close to St Patrick’s Cathedral in Dublin city centre, has been sold to European property investor M7 Real Estate for close to the €24m guide price. The complex, which was put on the market by Markland Holdings, contains 84,000 sq. ft. of offices (with an additional 21,500 sq. ft. available for further development) and four already-let two-bedroom apartments. Planning permission for a further 16 homes on the site lapsed several years ago. Current tenants include Golden Pages, Infineon Technologies and the Institutes of Technology Ireland. The rent roll of the complex was c. €1.7m when it was brought to market, although there is scope to increase this to c. €2m by letting empty offices. M7 has advised that the company is increasingly interested in the Irish market, and expects to add further Irish assets to its portfolio in the future. The Irish Times, 19th January
Fenward House: Appian Burlington Property Fund, a new property investment fund, has agreed the purchase of Fenward House, a 20,000 sq. ft. office building located on Arkle Road in Sandyford, Co. Dublin. The building was sold for c. €5m and is let to a software company with a rent roll rising to €430k from 2017. CBRE acted as the selling agent for the property, and the deal will offer the new owner a yield of c. 8%. The property fund is a sub-fund of Appian Investments ICAV, which was set up by Appian Asset Management in November 2016. The fund will focus on high yielding opportunities in the office, retail and industrial sectors in Dublin’s suburbs and other large cities. The Irish Times, 18th January
12 – 13 Exchange Place: A four-storey office block in Dublin’s IFSC has been sold for almost 20% above the €4.4m guide price sought by agents QRE. The property, located at 12-13 Exchange Place, was offered for sale on behalf of receivers PwC with a vacant 11,351 sq. ft. top floor. However, one of the existing tenants, Elix Aviation, opted to rent the top floor, which triggered a renewed round of bidding before the property was sold to a private Irish investment fund for €5.175m. The rent roll of the property is now €290k p.a., offering the new owners a return of 5.5% after allowing for purchasing costs of 4.46%. The Irish Times, 18th January
Dublin Office Demand: The Irish Times reports that demand for office space in Dublin is at its strongest level for many years, even without including potential relocations from UK based financial services firms as a result of Brexit. Companies such as Facebook, AIB, BNP Paribas, Fleetmatics and Huawei are reportedly seeking office space in the city to either support ongoing business growth, or as a result of relocating from other office accommodation which is scheduled for redevelopment. An unnamed US financial services trader, one of the first overseas companies planning to relocate to Dublin following the Brexit vote, has instructed Cushman & Wakefield to find suitable offices of 40,000 – 50,000 sq. ft. in the city. The Irish Times reports that with 1.8m sq. ft. of office space due to become available across c. 30 developments in 2017, there should be sufficient capacity to accommodate the anticipated demand. The Irish Times, 18th January
Two Docklands Central: Hubspot, the US headquartered technology firm, is to rent the third floor of Two Docklands Central in Dublin’s IFSC, which is currently being refurbished by owners Hibernia REIT. The company currently employs 200 people in Dublin and is planning to create a further 320 jobs over the next three years. The new lease has been agreed at a rent of €52.50 psf for 16,000 sq. ft. on a 19-year lease beginning in Q2 2017, with a break in year 11. This latest rental is in addition to the 27,500 sq. ft. lease the company took in 2016 in the adjoining One Docklands Central at a rent of €45 psf. The Irish Times, 18th January
Hibernia Hanover Street: Hibernia REIT has sought planning permission for a new office development on Hanover Street in Dublin 2. The development would include nearly 27,000 sq. ft. of office space over four storeys. The Sunday Business Post, 22nd January
Blarney Development Site: The site of the former Blarney Park Hotel in Blarney, Co. Cork has come back on the market, with local estate agent Daniel Fleming guiding c. €400k – €500k per acre for the 8.58-acre site. The site, which enjoys a prime location on the western edge of Blarney, has accessible mains services, water and sewers and can accommodate housing, as well as commercial uses such as hotel / leisure, offices and retail. Cork City Council has recognised it as a ‘sensitive site’ due to its close proximity to Blarney Castle, meaning that any future development will need to protect and enhance both the existing character of the area and views of the castle. The site was last formally offered for sale in 2007 / 8 by Savills / DTZ with a c. €20m guide price, when it was pitched as a Village Centre opportunity, with scope for a 130-bedroom hotel. The Irish Examiner, 19th January
