Budget 2017 Review: At the unveiling of the 2017 Budget, the Minister for Finance Michael Noonan announced a number of incentives designed to boost the residential market. The most significant incentive was the introduction of a help-to-buy scheme for first-time buyers (FTBs). Under the terms of the measure, FTBs can reclaim up to 5% of the value of the property via an income tax rebate. The scheme applies to homes valued at a maximum of €600k and the maximum rebate is €20k. The scheme only applies to new builds (both off-plan and self-built homes). Other measures announced by Minister Noonan were (i) the extension of The Home Renovation Incentive Scheme until 2018 (ii) interest relief for landlords was increased from 75% to 80% and (iii) homeowners who rent out rooms in their family home can now earn €14k p.a. tax free, an increase of €2k. The Irish Times, 12th October
Dublin Retail Parks: Research by BNP Paribas Real Estate shows that Dublin’s retail parks, many of which were badly affected by the crash, are now operating at close to capacity due to the recovery in consumer spending. According to the research, less than 4% of the floor space in Dublin’s 14 retail parks is available to let, while eight of the parks are fully occupied. With no new retail parks being built, and the population of Dublin having risen by 5% since 2011, rents are expected to rise, making it more difficult for overseas stores to enter the market. The Irish Times, 12th October
Magellan Portfolio: BNP Paribas has set an asking price of over €49.5m for the Magellan Portfolio, which consists of four commercial properties in Dublin. The prized asset in the portfolio is 1 Upper Hatch Street in Dublin 2, an eight-storey, 29,622 sq. ft. office block where Deloitte is the primary tenant. The rent roll from this property is c. €1.4m p.a. The other properties are a logistics facility at Unit 21 in Fonthill Business Park (84,129 sq. ft.), a mixed-use retail and office investment known as Maple House in Stillorgan (11,960 sq. ft.) and a logistics building at Unit 2 in Swords Business Park (24,875 sq. ft.). The total rent roll of the portfolio is c. €2.4m p.a., offering a net initial yield of 4.7%. According to BNP, there is potential to increase the rental income to c. €2.9m p.a. through active management. The Irish Times, 12th October
Blackrock Business Park: Lisney is guiding €11.2m for a substantial office investment and development opportunity at Blackrock Business Park in Mahon, Cork. The sale includes 97,572 sq. ft. of office space which is situated on a 10.5-acre site, where there is planning permission for two further office properties. The single storey, 97,572 sq. ft. building (laid out in three divisions) is producing rental income of c. €858k p.a. Tenants include Abtran Business to Business (65,800 sq. ft.) and RCI Call Centre (Ireland) (20,500 sq. ft.). The remaining 11,200 sq. ft. of office space is vacant at present. According to Lisney, the net initial yield of 7% will rise to 8.7% when the building is fully let. The Irish Times, 12th October
Q3 2016 Take-Up: New figures from JLL show that take-up in the Dublin office market strengthened in Q3 2016, with lettings agreed on almost 730,000 sq. ft. of space across 44 deals. With over 600,000 sq. ft. reserved for Q4 already, JLL expect 2016 to be another strong year, with the potential to reach similar levels to 2015 of c. 3,000,000 sq. ft. Demand remains firmly focussed on the city centre (accounting for 72% of take-up) with Dublin 2 the most sought after location. 61% of demand was for lettings less than 10,000 sq. ft., but there were also three deals for over 50,000 sq. ft. including the pre-let of 13-18 City Quay to Grant Thornton. Technology, media and telecommunications continue to be the key drivers of demand, accounting for 32% of Q3 deals. The Irish Times, 12th October
Sandyford Redevelopment Site: Offers in excess of €6.5m are being sought by Knight Frank for a 1.66-acre ready-to-go redevelopment site in Sandyford, south Dublin. There is currently 26,802 sq. ft. of office and industrial space on site. This existing property is likely to be demolished however, as planning permission was recently secured for an office development which will have a gross floor area of 218,120 sq. ft. The Irish Times, 12th October
Harcourt Centre: The Spanish fashion giant Inditex will pay a rent of €58.50 psf to lease 3,608 sq. ft. of office space on the penthouse floor of Block 5 of the Harcourt Centre in Dublin city centre. Inditex, which handles brands such as Zara and Massimo Dutti, has signed a ten-year lease for the space. Knight Frank is also marketing the fourth floor of the property, seeking a rent of €60 psf for the 3,795 sq. ft. of floor space. The Irish Times, 12th October
Spruce House: The Office of Public Works has submitted a new application to Dublin City Council for the refurbishment and extension of Spruce House on Leeson Lane, beside St. Stephen’s Green. Spruce House is a derelict, part demolished building which has a listed status. The plans cover the refurbishment of the existing building and the construction of a new 75,000 sq. ft. seven storey over-basement building to the rear, providing 85,000 sq. ft. of office space in a prime Dublin 2 location. NAMA Wine Lake, 16th October
Tifco Travelodge: The Irish Times reports that Tifco, the Irish hotel group backed by Goldman Sachs, looks set to take over the company behind the Travelodge franchise in Ireland, adding 12 hotels to its portfolio. The sale price is unknown, but is believed to reflect the fact that a number of the properties are leased rather than owned outright. The deal, which will have to be approved by the Competition and Consumer Protection Commission, will consolidate Tifco’s position as Ireland’s second largest hotel operator after Dalata. Tifco currently owns seven hotels (including three Crown Plazas) and manages a further seven. The Irish Times, 14th October
Ballykisteen Hotel: The 4-star Ballykisteen Hotel and Gold Resort in Co. Tipperary has been acquired by Great National Hotels and Resorts, and will be managed by sister company GN Asset management. The 40-bed hotel is understood to have changed hands for well in excess of the €2m asking price, and the new owners plan a substantial investment program to upgrade the property. The hotel is understood to be a particularly popular venue for weddings and leisure breaks, and includes an 18-hole golf course which is situated on 114-acres of rich farming hinterland. The Irish Times, 12th October
Limerick Investments: Cushman & Wakefield is guiding €14m for two prime Limerick investments. The first opportunity is the residential element of the Carlton development on Henry Street, which is guiding €9.5m. The property contains 67 apartments which are fully let and producing rental income of c. €587k p.a. The second property for sale is 1 Bishopsgate, which is also on Henry Street. The five-storey over-basement block contains 18,424 sq. ft. of Grade A office space and 10 parking spaces. The block is fully let to Holmes O’Malley Sexton Solicitors for c. €275k p.a. on a 31-year lease which has c. 18 years remaining. The Irish Times, 12th October
Dublin 18 Site: Lambert Smith Hampton (LSH) is seeking offers of c. €4.75m for a site of 2.8-acres on Brennanstown Road, Dublin 18. A feasibility study has shown that the site could accommodate up to 16 four- and five-bedroom houses, equating to c. €297k per site. The development land is located directly opposite the proposed entrance to Barrington Towers lands owned by Cairn Homes. The Irish Times, 12th October
Tallaght Development Site: Savills is guiding €4.5m for a 2.2-acre site located beside The Square shopping centre in Tallaght, Co. Dublin. The site has planning permission for a five storey, c. €40m leisure and retail complex, for which the planning permission was recently extended until 2020. The site, which was acquired for c. €20m by developer Bernard McNamara prior to the economic downturn, was later sold to Oaktree Capital as part of a portfolio of non-performing loans. The Irish Times, 12th October
Hanbury Mews: Lisney is quoting €4m for 25 one- and two-bedroom apartments in Hanbury Mews in Dublin 8. The apartments were developed in 2008 and are being sold on the instructions of statutory receiver David Carson of Deloitte. Based on the asking price, the purchase price of the apartments will work out at €160k each. The initial yield is 6.3% (based on the current rent roll of c. €252k p.a.), however when two of the apartments currently used to facilitate viewings are let, this will rise to a gross yield of 8.63% (based on a rent roll of €345k). The Irish Times, 12th October
Rental Figures: New figures from Savills reveal that c. 850k people in Ireland live in rented accommodation, of which c. 329k are living in Dublin. The figures show that c. 312k households rent their home in Ireland, with c. 122k homes renting in Dublin. The demand for rental accommodation has also led to a substantial increase in rents. According to the CSO, rents rose in Ireland by 1.9% in September 2016, the single largest monthly increase since November 2007. The annual rate of rental growth in the state was 9.6% for the period ending September 2016. The Irish Independent, 18th October
Huntstown Business Park: Agents CBRE and JLL are guiding €10.1m for a high quality logistics facility in Huntstown Business Park, Ballycoolin, Dublin 15. The facility contains logistics and office buildings which are rented to Coca Cola HBC under two separate 25-year leases from 2010, with no break options and upwards only rent reviews every five years. The combined rent of the buildings is c. €633k p.a., offering an initial yield of 6%. The office is used as Coca Cola’s Irish HQ, while the company plan to sublet the warehouse as it no longer complies with their business model. The detached office block has a floor area of 33,677 sq. ft. and 114 car parking spaces, while the logistics unit has a 10m eaves height, 10 loading bays and two-storey offices extending to 78,550 sq. ft. The Irish Times, 12th October
Central Bank Buildings: The Sunday Times reports that Martin Keane, owner of the Oliver St. John Gogarty pub and Blooms Hotel in Temple Bar, is planning to bid for two city centre buildings being sold by the Central Bank. The properties which Mr. Keane is reportedly interested in are 6-8 College Green (asking price €14m) and 9 College Green (which should sell for over €2m). The buildings adjoin his 100-bed Blooms Hotel, and he is planning to redevelop the entire block if he is successful. The publican is not expected to bid for the main Central Bank building and two connected blocks. The Sunday Times, 16th October
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Project Oyster: Cerberus has acquired the c. €2.5bn par value Project Oyster loan portfolio from Ulster Bank for an undisclosed amount. The portfolio consists entirely of distressed loans, and 95% of the loans have been in arrears for two years or more. Business loans make up 71% of the portfolio, with buy-to-let mortgages (19%) and owner-occupier mortgages (10%) accounting for the remainder. By value, c. €2.15bn of the loans are based in the Republic of Ireland with the remainder in Northern Ireland. The Irish Times, 10th October
Hermitage Clinic: AIB has acquired a portfolio of loans from NAMA which are secured by the 101-bed Hermitage Clinic in Lucan, south Dublin. While the loans were originally worth c. €40m, it is unclear how much AIB has paid to acquire them. The loans were originally taken out by a syndicate of 72 individuals, which included Sean Mulryan and Larry Goodman. The clinic had turnover of c. €57m and profits of c. €4.2m in 2015. The Sunday Business Post, 9th October
Liffey Valley Shopping Centre: The Irish Times reports that the German pension group Bayerische Versorgungskammer is leading the race to acquire the Liffey Valley Shopping Centre in west Dublin, after bidding over €600m. The shopping centre is currently owned by a consortium of Hines, HSBC Alternative Investments and the Grosvenor Group. Although some market sources have indicated that the German fund has already been chosen as the preferred bidder, this has not been confirmed. The Canadian Pension Plan Investment Board, which previously bid on the Blanchardstown Centre, is also believed to be interested in Liffey Valley Shopping Centre. The Irish Times, 11th October
