Project Tolka Portfolio: Colony Capital is set to acquire NAMA’s c. €1.5bn par value Project Tolka loan portfolio, which includes prime Dublin properties mainly linked to developers John Flynn, Paddy Kelly and the McCormack family. The key assets in the portfolio include the Burlington Plaza office complex (c. €250m value), the Clarion Hotel in Liffey Valley and Paddy Power’s Belfield HQ. It is believed that loans linked to Carton House Hotel were removed from the portfolio by NAMA and are to be sold separately. NAMA also removed several major residential assets from the portfolio in a move related to its target of building 20,000 new homes by 2020. The Irish Independent, Friday 16th December
Liffey Valley Shopping Centre: The sale of Liffey Valley Shopping Centre and c. 17 acres of adjacent development land in west Dublin has been completed. Bayerische Versorgungskammer, Germany’s largest public pensions group, is believed to have paid in excess of €630m for the centre, which former owners Hines, HSBC Alternative Investments and the Grosvenor Group put on the market in July. The c. 764,000 sq. ft. centre has over 100 shops, 3,500 parking spaces and includes the recently opened Western End extension. In addition, planning permission was granted in August for a further c. 237,000 sq. ft. extension, alongside a new civic plaza and a 2,500-seat Olympic-sized indoor ice rink. The Irish Times, 19th December
City Quay: The Irish Times reports that Irish Life is in advanced negotiations to forward purchase City Quay, a new 118,000 sq. ft. office block currently under construction in Dublin 2. The company has reportedly outbid five overseas investment funds with its offer of over €125m for the eight storey block, which has been pre-let to Grant Thornton for an agreed rent roll in excess of €6m, offering an initial net return of c. 4.65%. It is believed that the construction and site costs for the project will be c. €70m, leaving profits of c. €55m to be shared between NAMA, Oaktree Capital Management, The Bennett Group and a small number of private investors. The Irish Times, 17th December
32 Molesworth Street: The Irish Times reports that Maple Fund Services (Maple FS) has agreed to lease Green REIT’s newly developed office building, located at 32 Molesworth Street in Dublin 2. The 32,000 sq. ft. property is being let on a 20-year lease (with break options in years 10 and 15) for c. €1.65m p.a., which equates to c. €51.70 per sq. ft. The property is the first of several new office developments by Green REIT to be leased, and the company has stated that the letting will enhance both their income profile and weighted average unexpired lease term. The Irish Times, 15th December
Shelbourne Road Office Complex: October Management Ltd, a company belonging to developer David Daly, has lodged a planning application with Dublin City Council seeking to undertake a redevelopment project in Ballsbridge, Dublin 4. The application proposes to demolish the existing five-storey, 40,000 sq. ft. IPC House at 35-39 Shelbourne Road and construct a 130,000 sq. ft. 5-7 storey over basement scheme, containing 120,000 sq. ft. of offices, retail/café space and 26 basement car parking spaces. Mr Daly is also working on the redevelopment of Franklin House in Ballsbridge, which will be developed as a 30,000 sq. ft. office building. NAMA Wine Lake, 18th December
The Temple Bar Hotel: The Temple Bar Hotel in Dublin city centre has been sold to The Ascott Ltd, a Singapore-listed real estate company, for c. €55.1m in an off-market transaction. The Ascott Ltd is a wholly-owned subsidiary of CapitaLand Ltd, and currently operates over 29,000 serviced residence units in America, Asia, Europe and the Middle East, with over 22,000 units also under development. The Irish Independent, 16th December
Dublin Airport Hotels: GC Hotels has received planning permission for two expansion projects beside its existing Radisson Blu Hotel at Dublin Airport, which will have a combined cost of c. €60m. Planning permission has been granted for a six-storey extension to the existing hotel (providing an additional 131 new bedrooms) and for the construction of a new seven-storey, 144-bedroom hotel beside the existing premises. The projects will bring the total room count at the two hotels to over 500. The Irish Independent, 16th December
Dublin 8 Hotel: Realmside Ltd has applied to Dublin City Council to construct a 234-bedroom hotel in the Liberties area of Dublin 8. The project would see the existing 3,000 sq. ft. structures at 118-128 The Coombe demolished and replaced with a newly constructed six-storey 120,000 sq. ft. hotel. NAMA Wine Lake, 18th December
Stockhole Lane Hotel: Carra Shore Hotel (Dublin) Ltd has sought planning permission for a 427-bedroom hotel on Stockhole Lane at Clonshaugh, near Dublin Airport. The proposed 10-storey development would contain 317 bedrooms, 110 suites, leisure facilities, meeting rooms and 461 parking spaces. The Sunday Times, 18th December
Andrews Lane Theatre Hotel: Appalachian Property Holdings Ltd has sought planning permission for a 155-bedroom ‘compact luxury’ hotel near Dame Street in Dublin city centre. The development will involve the demolition of the former Andrews Lane Theatre, which is currently being used as a nightclub, and the construction of a nine-storey over lower ground-floor hotel. The hotel will contain compact bedrooms of approximately 150-170 sq. ft. and minimal amenities (there will be a reception and coffee dock, but no restaurant or bar). It is anticipated that the hotel will be run as an independent brand with rooms priced at c. €150 per night. The total investment, including site purchase, is estimated at €21m. The Irish Times, 16th December
Malahide Apartments: Agents Hooke & MacDonald will be guiding in excess of €40m for 105 apartments in The Casino apartment development in Malahide when it is offered for sale in January. The complex contains 115 high quality apartments, ten of which were sold to private investors when it was developed in 2005. The portfolio contains 85 two-bedroom and 20 one-bedroom homes, and the proposed purchase prices equates to c. €381k per apartment. The current rental income for the apartments is c. €1.9m p.a., however based on recent lettings it is believed the market value of rents is c. €2.37m. If this market rate were to be achieved, this would equate to a yield of c. 5.93%. It is expected that the sale will attract significant interest from both Irish and international investors. The Irish Times, 14th December.
Horizon Logistics Park: Green REIT is spending c. €12.25m to acquire c. 164 acres of land located adjacent to its existing holding at Horizon Logistics Park at Dublin Airport, bringing its total land holding in the park to c. 264 acres. According to the company, the acquisition will allow them to capitalise on the increase in both demand and rental values for well-located modern logistics units. The Irish Times, 15th December
Poolbeg Special Development Zone (SDZ): Construction of up to 3,000 apartments will be permitted on the former Irish Glass Bottle site under plans for a new urban quarter on Dublin’s Poolbeg peninsula. It is anticipated that 80% of the c. 37-acre site will be set aside for the construction of new homes, all of which will be apartments, with the remaining 20% to be an office and retail ‘buffer zone’, which will separate the housing from the nearby industrial land banks. The apartments will mostly be in blocks under nine-storeys, however some blocks of 14-16 storeys will also be permitted. The draft Poolbeg SDZ scheme will be available for public consultation next month, and is expected to be finalised by next May, after which landowners will be able to apply for planning permission which cannot be appealed to An Bord Pleanála. The Irish Times reports that the document contains no provision for the development of a proposed ‘Hollywood style’ film studio on the site. The Irish Times, 16th December
Brunswick Street Student Accommodation: Global Student Accommodation (GSA), an international student accommodation specialist, have been granted planning permission to develop 571 student rooms and associated retail space on Brunswick Street in Dublin City Centre by An Bord Pleanála. The new project is the latest element of the company’s plans to invest €250m in the provision of student accommodation in Dublin over the next five years. The Irish Independent, 16th December
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Project Gem: NAMA Wine Lake (NWL) references a Bloomberg report from last week which states that Cerberus has been chosen as the preferred bidder for Project Gem, a c. €3bn par value loan portfolio. The assets securing the loans in the portfolio include commercial properties in Ireland, Germany and the UK. According to NWL, the portfolio is unlikely to sell for more than 20c in the Euro. Oaktree and Goldman Sachs are believed to have been underbidders for the portfolio. NAMA Wine Lake, 11th December
Permanent TSB (PTSB) Transaction: PTSB has withdrawn from talks to buy c. €100m of mortgages that originated from GE Capital’s former Irish portfolio of sub-prime loans. The performing home loans were part of a portfolio (containing mainly non-preforming loans) that was previously sold to the Australian firm Pepper in 2012, in a deal that was financed by Goldman Sachs. The acquisition would have been PSTB’s first purchase since the financial crisis, and the decision comes as analysts predict that mortgage lenders will receive a boost next year from both the Government’s help to buy scheme and the Central Bank’s relaxation of borrowing limits for first time buyers. The Irish Times reports that Pepper and Goldman Sachs may seek another buyer to purchase the loans following PTSBs withdrawal from the purchase. The Irish Times, 12th December
Manor Mills Shopping Centre: Avenue Capital Group has purchased Manor Mills Shopping Centre in Maynooth, Co. Kildare for c. €14m. The 116,803 sq. ft. centre contains 26 shops, four kiosks, a restaurant and 500 underground car parking spaces. The anchor tenant is Dunnes Stores (who own their unit) and other traders include Elverys, Eason and Vodafone. The rental income is c. €1.229m p.a. with a weighted average unexpired lease term of c. 8.6 years. The majority of the leases are on FRI terms, while seven traders pay a base rent and percentage of their turnover. The centre, which was prefunded before the property crash for c. €48m, is trading strongly due to its location close to both St Patrick’s College and Maynooth University. The Irish Times, 7th December
Clerys Planning Permission: Natrium has been granted planning permission by Dublin City Council for the redevelopment of the former Clerys department store into a mixed-use development of offices, retail units, leisure facilities and a boutique hotel. As part of the redevelopment, Natrium intends to create a ‘rooftop destination’ area containing restaurants, bars and entertainment spaces offering views over both Dublin city and Dublin bay. The company also intends to reinvigorate Earl Place into a new street containing both retail units and a pedestrian shopping area. Dublin City Council granted the approval despite over 40 ‘objector letters’ to the application, however it has attached 28 conditions to its approval. The Irish Independent, 10th December