Skerries Development: Planning permission has been granted for a €50m development on a 25-acre site in Skerries, north Co. Dublin that will include 24 houses, a luxury hotel and coastal park and a walkway. The 4,000 sq. ft. houses will be built by Munich-based eco-home specialists Baufritz, using pre-fabricated structures incorporating eco-friendly design and materials. The houses will be built in Munich and shipped to Ireland, significantly reducing traditionally lengthy construction lead-in times. The development is being led by internet entrepreneur Michael Branagan and initial work is due to begin later this year. Mr Branagan is in talks with Irish leisure chain Aura about operating the swimming pool and leisure franchise at the resort, and has also begun discussions with global hotel chains about taking over the franchise for the new hotel. The Irish Independent, 22nd January
Eurostat House Prices: According to figures published by Eurostat, the EU’s official statistics body, Ireland recorded the second highest increase in house prices in the European Union during Q3 2016. House prices in Ireland jumped by 4.7% in Q3 2016 when compared to Q2 2016, second only to Malta, where prices rose by 5.4%. The figures show that Eurozone prices as a whole grew at the fastest rate in more than eight years in Q3 2016. The Irish Times, 22nd January
Wicklow Development Site: CBRE is guiding €2.25m for a 1.2-acre site located on Vevay Road in Bray, Co. Wicklow which has planning permission for 16 family homes. The permission provides for a mix of large semi-detached and terraced houses, all within easy walking distance of Bray town centre. The site also includes a period home which can be restored for use as a private residence. The Irish Times, 18th January
Carrickmines Site: Knight Frank is guiding €4m for a two-acre ready-to-go residential development opportunity on Glenamuck Road South in Carrickmines, Dublin 18. The two-acre site has planning permission for 16 four-bedroom semi-detached houses and 12 apartments, all of which will contain surface level car-parking facilities. The four four-bedroom properties will have floor areas of 1,724 sq. ft., while there will be six two-bedroom apartments, three three-beds and three one-beds. Knight Frank is expecting strong interest in the site, which is within 1.1km of the Ballyogan Luas stop, given the lack of ready-to-go development opportunities in the area. The Irish Times, 18th January
Eir Dublin Sites: Eir has found buyers for two of its sites in Dublin, the first of a number it is planning to sell. One has been sold to a car sales company, which will pay in excess of €4m for a 3.74-acre site in Sandyford Business Park, which includes a 12,000 sq. ft. two-storey office building, outbuildings, stores and a carpark which are producing an annual rental income of c. €214k. The second site is located in Clondalkin and was sold for more than the €5.4m asking price. It extends to 35.45 acres along the M50 corridor and has full planning permission for a 30MW data centre. The site also includes two-storey offices which extend to 22,948 sq. ft. with an adjoining 39,524 sq. ft. warehouse on tarmac grounds of 20.5 acres, and an additional 13.92 acres of undeveloped land. Both sales were handled by agents BNP Paribas Real Estate. The Irish Times, 18th January
Rent Controls: According to research from Lisney, recently introduced controls on residential rents will have consequences for both the investment market and the supply of new rental stock. It claims that while the recently announced ‘rent pressure zones’ (whereby rental increases are limited to 4% p.a. or 12% over three years) are a positive step for tenants, they may deter new landlords from entering the market, and persuade existing landlords to exit, thereby reducing the already low number of rental properties available. The company also flags that construction cost inflation began to cause some problems for forward funding deals in late 2016, and is likely to grow in significance in 2017. According to Lisney, cost inflation is currently much higher than normal, and is currently over 6% annually. With regards to the new Dublin city development plan, Lisney believes that the ambition to keep Dublin as a low-rise city is no longer viable. The Irish Times, 18th January
Rathcoole Distribution Centre: Irish Life has acquired a purpose-built distribution centre at Aerodrome Business Park in Rathcoole, Co. Dublin for c. €28m. The high quality distribution centre is located in the ‘golden triangle’ of distribution hubs in greater Dublin, with easy access to the M7, M50 and national roads network. The building has a gross external area of 172,295 sq. ft., and includes three-storey offices extending to 10,629 sq. ft. It is fully let to Culina Logistics Ireland Ltd on a long lease from January 2010 at a current rent of €1.8m, offering the new owners an initial return of 6.25%. William Harvey & Co advised the vendor. The Irish Times, 18th January