L’Oréal Grafton Street: L’Oréal has agreed to sublet No. 50 Grafton Street in Dublin city centre from Three. The unit will now trade under one of L’Oréal’s brands, which include Lancóme, Urban Decay and Giorgio Armani beauty. The property is owned by Irish Life, who purchased it for c. €6.75m in June. There are over seven years left on Three’s lease. The Sunday Times, 9th October
Capital Gate: The development company Genvest has sought planning permission for Phase One of Capital Gate, a suburban office scheme located c. 1.5km from Dublin Airport. The project is located at the junction of the M1 and the M50 on a c. 32-acre site. Phase One seeks approval for the development of c. 253,000 sq. ft. of office space across three blocks. The projected development cost of Phase One is c. €80m. According to industry observers, Capital Gate could facilitate up to c. 1.1m sq. ft. of office space. The Irish Independent, 6th October
Treasury Building: CBRE is guiding €33m for the freehold interest in the Treasury Building on Lower Grand Canal Street in Dublin 2. The property is currently let to high quality tenants such as the NTMA, NAMA, and the insurer Perrigo. The freehold interest equates to a 33.33% stake in the property, thereby valuing the property at c. €100m. The remaining 66.67% is owned by Ambiorix Ltd, who redeveloped the property in 1989. Ambiorix Ltd is controlled by Paddy McKillen and Johnny Ronan. The freehold interest is owned by Percy Nominees, who acquired their stake in 1989. When acquiring their stake in the property, Percy also agreed to give Ambiorix a 10,000-year lease in exchange for 33.33% of the rent roll. With the annual rent at c. €5.482m, the owner of the freehold interest will receive c. €1.83m. The property has a floor area of 125,066 sq. ft. over six floors and 110 car spaces on site, with a further 24 car spaces secured via a licence agreement on Clanwilliam Place. The property has a capital value of c. €800 psf and offers a net initial yield of 5.25%. The Irish Times, 5th October
Dublin Landings: Sean Mulryan’s Ballymore and Oxley Docklands Quay Ltd have begun the development of a new business district on a c. 5.8-acre site in Dublin’s North Wall Quay. The development of the Dublin Landings project will cost c. €700m and will see the development of c. 700,000 sq. ft. of office space across five blocks and 273 luxury apartments (a mix of one, two, and three-bed units). The development will be built over the next 4 years and the first office tenant, the NTMA, is expected to be in situ by Summer 2018. The Irish Times, 6th October
RGRE Ballsbridge: Johnny Ronan’s Ronan Group Real Estate (RGRE) has received final approval from An Bord Pleanála for the development of c. 325,000 sq. ft. of office space in Ballsbridge, Dublin 4. The site is located to the front of AIB’s HQ and there are a number of vacant blocks on the site at present. These blocks will now be demolished and replaced with two new blocks. Following the approval from An Bord Pleanála, the project looks set to commence in the next few months. Ronan acquired the c. 3.7-acre site in 2015 for c. €67.5m The Irish Independent, 6thOctober
Lower Mount Street: Credit Suisse is believed to be the front runner in the race to acquire an office block under construction at 100 Lower Mount Street in Dublin 2. The investment manager of the project is Ardstone Capital and Savills is marketing the property. The Sunday Business Post, 9th October
Golden Lane, Dublin 8: Offers of €15m are being sought by Lisney for a c. 31,000 sq. ft. office block at 31 – 36 Golden Lane in Dublin 8. The three-storey block, which was formerly known as Woodchester House, is currently occupied by GE Capital Markets, however they will vacate before September 2017. Once the block is vacated, the new owner will be free to either undertake a substantial redevelopment opportunity, or else seek planning permission to add one or two floors. The Irish Times, 5th October
Anglesea Street: The Irish Stock Exchange (ISE) has secured planning permission for a c. €10m project to expand its existing offices on Angelsea Street in Dublin 2. The project will be undertaken on the ISE’s main office at 24 – 28 Anglesea Street and the adjacent Armoury Building, which the ISE acquired for c. €2.7m in 2015. Upon completion, the ISE will have over 35,000 sq. ft. of office space, an increase of over 15,000 sq. ft. The Sunday Business Post, 9th October
Hawkins House: NAMA, their receivers Mazars and the OPW have suffered a setback in their proposed redevelopment of Hawkins House and Apollo House in Dublin 2. The planning application to demolish the existing properties and replace them with buildings ranging from five to 12-storeys was submitted to Dublin City Council in June 2016. The council has now requested further information, as they are concerned that the existing proposal “will not make a sufficient contribution to improving the environment of Poolbeg Street”. The Irish Times, 5th October
Sandyford Development: Ardstone Capital has received planning permission for their c. €120m office development project in Sandyford, Co. Dublin. The project will see the development of 5 five-storey office blocks, which will provide c. 430,000 sq. ft. of office space. The Sunday Business Post, 9th October
Citywest Development: Dali Properties Ltd has sought planning permission for a c. €10m office development project in Citywest, Dublin 24. The application seeks approval to develop two three-storey properties which will provide nearly 86,000 sq. ft. of office space. The Sunday Business Post, 9th October
Bray Office Block: An unnamed Irish company has paid over €11m for a 35,198 sq. ft. office block let to the HSE in Bray, Co. Wicklow. The HSE occupy Block B of Bray Civic Centre on a lease which still has over 11 years remaining. The current rent of €917k p.a. is subject to upward-only rent reviews every five years. The property includes 65 car spaces. The Irish Times, 5th October
25 Merrion Square and 25 Denzille Lane: Murphy Mulhall is inviting offers of over €3.5m for a Georgian property on 25 Merrion Square and 25 Denzille Lane in Dublin city centre. The five-storey over basement property has a floor area of over 8,709 sq. ft. and there is a modern mews to the rear. The current rental income is c. €213k p.a. from tenants which include DLS Capital Management and the Reputations Agency. The property has 17 car spaces to the rear. The Irish Times, 5th October
Sandyford Business Park: BNP Paribas is quoting €3.25m for two mid-terrace office properties which contain warehouse space to the rear in Sandyford Business Park in south Dublin. Unit 5 has an asking price of €2.25m, extends to 7,503 sq. ft. and is let to Festo Ltd at c. €165k p.a. Unit 2 is for sale at €1m, extends to 4,660 sq. ft. and is let to Fonua Ltd at c. €100k p.a. The Irish Times, 5th October
Lisney Research: The latest research from Lisney shows that prime office rents in Dublin city centre are continuing to rise, despite there being more than 3m sq. ft. of office space under construction in Dublin. Rents of €65 psf are now being sought for three developments (5 Harcourt Road, Three Park Place and 10 Molesworth Street). These rent levels are more than double the €30 psf sought at the bottom of the market. The Sunday Business Post, 9th October
Tower Hotel: FBD Hotels & Resorts has agreed to sell the Tower Hotel in Co. Waterford to the Neville Hotel Group for an undisclosed amount. The sale is expected to be completed within the next 30 days and the trading in the hotel will be unaffected by the sale. The Neville Hotel Group already own the Kilkenny River Court hotel in Kilkenny and the Royal Marine hotel in Dublin. The Irish Times, 10thOctober
Cork Street: Knight Frank is guiding over €7m for a c. 0.87-acre student accommodation site in Cork Street in Dublin 8. The site comes with planning permission for 182 bed spaces and 33,368 sq. ft. of commercial space, which was granted in 2009. However, this application was granted on the basis that a commercial operation on the site remained untouched. This condition is no longer applicable and a new feasibility study states that the site could now facilitate 431 bed spaces and 15,069 sq. ft. of retail space. The Irish Times, 5th October
Castleforbes Square: Hooke & MacDonald is inviting offers of €7.5m for 28 apartments in Castleforbes Square in the north Dublin docklands. The apartments are being sold on the instruction of the receiver, David Carson of Deloitte. The 28 apartments consist of nine one-beds, nine two-beds and ten three-beds. Although one unit is not let as it is used for viewing purposes, the remaining 27 apartments are generating rental income of c. €437k p.a. The Irish Times, 5th October
Blackhall Place: Savills has launched the sale of 9 – 13 Blackhall Place in Dublin 7, a student accommodation and office investment opportunity which is expected to sell for more than €10m. There are three blocks included in the sale. The first two blocks contain 33 residential units which provide 109 bed spaces, while the third block extends to 33,825 sq. ft. and is split into 19 office suites. The current rental income from the residential units is c. €640k p.a. and the office units provide rental income of c. €335k p.a. The properties offer an attractive net initial return of c. 9.33%. The Irish Times, 5thOctober
Loughton House: Former Health Minister James Reilly has agreed to sell his Loughton House property in Moneygall, Co. Offaly to an unnamed investor. The c. 15,000 sq. ft. property had been on the market through Ganly Walters, who now advise that a deal has been agreed to acquire the property and c. 90 acres of land. Ganly Walters had been guiding c. €2.75m for the property and c. 157 acres, however this was later changed to c. €2.3m with the number of acres reduced to c. 83. No sale price has been disclosed and contracts have yet to be signed. The Sunday Times, 9th October
Housing Completions: The latest figures from the Department of Housing show that, excluding one-off homes, construction work commenced on 4,154 housing units in the first eight months of 2016. This figure represents a c. 30% increase (980 units) on the 2015 figure of 3,174 for the same period. Once one-off housing units are included, the number of new builds which commenced in the first eight months of 2016 was 7,139. The Irish Independent, 10th October
Commercial Market Overview: The latest figures from JLL and Cushman & Wakefield estimate that c. €316m of commercial property investment transactions were completed in Q3 2016, bringing the total for 2016 to c. €3.2bn. The largest transaction in Q3 2016 was the c. €72.5m purchase of Neptune House in Dun Laoghaire by SW3 Capital and Tristan Capital Partners. With a number of transactions nearing completion, JLL and Cushman & Wakefield believe there is every possibility that the total figure for 2016 could exceed €4bn. The Sunday Business Post, 9th October
Tax Legislation: The Irish Independent reports that “hundreds of millions of Euro worth” of property transactions have stalled as investors fear that the government may change the current tax legislation for Irish Collective Asset-management Vehicles (ICAVs) and Qualifying Investor Alternative Investment Funds (QIAIFs). Under current legislation, ICAVs and QIAIFs are fully exempt from taxes on income and profits. However, the government is now understood to be considering introducing a withholding tax on the funds, with the new legislation to be brought in as part of the next Finance Bill. The Irish Independent, 9th October
Topaz Filling Stations: Cushman & Wakefield is guiding c. €5.175m for two filling stations let to Topaz in Meath and Dublin. The first station, Coolfore service station is near Ashbourne, Co. Meath and is guiding over €3.475m. Coolfore offers a net yield of c. 7.91%, with Topaz paying a rent of c. €282k p.a. There are also two showrooms and four workshops on site. The second station is in Kilshane Cross near Finglas, Co. Dublin and has an asking price of over €1.7m. The total rental income is c. €174k p.a., with Topaz contributing c. €126k. The Irish Times, 5th October
Airside Motor Park: An unnamed investor has paid c. €2.5m for a showroom and service station occupied by Citroen Motors at Airside Motor Park in Swords, Co. Dublin. Citroen occupy the c. 21,400 sq. ft. property under a 10-year lease from September 2011, for which the rent is c. €165k p.a.