Velasco Building: Irish Life has purchased Velasco, an eight-storey office building currently under construction on Clanwilliam Place in Dublin 2, for c. €58m in an off-market sale. The new 51,000 sq. ft. block is being developed by Ardstone Capital, on behalf of CBRE Global Investment Partners, with construction being managed by Hardwicke Ltd. The new building will be finished to an LEED Gold Standard with a BER A3 rating and will contain floor plates ranging from 5,100 sq. ft. to 7,800 sq. ft., along with 13 car parking spaces. Agents JLL stated that the price achieved was reflective of both the quality of the building and its prime location. Irish Life are one of the largest office landlords in Dublin, and are expecting pent-up demand for office accommodation in Dublin as a result of the recent Brexit vote. The Irish Times, 7th December
1 Windmill Lane: Hibernia REIT has paid €27.5m to acquire Starwood Capital’s 50% interest in the Windmill Lane Partnership (WLP), thereby giving Hibernia REIT 100% ownership. WLP was formed to hold and develop 1 Windmill Lane, a new development under construction on a one-acre site in Dublin’s south docklands. 1 Windmill Lane will contain 122,000 sq. ft. of offices, 7,000 sq. ft. of retail and 14 residential units when completed in late 2017. As part of the transaction Hibernia REIT will also acquire Starwood’s 50% share of the €44.2 million non-recourse debt facility with Deutsche Bank. This facility is currently €8.8m drawn down, and will be used to fund the remaining capital expenditure of c. €28m. Hibernia REIT has stated that the price equates to a capital value of €750 psf for the office space, and the company now owns five adjacent properties in the area which are either completed or under construction. When the development of all these properties has been completed, they will provide over 370,000 sq. ft. of office space in the area. The Irish Times, 13th December
Wilton Park House: The Sunday Times reports that IPUT is taking control of Wilton Park House, the Dublin HQ of IDA Ireland. It already owns a one-third share of the 140,000 sq. ft. office block, and is purchasing the remaining holding, which is held by pension funds managed by State Street Global Advisors. The building is believed to be worth c. €84.5m, however IPUT may get a discount as it is an off-market transaction involving existing shareholders. The Sunday Times reports that IPUT may be acquiring the full interest to allow them to redevelop the property. The Sunday Times, 11th December
D’Olier Street: A German investment fund is reportedly close to purchasing the former Irish Times HQ on D’Olier Street and Fleet Street in Dublin city centre for nearly €50m. The top floor of the building is currently occupied by the Irish Aviation Authority, while three of the seven ground floor retail units are let. The combined rent roll is c. €2.5m p.a., offering a net initial yield of c. 5%. The building, which extends to 90,707 sq. ft. was purchased by Kennedy Wilson after the property crash. The Irish Times, 7th December
Hines Acquisition: Hines is reportedly finalising the purchase of the interests of Oaktree Capital Management in a Dublin student accommodation portfolio. The portfolio covers 1,460 student beds across four separate developments, for which the combined value is c. €230m. The four developments include Binary Hub, a 471-bed facility in Dublin 8, and three projects currently in planning or under development (a 447-bed development under construction at Dorset Point in Dublin 1, a 374-bed development under construction at Summerhill in Dublin 1 and a further site in Dublin 8). The sale follows on from Oaktree’s decision to exit the European student accommodation market and will see Hines become one of the largest players in the student accommodation market in Dublin. The Sunday Times, 11th December
Donnybrook Development: Purleigh Holdings Ltd has been granted planning permission by An Bord Pleanála for a c. €50m luxury apartment development on a 3.3-acre site in Donnybrook, Dublin 4. The project will involve the construction of 71 apartments in five standalone blocks. The scheme was previously approved by Dublin City Council despite 18 objections against the development, including three from local residents groups. The 30 residents in the adjoining Nutley Square development appealed the decision to An Bord Pleanála along with Greenfield Park Residents Group and others. The Irish Times, 7th December
Clontarf Development: Cushman & Wakefield is guiding €3.6m for Verville Retreat (one of the oldest buildings in Clontarf) and an adjoining 1.3 acre site, which together have combined planning permission for a mixture of 19 apartments and houses. Verville Retreat extends to 12,600 sq. ft. and has planning permission to be converted into six apartments (two one-beds, one two-bed and three three-beds). In addition, permission has been granted to convert the gate-lodge into a two bed mews and there is further planning permission for eight three-bedroom units and four detached dwellings. It is anticipated that the site will also allow for the provision of 23 surface car-parking spaces. The Irish Times, 7th December
Stillorgan Apartments: A newly constructed NAMA-funded block of 54 apartments and penthouses at the Grange in Stillorgan, south Dublin has been put on the rental market, in a move which is likely to attract interest from residential property funds who may speculate that a sale of the units will follow. The apartments, which are being marketed by Hooke & MacDonald, start at €1,475 p.m. for a one-bed, €1,775 p.m. for a two-bed and €3,000 p.m. for a three-bed penthouse. The Irish Times, 7th December
Rent Proposals: The Irish Times reports that Minister for Housing Simon Coveney is to submit a proposal to the Government Cabinet this week seeking the introduction of new legislation for the private rental sector. The new measures would limit the permitted annual increase in rent in designated rent pressure zones to 4%, or 12% over three years, with sources suggesting that Dublin and Cork would be immediately designated as rent pressure zones. Once an area has been designated as a rent pressure zone, the restrictions will remain in place in the area for three years. Under the proposal, the Residential Tenancies Board (RTB) would have the authority to recommend which areas are designated as rent pressure zones. The Irish Times, 13th December
Stoneybatter Student Accommodation: Two new applications have been made to Dublin City Council to construct student accommodation developments in Stoneybatter, Dublin 7. Gurtmont Ltd has applied to construct a five-storey, 96-bedroom complex on the site of existing buildings at Manor Street, which will be demolished. A further application has been made by Ziggurat ROI No 1 LP to construct a seven-storey, 180,000 sq. ft. complex with 444-bedspaces at the junction of Rathdown and North Circular roads. Nama Wine Lake, 11th December
Ship Street Development: Luxor Investments Ltd, an Irish-registered company owned by Padraic Rhatigan, has applied to Dublin City Council to construct a 200,000 sq. ft. residential-led development in Ship Street Great in Dublin city centre. The proposed development will contain 86 apartments (27 one-beds, 43 two-beds and 16 three-beds) ranging in size from 550 sq. ft. to 1,300 sq. ft. There will also be museum space and conference facilities on the site. Nama Wine Lake, 11th December
Donabate Development: Roxtip, a company whose directors include Bernard McNamara, has applied to build 36 houses on a 2.47-acre site in Donabate in north County Dublin. The sale of the site (which had a guide price of €1.3m) on which the houses will be built was handled by Ganly Walters. The Irish Independent reports that Mr McNamara is planning to build ‘high quality’ three-bedroom houses on the site that will be aimed at the first time buyer market. It is estimated that construction of the houses will cost a further €6m in addition to the purchase price of the site. Irish Independent, 9th December
Mortgage Arrears: The Q3 2016 report from the Central Bank on mortgage arrears shows that the number of principal dwelling houses (PDH) in arrears fell for the thirteenth consecutive quarter in Q3 2016. The number of accounts in arrears fell by 3.1% to 79,562. However these figures show that 11% of all PDH accounts are in some form of arrears. The report shows that 421 properties were taken into possession by Lenders during the quarter. Central Bank of Ireland, Residential Mortgage Arrears and Repossessions Statistics: Q3 2016
Cork City Flooding Scheme: Approximately 2,000 properties in Cork City are to get new flood defences in the largest scheme ever undertaken in Ireland. The new €140m scheme will include the construction of new quay walls and embankments in the city, floodgates, and a flow control system in the River Lee. The flood defences will protect over 900 homes and 1,200 businesses in the city and will reduce the risk to a further 1,000 properties. Construction is due to begin next year and comes after Cork City suffered flooding four times in recent times, including one incident in 2009 which resulted in damages of c. €100m. The Sunday Business Post, 11thDecember
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Aldi Expansion: Aldi has announced plans to invest c. €100m in Ireland over the next three years in a move which will see it adding around 20 new stores, creating c. 400 new jobs in the process. As part of the expansion plans, the chain is due to open stores in Trim, Co. Meath, Leixlip, Co. Kildare and Ennistymon, Co. Clare. It is also expected to seek planning for outlets in Dunshaughlin, Co. Meath and Graiguenamanagh, Co. Killkenny. Aldi is the fifth-largest supermarket franchise in Ireland, with a c. 11.3% share. The Irish Independent, 4th December 2016
Drumcondra Supermarket: Lidl has lodged a planning application for a 60,000 sq. ft. supermarket led development in Drumcondra, north Dublin. The plans cover the demolition of a 15,000 sq. ft. garage and crèche at 25/27 Drumcondra Road, and the construction of a new 50,000 sq. ft. supermarket and 10,000 sq. ft. of office space. Nama Wine Lake, 4th December
East Point Business Park: Google is currently negotiating the purchase of a 40,000 sq. ft. office block in Dublin’s East Point Business Park. The building in question, Block L, is believed to be valued at c. €10m, and is located close to five other buildings currently rented by Google in the business park, ranging in size from 32,000 sq. ft. to 50,000 sq. ft. Block N, the largest of these buildings was recently leased at a rent of €18.50 psf, with a further €1,250 payable for associated car park spaces. Meanwhile, the first two buildings in the park (constructed in 2001) are sale agreed for c. €20m, according to Weir Conway Chartered Surveyors. The properties, Blocks JK, have an overall floor area of 63,272 sq. ft. and are occupied by Arvato Finance Services under a 15 year FRI lease from April 2016 for a headline rent of c. €1.4m p.a. The rent equates to c. €20 psf for the office space and c. €1,000 per car space. The Irish Times, 30th November
2 Habourmaster Place: German investor Real IS has purchased Number 2 Harbourmaster Place, a 61,000 sq. ft. office building in Dublin’s IFSC, for €53.75m in an off-market deal. The property was purchased two years ago for €37.85m by Ardstone Capital and CBRE Global Investment Partners, who have made a profit of almost €16m on the sale. Despite the significant increase in the purchase price, Real IS can expect a net initial yield of 5.25%. The yield will improve next year as the current annual rent roll of €2.45m is projected to increase to €2.93m when one of the tenants, KPMG, begin a new lease. Other tenants in the building include Wells Fargo, Bank of Montreal and United Health Group. Since purchasing the building in 2014 Ardstone and CBRE Global have carried out a number of internal improvements. The Irish Times, 30th November