Claregalway Corporate Park: Cushman & Wakefield is quoting €4m for nine partially occupied warehouse buildings and three serviced sites located at the front of Claregalway Corporate Park in Co. Galway. Only three of the nine units in the park are let, generating current rental income of €62,283. The nine buildings extend to 72,130 sq. ft., while the three sites at the front extend to 1.3 acres and previously had planning permission for detached units with a combined floor area of 40,900 sq. ft. The selling agents plan to sell the warehouse units either individually or a single lot. The park, which was developed in 2007 and is now under receivership of EY accountants, is located around 12km from Galway City on the M6 motorway. The Irish Times, 18th January
Airways Industrial Estate: The sale of two adjoining industrial buildings at Airways Industrial Estate in Santry, Dublin 17 has been completed for €3.21m. Joint selling agents TWM and Cushman & Wakefield completed the sale of the properties to the Yew Tree Commercial Property Fund, who is guaranteed a nine-year income stream from current tenants Essentra Packaging Limited, before a break option kicks in in year 10. Both buildings are rented to Essentra, and extend to a combined area of 87,659 sq. ft. Both leases run for 15 years (with break options in year 10), and a rent of €300k p.a. applies in years one to four, rising to €320k in year five, with open market reviews every five years from 2020 onwards. The current rent equates to c. €3.41 psf, and the initial yield will be c. 8.95%. The Irish Times, 18th January
Amazon Data Centre: Amazon has sought planning permission for an additional 151,000 sq. ft. data centre at Clonshaugh in north Dublin, where is it currently completing an 180,000 sq. ft. facility. The company’s master plan for the 37-acre site involves building an additional two similar sized data centres over the next three to five years. Amazon has existing data centres at Blanchardstown and Tallaght in Dublin, but these are at maximum capacity according to the company, therefore additional facilities are required to meet demand for its online services. The new €600m facility would create several hundred construction jobs, and up to 120 full-time high tech positions once operational. According to company figures, Amazon has invested €2.2bn in infrastructure in Ireland, and employs 2,200 people, with a further 500 new jobs planned over the next two years. The Sunday Times, 22nd January
The Globe Pub And Nightclub: Property developer Jerry Conlan has bought The Globe pub and nightclub in Dublin from developer Greg Kavanagh for c. €3m. Mr Conlan owns the nearby Central Hotel and has previously been involved in developments such as the 400-acre Millennium Park business park in Co. Kildare and Mount Carmel Medical private hospital in Kilkenny. The Sunday Business Post, 22nd January.
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
2016 Review / 2017 Outlook: CBRE’s 2016 review of the Irish commercial property market reveals that c. €4.5bn of investment transactions were completed, with the sales of Blanchardstown Town Centre and Liffey Valley Shopping Centre being the most significant (over €1.5bn combined). Prime rents in each commercial sector rose in 2016, with office rents reaching €62.50 psf, Zone A retail rents on Grafton Street approaching €600 psf (c. 11% increase) and industrial rents nearing €8.75 psf (over 25% increase). While prime rents in each sector are projected to continue to rise in 2017, it is the industrial sector which CBRE is expecting to perform best, with growth of c. 13.9% anticipated. Prime office rents in Dublin are projected to increase by 1.9% and high street retail rents are projected to grow by nearly 8%. CBRE, Ireland Real Estate Outlook 2017
Dublin Retail Rents: According to research from Capital Economics, retail rents in Dublin have risen by c. 43% between the beginning of 2013 and Q3 2016, the strongest rate of growth in any Eurozone city covered by their research. The report states that rising rents have been supported by the growth in consumer spending, which has been underpinned by a strengthening labour market and strong wage growth. However, the rate of growth slowed significantly in 2016 (in annual terms, rents grew by almost 4% in Q3 2016, compared with growth of 38% in Q1 2015), as factors such as political instability and the Brexit result have weighed on consumer confidence. Capital Economics expect Ireland to experience some of the strongest consumption growth in the Eurozone this year, as a result of the strengthening labour market, supply shortages in key areas such as Grafton Street and the opening of Luas Cross City, improving access to and increasing footfall in Dublin’s prime shopping locations. Capital Economics, January 2017