Annesley Motors: A private investor has paid c. €2m for the former Annesley Motors site on the Ballybough Road in Dublin 3. The 0.69-acre site was on the market through CBRE and it has planning permission for a c. 56,000 sq. ft. mixed-use scheme. The Irish Times, 5th October
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McDonald’s Temple Bar: An unnamed German investor has acquired the 8,500 sq. ft. property let to McDonald’s in Temple Bar, Dublin for c. €6.25m. McDonald’s occupies the premises under a 20-year lease from April 2013 with a break option after ten years. The rental income is €350k p.a. offering a net initial yield of c. 5.36%. The Irish Times, 28th September
Merchants Quay Shopping Centre: Cork city’s 27 year old Merchants Quay Shopping Centre has been placed on the market for sale with joint agents CBRE and Savills. The sales price is expected to be in excess of €12.5m providing a net initial yield of c. 11.25% on the existing rent of €1.47m p.a. The tenants include Laura Ashley (paying annual rent of €292k), Boots (€193k), Costa Coffee (€130k) and The Pantry (€68k). The anchor tenants of the centre are Marks & Spencer, Dunnes Stores, Debenhams and Supervalu but they hold long leasehold interests. There is planning permission for the redevelopment of a number of internal retail units which will increase the rent roll. The Irish Times, 28th September
Manor West Neighbourhood Centre: Joint agents Cushman & Wakefield and Sherry FitzGerald Stephenson Crean are marketing Manor West Neighbourhood Centre in Tralee, Co Kerry for sale with a guide price of €4.5m. The investment is 87% let, generating rent of c. €482k and providing a net initial yield of 10.3%. The centre includes a service station, seven retail units, offices and a restaurant. The service station is let to Topaz under a 20-year lease from 2001 at a rent of c. €324k p.a. Other tenants include Boyle Sports and Kerry County Council. The Irish Times, 28th September
Kildare Village: The Leinster Leader has reported that Value Retail Dublin is in pre planning discussions with Kildare County Council to further expand Kildare Village retail outlet centre. The proposed scale is reported as similar to that of the second phase €50m expansion completed less than a year ago which comprised of 33 new shops and two restaurants. The outlet attracted c. 2.5m visitors in 2015. The Sunday Times, 2nd October
Charlemont Exchange: Knight Frank is inviting offers of €45m for vacant possession of the existing HQ of ACCLM/Rabobank in Charlemont Place, Dublin 2. The five storey property comprises of three interconnecting office buildings around a central courtyard which were completed in 1997. It has a net internal floor area of c. 73,000 sq. ft and 94 car parking spaces. Developers are expected to look at the potential to refurbish or redevelop the premises. The Irish Times, 28th September
Hume House: Irish Life has reacquired Hume House in Dublin 4 for c. €35m, a purchase price which represents a substantial discount to the c. €100m sales prices achieved for it in 2006. Sean Dunne previously acquired the property from Irish Life as part of a larger transaction. Mr Dunne’s assets were later acquired by NAMA, who sold Hume House to Blackstone in 2014. The 81,804 sq. ft. Hume House sits on a 0.35-acre site with planning permission to develop a six, eight and nine storey complex extending to c. 182,000 sq. ft with 53 basement car parking spaces. The full redevelopment costs of Hume House is estimated at c. €50m, while a smaller project of refurbishing and extending it is estimated at c. €20m. The Irish Times, 28th September
Sandyford: CBRE is guiding €14.2m for two office investments in Sandyford, Dublin 18 providing a net initial yield of 7.2%. The first opportunity, Ravenscourt (90% occupied), extends to c. 62,200 sq. ft. with 119 basement car parking spaces and is guiding at €11m. The rental income is c. €756k p.a. offering a net initial yield of c. 6.58%. The weighted average unexpired lease term (WAULT) is c. 5 years and the tenants include Chill Insurance and Innopharma. The second opportunity, Mercury House, extends to c. 29,520 sq. ft. with 52 surface car parking spaces and is guiding at €3.2m. Mercury Engineering occupies the entire property under a 20-year lease from 2005, with the current rent at c. €311k p.a. offering a net initial yield of c. 9.3%. The Irish Times, 28th September
76 Baggot Street: It is expected that Cushman & Wakefield will be shortly instructed to offer 76 Baggot Street, Dublin 2 for sale, guiding in excess of €30m. The c. 40,200 sq. ft. five storey premises was recently refurbished and is fully let to US tech firms FitBit and Storyful who each occupy it as their EMEA HQ. The terms of the leases are not reported. The Irish Independent, 29th September
Georgian Building, Dublin 2: Colliers International has been instructed to sell a 4-storey over basement terraced Georgian building at 45 Mount Street Upper, Dublin 2. The fully vacant office property (net internal floor area of 4,200 sq. ft. with three car parking spaces to the rear) is guiding €1.85m and has potential for a mixed use development. The Sunday Business Post, 2nd October 2016
Trinity Lodge Portfolio: Three Georgian guest houses dating from the 1730’s with 26-beds in Dublin city centre have been placed on the market for sale with the benefit of vacant possession for in excess of €6.5m. Two of the houses, nos. 29 and 30, are on the east side of South Frederick Street, while no. 12 is on the opposite side of the road. It is estimated that the properties (c. 13,000 sq. ft. in total) could generate €1m p.a. in rental income. 29 South Frederick Street also includes a restaurant which closed c. three years ago but could be re-let at an estimated rent of c. €50k p.a. The Selling Agent stated that the existing trade is “a highly profitable business”, and possible developments include an expansion of the existing food and beverage facilities, a guestroom upgrade and a conversion of the basement level. The Irish Times, 28th September
The Bram Stoker, Clontarf: The Bram Stoker (Clontarf Court Hotel) has been sold for c. €1.5m by CBRE on the instructions of receiver David Van Dessel of Deloitte. The three storey 25-bed hotel had a guide price of €1m and is currently let at €90k p.a. on a four year, 9 month lease from June 2012. The Irish Independent, 29th September 2016
Dalata Burlington: Dalata has announced that it has agreed a lease to operate the former 502-bed Burlington hotel in Dublin city centre from the German fund Deka, which is set to acquire it from Blackstone for c. €180m shortly. Dalata advised the stock exchange that it agreed a conditional deal to take on a 25-year lease for a payment of €2.5 million. The hotel is expected to be renamed under Dalata’s Clayton brand. The hotel had revenues of c. €29.5m and profits of c. €2.2m in 2015. The Irish Times, 30th September
Fitzpatrick Lifestyle Hotels: Fitzpatrick Lifestyle Hotels has confirmed that local investors John Malone, John Lally and Paul Higgins have acquired its Beacon, Morgan and Spencer hotels in Dublin. It is believed that the investors paid in excess of €150m to acquire the hotels. The 165-bed Spencer is located in the IFSC, while the Morgan and Beacon are located in Temple Bar and Sandyford. The trio of investors already own the Westin and InterContinental hotels in Dublin, as well as other properties in Galway and Limerick. It is reported by The Sunday Times that The Spencer Hotel was sold for more than double its acquisition price as it was bought from NAMA for €33m in January 2014, and valued at c. €70m in the recent deal. The Irish Times, 29th September & The Sunday Times, 2nd October
Leeside Apartments: Joint agents CBRE and Cushman & Wakefield are guiding in excess of €10m for a block of 78 apartments in Cork city centre. Leeside Apartments is spread out over five interlinking blocks and contains a mix of one, two, three and four-beds. Of the 78 apartments, 35 are privately let while the remaining 43 are used for student accommodation and summer rentals. The projected rental income for 2016/2017 is c. €800k, however, letting of the vacant units would increase the rental income to c. €970k. The Irish Times, 28th September
Navan Development Site: Offers of €2m are being sought by joint agents Sherry Fitzgerald Reilly and Cushman & Wakefield for a 3.75-acre site in Navan, Co. Meath. The site is located on Kentstown Road and has planning permission until October 2017 for 19 detached houses consisting of 12 x 4-beds and 7 x 5-beds. The Irish Times, 28th September
Dublin 17: Cairn Homes has sought planning permission for 94 mixed units on a site of c. 6.7-acres located on the former Balgriffin Park lands, Dublin 17. The site is located east of Cairn Homes’ existing Parkside residential development (Phase 1 near completion with 39 houses sold at an average sales price of €297k per Cairn Homes H1 2016 accounts). The proposed development comprises of 2 – 3 storey, 3 & 4 bed houses of 1 x detached, 32 x semi-detached and 61 x terraced houses from c. 1,200 sq. ft. – c. 1,800 sq. ft. The total gross floor area of the development is c. 145,000 sq. ft. NAMA Wine Lake, Issue 174, 26th September – 2nd October
Dublin 2: New Generation Homes has placed a development site at the corner of South Richmond Street and Lennox Street on the market for €7m with joint agents Lisney and McNamara Property Consultants. The 0.35-acre site has planning permission for a five storey mixed use building with c. 32,050 sq. ft. internal floor area. The site was previously included in the Firefly Portfolio offered earlier this year that failed to sell as the target price of c. €325m – €350m was not reached. The Sunday Business Post, 2nd October
Nassau House: Meyer Bergman has sought planning permission to demolish Nassau House, Dublin city centre and build a new €200m mixed use retail and offices scheme. The proposed six storey development over a double basement would increase the existing gross floor area of Nassau House from 101,200 sq. ft. to 246,000 sq. ft. Meyer Bergman acquired Nassau House for €93m in 2015. The Sunday Times, 2nd October
Docklands: The Sunday Independent reports that the Ballymore Group and its JV partner Oxley is to launch a new €111m development known as Dublin Landings on the market this week. The development is located next to the Central Bank’s new HQ at North Wall Quay, Dublin 1 and will comprise of c. 678,000 sq. ft. of commercial space and 270 apartments (c. 1m sq. ft. in total). NAMA owns the Freehold interest in the 5.8-acre site and will secure an income stream once it is developed and let in addition to a percentage of any future sales proceeds from the buildings. The Sunday Independent, 2nd October
North Docklands: The Sunday Business Post reports that Ronan Group Real Estate (RGRE) (with the backing of Colony Capital) plans to build two new hotels and a student accommodation campus as part of a €300m mixed use 1m sq. ft. development in Dublin’s north docklands. It is also reported that contractor PJ Hegarty has been appointed to work on the development to be called Spencer Place. The development site was acquired by RGRE for €43m from receivers appointed by NAMA, and the sale closed on 30th September 2016. The Sunday Business Post, 2nd October 2016
Housing Completions: The Department of Housing, Planning, Community and Local Government’s residential completion statistics (based on first connection to electricity utility) shows that 1,415 units were completed nationally in August 2016, of which 366 were in the four Dublin city and county local authority areas. YTD completions are 9,167 nationally (19% increase YoY) with 2,620 in Dublin (46% increase YoY). Housing start statistics (based on commencement notices filed by builders with local authorities) identify that 1,022 units were commenced nationally in August 2016 with 198 in the four Dublin local authority areas. YTD commencements are 7,139 units nationally (34% increase YoY) including 2,081 in Dublin (flat YoY). The official estimate of annual housing need is 25,000 units nationally, and 10,000 in Dublin based on a study by the ESRI in 2014. NAMA Wine Lake, Issue 174, 26th September – 2nd October
Residential Transactions: According to DNG Residential research, 10,665 transactions valued at c. €3bn were obtained without a mortgage in H1 2016 in the Republic of Ireland. The unencumbered figures represent c. 60% of the value of sales with c. €2bn in mortgages issued in H1 2016. A survey from Sherry FitzGerald identifies that overall property prices increased by 4% YoY with an increase of 1.2% in the July – September period with stronger price increases outside of Dublin (1.6% increase). The Irish Independent, 4th October
51-52 Mary Street, Dublin 1: CBRE is guiding €7.75 million for a modern mixed use four storey block generating a rent roll of c. €418k (providing a net initial yield of 5.17%). The ground floor is let to Nando’s restaurant under a 15-year lease from 2011 at a current rent of €105k p.a. with a rent review overdue from June. The upper floors comprise of 17 apartments (10 x 1-beds, 6 x 2-beds and one x 2-bed duplex) let to Roomyield Hospitality for four years, 9 months from September 2016 at rent of €313k p.a. The Irish Times, 28th September
Taylor’s, The Star Bar, Swords: The c. 13,000 sq. ft. two storey over basement licensed premises and night club on Main Street, Swords, North County Dublin is reported as sold for close to €1.25m. CBRE was the selling agent on instructions from its existing owners who are retiring from the licensed trade. The Sunday Independent, 2nd October 2016