Ballymoss House: U+I and Colony Capital have paid €13.65m for Ballymoss House, a partially vacant modern office block in Sandyford, Co. Dublin. The 65,000 sq. ft., four-storey-over-basement property is located at the junction of Ballymoss and Carmanhall Road, and has been sold through agents Savills after a year on the market. The ground floor of the building is let to BMC Software on a 25-year lease from 2000, with upwards only rent reviews at five year intervals. The rent of c. €390k p.a. includes fees for 39 of the 164 basement car spaces and equates to c. €22 psf. If this relatively low rent was to be replicated throughout the entire building, it should command a rent roll of approximately €1.6m p.a. when fully let. The Irish Times, 30th November
Harcourt Printing & Office Supplies Building: Murphy Mulhall is guiding in excess of €2.25m for the 0.24-acre site of the former Harcourt Printing & Office Supplies premises and adjacent carpark (with space for between 15 and 20 cars) on South Richmond Street in Dublin 2. The premises, has been extensively refurbished at first floor level, and has been split into five offices suites (each of which is rented on a short-term basis), while the ground floor is currently unoccupied. An architectural study suggests the site could facilitate a four-storey, mixed-use property. The Irish Times, 30th November
Parliament Hotel: Halstonville Ltd, a company in the Tifco group, has lodged an application for permission to build a 77-bedroom extension to the Parliament Hotel in Dublin’s Temple Bar. The Tifco group currently owns or operates 13 hotels in Ireland, with a combined 1,600 bedrooms. Nama Wine Lake, 4th December
Zanzibar Hotel: The Irish Independent reports that the sale of the Zanzibar Hotel development on Dublin’s Ormand Quay is expected to be completed in the near future. The expected purchase price, in excess of €10m, represents a premium of over 100% on the €5m guide price quoted by CBRE when it was listed on the market in August. The property, which has planning permission for the development of an 89-bedroom hotel, attracted widespread interest from over 100 parties and is the latest hotel development opportunity in Dublin to sell for significantly above the asking price as the shortage of hotel rooms in the city continues. The Irish Independent, 1st December
Convent Lands Site: Cushman & Wakefield, acting on behalf of Dublin City Council, is offering a two-acre redevelopment site in Dublin’s north inner city for sale. The site, known as the Convent Lands, contains an extensive range of spacious period buildings. The council plans to dispose of these, and the adjoining sites, as part of a development agreement to ensure the site is transformed into a high quality, mixed-use neighbourhood in the near future. Likely uses for the site include apartments, high density student accommodation, hotel, retail or office. Although the agents have not quoted a guide price, The Irish Times reports that one city centre developer expects bidding to begin at over €10m. The Irish Times, 30th November
Ballycullen Site: A 9.16-acre site in Ballycullen in south Dublin with planning permission for 74 three and four bedroom homes is being offered for sale by Savills, under the instruction of NAMA-appointed recievers. The site is being offered for sale by way of a licence agreement, a new sales method which allows developers to gain possession of housing sites by paying an initial fee and then reimbursing NAMA for the remaining site value when the houses are sold. In this case, the site has an open market value of between €6.5m and €7m, and the expectation is that the successful bidder will pay an initial fee of around €1m to gain control of the site, and a further fee of about 25% of the projected selling price per house of €300-400k when any of the constructed houses is sold. A third condition will involve the buyer agreeing a percentage that will be payable to NAMA should the houses sell for over their projected value. The Irish Times, 30th November
Navan Development Site: A company controlled by Davy Hickey Properties chiefs Brendan Hickey and Hugh Lynn is due to pay €6.4m for a 44-acre development site with potential for 400 new homes in the commuter town of Navan, Co. Meath. This represents a premium of 60% over the €4m guide price set by joint agents Lisney and Smith Harrington for the site, which is located within the perimeter of Navan’s urban area. The site fronts on to Academy Street on the Dublin Road out of Navan, and forms part of the grounds surrounding Belmont, a substantial period house. In addition to the proposed development of residential units on the site, it is reported that the new owners will seek planning permission for a commercial development. In return for the commercial development, the owners are expected to offer six-acres which can facilitate the construction of a new school on the site. The Irish Independent, 4th December
Permanent TSB (PTSB) Mortgage Rates: PTSB has extended its cashback offer for new customers (which was due to expire this month), until June 2017 and also reduced its mortgage rates. The biggest rate reductions will benefit first time buyers, who will now pay a variable rate of 3.7% on a mortgage of up to 90% LTV, down from the previous rate of 4.2%. Other customers will be able to fix their mortgage for up to five years if they owe at least €250k and have an LTV of less than 80%. The rate cuts are seen as a bid by PTSB to protect its market share as the top three providers (AIB, Bank of Ireland and Ulster Bank) increasingly dominate the market. The Sunday Times, 4th December
October Mortgage Approvals: Figures from the latest Banking & Payments Federation Ireland (BPFI) report show that the number of mortgages approved for the three months ending October 2016, based on moving averages, was 3,310. This figure represents a 2.6% decrease MoM but a 28.9% increase YoY. The value of mortgages approved in this period was c. €654m, a 3.4% decrease MoM but a 40.9% increase YoY. When comparing the January to October period in 2016 with the same period in 2015, mortgage approval volumes are up 5.5%, while values are 11.6% higher. BPFI Mortgage Approvals October 2016
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Sean Mulryan / Ballymore Group: According to NAMA Wine Lake, one of NAMA’s top 10 borrowers Sean Mulryan and his Ballymore Group are expected to imminently refinance performing loans with a par value of c. €2.4bn. Management accounts for NAMA for Q2 2016 showed that the state agency’s remaining par value loans of c. €35.9bn were valued at c. €5.1bn (c. 14c in the Euro). If the loans in the Mulryan and Ballymore connection about to be refinanced were valued at par, NAMA’s remaining par value loans of c. €33.5bn would be valued at c. €2.7bn (c. 8c in the Euro). Nama Wine Lake, 27th November
Navan Shopping Centre: Davidson Kempner has acquired a majority stake in Navan Town Centre for c. €62m. According to the joint selling agents Cushman & Wakefield and Savills, the shopping centre should generate a net yield of c. 7.31%. They have purchased a 66% interest in the centre from property developers Duignan & McCarthy (who have managed the operation of the centre for the past number of years), with the balance of shares continuing to be held by Irish Life. The centre was built in 1980, and following a number of extensions, currently has a combined retail area of 250,000 sq. ft. The purchased shareholding generates an operating income of c. €4.7m p.a., including c. €1.2m from two multi-storey carparks and c. €478k from a fully owned unit occupied by Marks and Spencer. Major tenants of other units owned jointly with Irish Life include New Look, Heatons and Boots. The Irish Times, 23rd November
Fairgreen Shopping Centre: Oaktree has purchased Fairgreen Shopping Centre in Mullingar, Co. Westmeath for in excess of €12m. Joint agents Cushman & Wakefield and Savills expect the shopping centre to produce a return of c. 8.13% based on net operating income. The centre was built in 2005, has a floor area of 105,000 sq. ft. and includes eight large retail units. The net rent from the shopping centre is c. €920k p.a. and the tenants include New Look (paying a rent of €230k), TK Maxx (which pays a revenue-based rent) and Dorothy Perkins (paying €180k). The Irish Times, 23rd November
Eden Restaurant: Eden restaurant on 7 South William Street in Dublin city centre has been sold by CBRE to a private investor for c. €2m. The two story, 100-seat restaurant extends to 2,982 sq. ft. and is rented by Jay Bourke on a 20 year lease (running from 2012) at a rent of c. €120k p.a. The Irish Times, 23rd November
One George’s Dock: Swedish property adviser Catella has paid over €40m to acquire the JP Morgan HQ in Dublin’s IFSC. JLL originally quoted €36.5m for One George’s Dock, which also attracted interest from several big names including State Street and Hibernia REIT. The five-storey over-basement office block extends to 44,476 sq. ft. and includes 46 basement car parking spaces. It is let to JP Morgan under a 25-year FRI lease from December 1996, with just over five years remaining and upwards only rent reviews. The current rental income is c. €1.8m p.a., which represents 80.44% of the full rental value. This figure will revert to 100% rental value upon expiry of the current lease in 2021. The Irish Times, 23rd November
Molesworth Street Offices: Savills is quoting rents of €60 – €65 psf for high-spec office space at 40 Molesworth Street in Dublin 2. The building, which previously contained offices of the European Union, was purchased by IPUT in 2013, and the company is spending c. €9m to refurbish the property. The redeveloped offices should be ready for occupation by June 2017, and are being offered either as a single let or on a floor by floor basis, with sizes ranging from 3,000 sq. ft. to 30,000 sq. ft. The redeveloped building will include 17 car spaces and an area for bicycle storage. The Irish Times, 23rd November
Microsoft Offices: Riverdeep founder Barry O’Callaghan is paying in excess of €20m for a c. 87,000 sq. ft. office block in Leopardstown, south Dublin, which he intends to redevelop into the first international school in Ireland. The building is currently occupied by Microsoft, and Mr O’Callaghan is applying for permission to convert the offices to educational use when Microsoft vacate the property next year. The new school will teach the widely recognised International Baccalaureate as an alternative to the Leaving Certificate. Mr O’Callaghan is currently in talks with an academic partner in relation to the project, which has gained added impetus following the result of the Brexit referendum. The Sunday Times, 27th November
Sandwith Street Upper: Rails Investment Limited has applied to Dublin City Council for permission to demolish a former post office on Sandwith Street Upper in Dublin city centre and replace it with a new 115,000 sq. ft., four to seven-storey over-basement office building. Nama Wine Lake, 27th November
Enterprise House, Blackrock: Friends First has received planning permission from Dún Laoghaire-Rathdown Council for the c. €11.5m redevelopment of Enterprise House in Blackrock, south Dublin. The project will involve the construction of over 86,000 sq. ft. of office space in a new five-storey building. Sunday Business Post, 27th November
2016 Transaction Activity: A new report by Cushman & Wakefield estimates that c. €143m worth of hotels were sold in Q3 2016, bringing the YTD sales proceeds to c. €283m, spread across 36 transactions. The most substantial deal in Q3 2016 (and 2016 YTD) was the sale of the Gresham to Riu Hotels for c. €92m, which was the biggest hotel deal since the sale of the Shelbourne in 2014. The Irish Times, 28th November