Park Shopping Centre: Park Shopping Centre Ltd, the owners of the 12-unit Park Shopping Centre on Prussia Street in Dublin 7, has lodged an application with Dublin City Council to demolish the existing centre and construct a new shopping centre and major student accommodation complex. The application seeks approval for the construction of a new 7-storey development featuring three levels of retail space and 540-bedspaces of student accommodation in 105 residential units. A surface / basement carpark with 117 spaces is also included in the application. Nama Wine Lake, 15th January
9 Merrion Square: Lisney is guiding over €3m for a vacant Georgian four-storey-over-basement office premises at 9 Merrion Square in Dublin 2. The mid-terrace house dates from 1960, and will offer buyers an opportunity to convert one of Dublin’s grand Georgian houses into a prestigious home. The property extends to 5,942 sq. ft. and comes with five car-parking spaces at the rear. The property is currently reported to be in exceptional condition, and retains many original period features including crystal light fittings, sliding sash windows and a fireplace. The Irish Times, 11th January
Dublin 8 Development: Como Lake Ltd, a British incorporated company, has lodged an application with Dublin City Council to demolish a 20,000 sq. ft. print works in Dublin 8 and construct an 80,000 sq. ft. four-storey office building. The 0.6-acre site is located on Donore Avenue and is adjacent to the Grand Canal. Nama Wine Lake, 15th January
Ship Street Hotel: A company backed by Eamon Waters of Panda Waste has received planning permission from Dublin City Council for a seven-storey, 124-bedroom four-star hotel located on Ship Street, near Dublin Castle. It is believed the new hotel will cost up to €30m to build, and will also include meeting rooms, a gym, a bar and a restaurant. Waters acquired the 0.2-acre site for c. €4m. Sunday Times, 15th January.
Docklands Hotel: A company controlled by Paddy McKillen Jnr and Matt Ryan has been granted planning permission by Dublin City Council for the development of a new hotel at 82 North Wall Quay in Dublin’s docklands. The new hotel will contain 60 bedrooms, a rooftop bar and restaurant, a ground floor bar and restaurant and a coffee shop and terrace area. The project will involve the restoration of the neighbouring 19th century building at 81 North Wall Quay, returning it to its use as a former pub. The two buildings will be joined internally on the ground floor, and an additional two floors will be added to Number 82, resulting in a five-storey building. Construction is due to begin in the next three months, with the hotel scheduled to open for business at the end of 2018. The Irish Independent, 12th January
Hew Housing Completions: Figures from the Department of Housing have shown that in the first 10 months of 2016, just under 11,800 homes were completed nationally, with a full-year figure of less than 15,000 expected. This is significantly below the minimum of 25,000 housing units which are currently required p.a. Although there are currently 126 ‘active’ sites in Dublin (with 5,500 homes under construction), The Irish Independent questions why large swathes of land, particularly in Dublin, aren’t being developed for housing, particularly when planning permission is in place in many instances. It highlights that there are 331 sites in Dublin which are capable of delivering an additional 23,746 housing units. In addition, data shows that 10 developers have obtained planning permission to build 11,928 homes. However, only 1,935 of these have been completed, with a further 1,010 under construction, leaving 8,983 units with planning permission which are not currently being developed. Reasons cited for the failure to build homes include difficulty assessing development finance and high building costs. The Irish Independent, 14th January
Dundrum Development Site: CBRE is inviting offers of €4m for a residential development opportunity in Dundrum, Dublin 14. The 1.8-acre site is located on Taney Road, and includes two houses – St Anne’s and Annefield House, a two-storey over basement double fronted dwelling. According to CBRE, there is scope to develop a further 12 houses on the site, which could vary from mews buildings to large detached properties. The Irish Times, 11th January
Kilkenny Investment: CBRE is guiding c. €3.95m for 13 residential units and an additional development site close to the M9 motorway at Castlecomer Road in Kilkenny. The properties consist of three large five-bedroom houses, four four-bedroom semis, one three-bedroom duplex apartment and five two-bedroom apartments. Of the 13 homes, ten have been fully completed, while three require further fit-out. The development site extends to 1.7 acres, and has lapsed planning permission for a further seven houses. The Irish Times, 11th January