Primary Care Centres: The Sunday Times reports that UK specialist developers including Primary Health Properties are expected to develop some of the 200 – 250 Primary Care Centres (PCC) required by the Health Service Executive (HSE) across the country. There are currently 92 centres operating which are intended to support health and reduce hospital admissions. Of these, 45 were developed directly by the HSE and 47 were privately developed with c. €19m in rent p.a. being paid for these by the HSE. Bank of Ireland has estimated that a PCC requires an average construction loan of €3.5m – €7m. The HSE requires c. 8,600 sq. ft. for each primary care team and generally offers up to 60% of a PCC on a 25-year lease with no break clause. Developers must find the sites and also demonstrate to the HSE that they can secure a certain required number of local GPs as tenants. The Sunday Times, 2nd October 2016
CIÉ Sites: The Irish Independent reports that state transport company, CIÉ, recently signed a development agreement with Lovatell Limited, a joint venture of Clarendon Properties and BAM to redevelop a 5.9-acre site at Kent Station, Cork. Subject to planning and CIÉ continuing to use the site for transport purposes, the mixed-use site could accommodate c. 540,000 sq. ft. of mixed use development, including housing, office and leisure. It is also reported that CIÉ is in advanced negotiations to sell a site near Dublin’s Point Village with planning permission for c. 900 student beds. It is further expected that CIÉ will seek partners to redevelop a 9.1-acre site at Connolly Station, Dublin 1 next year. The proposed terms of the deals are expected to provide CIÉ with an annual income or a portion of rent roll paid by tenants up to 10%, whichever is greater. The Irish Independent, 3rd October 2016
Construction Projects: The Building Information Index (BII) and Construction Information Services (CIS) identifies that the value of new construction projects in H1 2016 was c. €3.6bn – an increase of €1.12bn (44%) YoY. Munster had the largest increase in new projects at 70% with Connacht/Ulster next at 52%, then Dublin at 47% and Leinster at 16%. The value of the industrial sector projects doubled to €385m YoY. The commercial and retail sector increased by 10% to €1bn. The residential sector recorded growth of 61% YoY with the value of residential construction projects commenced in H1 2016 at €1.67bn. However, there was a 9% decrease YoY in the number of residential planning applications in H1 2016 with a 22% fall in Dublin. The Sunday Business Post, 2nd October
NAMA Senior Debt: On 30/09/2016, NAMA redeemed €1bn of its senior debt leaving an outstanding balance of €3.6bn. This equates to a cumulative total of 88% redeemed of its original senior bonds (€30.2bn were issued over the period 2010 – 2012), against its own internal target of 80% by 2016 year end, and 100% by 2018 year end. An effect of the senior debt redemption is that it increases NAMA’s cost of capital. Prior to the €1bn redemption, NAMA had €4.6bn of 0% senior bonds and €1.6bn of 5% junior bonds – combined cost of funding of 1.3%. The cost of funding has now increased to 1.6% with €1bn less senior bonds. NAMA Chief Executive, Brendan McDonagh also stated on 30/09/2016 that NAMA is on course to deliver a surplus of at least €2.3bn. NAMA Wine Lake, Issue 174, 26th September – 2nd October
Royal Dublin Society (RDS): Planning permission has been granted for a €26m redevelopment of the Anglesea Stand at the RDS, Ballsbridge to increase its capacity from 18,500 to 21,000 patrons and provide additional facilities. The Irish Times, 3rd October
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Permanent TSB (PTSB) Deleveraging: PTSB has completed the final phase of its c. €2.8bn deleveraging programme by selling c. €300m of loans which were secured by Irish commercial real estate assets. The loans involved a number of borrowers and have been sold to a number of specialist funds. The three other main components of the deleveraging saw the sale of the Munster and Leinster portfolios (c. €1.5bn par) in March 2015, the Connacht portfolio (c. €481m par) in July 2015 and the Springboard mortgage book (c. €468m par) in October 2014. The Irish Times, 26th September
Navan Town Centre: Joint selling agents Cushman & Wakefield and Savills are guiding €62m for Duignan & McCarthy’s 66% stake in Navan Town Centre in Co. Meath. Their share in the c. 250,000 sq. ft. shopping centre generates net operating income of c. €4.7m p.a., with the single largest rental contribution of €1.2m coming from two multi-storey car parks. Marks & Spencer pay a rent of €478k p.a. to occupy a c. 24,000 sq. ft. unit, which Duignan & McCarthy own entirely. The shopping centre was opened in 1980 and has been expanded at least six times to meet tenant demand. The remaining stake in the shopping centre is owned by Irish Life. The Irish Times, 21st September
Fairgreen Retail Complex: Offers of c. €11.5m are being sought by Savills and Cushman & Wakefield for the Fairgreen retail complex in Mullingar, Co. Westmeath. Fairgreen has eight units which have a total floor area of c. 105,000 sq. ft. One unit is vacant however this is expected to be shortly leased to a UK multiple. The current net operating income of c. €920k p.a. comes from tenants such as New Look, TK Maxx and Dorothy Perkins. Fairgreen dates to 2005 and is currently owned by Duignan & McCarthy. Loans secured by the complex were acquired by CarVal after the property crash. The Irish Times, 21st September
Redmond Square Shopping Centre: Offers of €2.25m are being sought by Cushman & Wakefield and Fenelon Properties for Redmond Square Shopping Centre in Wexford Town. The selling agents are acting on behalf of Grant Thornton, who were appointed as receivers over the management company. There are 14 retail units in the shopping centre, 10 of which are occupied. The current rental income is c. €214k p.a., offering a net initial yield of 9.09%. Included in the sale is a 10,969 sq. ft. vacant cinema and a 269-space car park. The Irish Times, 21st September
Centra Overhaul: 150 Centra stores are to be given an overhaul in the next two years, at a cost of c. €24m. The revamp is designed to focus on the new ‘healthy eating’ trend, and the stores will include free wifi, an upgraded deli and coffee offering and a healthier bakery section. The independent retailers will cover the cost of having their stores upgraded. In addition to upgrading the stores, c. €3m will be spent on a marketing campaign, with the costs to be split between Centra and the independent retailers. There are over 460 Centra stores in Ireland. The Irish Independent, 25th September
Waterloo Exchange: The Nasdaq-listed Jazz Pharmaceuticals is to lease c. 44,000 sq. ft. of the newly refurbished Waterloo Exchange on Upper Baggot Street, Dublin 4. Jazz will pay c. €48 psf under the terms of the lease, which is slightly below the rent sought of €49.50 psf. Jazz will also lease 90 car spaces at €3.5k per space p.a. The OPW are also in situ in Waterloo Exchange, occupying c. 11,000 sq. ft. on the ground floor under a lease which expires in 2022. Davy Real Estate acquired the c. 75,000 sq. ft. Waterloo Exchange in 2012 for c. €22.5m. The Irish Times, 21st September
The Exchange: Joint agents Savills and JLL are seeking tenants for the office space of The Exchange, a new grade-A, 105,000 sq. ft. office block being constructed in Dublin’s IFSC. Rents of €52.50 psf are being sought for the six-storey block, which is expected to be completed by October 2017. The Cosgrave Property Group is developing the block, with IPUT providing the c. €60m of funding required. IPUT will own the block upon completion. The block will also include 37 car spaces, 133 bicycle spaces and a coffee shop. The Irish Times, 22nd September
1 Cumberland Place: Hibernia has completed the c. €29m refurbishment of Cumberland House in Dublin 2 ahead of schedule. Hibernia acquired the property for c. €51m in March 2015 and had previously been targeting Q4 2016 as the completion date for the refurbishment. The c. 135,000 sq. ft. property has been let in its entirety to Twitter and Mobile Travel Technologies Ltd, with Twitter’s lease having already commenced. The property will generate rental income of c. €7.1m p.a. once rent free periods have expired. Hibernia has also renamed the property 1 Cumberland Place. Property Magazine International, 21st September
Ormond Quay Site: The Irish Times reports that over 100 expressions of interest have been lodged with CBRE for the Zanzibar hotel development on Ormond Quay in Dublin city centre. Offers in excess of €5m are being sought for the 0.42-acre site, which has planning permission for an 89-bed hotel. It is understood that some potential bidders are looking at alternative uses for the site, such as a hostel or student accommodation. The Irish Times, 25th September
Lynam’s Hotel: CBRE is guiding €4m for Lynam’s Hotel on Upper O’Connell Street in Dublin city centre. The 42-bed hotel has been closed for the past two months, after a High Court case was undertaken to obtain vacant possession. A Spar shop located to the front of the hotel does not form part of the sale, as it is owned separately. The hotel is being sold by Aiden Murphy of Crowe Horwath, who was appointed by NAMA. The Irish Times, 21st September
IRES Sandyford: Dun Laoghaire-Rathdown County Council has declared IRES’s application for c. 500 apartments in Sandyford, south Dublin, as invalid on the basis that there is insufficient detail in the application. One of the areas highlighted was the architect’s drawings submitted by IRES, which lacked the level of detail required by local planners. IRES is expected to submit a revised application in the near future. The Sunday Business Post, 25th September
CSO Property Price Index: The CSO has released the July 2016 Residential Property Price Index, which is now based on stamp duty returns as opposed to mortgage data. The revised index is designed to give a more complete view of market activity. Under the new measures, the peak-to-trough decline (reached in March 2013) of Irish residential properties was 54.4%, as opposed to the decline of 50.9% measured using the old index. Based on the new measure, prices have since risen by 43.2% to July 2016, which is greater than the 37.4% recovery derived from the old measure. Using the new measures, national prices increased by 6.7% for the Y/E July 2016, with prices in Dublin increasing by 3.8%. The new measures also show that first time buyers had just a 24.4% share of the market in 2015, down from 53.1% in 2010. CSO Residential Property Price Index, June 2016
Residential Portfolio: Cushman & Wakefield is inviting offers of over €35m for a portfolio of 458 residential development sites and 66 completed units in the greater Dublin area. The 10 development sites have a total area of c. 60 acres and a guide price of €25m. The most substantial site is a 6.75-acre site on Swords Road, Drumcondra, which has planning permission for 358 apartments. The site has a guide price of €12m – €13m. The 66 completed units consist of 61 apartments and 5 houses and have a current rent roll of c. €746k p.a. The completed units are based in Dublin 11, Dublin 13 and Celbridge, Co. Kildare. The Irish Times, 21st September
Docklands Site: A development company set up by Irish and UK investors has agreed to pay over €20m for a 2.38-acre site in the north Dublin docklands which has planning permission for 935 student accommodation beds. The site is located alongside the Point Village and will see the beds built in two seven-storey blocks. The first block will contain 589 beds while the second will have 346 beds and 9,322 sq. ft. of retail floor space. The site was sold by Declan McDonald of the receiver PWC, on behalf of Wintertide Ltd, NAMA and CIE. The Irish Times, 21st September
Herbert Place: An unnamed investor has paid over €2.5m for two mid-terrace Georgian properties at 14 / 15 Herbert Place in Dublin 2. The properties are generating rental income of c. €150k p.a., offering a net initial yield of c. 5.7%. No. 14 consists of three apartments while No. 15 has office space on the upper floor. There is also a crèche at garden level and a mews to the rear of the properties, which were included in the sale. The Irish Times, 21st September
Watermill Road Site: CBRE is guiding €2m for a site owned by the Churchtown Trust on Watermill Road, Dublin 5. The Bettyglen site currently accommodates a two-storey, 5,167 sq. ft. property, however the site is understood to be capable of facilitating a 14 / 15 house development or a duplex apartment scheme. The Irish Times, 21st September
Sandyford House: CBRE has set a price tag of €2m on Sandyford House, a pub with development potential in Sandyford, south Dublin. The pub has a floor area of 13,240 sq. ft. and is situated on a 1.17-acre site. There is also a vacant retail unit on site. In addition to publicans, John Ryan of CBRE is expecting interest from residential developers, nursing home operators and petrol station operators, given the sites zoning and location. The Sunday Business Post, 25th September
August Mortgage Approvals: Figures from the latest Banking & Payments Federation Ireland (BPFI) report show that the value of mortgages approved for the three months ending August 2016, based on moving averages, was c. €682m. The number of mortgages approved was 3,411. These figures represent increases of 37.2% and 25.7% YoY. BPFI Mortgage Approvals August 2016
Eir Sites: BNP Paribas Real Estate has been retained by Eir to sell two sites in Clondalkin and Sandyford in Dublin. The Clondalkin site is guiding over €5.4m, extends to 35.45-acres and has planning permission for a 30MW data centre. The site also includes c. 22,950 sq. ft. of office space and an adjoining warehouse which extends to c. 39,525 sq. ft. The Sandyford site is guiding €3.75m, extends to 3.74-acres and has rental income of c. €214k p.a. The Irish Times, 21st September