LeBruin acted as an advisor to Precinct Investments on the sale of the Gresham Hotel
Enniskerry Hotel: Johnny Ronan has applied to Wicklow County Council for permission to build a 141-bedroom hotel in Enniskerry, Co. Wicklow on the grounds of St Valery’s house, a protected building which dates to about 1810. The new four-storey over-basement hotel will extend to 161,458 sq. ft. and will contain a restaurant, bar and meeting rooms along with 160 car parking spaces. The Sunday Times, 27th November
Dublin Room Rates: The chief executive of Dalata, Pat McCann has stated that he believes Dublin hotel room rates are too low when compared internationally. In comparison with c. 20 European cities, Mr McCann notes that Dublin is 11th in room rates but 1st for occupancy. Mr McCann believes that low room rates are having a detrimental effect on the supply of new hotel rooms in Dublin. The Irish Independent, 27th November
Centerbridge Partners: Centerbridge Partners, a New York private equity firm, has appointed Eastdil Secured to manage the sale of its interests in new housing developments in Hollywoodrath in Hollystown, Scholarstown Wood in Rathfarnham and an undeveloped site in Station Manor in Portmarnock. Centerbridge set up a JV in 2013 with Dublin-based Avestus Capital and property developers Regency to manage the development of the three sites. The first two phases of Hollywoodrath, launched earlier this year, have sold out (with prices from €300k – €360k for three and four bedroom homes) and the €14m site has planning permission for 450 homes. The Scholarstown site, which was acquired for c. €37m, has planning permission for 314 high end homes. The Irish Times, 23rd November
Central Bank Mortgage Rules: The Central Bank has eased the mortgage rules which apply to first time buyers, meaning that they will only require a 10% deposit regardless of the value of the property they are purchasing. This compares with the current rules, whereby a deposit of 10% is required for loans up to €220k, but 20% is required for the balance of any loans above this amount. The rules for non-first time buyers remain unchanged, therefore the maximum allowable loan-to-value for these borrowers remains at 80%. There have been no changes to other elements of the rules, such as the current 3.5 times ceiling on the loan-to-income ratio, requirements for buy-to-let borrowers, and the exemptions for negative equity borrowers. As part of the revised rules, 5% of the value of new mortgages to first time buyers will be allowed above the 90% LTV limit, while 20% of the value of new mortgages to second and subsequent buyers for primary residences will be permitted above the 80% LTV limit. The Central Bank had previously allowed for a flat exception rate of 15% across all categories. The Irish Times, 23rd November
Glasnevin site: Lisney is guiding over €15m for a five-acre site on Botanic Road in Glasnevin, Dublin 9 which contains planning permission for 119 homes. An Bord Pleanála has granted planning permission for 43 houses (mix of three-, four- and five-beds), 76 apartments (17 one-beds, 42 two-beds and 17 three-beds) a semi-basement carpark, surface parking, a café and a childcare facility. According to Lisney, new planning regulations at Dublin City Council mean the site has potential to include a further 19 homes. The Irish Times, 23rd November
Clontarf Site: CBRE is quoting a guide price of €3.8m for a residential development site in Clontarf in Dublin. Based on two feasibility studies by Ryan & Lamb Architects, the 1.4 acre site has potential to accommodate either a low-density scheme containing 16 townhouses, or a higher density scheme of 62 apartments. The site has 60 metres of frontage onto Mount Prospect Avenue. The Irish Times, 23rd November
Galway Site: Cushman & Wakefield has called for final bids by December 14th for the Galway Irish Crystal redevelopment site (and existing buildings) located on the Old Dublin Road in Galway, which is guiding €2.25m. The 4.6-acre site is zoned for residential use and previously had planning for 178 apartments before the economic downturn. Although this zoning is in place, it is believed the new owners may decide to retain or enlarge the existing commercial buildings on the site, which are rented by Galway Irish Crystal for c. €200k p.a. An additional €10.5k of rent p.a. is generated by a telecommunications mast. The Irish Times, 23rd November
Carrigaline Development: Astra Construction Services Ltd has received planning permission for a c. €38m housing and commercial development in Carrigaline, Co. Cork. Work on the site, which has permission for 297 units, is due to commence in 2017. Sunday Business Post, 28th November
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CBRE Retail Report: The latest CBRE report on the retail market indicates that the economic recovery has begun to spread beyond Dublin and its immediate commuter counties. In Cork, the high street vacancy rate has decreased from c. 19.5% in Q1 2015 to c. 8.1% in Q3 2016. The worst vacancy rate is in Athlone, Co. Westmeath, however even here the vacancy rate has fallen from c. 21.6% in 2014 to c. 14.9% in Q3 2016. Counties such as Limerick, Sligo and Waterford have also seen contraction in their vacancy rates. With regards to Dublin, the report states that the capital has a high street vacancy rate of c. 2.58%. This includes units that are reserved or close to fit-out, meaning that all streets are actually close to or at full occupancy. The report also notes however that while retail sales increased by c. 3.4% in the first 9 months of 2017, consumer sentiment dipped to a 22-month low in October as events such as Brexit began to impact the public’s view on the economic landscape. The Irish Independent, 17th November
Setanta Centre: The Irish Times reports that Larry Goodman has withdrawn the Setanta Centre from the market after negotiations to sell the Dublin city centre property fell through. Goodman had reportedly been in discussions to sell the 41-year-old office and retail complex to an overseas bidder for €110m-plus, however it is believed that the overseas bidder could not close the transaction. With the property now understood to be off the market, Goodman may look to redevelop it himself. The Irish Times, 21st November
Irish Nationwide HQ: Hines has paid c. €37m to acquire the former HQ of Irish Nationwide Building Society on Dublin’s Grand Canal from London & Regional Properties (L&R). The sale price is c. €22m above the €15m paid by L&R to acquire the property in late 2013. Before agreeing to sell the property to Hines, L&R had been in discussions with Dublin City Council about seeking planning permission for a second office block of c. 35,000 sq. ft. and 38 apartments. The site extends to c. 1.7-acres. The Irish Times, 16th November
86 – 88 Lower Leeson St: Browne Corrigan Chartered Surveyors is guiding a rent of €55 per sq. ft. for mock Georgian offices currently under renovation at 86 – 88 Lower Leeson Street in Dublin 2. The building is the former HQ of the property fund IPUT and was most recently purchased by the Eric Kinsella, the founder of Espirit Investments Ltd, for c. €11m in 2015. The letting agent has advised that the first floor has recently been let, so it is likely that the remaining space will be let on a floor-by-floor basis. The extended building will have 20,150 sq. ft. of space, with floor plates ranging from 3,090 – 4,327 sq. ft. and is being fitted out to very high specifications. Car spaces are also available to rent at €3,500 per space. The Irish Times, 16th November
Three Park Place: Joint Agents Knight Frank and BNP Paribas Real Estate are quoting rents of €65 psf for Three Park Place, a new office block being developed by the Clancourt Group on Dublin’s Upper Hatch Street. The seven-storey, 135,000 sq. ft. property is expected to be completed by Q3 2017 and will be located alongside One and Two Park Place, previous developments completed by the group. The block will also facilitate 34 car spaces and 142 bicycle spaces. The Irish Times, 16th November
Irish Life Development: Irish Life has applied for planning permission to demolish the former Bord Failte HQ in Dublin and replace it with a six-storey office block. The 1960s building, which is located at the junction of Baggot Street Lower and Wilton Terrace, has been vacant for almost a decade. Irish Life built the original property and then purchased the leasehold interest in 2015. Now the group wants to replace the existing 24,757 sq. ft. building with a 75,347 sq. ft. block. The company is now owned by Great-West Lifeco. The Irish Development, 20th November
1GQ: A large waterfront building on George’s Quay in Dublin 2 is likely to be of interest to financial institutions considering relocating to Dublin following the recent Brexit vote. The newly renamed 1GQ, which was previously Ulster Bank’s Dublin HQ, enjoys a prime location at the gateway to Dublin’s south docks. The existing building will be stripped out and modernised, while a five storey extension to the front of the property will increase the floor area from 110,000 sq. ft. to over 130,000 sq. ft. The refurbished building will obtain a BER rating of A3 and an international LEED platinum rating, and will include 100 parking spaces, secure bicycle parking and 14 showers. The building will be one of the only office buildings available for fit out in Q2 2017 and agents JLL will offer it for letting to a single tenant at €55 per sq. ft. The Irish Times, 16th November
Cork Development: The Cork-based developer JCD has been refused planning permission for over 200 apartments in City Gate Plaza in Mahon, Cork. JCD had been proposing to develop the apartments alongside a substantial office development which they already have planning permission for. Despite the setback, the developer has re-affirmed their intention to proceed with the office development, which should create over 200 construction jobs. There are over 3,000 employees in City Gate. The Evening Echo, 16th November
Lynam’s Hotel: A private investor has paid nearly €6m for Lynam’s Hotel on Dublin’s O’Connell Street, which had been on the market through CBRE Hotels for €4m. The 13,800 sq. ft., 42-bedroom hotel, which is located beside the Spire and the GPO, is not trading at present. Given the property’s prime location, the new owner should benefit from the significant footfall from O’Connell Street. A former bank, the property was redeveloped into a hotel in 2001 and includes a self-contained café / restaurant facility. The hotel was put into receivership by NAMA in 2015, and has recently been used by Dublin City Council to provide emergency accommodation. The Irish Independent, 17th November
Bow Lane Hotel: The British hotel and serviced apartment group Marlin has been granted planning permission by Dublin City Council for a new 300-bed hotel close to St. Stephen’s Green in Dublin 2. The €60m hotel is to be located on Bow Lane East, will be up to seven storeys in height and should take c. 30 months to develop. The Sunday Times, 20th November
Blackpitts Hotel: The Sunday Times reports that Denis O’Brien has agreed to a deal which will see Starwood Aloft operate his 202-bedroom hotel which is under construction in Blackpitts, Dublin 8. The hotel, which is being constructed by BAM, should be ready in 2018. The Aloft brand opened its 100th hotel last year and has hotels in London and Liverpool. The Sunday Times, 20th November