Clonskeagh Development: Gannon Homes has begun the site preparation for a new apartment development on a three-acre site in Clonskeagh, Dublin 6. The new homes will be larger than usual, and will contain 78 two-bedroom units and 18 one-bedroom units, with 14 penthouses in total. The apartment scheme is expected to be completed by 2018, with selling prices expected to be in the €600k – €700k+ range. The four-storey building will be set back at penthouse level, and will have a landscaped courtyard, river views, weir and tree-lined banks. The Irish Times, 11thJanuary
Docklands Residential Figures: According a report by auctioneer Owen Reilly, Dublin’s docklands saw a marked rise in both purchase and rental prices in 2016. The report states that residential property prices rose by 11.7% and rents rose by 12.1%, with asking prices being significantly higher than those seen generally in Dublin city centre. 72% of properties in the area were bought for investment purposes, and 76% of purchases were made with cash. The report found that 72% of purchasers were Irish, while 85% of tenants who rented properties in the docklands were from overseas. The Irish Times, 11th January
Mortgage Interest Rates: New figures from the Central Bank show that the weighted average interest rate on new mortgage agreements was c. 3.38% in November 2016, representing a decrease of 28 bps YoY. This rate is still substantially above the Euro Area rate, which was c. 1.72%. The weighted average interest rate on new variable rate mortgage agreements was c. 3.38%. Variable rate mortgages accounted for two-thirds of all new mortgage agreements over the last year. Central Bank of Ireland, Retail Interest Rates – November 2016
Rural Housing Restoration Grant: Home buyers could be offered renovation grants to restore properties in small towns and villages as part of the Government’s Action Plan for Rural Development which is being brought before cabinet today. The scheme is aiming to attract all house buyers, but specifically older people and first time buyers, back into rural communities which suffered as a result of unemployment during the recession. As part of the scheme, young people who purchase homes in designated rural towns would receive cash grants to renovate their homes, and would also be eligible for the tax relief available under the new first-time-buyers scheme. It is hoped the grant will also encourage older people living alone in more rural locations to move into town centres where more services and social interaction is available. The scheme is currently believed to be at an early stage of development, and could be introduced initially on a pilot basis. The Irish Independent, 17th January
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
NAMA Loan Book: In the past week NAMA has issued a tender document seeking a panel of six loan sales advisors for its remaining loan book. According to the tender document, the estimated value of NAMA’s loans at the end of 2016 was c. €5bn, with the majority of the loans being European-based. NAMA is seeking advisors for a four year period, which suggests that NAMA will not seek to dispose of all of its remaining assets quickly. NAMA Wine Lake, 8th January
KBC Portfolio Sale: KBC Bank has sold a small portfolio of over 100 loans which consist of unsecured residual mortgage balances to credit-servicing and debt-collection firm Cabot Financial Ireland. The mortgage loans were previously secured by homes or buy-to-let properties which have now been sold. The par value of the portfolio and the purchase price paid by Cabot have not been disclosed. The Irish Independent, 10th January
Zanzibar Hotel: The Luxembourg-based aparthotel group Lockeliving.com has completed the purchase of the former Zanzibar hotel site on Dublin’s Lower Ormond Quay, having paid over €10m to acquire the site. The group plans on spending c. €45m in total developing the site into a 100-plus bedroom facility which will cater for both corporate and leisure customers. The site had planning permission for 89-bedrooms, however Eric Jafari of the SACO Property Group (who developed the Locke brand) advises that they will be seeking fresh planning consent from Dublin City Council for an increased number of rooms. The Irish Times, 9th January
Dublin Airport Hotel: A British company linked to Carlton Hotels is looking to develop a new five-storey, 100-bedroom hotel alongside the current four-star, 100-bedroom Carlton hotel near Dublin Airport. There is currently a strong pipeline of hotel beds near Dublin Airport, as CG Hotels recently received planning permission for 275 new bedrooms alongside its Radisson Blu hotel and Dalata has planning permission for a 140-bedroom extension to its Clayton Hotel. The DAA is also currently seeking a developer for a new 402-bedroom hotel which will be linked to Terminal 2 in the airport. The Irish Independent, 6th January