Portobello Portfolio: The MKN Property Group has paid over €10m to acquire two properties and two redevelopment sites located alongside Portobello Harbour in Dublin 8. The first property is Portobello House, which is currently in educational use and has a 0.21-acre site to the rear. This site previously had planning permission for c. 20,000 sq. ft. of retail and office space. The second property is Harbour House, which has a floor area of 26,650 sq. ft. There is an adjoining site to Harbour House which has planning permission for a 41,750 sq. ft. medical centre, however MKN is not expected to proceed with this plan. The Irish Times, 21st September
Blackrock Clinic: The Sunday Business Post reports that some of the shareholders in Dublin’s Blackrock Clinic are preparing a bid for Jimmy Sheehan’s 16% stake in the hospital. Earlier this month, Sheehan informed the board that he was planning to sell his stake to Larry Goodman for c. €16m. Joseph Sheehan and John Flynn are the shareholders who may launch a subsequent bid for Jimmy Sheehan’s shares, as they have the option to do so since they are existing shareholders in the hospital. The Sunday Business Post, 25th September
Cúram Centre: The Minister for Jobs, Enterprise and Innovation Mary Mitchell O’Connor has opened the Cúram centre in NUI Galway. The c. €68m medical research centre is a joint project between Irish universities and established medtech corporations such as Stryker Instruments and Boston Scientific. The centre will accommodate 280 research professionals. According to Ms O’Connor, the medtech sector employs over 29,000 people in Ireland. The Irish Times, 26th September
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Madrid Portfolio: Knight Frank, under the instruction of the receiver Duff & Phelps, is marketing the sale of the Madrid Portfolio, which contains 18 commercial properties and 12 residential properties with an asking price of over €27m. The properties were previously acquired by Bernard McNamara, who had hoped to develop a shopping enclave between Clarendon Street and South William Street in Dublin city centre. This development didn’t proceed and the loans were transferred to NAMA. The commercial properties extend to 76,756 sq. ft. and the residential units extend to 7,706 sq. ft. There are 26 tenants in situ in the portfolio and the current rental income is c. €1.4m p.a. The Irish Times, 14th September
Fairgreen Shopping Centre: Dr Gerard O’Hare has hired CBRE to handle the sale of the c. 255,000 sq. ft. Fairgreen Shopping Centre in Carlow, which comes to the market with a €36m price tag. The 14-year-old shopping centre has a rental income of c. €2.705m p.a. from 44 tenants, offering a net initial return of c. 7.2%. The shopping centre is anchored by Tesco and Heatons, who own their stores. The shopping centre is situated on a c. 13-acre site with 762 car spaces. The Irish Times, 14th September
Dundrum Town Centre: The joint owners of Dundrum Town Centre, Hammerson and Allianz, are considering either the alteration of the development plans for or the disposal of a six-acre site which adjoins the shopping centre. The site previously had planning permission for c. 1.184m sq. ft. of retail, dining and leisure facilities, however Simon Betty of Hammerson has said that the site may be suitable for residential units. As Mr Betty has said that “Residential development is not really our core business”, the owners may dispose of the site or enter a joint venture / partnership to facilitate any residential development. The retail units that currently occupy the six-acre site are on short-term leases. The Irish Times, 16th September
Ballymount Retail Centre: Cushman & Wakefield is guiding over €13.8m for Ballymount Retail Centre in west Dublin. The retail centre was developed on a c. five-acre site in 2006 and consists of nine ground floor retail units and a number of offices overhead. The centre is split into two blocks, with Block A having a floor area of 57,965 sq. ft. and Block C having a floor area of 39,201 sq. ft. The current rental income is over €1.22m p.a., with Tilestyle (€521k p.a.) and SIG Building Products (€316k p.a.) the highest paying tenants. The property is being sold by the receiver Deloitte. The Irish Times, 14th September
St Patrick’s Street, Cork: Cushman & Wakefield is guiding €6m for a three-storey property let to Boots on St Patrick’s Street in Cork. Boots occupy the 4,687 sq. ft. property under a 35-year lease from 1987, with the current rent set at €540k p.a. The lease is subject to upward-only rent reviews every five years. The Irish Times, 14th September
Distillery Lanes, Midleton: Cushman & Wakefield is inviting offers of €2.75m for a mixed-use investment on the Main Street of Midleton, Co. Cork. Distillery Lanes extends to 46,681 sq. ft. and encompasses 11 retail units, 10 office units and an interlinking 261-space car park. The current rental income of c. €237k p.a. comes from just nine units, as only five retail and four office units are occupied. The anchor tenants are Iceland and Irwin Electrical. The Irish Times, 14th September
Fallon & Byrne, Rathmines: Fallon & Byrne is to open a food hall in The Swan shopping centre in Rathmines, Dublin 6. The c. 10,000 sq. ft. hall will extend onto Castlewood Avenue and will contain an outdoor terrace with a seating area. The Swan shopping centre is anchored by Dunnes Stores and Omniplex Rathmines. The Irish Times, 14th September
Scotch House: QRE is quoting €21.5m for an office redevelopment opportunity near O’Connell Bridge in Dublin 2. An Bord Pleanála recently granted planning permission for the redevelopment of Scotch House, with approval given for a seven-storey, 41,600 sq. ft. property. The new property also has planning permission for retail units on the ground floor and 12 basement car spaces. The Irish Times, 14th September
Topaz House: BNP Paribas Real Estate is guiding €7.5m for Topaz House in the Beech Hill office campus in Clonskeagh, Dublin 4. The 21,366 sq. ft., three-storey block is let to Topaz, which is paying a rent of €460k p.a. under a 35-year lease from 1991. The property includes 68 surface level car spaces. The Irish Times, 14th September
Dolcain House: SIAC has retained CBRE to sell their head office on Monastery Road in Clondalkin, Dublin 22. Bids of €5m are being sought for Dolcain House, which consists of three blocks and has a net lettable floor area of 57,066 sq. ft. SIAC currently occupy Block B (18,220 sq. ft.) under a five-year lease from February 2014 at a rent of c. €101k p.a. (c. €5.50 psf), however they will vacate this block if the new purchaser wishes. The property comes with 211 car spaces. Blocks A and C are currently vacant, however the agent states that they are fitted out to a high specification. The Irish Times, 14th September
Gresham Hotel: RIU Hotels & Resorts has completed the purchase of the Gresham Hotel in Dublin city centre for c. €92m. The 323-bed hotel was previously owned by Precinct Investments, which is controlled by Bryan Cullen. The underbidders for the hotel included Apollo and Cerberus. The Irish Independent, 15th September
LeBruin acted as an advisor to Precinct Investments on the sale of the Gresham Hotel: lebruinprivate.com/lebruin-acts-advisor-sale-gresham-hotel/
Permanent TSB (PTSB) Securitisation: PTSB has hired Morgan Stanley, Citigroup and Deutsche Bank to manage the securitisation of c. €691m of mortgages. PTSB will use an investment vehicle named Fastnet Securities 12 to issue the residential mortgage-backed securities. According to the rating agency DBRS, none of the mortgages are investment properties and 92.7% of the mortgages have not been in arrears in the past five years. DBRS did note that 5.4% of the mortgages had previously been in arrears for longer than three months, however these are now back within contract. The Irish Times, 16th September
St Edmund’s Apartments: Offers in excess of €32.5m are being sought by joint agents Lisney and Hooke & MacDonald for 160 apartments and 167 car spaces in the St Edmund’s development near Liffey Valley Shopping Centre in west Dublin. The apartments are split into 142 two-beds, nine one-beds, eight three-beds and one four bed. At €32.5m, the average price of each apartment is c. €203k. The current rental income is c. €2.435m p.a., with the agents projecting the market rent at c. €2.792m p.a. The apartments were completed by Ray Grehan’s Glenkerrin Homes before the property crash. The Irish Times, 14th September
Tallaght Site: CBRE is guiding €3m for a 3.05-acre site on Whitestown Road in Tallaght, Dublin 24. There is outline planning permission for a 6,243 sq. ft. petrol station and a 4,198 sq. ft. drive-through restaurant on two acres of the site. The remaining 1.05-acres does not form part of the outline planning permission but has zoning for “enterprise and employment”. The Irish Times, 14th September
KBC Survey: A recent survey completed by KBC Bank shows that there is significant demand for residential property among Irish adults. Of the 2,000 individuals surveyed, c. 32% are planning to buy a property in the next 24 months, 49% think now is a good time to buy and 67% do not see the uncertainty surrounding Brexit as having any impact on their investment decision. 44% of the individuals surveyed say that the Central Bank’s lending restrictions have had no impact on their purchase plans, while 27% say that the measures mean that they will have to spend longer saving for a deposit. KBC Home Buyer Survey, September 2016
Citywest Warehouse: Offers of €3.1m are being sought by William Harvey & Co. for a 25,155 sq. ft. warehouse in Magna Business Park, Citywest, Dublin. The property is let to Leo Laboratories under a 10-year FRI lease, for which the current rent is c. €185k p.a. The tenant has a break option after year five, however they would have to pay a penalty of nine-months’ rent to utilise the break option. The Irish Times, 14th September
Limerick 2030: A c. €500m investment programme has been unveiled for Limerick, making it the single largest commercial property development announced outside of Dublin. The official name for the development company is Limerick Twenty Thirty Strategic Development DAC, which will be chaired by Denis Brosnan. The first task of the company is to deliver c. €500m worth of investment infrastructure over the next five years, which is expected to be capable of creating over 5,000 jobs. The company will be responsible for redeveloping over 1.4m sq. ft. of commercial and residential space in Limerick city. The Irish Times, 19th September
Blackrock Clinic: Jimmy Sheehan has told the board of Dublin’s Blackrock Clinic that he intends to sell his shares in the private hospital to Larry Goodman for c. €16m. Sheehan’s shares are currently held in his investment vehicle, Dornway. Goodman will acquire the shares through his own investment vehicle, Breccia. The Sunday Business Post, 18th September
Bank of Ireland (BoI) Galway: Joint agents Savills and O’Donnellan & Joyce are inviting offers of €4m for a BoI branch in Galway city centre. BoI is paying a combined rent of c. €261k p.a. across two leases, which have a weighted average unexpired lease term of 12.75 years. The four storey property has a floor area of 8,311 sq. ft. The Irish Times, 14th September
Galway Racecourse: Galway Racecourse is to undergo a c. €6m redevelopment which will begin after the 2017 Galway Summer Festival and should be completed in time for the 2018 festival. The announcement came after Horse Racing Ireland approved a funding package of c. €2.1m for the course. One of the main areas to be redeveloped is the existing Tote Ireland building, which will be demolished and replaced with a two-storey building which will facilitate up to 550 racegoers. According to Galway Racecourse manager Michael Moloney, the festival generates €54m for the local economy each year. The Irish Times, 16th September
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Project Oyster: AIB is understood to be considering the disposal of a portion of its c. €1.8bn non-performing loan book which is secured by thousands of buy-to-let (BTL) investment properties. Should the bank proceed with the portfolio sale, then it would represent the quickest way of removing a substantial number of non-performing loans from its Balance Sheet. The Sunday Business Post, 11th September
Project Beara: Deutsche Bank has been chosen as the preferred bidder for NAMA’s c. €250m par value Project Beara loan portfolio. The loans are linked to the Shipton Group, which is controlled by the Love family from Cork. The underbidders reportedly included Goldman Sachs, Marathon Asset Management and Avenue Capital. Deutsche Bank has now acquired five loan books from NAMA, after previously acquiring Projects Arch, Boyne, Maeve and Spring. The Sunday Business Post, 11th September
Start Mortgages Portfolio: Bank of Ireland is to acquire a book of performing residential mortgages from Start Mortgages, an entity acquired by Lone Star in 2014. Start Mortgages was a subprime lender which had a loan book of c. €638m when Lone Star acquired the entity. All the loans sold to Bank of Ireland have been restructured by Lone Star, after previously being in default. The Sunday Times, 11th September
Irish Banks: New figures from the European Central Bank show that at the end of 2015, Irish banks still held over €50bn of non-performing loans (NPL). Ireland had a NPL ratio of c. 19%, which was well above the average NPL ratio of 7% for institutions which were regulated by the Single Supervisory Mechanism. Ireland has a NPL ratio of 44% for commercial real estate debt and 18% for household debt. The Irish Times, 12th September
Grafton Portfolio: Savills is inviting offers of €40m for the Grafton Portfolio, which consists of a block of retail and office units at the junction of Grafton Street and Duke Street in Dublin city centre. The portfolio is available to be purchased in a single transaction or else in two separate lots. The first lot is guiding €28m and consists of four adjoining properties at 21 – 23 Grafton Street and 24 Duke Street. The rental income of Lot 1 is €1.326m p.a., offering a net return of c. 4.46%. Lot 2 has an asking price of €12m and includes the former Creation Arcade, which is now a three-storey property which fronts onto Duke Street, Lemon Street and Duke Lane. Lot 2’s rental income of €625k p.a. will provide an initial return of c. 4.99%. The Irish Times, 7th September
Kennedy Wilson Assets: Kennedy Wilson has retained Savills to sell four retail investments in Dublin city centre where the cumulative asking price is c. €14.5m. The most valuable asset is the 3 store on Henry Street, which has an asking price of €8.25m. The four-storey property has a floor area of 2,979 sq. ft. and the rent is €425k p.a. Over €3.5m is being sought for a KFC takeaway on Westmoreland Street. KFC occupy the unit under a 20-year lease from 2013, which contains a break in year 10. The rent is stepped for the first four years, and the current rent of €180k p.a. will increase in October 2017. Offers above €1.9m are being sought for a Costa Coffee unit at 3 College Green, with Costa Coffee paying rent of c. €100k p.a. on a lease which has a break option in 2020. The final property for sale is a Paddy Power shop on Fleet Street. The property is for sale at over €850k and generates rental income of c. €47k p.a. The Irish Times, 7th September
Reflector Building: Savills has begun the marketing campaign for the office space of the Reflector building, the c. €100m project being undertaken by Park Developments in Dublin’s docklands. The property will feature c. 125,000 sq. ft. of office space, 40 apartments, a c. 3,500 sq. ft. retail unit or restaurant and will be located on Hanover Quay and Grand Canal Dock. Rents of €55 psf are being sought by Savills for the office space, which is due to be completed in Q3 2018. The Irish Times, 12th September
Navigation Square: O’Callaghan Properties has been granted planning permission by Cork City Council for a c. €90m office complex off Albert Quay in Cork city centre. The planning approval allows for the development of c. 310,000 sq. ft. of office space across four separate office properties, which will range in height from five to six storeys tall. The complex will also include c. 100,000 sq. ft. of basement parking space for cars and bicycles. The complex is expected to be completed by Autumn 2018 and should be able to accommodate c. 3,000 employees upon completion. The Irish Times, 12th September
Central Bank Portfolio: Lisney is to launch the sale of a portfolio of properties owned by the Central Bank in Dublin on October 19th. The properties going for sale occupy nearly a full city centre block with College Green / Dame Street to the south and Cope Street to the north. The three opportunities are to be offered for sale in individual lots. The first investment includes the Central Bank’s current HQ and two other blocks which are interlinked at basement level. The main building has a floor area of 83,393 sq. ft. while the Commercial building extends to 11,116 sq. ft. and the Annex building extends to 12,110 sq. ft. These properties are expected to attract bids of c. €65m. The second opportunity is a 23,029 sq. ft. office property at 6 / 8 College Green which is expected to attract bids of c. €14m. The final property for sale is at 9 College Green and should attract offers of c. €2m. The Irish Times, 7th September
155 Townsend Street: Colliers International is inviting offers of €7.5m for the former HQ of EBS, which is located at 155 Townsend Street in Dublin 2. The c. 0.3-acre site has redevelopment potential, with a recent feasibility study suggesting that it could facilitate a nine-storey property with either 119 hotel suites or 168 student accommodation beds. Another option is a seven-storey, 45,723 sq. ft. office property. The current property on site is a four-storey over-basement property extending to 24,369 sq. ft. The property is let to Anthony Nicholas Ltd at €450k p.a. on a five-year lease. The lease has a mutual break option at the end of year two and rolling mutual break options thereafter. The Irish Times, 7th September
South County Business Park: Three new office blocks offering a total of c. 290,000 sq. ft. of space are to be developed in the South County Business Park in Dublin 18. Joint agents JLL and BNP Paribas are quoting rents of €30 psf for the first block, One South County, which will have 140,000 sq. ft. of space. A number of car spaces are also available to rent at €2k per space. The O’Toole Partnership designed the One South County block. The Irish Times, 7th September
31 – 32 Lower Baggot Street: Savills is seeking offers of €3.3m for two Georgian properties at 31 – 32 Lower Baggot Street, Dublin 2. The properties have a floor area of 7,172 sq. ft. and include a mews to the rear. The properties are currently the HQ of Chuck Feeney’s Atlantic Philanthropies however they are available with vacant possession. The Irish Independent, 11th September
Ormond Hotel: Monteco Holdings has been granted planning permission by Dublin City Council to demolish and redevelop the Ormond Hotel on Ormond Quay in Dublin city centre. The projected cost of developing the five-storey, 121-bed hotel is c. €20m. Monteco Holdings hope to commence work on the site in early 2017 with a view to opening the hotel before the end of 2018. The Irish Times, 13th September
Mortgage Interest Rates: A new report by the Central Bank shows that the interest rate on all new floating rate mortgages in July 2016 was 3.11%. While this figure represents a 23bp decline YoY, it was significantly above the Euro Area rate of 1.82%. Once renegotiated mortgages are excluded, the weighted average interest rate on new mortgages was 3.49%. The number of family home customers opting for fixed-rate mortgages has grown over the past year, with 40% of all new family home mortgages in Q2 2016 being fixed-rate. Central Bank, Retail Interest Rates – July 2016
Cuirt na hAbhann: Cushman & Wakefield is guiding €5m for Cuirt na hAbhann, a mixed-use complex located on the outskirts of Galway city which contains 42 apartments and three ground floor retail units. The apartments consist of 24 two-beds and 18 one-beds, producing a rental income of c. €417k p.a. Only one of the retail units is let, providing additional rental income of €7.5k p.a. The Irish Times, 7th September
Galway Development: Bids in excess of €3.2m are being sought by TWM for 20 apartments and four commercial units in a 17,587 sq. ft. complex on Seamus Quirke Road, Galway. The 20 apartments consist of 12 three-beds and 8 two-beds and provide 52 student accommodation beds. Three of the four commercial units are let to Subway, Domino’s Pizza and the Irish Nurses’ Council. The total rental income is c. €272k p.a. The Irish Times, 7th September
Harristown Demesne: The selling agent Jordan Auctioneers is inviting offers of €25m for a 750-acre estate in Co. Kildare. Harristown Demesne dates back to 1768 when it was owned by the La Touche family. The main property extends to c. 6,000 sq. ft., whilst there are three lodges of c. 1,000 sq. ft. included in the sale. The main property is two-storeys tall and has nine bedrooms in total. The Irish Times, 8th September
Landenstown Estate: Sherry Fitzgerald Country Homes has set an asking price of €6.5m on Landenstown Estate near Sallins, Co. Kildare. The estate is for sale at a reduced price as the 8,528 sq. ft. property and two gate lodges on site are in need of full restoration. The properties are situated on a 338-acre site and were constructed in the 18th century. The Irish Times, 8th September
CSO Rental Figures: The latest figures from the CSO show that while annual inflation in Ireland was minus 0.1% in August 2016, the annual inflation rate in the private rental sector was 8.8%. Private rental inflation for the month of August was up 0.7%, while inflation for the 24-months ending in August 2016 was 20.3%. The CSO rental figures are based on new tenancies across the country. NAMA Wine Lake, 11th September
Naas Enterprise Park: TWM is guiding over €2.5m for two adjoining units in Naas Enterprise Park (previously Toughers Business Park) in Co. Kildare. Units L2 and M1 are both let to single tenants. Unit L2 extends to c. 45,000 sq. ft. and is occupied by DSG Packaging Ltd, who is paying a rent of €170k p.a. under a lease which runs until 2023. Unit M1 is occupied by Roadbridge, who is paying a rent of €114,276 p.a. under a lease which expires in 2020. The properties are available to be purchased in one or multiple lots. The Sunday Business Post, 11th September
Ballybrit Service Station: Cushman & Wakefield is inviting offers of €3m for Ballybrit Service Station in Galway city. The station is let on a 25-year lease from 2006 at €300k p.a. The lease contains upward only rent reviews every five years. The Irish Times, 7th September
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Coca-Cola Ballina: Coca-Cola has announced that it will invest €26m in its Ballina, Co. Mayo facility, creating an additional 25 jobs over the next three years. The investment will provide the facility with the tools necessary to manufacture their Coca-Cola Freestyle machine, which is a touch-screen soda fountain which has over 165 drinks options. These machines have been deployed in the US since 2010 and Coca-Cola plan to also make these available in Europe, with Ballina being used to manufacture them. Coca-Cola employ c. 1,750 people in Ireland. The Irish Times, 1st September
Harvey Norman: Harvey Norman has confirmed that it will open its fourteenth Irish store in Tallaght, west Dublin. The store will be located in a vacant retail park on Airton Road and Harvey Norman will spend c. €6m converting the property into a large retail unit. A Costa Coffee outlet will also be located on-site. For the 12 months ending June 2016, Harvey Norman had sales of c. €170m from its 13 Irish stores. The Irish Times, 1st September
Restaurant Rents: The Sunday Business Post reports on the increasing lease costs facing restaurant operators in counties such as Dublin, Cork, Limerick and Galway. Adrian Cummins of the Restaurants Association of Ireland says that a number of their member’s landlords are looking for rental increases of c. 50% – 60% at rent reviews. While this figure tends to be negotiated down, the low-margin nature of the business means that rental increases of 20%-plus can have a substantial impact on trading. The Sunday Business Post, 4th September
The Park, Carrickmines: Savills has been retained to manage the sale of four blocks at The Park in Carrickmines, Dublin 18, which together have a combined asking price of c. €40m. The largest property is The Herbert, which has a floor area of 85,564 sq. ft., an asking price of €24.5m (c. €286 psf) and offers a yield of c. 7%. The second most valuable block is the Hyde Building, where 33 of the 40 office suites are being sold for a combined amount of €10.5m (c. €300 psf). The Hyde Building will offer an initial yield of c. 6.18%. The third property is the Holborne Building, for which the rent is expected to be c. €320k p.a., offering a yield of c. 7.6% based on the €4m asking price. The final block for sale has rental income of c. €71k p.a., with AIB as the main tenant. The property offers a net initial yield of c. 6.8% based on the €1m asking price (c. €523 psf). The blocks are available to be purchased individually or in one lot. The Irish Times, 4th September
Swords Plaza: Cushman and Wakefield is seeking offers in excess of €14.5m for what is primarily an office / retail complex known as Swords Plaza, which is located on the main street in Swords, Co. Dublin. The complex has a floor area of 101,285 sq. ft., rental income of c. €1.56m p.a. and a weighted average unexpired lease term of c. 7.9 years. 67% of the complex is office space, 26% is retail and the remaining 7% consists of a 315-space car park and two apartments. Among the key tenants are ASL Aviation (€361k p.a.), McDonald’s (€160k p.a.) and DHL Express (€142k p.a.). The Irish Times, 31st August
Grant Thornton HQ: Grant Thornton has agreed to enter a lease for a property being developed at 13 – 18 City Quay in Dublin 2. The 118,000 sq. ft., eight-storey over basement property is expected to be completed in early 2018. Grant Thornton will pay a rent of €52.50 psf under a 25-year lease, which contains a break option. The cost of the development, which is being undertaken by a consortium of Oaktree Capital Management, the Bennett Group and NAMA, is c. €65m. Based on the c. €6.2m rent p.a. and the current market yield of 4.5%, the property would be worth c. €138m. NAMA Wine Lake, 4th September
26 Fitzwilliam Square: 26 Fitzwilliam Square has been sold by the agent Colliers International for over €2.8m, significantly above the €2.35m asking price. The 4,500 sq. ft. property includes six car spaces located to the rear of the property. The current rental income of c. €92k offers a net initial yield of c. 3.1%, while the sale price reflects a capital value of c. €625 psf. The Irish Times, 31st August
Hendrick Street Hotel: Dublin Loft Company Ltd has submitted a planning application for the development of a seven-storey, 175-bed hotel at 6 – 11 Hendrick Street in Smithfield, Dublin City Centre. The hotel will have a floor area of c. 60,000 sq. ft. and will replace an existing 3,000 sq. ft. property. Dublin Loft Company is controlled by Kelly, Andrew and Mark Cosgrave. NAMA Wine Lake, 4th September
Dalata Acquisitions: As part of their H1 2016 results announcement, Dalata has confirmed that they have acquired the freehold interest in the Maldron Hotel in Cork for c. €8.1m. The company has also acquired three properties adjacent to the Maldron Hotel Parnell Square in Dublin for c. €5m. For H1 2016, Dalata posted pre-tax profits of €18.2m and RevPAR increased by 11.2% to c. €74.90. RTE, 6th September
Herbert Park Extension: The owners of the Herbert Park Hotel have sought planning permission for a six-storey extension to the hotel. The extension will have a floor area of c. 12,000 sq. ft. and will see 32 bedrooms added to the hotel. The four-star hotel currently has 132-beds and is controlled by a company owned by the Kennedy and McSharry families. NAMA Wine Lake, 4th September
IRES Sandyford: IRES REIT has applied for planning permission to develop 492 apartments in Sandyford, south Dublin. The proposed development will be spread over three blocks on a 2.8-acre site. IRES acquired the site in April 2015 from CapReit (who established IRES in 2014) as part of the Rockbook Portfolio, for which they paid c. €90.6m. Philip O’Sullivan of Investec estimates that the cost of the development is €140m – €150m. IRES currently manage 2,377 apartments in Ireland. The Irish Times, 2nd September
Harolds Cross Apartments: The Adroit Company has sought planning permission from Dublin City Council to construct 121 apartments off the Harolds Cross Road in Harolds Cross, Dublin 6w. The apartments will be built in six 4 – 6 storey blocks on a c. 2-acre site. To facilitate the development, 53 existing residential units and a warehouse will need to be demolished. The Adroit Company is controlled by Martin, Mairtin, Patricia, Pearse, Anthony and Conor Lydon. NAMA Wine Lake, 4th September
Ballymun Houses: Dwyer Nolan Developments has sought planning permission from Dublin City Council to construct 106 houses on a site opposite IKEA in Ballymun, north Dublin. Dwyer Nolan purchased the site in 2007. NAMA Wine Lake, 4th September
Montrose Ziggurat: Savills is guiding in excess of €41.5m for the Montrose Student Residence on the Stillorgan Road in Dublin 4. The complex has 205 en-suite bedrooms spread over five floors, as well as 8,363 sq. ft. of commercial space on the ground floor. The commercial tenants include Bank of Ireland, Spar and Insomnia. According to Savills, the gross rental income is projected at c. €2.91m p.a., offering the acquirer an income yield of c. 5.4% after acquisition costs. The property is owned by Ziggurat Student Living, who reportedly spent c. €22.5m converting the property into student accommodation. The Irish Times, 31st August
Rathmichael Site: Bids of €2.125m are being sought by Knight Frank for a 2.23-acre site in Rathmichael, south Dublin. El Dorado, a 2,594 sq. ft. modern house currently occupies the site however there is also planning permission for three five-bedroom houses. The planning permission is in place until August 2018 and will allow El Dorado to remain on a 0.46-acre site while the three houses of 4,241 sq. ft. are constructed on sites ranging from 0.35 to 0.44-acres. The Irish Times, 31st August
19 Pembroke Road: Knight Frank is seeking offers of €4m for a 9,181 sq. ft. period house on a 0.34-acre site at 19 Pembroke Road in Ballsbridge, Dublin 4. The property currently has 11 apartments and three office units and is being sold with vacant possession. Planning permission was granted in May 2016 which will allow for the refurbishment of the main building, the demolition of an extension and the construction of 7,545 sq. ft. of new space. The site will offer 12 apartments once the approved development is completed. The Irish Times, 31st August
22 – 22A Earlsfort Terrace: QRE is inviting offers of €2.75m for a mixed use property at 22 – 22A Earlsfort Terrace in Dublin city centre. The 8,611 sq. ft. property contains five apartments and four office suites and is being sold with vacant possession. The Irish Times, 31st August
Modular Homes: The Government look set to spend between €250m and €400m on 1,700 modular homes in an attempt to reduce the social housing crisis. The Government has asked as many as 20 companies to supply the homes, which must be designed to last for 60 years as well as meeting current building regulations. Based on the €250m – €400m projected spend, the cost of the units will range from €147k to €235k. The 1,700 homes are to be completed by 2018, with 200 completed in 2016, 800 in 2017 and the balance in 2018. The Irish Independent, 31st August
July Mortgage Approvals: Figures from the latest Banking & Payments Federation Ireland (BPFI) report show that the number of mortgages approved for the three months ending July 2016, based on moving averages, was 3,274. This figure represents a 4.3% increase MoM and a 17.6% increase YoY. The value of mortgages approved in this period was c. €659m, a 6.5% increase MoM and a 28.5% increase YoY. However, when comparing the January to July period in 2016 with the same period in 2015, there is little difference in approval figures. Mortgage approval volumes in January to July 2016 were down 2.6% while values were 1.2% higher when compared to the same period in 2015. BPFI Mortgage Approvals July 2016
Housing Completions: New statistics from the Department of Housing reveal that 7,752 units were completed between January and July 2016, a c. 15% increase YoY. There has been a c. 42% increase in the number of units completed across the four Dublin local authorities in the period, with 2,254 units completed. Cork has also seen strong growth (c. 29%), with 927 units completed. The Irish Independent, 6th September
CBRE Bi-Monthly Report: CBRE’s latest research report states that they are expecting to see significant activity in the Irish commercial property market in Autumn, while also noting that Brexit has had minimal impact on the market to date. Following c. 970,000 sq. ft. of take-up in the office market in H1 2016, a number of deals are set to close in Q3 2016. Therefore, the possibility remains that 2016 may match the record take-up levels achieved in 2015. The industrial sector was the one sector where take-up was down significantly in H1 2016 (c. 1,292,000 sq. ft. in Dublin – down 35% on H1 2015), however this decline is being attributed to the scarce availability of quality stock in core locations. CBRE Ireland Bi-Monthly Research Report, September 2016
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Liffey Valley: South Dublin County Council has approved a planning application from Hines Ireland for the extension of Liffey Valley Shopping Centre in Dublin by 555,000 sq ft. The approval covers the development of a 2,500-seater Olympic sized indoor ice-arena, as well as additional retail and commercial space. The development will see c. 450 full-time and part-time jobs created upon completion. The Irish Times, 23rd August
Elm Park: Declan Taite as Statutory Receiver of Radora Developments Limited has applied for a change of use to Block HH on a four acre site at Elm Park, Ballsbridge, from a previously permitted 212,500 sq ft hotel and private hospital development to a 7-storey 216,000 sq ft office development. NAMA Wine Lake, Issue 169
Ormond Quay Site: CBRE is guiding over €5m for a hotel development opportunity at 34 / 37 Ormond Quay in Dublin city centre. The property, which was formerly the Zanzibar pub premises, has planning permission for the development of an 89-bed hotel. The planning permission allows for the redevelopment of the two front buildings as well as a four-storey extension to the rear. The Irish Times, 24th August
Castleknock Hotel & Country Club: FBD Hotels and Resorts is to invest €7 million in the four-star Castleknock Hotel & Country Club in a refurbishment and expansion plan which includes increasing its capacity by 46 bedrooms to 190. Construction is due to commence in November and be completed in early 2018. 20 permanent jobs are expected to be created on completion of the works. The Irish Times, 24th August
Former Burlington Hotel: German asset manager DekaBank (owned by a group of German savings banks) is reported to be the preferred bidder for the former Burlington Hotel in Dublin, which had an asking price of €180m. The 502-bedroom hotel was acquired by Blackstone Group in 2012 for €67m, and it subsequently spent c. €20m refurbishing the premises. The hotel was rebranded DoubleTree by Hilton in 2013. Dalata Hotel Group has said that it has engaged in exclusive talks to lease and operate the hotel with an unnamed party that was negotiating to purchase the property. The Irish Times, 25th August
Sackville Place: Tetrarch Capital has obtained planning permission from An Bord Pleanála for a budget boutique 158-bedroom hotel at Sackville Place, near O’Connell Street, Dublin 1. The redevelopment of the building will also include retail / restaurant / café use in one unit of 925 sq ft on the ground floor and the addition of three storeys to provide a seven storey building. The development investment is estimated at €16m. The Irish Times, 27th August
Hotel Sales: Figures from DTZ Sherry Fitzgerald show that there were nearly €140m worth of hotel takeover deals in Ireland in H1 2016. The outlook for H2 2016 is strong as hotel deals in excess of €420m are expected to close before the end of the year. These sales include the former Burlington Hotel (c. €180m), the combined sale of the Beacon, Morgan and Spencer Hotels (c. €150m) and the Gresham Hotel (c. €90m), all of which are located in Dublin. The Irish Times, 23rd August
South Dublin: U+I has obtained planning permission for the redevelopment of two sites in south Dublin at Donnybrook House, Dublin 4 and The Avenue, Sandyford with a combined end value of €100m. Permission has been granted for the refurbishment of the 1970s office building at Donnybrook House (currently vacant) to provide 45,000 sq ft of office, 2,000 sq ft of retail units, 4,000 sq ft of restaurant space, and a basement gym of 20,000 sq ft. The property was purchased by U+I in 2014 for €9m and the value on completion is expected to be €45m. The permission obtained for the 2-acre site at The Avenue, Sandyford allows for 147 apartments and c. 10,000 sq ft of commercial space. The site, which currently contains 42,000 sq ft of office and warehouse space was acquired by U+I in 2015 for €6m, and the redevelopment value is estimated at €55m. The Irish Times, 24th August
Sutton: Developer Greg Gallagher has applied for planning permission to develop a three storey over basement block of 22 luxury apartments (4 x 1-beds and 18 x 2-beds) with 27 parking spaces in addition to a new 3,724 sq ft detached house on a 0.95 acre site at 17 Station Road, Sutton. The Irish Times, 25th August
Raheny: MKN Property Group has sought planning permission to construct 52 apartments (8 x 1-bed, 30 x 2-beds and 14 x 3-beds) in two four-storey apartment blocks with 102 parking spaces at basement level on a 2.2-acre coastal site in Raheny. In addition, permission has been sought to build 16 houses comprising of 12 x 3-beds and 4 x 4-beds to the rear of the site. The site was acquired in two tranches for a total price of €3.48m by the group over the period 2014 – 2015. The Irish Times, 25th August
West Dublin: Garlandbrook Limited has sought planning permission to build 219 homes primarily comprising of 3 & 4-bedroom semi-detached and terraced houses on a c. 19-acre site located within the Hansfield Strategic Development Zone. The proposal also includes 8 x 2-bed apartments. It is reported that the company is being backed by Bank of Ireland. The Irish Independent, 30th August
JLL Irish Property Index: The JLL Irish Property Index (based on a sample of 29 Dublin properties) for Q2 2016 shows an increase in overall returns for offices, retail and industrial of 7.4% for H1 2016 and 22.8% YoY. Overall rental values increased by 6.1% for H1 2016 (12.9% YoY) with the largest increases YoY for office (15.7%) followed by retail (10.7%) and industrial (6.6%). The Capital Index shows that office values increased by 14%, retail by 17.8% and industrial by 23.8%. JLL Irish Property Index – Q2 2016
Daft.ie Rental Report: The Daft.ie Rental Report for Q2 2016 states that there were 3,600 homes available to rent nationwide on 1st August, which was 1,000 fewer than the corresponding period in 2015. It also identifies that there has been an 11% increase in the average asking rent nationally to €1,037. The Daft.ie Rental Report Q2 2016
University of Limerick: BAM Building Limited has won the €18m contract for the 77,500 sq ft extension of University of Limerick’s Glucksman Library. The new facility (designed by RKD Architects) is due to open in September 2017 and will comprise of a basement level and four levels of accommodation above ground. Property International Magazine, 24th August
Cairn Homes plc: Cairn Homes published its 2016 interim results on 25th August. The Income Statement for the 6 months ended 30 June 2016 identifies a net loss of €580m on revenue of €16m (72.5% of revenue was generated from the sales of 39 houses at Parkside, Dublin 13). Its loans equated to €148m, and it had undrawn facilities of c. €50m and cash of €117m available. The builder expects to deliver 1,200 units by 2019. Cairn Homes plc 2016 Interim Results
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Debenhams Examinership: The Irish subsidiary of Debenhams has moved closer to exiting examinership after the High Court approved a restructuring proposal submitted by the examiner, Kieran Wallace of KPMG. The restructure, which was also approved by the majority of the subsidiary’s creditors, will result in no compulsory job losses. As part of the restructure, there will be 98 voluntary redundancies from the subsidiary’s c. 1,400 staff. The Irish Times, 20th August
Townsend Street: Carlisle Trust Ltd has submitted a planning application for the development of a seven-storey, 120,000 sq. ft. property on Townsend Street in Dublin city centre. To facilitate the development, an existing five-storey, 70,000 sq. ft. property will be demolished. The key individuals in Carlisle Trust Ltd are John and Ciara Byrne. NAMA Wine Lake, 21st August
16 – 18 Pembroke Road: Planning permission has been sought for the development of c. 45,000 sq. ft. of office space at 16 – 18 Pembroke Road in Dublin city centre. To enable the development, an existing 8,000 sq. ft. extension to the rear of the property will be demolished and a 30,000 sq. ft. extension will be developed instead. The property is owned by Brian Clingen, who paid c. €3m in 2013 to acquire it from the Pembroke Partnership. The Pembroke Partnership acquired the property for c. €26m in 2006. NAMA Wine Lake, 21st August
Ormond Quay: Monteco Holdings Ltd has submitted a new planning application to develop a 121-bed, 65,000 sq. ft. hotel on a site at 7 – 13 Ormond Quay in Dublin city centre. This is the second planning application which Monteco have submitted since acquiring the site in 2013. Their first application sought permission to develop a 170-bed, 70,000 sq. ft. hotel. However, no development occurred following the submission of this application. NAMA Wine Lake, 21st August
Tetrarch Hospitality: Damien Gaffney of Tetrarch Hospitality has revealed that the group may undertake “some form of capital event” in 2018 or afterwards to raise additional capital. Tetrarch has already submitted planning applications for a 158-bed budget boutique hotel at Sackville place and a 159-bed aparthotel off Pearse Street, both of which are in Dublin. The group is also preparing a proposal for a 250 – 400 bed scheme on Townsend Street in Dublin. The Irish Independent, 21st August
Neptune Building: A joint venture between Tristan Capital Partners and SW3 Capital has agreed to acquire the 197-unit Neptune Building in Dún Laoghaire, south Dublin for c. €72.5m. The c. 181,000 sq. ft. property is currently being constructed by the Cosgrave Property Group, who has the backing of NAMA. The transaction is expected to close once the property is completed, with Q2 2017 set as the target completion date. Property Magazine International, 22nd August
Coldcut Park: IRES REIT has agreed to acquire 89 apartments and 145 car spaces in Coldcut Park, Clondalkin, Dublin 22 for c. €18.3m. The apartments have an occupancy rate of 99% and the annualised rental income is c. €1.4m. The 89 units consist of 18 one-beds, 22 two-beds, 32 three-beds and 17 four-beds. The Irish Independent, 23rd August
Q2 2016 Rent Report: The latest report by Daft.ie on the Irish rental market shows that the number of properties available to rent continues to fall. On August 1st 2016, there were only c. 3,600 homes available to rent, a c. 1,000 decrease on the August 1st 2015 figure. Nationally, rents rose by c. 11% YoY in Q2 2016 to €1,037 p.m. and c. 3.9% QoQ. All regions in Dublin saw YoY increases in average rents. In Dublin city centre, rents were up by c. 10% to €1,505 p.m. while in South Dublin City, rents were up by c. 11.3% to €1,642 p.m. The Daft.ie Rental Report, Q2 2016
Docklands Apartments: Oxley Holdings has sought planning permission for 124 apartments in the north Dublin Docklands. The site of the proposed development is c. one-acre and is adjacent to the Central Bank’s new HQ. The apartments will be built in an 11-storey block, which will consist of 25 one-beds, 78 two-beds and 21 three-beds. The application also proposes to develop c. 5,000 sq. ft. of retail / medical / café space within the development. NAMA Wine Lake, 21st August
Binary Hub: The Student Housing Company’s 471-bed Binary Hub student accommodation complex in The Liberties, Dublin is now fully booked up for the 2016 / 2017 college year. Rooms in the complex start at €206 per week, which is significantly above DIT’s estimate of the average weekly rent paid by students at €115.50. The Binary Hub rent covers the cost of bills and the use of on-site facilities such as the gym and laundry. The Irish Independent, 21st August
Household Debt: A new report by the Central Bank shows that household net worth increased by c. €2.1bn (0.3%) to c. €628.7bn and household debt fell by c. €1.1bn (0.7%) to c. €148.5bn in Q1 2016. On a per capita basis, household net worth is at €132,141 while household debt is at €31,216. Household net worth peaked at c. €718bn in Q2 2007 before bottoming out at c. €454.1bn in Q2 2012. Household debt peaked at c. €207.3bn in Q3 2008 and has continued to decline in each of the past 30 quarters. Central Bank of Ireland, Quarterly Financial Accounts Q1 2016
Mater Private: The owners of the Mater Private group have secured a €300m facility which will allow them to refinance their existing debt while also funding capital expenditure necessary to grow the business. The Australian bank Macquarie was the lead arranger in the transaction. CapVest is the majority owner of the hospital group with a 51% shareholding. The Irish Times, 22nd August
POD Nightclub: Clancourt Holdings has paid c. €6m to purchase the former POD nightclub and music venue on Harcourt Street in Dublin 2 from John Reynolds. Following the purchase, the group may look at redeveloping the property into office space, with a multinational technology company already believed to be interested in renting the property as office space. Clancourt Holdings is owned by the Kenny family and was valued at over €200m in 2015. The Sunday Business Post, 21st August
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Project Pluto: Danske Bank is expected to confirm the sale of its Project Pluto loan portfolio to Cerberus this week. The portfolio includes owner-occupier mortgages, buy-to-let mortgages and unsecured personal borrowings. Some of the loans are classified as non-performing. The sale would be one of the biggest residential loan sales in Ireland in recent times and would represent a significant portion of Danske Bank’s c. €2bn Irish mortgage book. No details on the par value or purchase price were disclosed. The Sunday Times, 14th August
Debenhams Liquidation: The Sunday Business Post reports on the proposed strategy which would see the Irish subsidiary of Debenhams exit liquidation. The British parent company will write off debts of over €42m whilst also providing an unsecured three-year loan to the subsidiary. The existing unsecured creditors will be paid c. 5% of their principal amounts whilst preferential creditors will be fully repaid. Creditors are set to vote on the proposal over the next few days. If the proposal is approved, then it will be sent to the High Court for formal ratification. Debenhams voluntarily entered liquidation this year, citing its high lease costs (€25m in 2015) among its chief concerns. The Sunday Business Post, 14th August
One Spencer Dock: AGC Equity Partners has completed the purchase of One Spencer Dock in Dublin’s North Wall Quay for c. €242m. The c. 226,000 sq. ft. property is let to PwC under three separate leases, with each lease running for 25 years from April 2007. The annual rent for the property is c. €11.8m. The sale of the property was managed by receivers Luke Charleton and David Hughes of EY, who were acting on behalf of NAMA. The Sunday Business Post, 12th August
Cherrywood Development: The High Court has over-turned a 2015 decision by Dún Laoghaire-Rathdown County Council to refuse a planning application submitted by O’Flynn Capital Partners (OFCP). The application sought approval for the development of 164 homes in Cabinteely / Loughlinstown. The application has now been referred back to the council who are to make a fresh decision on the application, as their previous reasons for rejecting the application were deemed to be invalid. According to OFCP, the sales value of the development site is in excess of €75m. The site lies within the c. 890-acre Cherrywood site, which is a Strategic Development Zone understood to be capable of providing c. 7,500 homes. The Irish Times, 10th August
Social Housing Fund: The Government’s Housing Agency is to review up to 1,000 homes in the possession of banks and investment companies over the next two years, with a view to acquiring properties for social housing. The agency’s goal is to acquire at least 400 homes a year and they will primarily target large portfolio sales of buy-to-let properties, so as to cause minimal disruption to the property market. The agency has been allocated a c. €70m budget by the Government, however this can operate similarly to a working capital facility. As the agency acquires properties from receivers, they will then sell them on to local authorities / approved housing bodies. The funds received from these bodies can be used to replenish the fund. The Irish Times, 15th August
Cork Student Accommodation: Ziggurat has been granted planning permission by Cork City Council for a 205-bed student accommodation project near UCC on the Western Road, Cork. The development is to be completed on a 0.8-acre site which previously facilitated an Esso Station. The estimated cost of the development is €75m. The council granted planning permission subject to a number of conditions, which are expected to be released shortly. The Evening Echo, 15th August
Dublin Development: CreKav Landbank Investments Ltd has sought planning permission from Dublin City Council for the development of 340 apartments on the site of the Carriglea Industrial Estate, Naas Road, Dublin. The application proposes the development of 70 one-beds, 159 two-beds and 111 three-beds. The gross floor area of the development will be c. 400,000 sq. ft., with the apartments spread across eight blocks ranging from four to five storeys in height. NAMA Wine Lake, 14th August
Kildare Development: NAMA is backing the development of close to 300 homes in Naas, Co. Kildare, which will be developed by Sean Mulryan’s Ballymore Developments. Company filings show that NAMA’s subsidiary, National Asset Loan Management, has secured a charge over the development land. The development is to be completed in two phases, with the first phase seeing the completion of 124 units. A number of the homes being developed will be three and four-bed units. The Irish Independent, 11th August
Dungooley Lodge: Best auctioneers has set an asking price of €4.155m for Dungooley Lodge in Kilcurry, Co. Louth. The c. 27,000 sq. ft. mansion is in a shell condition and is situated on a c. 256-acre site. The house was previously owned by the Northern Irish businessman Edward Haughey, before he passed away in 2014. The property is now being sold by his family. The Irish Times, 11th August
Chapelizod Site: Hooke & MacDonald is inviting offers of €3m for a 2.57-acre site (€1.17m an acre) on Chapelizod Hill Road in Dublin 20. The site comes with planning permission for the development of 33 new houses and the refurbishment of an existing semi-detached house which adjoins the site. The new houses will consist of two two-beds, 16 three-beds, 12 four-beds and three five-beds. The guide price equates to c. €83k for each of the new house sites and c. €250k for the existing house. Shrewsbury Square Ltd is selling the site, having been granted permission by NAMA to do so. The Irish Times, 10th August
Ulster Bank Mortgage Rates: Ulster Bank has announced cuts to its fixed and variable mortgage rates. The bank’s three-year fixed rates now start at 2.99% (down from 3.2%) and are available to customers whose LTV is no greater than 80%. The bank’s variable rates have also been cut from 3.2% to 3.1%. The Sunday Business Post, 11th August
Q2 Dublin Market Review: Savills’ report on the Dublin industrial market for Q2 2016 shows that take-up exceeded c. 570,000 sq. ft. in the period, bringing the H1 2016 take-up figure to c. 1,281,000 sq. ft. Although this is lower than the H1 2015 take-up of 2,368,000 sq. ft., H1 2015 saw an increased level of activity as investors sought to capitalise on expiring CGT incentives. Savills estimate that prime rents are now c. €7.90 psf and prime yields have tightened to c. 6.7%. The report also analyses figures from MSCI and estimates that capital values of prime industrial buildings are c. €74 psf. Savills Dublin Industrial Market, Q2 2016
€850m Data Centre Galway: Apple has been granted planning permission by An Bord Pleanála for the development of a c. 264,000 sq. ft. data centre near Athenry in Co. Galway. The data centre is to be built on a c. 486-acre site and Apple is expected to invest c. €850m in the project. Apple’s planning application also sought permission for the development of an electricity sub-station, which was also approved. Construction of the data centre is expected to create c. 300 jobs, while its operation will require c. 150 jobs. The Irish Independent, 12th August
Galway Clinic: Larry Goodman’s Parma Investments looks set to acquire Jimmy Sheehan’s 25% shareholding in the Galway Clinic for c. €31m. If the sale goes through, Parma will own 75% of the hospital. Parma also recently acquired Brendan McDonald’s 10% shareholding for an undisclosed amount. The hospital is trading very strongly, and accounts for 2014 show that it made a pre-tax profit of c. €12.8m. The Sunday Business Post, 14th August
TV3 Planning Application: TV3 has sought planning permission from South Dublin County Council to convert a logistics facility into a television studio at its Ballymount campus. The logistics facility has a floor area of 24,617 sq. ft. TV3 was acquired by Virgin Media for c. €87m in 2015. The Irish Independent, 14th August
Addison Lodge: The Addison Lodge pub in Glasnevin, Co. Dublin is on the market with a €3.25m price tag. The pub was sold for c. €16m in 2007. The Irish Independent, 11th August
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