Montrose Student Residence: The Irish Times reports that Hines has been chosen as the preferred bidder for Ziggurat’s Montrose Student Residence on Stillorgan Road in Dublin 4. Hines is understood to have bid close to the €41.5m asking price for the property. Ziggurat purchased the former three-star hotel in 2012 and then redeveloped it so that it now has 205 student bedrooms over five floors and 8,363 sq. ft. of ground floor commercial space. The rent roll of the newly completed development is expected to rise to c. €2.91m p.a. The Irish Times, 16th November
Priory Hall: Dublin City Council has sold the first 43 apartments offered for sale in the revamped Priory Hall complex near Donaghmede, North Dublin. The apartments sold within days of going on the market. The apartments achieved over €7m for the council, which has spent over €27m on the complex since it was evacuated under the orders of the High Court in 2011. Work began two years ago on the redevelopment of the derelict 187 apartment complex (which has been renamed ‘New Priory’), and has now been completed on 60 apartments. Prices for the redeveloped apartments started at €145k for a one-bed and €165k – €178k for a two bed apartment. Of the 60 redeveloped apartments, 43 have been sold, nine have been retained for social housing and eight have been returned to previous buy-to-let owners. The Irish Times, 17th November
Student Accommodation Development: An Bord Pleanála has granted planning permission for a student accommodation scheme in Dublin city centre, following an application by Kesteven, which is owned by former Ulster Bank CFO Charles McManus. The seven-storey development, which will be located on Stephen Street Upper, will provide 284 student accommodation units and will also include retail space. The project will involve the demolition of properties on Aungier Street and Stephen Street Upper. The Irish Independent, 22nd November
Mortgage Lending Rules: The Central Bank Commission is due to review its mortgage lending rules this week, with any changes announced soon after. The commission will be asked to consider proposals to increase lending, especially to first time buyers. Two areas which banking sources believe the commission will look at are (i) the portion of a bank’s loan book which can have loan-to-value (LTV) breaches and (ii) the €220k threshold for the 10% deposit. Currently, a bank may only provide LTV breaches for up to 15% of their loan book, however this may be increased to 20%. The commission may also increase the threshold whereby borrowers only require a 10% deposit, up from the current level of €220k. The Irish Times, 19th November
Kilcarbery Business Park: A large distribution centre in Kilcarbery Business Park, Dublin 22, has gone on sale with a guide price in excess of €15m. The premises was built in 2000 and has since been occupied by Britvic, who purchased the property in 2013 for c. €14m. Britvic has now decided to sell the facility after outsourcing its distribution business. The property extends to 211,130 sq. ft., includes a three-storey block of offices and is situated on a site of 9.83-acres. Kilcarbery is a highly regarded business park and adjoins both the IDA’s Grange Castle Business and Technology Park and also Profile Park. The Irish Times, 16th November
Furry Park: William Harvey & Co. is seeking rents of €510k p.a. (€7.79 psf) for a 65,445 sq. ft. industrial unit near Dublin Airport which will be available to rent from January 2017. Unit K Furry Park is just a two-minute drive from Dublin Airport and includes 11,011 sq. ft. of office space, which is located to the front of the building. The property is situated on a 3.06-acre site. The Irish Independent, 17th November
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RETAIL
Skerries Point Shopping Centre: Offers of €3m are being sought by Savills for Skerries Point Shopping Centre in north Dublin. The centre extends to 68,682 sq. ft. and has parking at basement level for 200 cars. The current rental income of the centre is c. €335k p.a. and the current tenants include EUROSPAR, Boylesports and Well Fit Health and Fitness. The weighted average unexpired lease term is c. 6.5 years. Almost 60% of the floor space in the centre is currently vacant, offering the buyer the opportunity to increase the rent roll significantly. In addition, a new housing development adjacent to the centre is due to be developed in 2017 and will include 100 homes. The Irish Times, 9th November
Drury Street: A former wholesale fashion outlet at 46 Drury Street in Dublin 2 has been put on the market for €2.5m through estate agent Eoin Conway. The three story red-brick building is likely to be of interest to both property investors and restaurateurs. The building has been owned for the past 17 years by a family in the fashion business, who acquired the building for c. €1.143m. The Irish Times, 9th November
Castle Market: Two interconnecting restaurant properties on Castle Market in Dublin city centre have been sold for more than €2m to an unidentified purchaser. Numbers 4 and 5 Castle Market had been guiding €1.75m, however strong competition amongst bidders meant that the property eventually sold for well above the guide price. The current tenant Jo’Burger pays rent of c. €120k p.a., offering the new owner a net yield of c. 5.97%. Jo’Burger occupy the three-storey, 2,000 sq. ft. properties under a 20-year lease. The Irish Times, 9th November
Dublin Office Developments: According to a new report by Savills Ireland, 136 office buildings with a combined floor area in excess of 12m sq. ft. are being planned for Dublin over the next five years. If completed, the new buildings will have capacity to accommodate more than 100,000 workers. Savills acknowledge that not all buildings being planned will come to fruition, however it states that if 50% of the planned projects are delivered, there would be sufficient capacity to cope with the potential demand from UK companies seeking to relocate operations as a result of Brexit. The report notes that 39 new developments are currently under construction, 13 of which have pre-commitments from tenants to take space. A further 62 developments have planning permission but work has yet to commence, while the remaining 35 are in the planning stages. The Irish Independent, 10th November
Hibernia REIT: Last week Hibernia REIT published its half-yearly results for September 2016. Most notably the value of its portfolio, which consists primarily of central Dublin office space, has risen above €1bn for the first time. The group also recorded a pre-tax profit of c. €32.4m for the period, although this was well below the c. €73.7m profit recorded for the same period in 2015. Hibernia had debt outstanding of c. €110.5m at the end of December, representing a loan-to-value of c. 10.7%. According to the chief executive Kevin Nowlan, the company still has c. €300m available to fund future acquisitions. The Irish Times, 10th November
Pottery Business Centre: Pottery Business Centre in Dún Laoghaire , south Dublin has been brought to market through agent CBRE, who is guiding €2m for the property. The four-storey, 45,576 sq. ft. office complex is split between 19 fitted office suites (20,980 sq. ft.) and unfitted office space (24,596 sq. ft.). The complex also includes 100 car spaces. Only three of the suites are let at present, generating rental income of c. €56k p.a. The Irish Times, 9th November
Dublin Development: Chesway Ltd, which is linked to hotelier Frankie Whelan, has sought planning permission from Dublin City Council for a 40-bedroom hotel at 22 Harcourt Terrace. The property is a former nursing home located at the junction of Adelaide Road and Harcourt Terrace. Mr Whelan advised the Irish Times that he intends to market the property as a premium four-star hotel, targeting corporate clients midweek and the leisure market at the weekend. The proposed development involves a single-storey extension to the front and side of the property, an extension on the first floor and internal modifications. Chesway purchased the property for c. €4.6m. The Irish Times, 14th November
Camden Complex: Joint agents CBRE and Morrissey’s are inviting offers of over €8m for the Camden Deluxe Hotel and Entertainment Complex on Lower Camden Street in Dublin. The 42,000 sq. ft. hospitality complex contains a variety of attractions including a 35-bedroom hotel, Planet Murphy’s bar and snooker hall and the Palace nightclub. The property occupies a site of 0.42 acres in a conservation area, and is zoned Z4 under Dublin City Council’s Development plan “to improve mixed service facilities”. The Irish Times, 9th November
Cork Hotel: Carra Shore Ltd is proposing to develop a new 146-bedroom hotel on South Terrace in Cork city centre. If planning permission is granted by Cork City Council, the hotel would be spread across three Georgian houses at 31, 32 and 33 South Terrace. Carra Shore Ltd is affiliated with the Seraphine Hotel Group, the London-based hotel operator. The Evening Echo, 14th November
Roslyn Park: The Department of Education (DoE) has completed the purchase of the Rehab Group’s Roslyn Park complex in Sandymount, Dublin 4. The DoE is believed to have paid over €20m for the complex, more than €8m above the guide price. Roslyn Park extends to 5.16 acres and the main property on the site is a period house which was designed in 1790. The DoE is expected to place two schools on the property, subject to planning permission. It is reported that Shellybanks Educate Together primary school will seek to move to Roslyn Park as one of the schools. The Irish Times, 9th November
Mortgage Interest Rates: New figures from the Central Bank show that the weighted average interest rate on new mortgage agreements was c. 3.43% in September 2016, representing a decrease of 24 bps YoY. This rate is still substantially above the Euro Area rate, which was c. 1.78%. The weighted average interest rate on new variable rate mortgage agreements was c. 3.41%. Variable rate mortgages account for just under two-thirds of all new mortgage agreements. Central Bank of Ireland, Retail Interest Rates – September 2016
Daft Q3 2016 Rent Report: The Q3 2016 report on the Irish rental market by Daft.ie shows that on a national basis, annual rental inflation is now c. 11.7%, the highest reading recorded since Daft.ie began compiling data in 2002. National rents rose by c. 3.9% in Q3 2016, with rents in Dublin rising by a similar percentage. The number of properties available to rent also continues to fall, with less than 3,700 homes available to rent on October 1st 2016. This represents a decrease of c. 12% when compared to the same date in 2015. The Daft.ie Rental Report, Q3 2016
Build-To-Rent Sector: According to market sources, pension funds such as AIG, Allianz and at least three German funds are seeking to invest over €2bn in build-to-rent developments in Dublin. It is expected that these funds will be interested in funding the development of c. 1,500 apartments in Cherrywood, south Dublin. The Sunday Times, 13th November
Neville Group: The Neville Group will commence building c. 500 homes in Cherrywood, south Dublin, in 2017. The group has capacity to build c. 3,000 homes in Cherrywood, where it is in a JV with Hines, who owns the development land. The group has also spent c. €10m on hotels in recent years and will look to add more hotels to their portfolio, should suitable investments arise. The Sunday Business Post, 13th November
Celbridge Site: REA Coonan is guiding €2.7m for a four-acre site on Ardclough Road in Celbridge, Co Kildare. The site is zoned for “new residential” and can either be purchased in one lot or alternatively at €675k per acre. The Irish Times, 9th November
Ballymount Industrial Estate: An unnamed investor has paid c. €6.75m (c. €500k over guide) for two industrial units on a 3.4-acre site on the Lower Ballymount Road in Dublin. The first unit is let to Smurfit Paper Snacks Ltd, however the lease is guaranteed by Smurfit Packaging Corporation Ltd. Smurfit occupy the 59,500 sq. ft. unit under a 25-year lease from August 2005. Smurfit is paying a rent of c. €619k p.a. The second unit on the site extends to 27,000 sq. ft. While this unit is currently vacant, it should achieve rental income of c. €94.5k p.a. The units were developed in the 1970’s. The Irish Times, 9th November
Dún Laoghaire Ferry Terminal: Lisney is seeking rents of €10 psf for a disused ferry terminal in Dún Laoghaire, south Dublin. The terminal extends to 75,000 sq. ft. and includes 4,951 sq. ft. of offices and a first floor restaurant. The ferry terminal was built to facilitate Stena Line’s HSS service to Holyhead, which ran from 1995 to 2015. The decision to lease the terminal follows the recent granting of planning permission by An Bord Pleanála for a c. €18m cruise ship berth in Dún Laoghaire Harbour. The Irish Times, 9th November
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Project Tolka: NAMA officially launched the sale of Project Tolka last Friday. However the c. €1.5bn par value loan portfolio does not include Carton House, the hotel and golf resort. The Sunday Business Post reports that while NAMA still intends on selling the asset, they first need to agree outstanding issues with the Mallaghan family. The Sunday Business Post, 6th November
Madrid Portfolio: The Madrid Portfolio, which was previously owned by Bernard McNamara, has been split between Friends First and the Doyle Family. Friends First has purchased nine retail and office properties in Dublin city centre, with the assets located on South William Street, Chatham Row, Coppinger Row and Clarendon Street. Friends First is projecting a return of 4.5% on their investment. The assets purchased by the Doyle family include 6 – 7 Balfe Street, 8 – 9 Balfe Street and 1 Westbury Mall. The Doyle family also own the nearby Westbury hotel and there is potential for them to add 50 bedrooms to their hotel should they decide to redevelop their newly acquired assets. The Irish Times, 2nd November
Crampton Buildings: A well-known retail block in Dublin’s Temple Bar area is due to be offered for sale in early 2017. Ardstone Capital, which bought the portfolio for c. €8.26m in 2014, has not yet set an asking price, but selling agents Bannon is expected to seek a minimum of €13m. The portfolio comprises c. 17,000 sq. ft. of retail space spread across 12 buildings which run along three sides of Crampton Buildings. Some of these buildings are currently being upgraded and amalgamated to boost rental income. The current rental income of c. €583k is expected to rise to c. €700k by the time of sale, offering the purchaser a return of c. 5%. Two of the largest contributors to the current rental income are Elephant & Castle and Gallagher’s Boxty House, who pay annual rents of €160k and €120k. Ardstone is believed to be seeking to reduce its exposure to Irish commercial property assets, instead turning its attention to the new homes sector. The Irish Times, 2nd November
Sandyford Retail: BNP Paribas Real Estate is inviting offers of €2.75m for a retail investment in Sandyford, Co. Dublin. The 3,895 sq. ft. building is let under separate tenancies to Londis, a Café to Go coffee shop and a Bank of Ireland ATM. The current rental income of c. €140k p.a. (of which c. €123k is from Londis) is due to rise to c. €193k p.a. in January 2017. The property is part of the Atrium office development where Microsoft is the largest tenant. The UK developer U+I own the Avid Technologies property which is directly across from the retail investment, and has recently secured planning permission to demolish the building and replace it with 147 apartments, a crèche, café and gym in a new five to eight storey block. The Irish Times, 2nd November
Ulysses / Millennium Park Portfolio: Tetrarch Capital and their joint venture partner Pimco have agreed the sale of the Ulysses and Millennium Park office portfolio to the ESB pension scheme for an undisclosed amount, believed to be in excess of €140m. The portfolio consists of six office properties in Dublin 1 (c. 347,000 sq. ft.) and a further six offices in Millennium Park, Naas, Co. Kildare (c. 142,000 sq. ft.). The annual rental income of the portfolio is understood to be c. €10m. Approximately 56% of the portfolio is let to Government covenants, while the portfolio also includes Bulgari, Kerry Group and Version 1. The transaction will require approval from the Competition and Consumer Protection Commission and is expected to be completed before Christmas. The Irish Times, 4th November
Cumberland House: Planning permission has been granted for a c. €9.3m office development on Fenian Street in Dublin 2. The Hibernia REIT development covers phase two of the overall development of Cumberland House. The first phase saw the recent refurbishment of the property to accommodate Twitter’s new headquarters. This new phase will allow for the construction of nearly 75,000 sq. ft. of office space over six floors. The Sunday Business Post, 6th November
Central Bank HQ: The Central Bank has confirmed that Hines has been chosen as the preferred bidder for its HQ and two adjoining buildings on Dame Street in Dublin. The bank did not confirm the purchase price, however it is believed to have been close to, but below, the €65m guide price. The properties were highly sought after, with Hines being chosen as the preferred bidder ahead of five other bidders.
While Hines has not commented on their plans for the properties, one of the most likely plans is that the former HQ is given a substantial refurbishment to convert the property into high-grade office space. The potential cost of this refurbishment is c. €10m. The Irish Times, 2nd November
North Wall Quay: Paddy McKillen Jr has submitted scaled down plans for a hotel in Dublin’s docklands after a previous proposal for a 93-bedroom hotel was rejected by Dublin City Council. The previous proposal was rejected after the council ruled that the proposed hotel would “adversely impact on the structure and integrity” of 82 North Wall Quay, a former warehouse which is a protected structure. The original plans involved adding an additional five stories to the property, but this has now been scaled back to an additional two floors, meaning the revised hotel will contain 58 bedrooms. The site is located beside the €700m Dublin Landings scheme of offices and apartments, and the new Central Bank headquarters. The Sunday Times, 6th November
Smithfield Lofts: Hooke & McDonald is guiding €9.5m for 44 apartments (16 one-beds and 28 two-beds) and six two-bed townhouses from the Smithfield Lofts development in Smithfield, Dublin 7. The guide price equates to c. €180k per apartment and c. €250k per townhouse. The sale includes 33 basement level parking spaces, but does not cover the entire 63 unit development, which also contains ground floor commercial accommodation. All of the units are occupied at present, with the exception of one unit which is being retained to facilitate viewings. The current rental income of c. €619k p.a. offers a gross yield of c. 9.35%. The Irish Times, 2nd November
House building: The latest data from Construction Information Services (CIS) shows that c. 11,550 housing units are currently being constructed in Ireland, with a further 12,338 having received planning permission in the first nine months of 2016. This is a significant increase on last year, but is still significantly below the forecast demand for 25,000 units per year. According to CIS, c. 9,000 properties went on site in the first nine months of 2016 as part of multi-unit developments, representing a c. 25% increase on the same period in 2015. Of these units, c. 4,700 units were located in Dublin, with a further c. 1,400 in Munster. Approximately 2,550 one off houses have been started since January. The Irish Times, 4th November
Navan Site: CBRE is guiding €5.95m for a 51-acre site on the outskirts of Navan, Co. Meath. The site, which is zoned for high-density residential development, is being sold by a receiver, Tom O’Brien of Mazars. The site was designated as the Clonmagadden Valley Strategic Development Zone before the economic downturn, which allows for the development of up to 1,400 residential units once a town centre is in place. However, Robert Colleran of CBRE believes that it may now be possible to amend the planning conditions for the site, to allow for a low-density residential scheme. The Irish Times, 2nd November
Sandyford House: CBRE has been instructed to call for best bids for the landmark Sandyford House pub, in Sandyford, Dublin 18. The property, which is guiding over €2m, has potential as either a pub or a redevelopment site, thereby attracting the interest of both publicans and developers. Under the recently-implemented Dun Laoghaire Development Plan 2016-2022, the property is zoned ‘Neighbourhood Centre – to protect, provide for and / or improve mixed use neighbourhood facilities’. The overall site extends to 1.17-acres and includes a 13,240 sq. ft. licenced premises which currently enjoys a high turnover. The site also includes parking for over 100 cars and a vacant retail unit. The Irish Times, 3rd November
Help-to-Buy Scheme: The Government is to lower the cap for the ‘help-to-buy’ scheme announced in last month’s budget from €600k to €500k. Under the initial scheme, first-time buyers (FTBs) of new homes and self-builds would qualify for a tax rebate worth up to 5% of the price of a home to a value of €400k. FTBs purchasing homes up to €600k would also have qualified for the rebate, however it would have been capped at €20k. Fianna Fáil has since objected to this, describing it as a “mansion grant”. The Irish Times now reports that Fianna Fáil and Fine Gael have reached an agreement on the scheme, whereby the cap will be lowered to €500k. In return Fianna Fáil will not propose any amendments to the Finance Bill, allowing it to be brought into legislation. The Irish Times, 3rd November
Central Bank Mortgage Rules: Figures released by the Central Bank show that one in six buyers were exempted from its recently implemented mortgage lending rules. Of the c. 11,000 loans drawn down by residential buyers in the first half of 2016, 1,744 (16%) received an exemption. The most common exemption was on income multiples (which allows homebuyers to borrow more than 3.5 times their income), while a significant number of buyers borrowed more than 80% of the cost of their home (or 90% for first time buyers up to €220,000). The Irish Times, 7th November
Northwest Business Park: William Harvey & Co is guiding c. €2.95m for a modern detached distribution and office building in Northwest Business Park at Ballycoolin, Dublin. The 25,912 sq. ft. building is located on a 2.25-acre site and is let to DSV Air & Sea on a 10-year lease from July 2010. The current rent of the building is €199k p.a., offering an initial yield of 6.46%. The selling agent has expressed a view that the investment is currently under-rented. The Irish Times, 2nd November
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Project Tolka: NAMA is expected to commence the sale of Project Tolka within the next few weeks. The loan portfolio has a par value of c. €1bn and is secured by a number of commercial and leisure properties in Dublin. The assets in the portfolio include Burlington Plaza in Dublin 4, which has a reported value of up to €250m, and Belfield Office Park. The loans in the portfolio are connected to John Flynn, Paddy Kelly and the McCormack family. The Sunday Times, 30th October
Pepper Portfolio: Permanent TSB (PTSB) is reportedly close to acquiring c. €100m worth of performing mortgages from Pepper Asset Servicing. Pepper acquired the mortgages from GE Capital in 2012 as part of a c. €600m par value loan portfolio. GE Capital’s portfolio included c. 3,500 mortgages and the majority of the loans in the portfolio were non-performing at the time. Following the acquisition, Pepper has worked to restructure the loans in the portfolio. Pepper reportedly paid c. 40 cent in the Euro for the loans, with Goldman Sachs providing the majority of the funding. The Irish Times, 27th October
AIB Portfolio: The Sunday Business Post reports that AIB has hired A&L Goodbody (A&LG) to perfect the Bank’s security over a portfolio of distressed loans, as it prepares to sell them in early 2017. According to market sources, the loan portfolio will be secured by c. 1,500 investment properties and will have a par value of c. €400m. A&LG has already contacted each of the borrowers in the portfolio, seeking collateral and security documents. Grant Thornton is understood to be supporting A&LG in the process. The Sunday Business Post, 30th October
Danske Portfolio: Danske Bank has confirmed that it sold hundreds of residential mortgages and personal loans to Cerberus Capital Management for c. €250m in October 2016. The sale represents the final stage in Danske’s withdrawal from retail banking operations in Ireland, after it closed all of its branches and customer accounts in 2014. The Sunday Times, 30th October
Project Madrid: According to The Sunday Business Post, the Doyle family has made multiple bids for Project Madrid, a NAMA loan portfolio secured on properties in Dublin city centre. The properties were previously acquired by Bernard McNamara. One of the bids is for the entire portfolio and has been made under the investment vehicle Crownway. Separately, the Doyle Collection hotel group, which owns the Westbury Hotel, has bid for four of the 13 properties in the portfolio which are adjacent to the hotel. The Sunday Business Post, 30th October
35 Henry Street: The Friends First Irish Commercial Property Fund has purchased a 3 store on 35 Henry Street in Dublin 1 for c. €9.2m, c. €1m above the €8.25m guide price quoted by Savills. The mobile phone operator 3 is paying a rent of c. €425k p.a., providing Friends First with a net initial yield of c. 4.5%. There are over 15 years left to run on the lease, which includes upwards only rent reviews. The Irish Times, 26th October
Jervis Shopping Centre: The UK’s Arcadia Group has availed of a 20-year break option on its five retail units in Dublin’s Jervis Shopping Centre to allow it to change the composition of its stores. Following negotiations, Arcadia will replace its current lineup of Wallace, Miss Selfridge, Burton, Topman and Topshop with a new Topshop – Topman store. Arcadia had been paying a rent of c. €2m p.a. for the five shops, which had a floor area of c. 30,000 sq. ft. Arcadia is now expected to pay a rent of c. €1.3m p.a. for the new 20,000 sq. ft. store, which should be open by next summer. It is understood that Savills we soon begin seeking tenants for two 5,000 sq. ft. units in the centre, for which the combined projected rental income is c. €1m p.a. The Irish Times, 26th October
Central Bank HQ: The Sunday Times reports that Hines Real Estate is expected to be chosen as the preferred bidder for the Central Bank’s HQ on Dame Street in Dublin city centre. Bids for the property, which was guiding €65m, were submitted last weekend and a decision on the preferred bidder is expected this week. According to market sources, the highest bids were by Hines and Hibernia REIT. The Sunday Times, 30th October
East Point Business Park: JLL is guiding €12.5m for Block P2 of East Point Business Park in Dublin 3. The four-storey, 50,000 sq. ft. property includes 71 car spaces and is let to Virgin Media Ireland, with the lease guaranteed by UPC Broadband. The lease for the property runs for 25-years from December 2000, although there is a break option at the end of 2020. The current rental income of c. €647k p.a. reflects a rent of c. €12 psf for the office space and c. €700 per car space. There is significant potential to increase the rental income of the property at the next rent review, as similar properties in the business park are seeking rents of €20 – €25 psf for vacant floor space and €1,350 per car space. The Irish Times, 26th October
Burlington Road: Amazon has completed legal contracts to rent a 172,000 sq. ft. office block under construction on Burlington Road in Dublin 4. Amazon will pay a blended rent of c. €50 psf for the block, under a lease which contains a break option in year 13. The site on which the block is being developed was acquired in 2014 by Johnny Ronan, in a joint venture with U+I and Colony Capital. Once the development is complete next summer, the German company Union Investment Real Estate will assume ownership of the block. The Irish Times, 26th October
Adelphi Plaza: Bank of Ireland Payment Acceptance (BoIPA) will relocate c. 100 employees from East Point Business Park in Dublin 3 to Adelphi Plaza on George’s Street Upper in Dún Laoghaire. BoIPA will occupy the entire of the 13,038 sq. ft. second floor of Adelphi Plaza, while also renting 15 car spaces. BoIPA’s lease will run for 20 years and they will pay a rent of c. €25 psf. The five-storey, 62,900 sq. ft. property was acquired in 2013 by Solvalla Properties Ltd for c. €3.65m. Since acquiring the property, Solvalla has undertaken a floor-by-floor refurbishment of the property. The Irish Times, 26th October
Dublin Airport Hotel: The Dublin Airport Authority has retained Savills Hotels & Leisure to identify a developer for a new four-star, 402-bedroom hotel which will be built alongside Dublin Airport’s Terminal Two. Savills is expecting significant interest for the project, which will be completed under a Finance, Build Operate and Transfer (FBOT) model. The hotel will be part of a new 11-storey, c. 245,000 sq. ft. terminal-linked property. Construction is expected to commence in October 2017 and the hotel should be open by 2019. The Irish Times, 27th October
Dalata Hotel Cardiff: Dalata has paid c. €27m to acquire the freehold interest in its Clayton Hotel Cardiff in Wales. The four-star, 216-bedroom hotel was purchased in a transaction which will also see Dalata acquire Rush (Central) Limited. Based on current exchange rates, Davy research estimates that the acquisition will increase 2017 EBITDA by c. €1.7m. The Irish Times, 26th October
Griffin Group: The Griffin Group, which owns Hotel Kilkenny, the Ferrycarrig in Wexford town and Monart in Enniscorthy, has paid c. €26m to purchase its loans from Bain Capital. Bain acquired the loans in 2015 from Ulster Bank, under a company called Coney Investments. The loans had been performing when they were sold by Ulster Bank. The latest accounts for the Griffin Group show that the group had turnover of c. €20.7m and operating profit of c. €2.6m in 2015. The Sunday Business Post, 30th October
Shaw Court: Cushman & Wakefield is guiding in excess of €6.8m for 23 apartments off South Circular Road in Dublin city centre. Shaw Court consists of 14 one-bed and nine two-bed apartments, for which the rental income is c. €330k p.a. According to Cushman & Wakefield, the true rental value of the apartments is c. €495k p.a. Based on the guide price, the portfolio offers a net initial yield of 4.85%, while there is potential to increase the gross return to 7.28% by increasing the rental income to c. €495k p.a. The Irish Times, 26th October
Palmerstown Site: Receivers appointed by NAMA are to sell a 9.76-acre site in Palmerstown, Dublin 20, by way of licence agreement. Savills has been retained to identify the most suitable developer for the site, which has planning permission for 102 terraced and semi-detached houses. The sales process will include a published weighting system, upon which each bid will be assessed. The system will evaluate factors such as the price, the bidder’s ability to construct and their track record of completing similar projects. As a consequence of this sales process, no guide price is being quoted by Savills. However, The Irish Times estimates that the site could sell for €7m – €8m on the open market. According to David Browne of Savills, the gross development value of the site could exceed €35.55m. The Irish Times, 26th October
Q3 2016 Mortgage Drawdowns: The Q3 2016 report from the Banking & Payments Federation Ireland (BPFI) on mortgage drawdowns shows that there were 8,133 mortgages drawn down in Q3 2016, a 19.6% increase QoQ and a 13.7% increase YoY. On a value basis, there was c. €1.558bn of mortgages drawn down in Q3 2016, an increase of 21.1% QoQ and an increase of 16.7% YoY. BPFI Mortgage Drawdowns, Q3 2016
Prime Lettings: The UK health food retailer Holland & Barrett has agreed terms with Rohan Holdings to lease a c. 66,000 sq. ft. warehouse in Dublin Airport Logistics Park which should be completed by May 2017. Holland & Barrett will pay a rent of c. €9.55 psf for the warehouse, under a 25-year lease which will have a break option in year 15. The pharmaceutical company Uniphar is also believed to have agreed to a lease for a new c. 90,000 sq. ft. property near Baldonnel on similar terms. The Irish Times, 26th October
Tyrrelstown Site: CBRE is inviting offers of €5.25m for a 32.4-acre site in Tyrrelstown, Dublin 15. The site is zoned for high technology development and is available to purchase in one or more lots. According to CBRE, the site can facilitate a substantial level of accommodation for high-tech manufacturing and logistics operators. The Irish Times, 26th October
Offaly Airport: The investors behind the plans for a new airport in Offaly could be announced within the next four weeks. Midlands Airport Developments is looking to build an airport in Offaly between Horseleap and Tubber, and is currently in negotiations with landowners in the area. The cost of the airport may reach €500m. The project has been categorised as critical infrastructure, which allows the planning application to go straight to An Bord Pleanála. The Irish Times, 28th October
Commercial Property Market Performance: The IPD / SCSI index shows that Irish commercial property assets generated returns of 2.1% in Q3 2016, bringing the YTD returns up to 8.5%. The best performing sectors were offices in Dublin 1, 3 and 7 and industrials in south-west Dublin, which achieved returns of 3.2% in Q3 2016. The industrial market has been the best performing sector for the 12-month period ending September 2016, achieving total returns of 20.6%. The Sunday Business Post, 30th October
Grange Clinic: Savills is guiding €3m for the Grange Clinic on the Grange Road in Donaghmede in Dublin 13. The 8,581 sq. ft. medical centre was developed in 2008 and generates rental income of c. €242k p.a. from multiple tenants. Boots is the single-highest paying tenant, paying c. €55k p.a. to occupy a 1,345 sq. ft. ground floor pharmacy unit. Other services in the clinic include two group GP practices, a physiotherapist, a chiropodist and an acupuncturist. The Irish Times, 26th October
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Project Gem: Apollo, Cerberus and Oaktree are all believed to have submitted bids for NAMA’s Project Gem loan portfolio. The loan portfolio has a par value of c. €3bn, however the bids are expected to reflect a substantial discount on the value of the loans. The loan portfolio primarily consists of commercial mortgage loans and is secured by 392 properties, the majority of which are in Ireland. The Irish Independent, 20th October
Grafton Collection: The Irish Independent reports that Hines is negotiating Heads of Terms to acquire the Grafton Collection, a portfolio of Grafton Street properties which includes the landmark Hickey’s Pharmacy premises. The portfolio had been guiding €40m, however Hines is believed to be paying a sum in excess of €55m. The current rental income of c. €1.95m p.a. offers a net initial yield of c. 4.62% on the €40m guide price and a yield of c. 3.2% based on the proposed purchase price of over €55m. The Irish Independent, 23rd October
Killarney Outlet Centre: Bids of €11.5m are being sought by CBRE for the Killarney Outlet Centre in Killarney, Co. Kerry. The shopping centre produces rental income of c. €1m p.a. and boasts Nike as the anchor tenant, who pay c. €110k p.a. for a 7,297 sq. ft. factory outlet. The total retail area is 90,497 sq. ft., spread across 39 units. The current owner of the outlet centre is Green Property, who has operated it for the past 18 years. The Irish Times, 19th October
Dún Laoghaire Pavilion: JLL is seeking €9.6m for ten retail units which adjoin the Pavilion Theatre in Dún Laoghaire, south Dublin. The ten retail units are currently generating rental income of c. €758k p.a., however this will rise to c. €905k once the legals have been completed for two new leases. The total floor area is 51,280 sq. ft. and the tenants include Eddie Rocket’s, Eason and Costa Coffee. The Irish Times, 19th October
Charlesland Neighbourhood Centre: Bannon is inviting offers of €4.9m for the Charlesland Neighbourhood Centre in Greystones, Co. Wicklow. The 40,000 sq. ft. centre is producing rental income of c. €510k p.a., with almost half of the rental income coming from SuperValu. As well as the anchor retail unit, there are also eight smaller retail units, a vacant c. 15,000 sq. ft. pub / leisure block and c. 250 car spaces. The Irish Times, 19th October
2016 Shopping Centre Sales: Following a year of significant activity, 2016 could be a record year for shopping centre sales. The largest deal pending is the sale of the Liffey Valley Shopping Centre to the German fund Bayerische Versorgungskammer for c. €600m. Should this deal complete, then there will have been over €1.9bn of shopping centre transactions this year, led by the sale of Blanchardstown Town Centre by Green Property to Blackstone for c. €950m. The total amount of shopping centre transactions in 2015 was c. €1bn. The Sunday Business Post, 23rd October
Central Bank HQ: The Irish Independent reports that Hibernia REIT, Johnny Ronan’s Ronan Group Real Estate, Eamonn Duignan and U+I have all submitted bids to acquire the Central Bank’s HQ building on Dame Street. The closing date for bids was the 19th of October and Lisney had been guiding €65m for the property. The property is being sold on a ‘best bids’ basis, therefore there will only be one round of bidding. The Irish Independent, 20th October
76 Lower Baggot Street: Cushman & Wakefield has been retained by Bord na Móna to find a buyer for their former HQ at 76 Lower Baggot Street in Dublin 2. The five-storey, 40,827 sq. ft. property includes a 60-space basement car park and has a guide price in excess of €37m. The property is fully let and the tenants are Storyful, Fitbit, DMS Investment Services and Sanne Group. The total rent roll is over €2m p.a. and the weighted average unexpired lease term is c. 7 years. The Irish Times, 19th October
One George’s Quay: Offers in excess of €36.5m are being sought by JLL for One George’s Quay, a 44,483 sq. ft. office block in Dublin’s IFSC. The property is let to JP Morgan under a 25-year FRI lease from December 1996 for a rent of c. €1.8m p.a. Hardwick and British Land developed the property in the early 1990s as part of phase one of the IFSC. The Irish Times, 19th October
Joyce’s Court: CBRE is guiding over €15m for two office blocks and four ground floor retail units in Dublin 1. The units, which are located at Blocks A and B of Joyce’s Court on Talbot Street, are producing rental income of c. €867k p.a. The tech firm Smartbox is responsible for c. 66% of this rental income, paying c. €570k p.a. under a 20-year lease from October 2015 (break in year 10). Block A has a floor area of 28,282 sq. ft. and Block B extends to 26,249 sq. ft. The Irish Times, 19th October
117 – 119 Lower Baggot Street: Joint agents Savills and Hooke & MacDonald are guiding €7.35m for an office block at 117 – 119 Lower Baggot Street, Dublin 2. The 13,296 sq. ft. block has a Georgian façade and includes 10 car spaces. The current rental income of the property is c. €385k p.a., from tenants such as Hooke & MacDonald and CBRE. The Irish Times, 19th October
Fitzwilton House: IPUT plc has been granted planning permission by An Bord Pleanála for its proposed redevelopment of Fitzwilton House on Dublin’s Grand Canal. The c. €45m redevelopment project will see the existing 1960’s block demolished and replaced with a new c. 187,000 sq. ft. block, which will range from four to eight storeys in height. The block will include 44 car spaces and 178 bicycle spaces. The project is expected to commence in 2017 and be finished by the middle of 2019. The Irish Times, 24th October
Donnybrook House: Development Securities Properties (DSP) has sought planning permission from Dublin City Council for an additional c. 10,000 sq. ft. of office space on the two-acre Donnybrook House development site. DSP is believed to have paid c. €9m in 2014 / 2015 to acquire the site, as part of an investment programme which saw them spend c. €25m acquiring eight Dublin sites. The site already has planning permission for a “mixed use retail, office, restaurant and basement gym development”. NAMA Wine Lake, 23rd October
Ibis Hotel: Christie & Co is inviting offers of €13.5m for the Ibis Hotel and an adjoining 0.81-acre site near the Red Cow Luas Interchange in west Dublin. The current owner of the 150-bedroom hotel is Cannock Ltd, a UK company. Cannock paid over €5m to acquire the hotel less than two years ago, before investing c. €1.5m in the hotel to upgrade the bedrooms. It is possible that the properties will be sold separately, with the hotel valued at c. €13m and the site valued at c. €0.5m. The Irish Times, 19th October
Dublin Airport Hotel: CG Hotels, the owners of the Radisson Blu hotel in Dublin airport, want planning permission for an additional seven-storey, 144-bedroom standalone hotel on the car park of their existing hotel. CG Hotels previously obtained planning permission for a c. €59m extension to their Radisson Blu hotel, which will see 314 rooms added to the 229-bedroom hotel. The Irish Independent, 21st October
Coombe Hotel: An Bord Pleanála has refused a planning application for the development of a 263-bedroom hotel on a derelict site on the Coombe, near St. Patrick’s Cathedral in Dublin 8. An Bord Pleanála deemed the proposed development of the six-storey over basement hotel to be an overdevelopment of the site, stating that the hotel would be higher than nearly all the other buildings in the area. The application for the development of the c. €40m hotel was submitted by the Hodson Bay group, via a company called Realmside. The Irish Times, 20th October
Occupancy Figures: The latest figures from the hotel data provider STR shows that September 2016 was a record month for Dublin hotels, with an occupancy figure of 93.6% achieved. 2016 has also been a strong year for RevPAR, with RevPAR up by c. 19.4% so far this year. The Irish Independent, 23rd October
Point Campus Site: O’Flynn Capital Partners (OFCP) has paid over €20m to acquire a c. 2.3-acre site in the Dublin docklands which has planning permission for 935 student accommodation beds. To complete the transaction, OFCP obtained funding from Blackrock as well as local senior debt. The total development cost of the site, named Point Campus, is projected at over €100m. In addition to the student accommodation, the site also has planning permission for 9,320 sq. ft. of commercial retail floor space and 4,973 sq. ft. of communal facilities. The Irish Times, 25th October
St Mary’s Carmelite: Joint agents GVA Donal O’Buachalla and WK Nowlan Property are seeking offers in excess of €10m for a 3.09-acre development site located at the former St Mary’s Carmelite seminary on Bloomfield Avenue in Donnybrook, Dublin 4. A feasibility study by John McLaughlin Architects suggests that the site could facilitate the development of 90 apartments and 10 large houses. The Irish Times, 19th October
Hanover Quay Development: Cairn Homes has sought planning permission from Dublin City Council to develop 122 apartments on the former site of Kilsaran Concrete on Hanover Quay in the south Dublin docklands. The 7 – 8 storey development would have a total floor area of c. 200,000 sq. ft. and consist of 24 one-beds, 76 two-beds and 22 three-beds. NAMA Wine Lake, 23rd October
Airbnb: The use of Dublin apartments for Airbnb lettings featured heavily in the news in the past week. The first story involved a landmark ruling by An Bord Pleanála, who upheld a planning decision which states that an apartment in Dublin’s Temple Bar area could not be used for Airbnb lettings without first receiving planning permission, as it reflects a material change of use. The second story revealed that Indigo Property Management has informed the c. 2,000 residents in the Spencer Dock apartment complex in Dublin that they are not allowed to use their apartments for short-term lettings. Indigo issued a letter to each of the residents in the 623 apartments which states that following the receipt of legal advice, the use of apartments for short term lettings is a breach of lease covenants and is also against the Spencer Dock house rules. The Irish Times, 20th Octobe
Development Land Sales: In the first nine months of 2016, there were 75 development land transactions closed in the Republic of Ireland, for a total of c. €640m. According to CBRE, there were c. €770m of land sales completed in the whole of 2015. The largest development land sale in Q3 2016 was the Stocking Portfolio, which included a 24.7-acre residential development site in Rathfarnham, south Dublin. Cushman & Wakefield achieved in excess of the €39m guide price for this portfolio. The Irish Independent, 20th October
Help-To-Buy (HTB) Scheme: Following the introduction of the HTB scheme for first-time buyers (FTBs) in the 2017 Budget, the Government has moved to amend the mortgage threshold which FTBs must meet in order to qualify for the scheme. When the scheme was initially launched at the unveiling of the budget, the mortgage threshold was 80% of the value of the home. After fears were raised that this could lead to FTBs borrowing unnecessarily high levels of debt in order to meet the criteria, this threshold was reduced to 70%. The Irish Times, 21st October
Q3 2016 Review: JLL’s Q3 2016 report on the Dublin industrial market shows that there was a significant increase in take-up in the quarter when compared to Q2 2016. The level of take-up for Q3 2016 was 898,073 sq. ft., versus 494,658 sq. ft. of take-up in Q2 2016. At the end of Q3 2016, the YTD level of take-up was 1,942,464 sq. ft. Prime rents increased by c. 3.3% in the quarter and are now at c. €7.75 psf. Secondary rents have also risen from c. €5 psf to c. €6 psf. Dublin Industrial Market Report Q3 2016, JLL
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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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