Walford Dublin 4: A trust connected with Dermot Desmond has acquired Walford, a mansion on Shrewsbury Road in Dublin 4, from a Cypriot company called Yesreb Holdings Ltd. The property, which was once the most expensive house in Ireland, was previously purchased for c. €58m by a trust called Matsack (whose beneficiary was Gayle Killilea-Dunne, the wife of Sean Dunne) before being acquired by Yesreb in 2013. The recent sale is likely to lead to the development of its 1.8-acre site, which is located in one of the most prestigious locations in Dublin. Sunday Business Post, 8th January
Bartra Blackrock Project: Bartra Property, the investment group founded by Richard Barrett, has paid c. €3m for Glensavage, a manor house in Blackrock, south county Dublin. The group has already sought planning permission to demolish the property and construct a new infill development, which will include five five-bedroom houses and 16 apartments in two three-storey blocks. The company recently sought planning permission to demolish Cedar Lodge on Dublin’s Merrion Road, and build 19 homes in its place. The Sunday Times, 8thJanuary
Aungier Street: The British serviced-apartment group Marlin has paid c. €2.6m to acquire three properties at 22 – 24 Aungier Street in Dublin city centre. The Sunday Times reports that Marlin will now seek to develop a restaurant and retail units on the ground floor and apartments overhead. Marlin recently began the construction of a c. €60m, 300-bedroom hotel on Bow Lane, which is directly behind the Aungier Street site. The Sunday Times, 8th January
Myhome.ie / Davy Report: A new report from property website myhome.ie and stockbroking firm Davy predicts that property prices will rise by at least 8% in 2017, with a “distinct possibility” of double digit growth. The report predicts that growth will be fuelled by the launch of the new ‘Help-to-Buy’ scheme, looser mortgage lending rules and constrained supply. The predicted increase comes on the back of CSO figures which show that property prices rose by 7.1% in the year to October. In addition, the number of properties for sale across the country has fallen to a 10-year low, with just 20,875 homes for sale on the myhome.ie website. This represents approximately 1% of Irish housing stock, whereas a normally functioning housing market would typically see turnover of around 4%. Trinity College economist Ronan Lyons has advised that almost 50,000 new properties are required each year to meet demand caused by demographic trends, housing obsolescence and migration, however only c. 14,000 were built in 2016. The Irish Times, 3rd January
Help-to-Buy (HTB) Scheme: Over 800 applications have been made for the new HTB scheme for first time buyers (FTBs) since it was launched on January 3rd 2017. So far 828 FTBs have completed the online application form for the scheme, which allows for a refund of income tax and DIRT (but not USC or PRSI) paid over the previous four years, so that it can be used towards buying a new house or apartment. The scheme allows for up to 5% of the purchase price of a new property to be claimed back, up to a maximum of €20,000. A price ceiling of €600k applies to homes purchased between July 19th and December 31st 2016, reducing to €500k for properties purchased this year. If all applicants to date were to secure the full €20,000 rebate, €16.56m in tax would be foregone. The Irish Independent, 7th January
Dublin Pub Sales: According to CBRE, 30 pubs were sold in Dublin in 2016, generating total sales proceeds of c. €43m. This figure was higher than the c. €40m recorded in 2015, even though five fewer pubs were sold. Demand for licenced premises in Dublin has risen as the economic recovery continues (for example, the total value of transactions involving pubs in 2010 was less than €5m). CBRE noted that there are now fewer distressed sales in the pub sector, with a notable increase in the number of consensual sales over the last 12 months in particular. The Irish Independent, 9th January
Amazon Data Centre: Online retailer Amazon is due to build a further multi-million Euro data centre in Tallaght in south Dublin, where it already operates four data centres. The company recently acquired an additional site in the area, which was previously used as the base of warehousing and distribution firm Barretts. Amazon has since applied for planning permission to demolish the existing buildings, with a view to constructing a new data centre. The company has several other data centres throughout Dublin, which it uses both for its own operations and to offer data hosting to other companies, with clients including Airbnb and Unilever. The Irish Independent, 7th January
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie