Glass Bottle Site Nama has confirmed that Ronan Group Real Estate (RGRE) and US investment firm Oaktree have completed the purchase of an 80% stake in the former Irish Glass Bottle site and an adjoining plot in Dublin. RGRE and another US investment company, Colony, were selected by Nama in late July as preferred bidders for a controlling stake in the 37-acre site and given 30 days to complete. It is the largest vacant plot in the capital and is earmarked to deliver more than 3,500 homes. The Irish Times, 22nd December
Blackrock, South Dublin Seabren Developments is planning to build 101 apartments at the former Europa Motors site in Blackrock, south Dublin. Seabren purchased the land from Marlet group this year for a reported €7.5m. According to planning documents, the proposed development will feature two apartment blocks of up to six storeys, with space for 73 cars and 194 bicycles at basement level. It will provide c.12,500 sq.ft. of communal open space and 3,250 sq.ft. of public open space. The Sunday Times, 20th December
According to Goodbody Stockbrokers, housing transactions in Ireland continued to recover in October 2020 with prices rising by 0.6% month-on-month, the largest monthly gain since July 2019. On an annual basis, prices were effectively flat (-0.4% yoy). Indeed, residential prices in Ireland have flatlined since Q3 2018. There is no great difference in house price inflation in Dublin (-1.5% yoy) and outside Dublin (0.4% yoy) at this point. Contrary to their initial expectations at the onset of the pandemic, there has been no noticeable impact on pricing dynamics, mirroring trends seen elsewhere. Goodbody Irish Housing Report, 2020
Glenveagh, the Dublin listed housebuilder, confirmed that it was investing €500 million on building 3,000 homes on six new sites in Cork, Dublin city and county, Kildare and Kilkenny. The company announced that the new site building would also lead to the creation of 1,000 new jobs. The Irish Times, 17th December
Cork City Orchard Road and Grove Planning & Environmental Protection Group has brought a challenge over An Bord Pleanála’s permission for a 216-bed student accommodation development in Cork city. The association representing residents oppose the demolition of an existing structure and construction of the student housing development, consisting of 30 apartments, at Orchard Road in Cork. The proposed five-storey block is located near the main campus of University College Cork. The association claims the board’s decision is flawed and breached fair procedures. The Irish Times, 17th December
Dublin 2 Plans for a new hotel development for Dublin city centre at the Dublin venues Rí-Rá nightclub and the Globe bar have been put on hold. Three separate appeals have been lodged with An Bord Pleanála against Dublin City Council giving the green light for the plans for a major expansion of the Central Hotel on South Great George’s Street and Dame Court into a new 71,623 sq.ft. five-storey hotel with 125 bedrooms. Rí-Rá nightclub would have become a “speak-easy” with the Globe a retail outlet. As part of the application by Exchequer Developments Ltd, the existing Library Bar is going to be reduced in size to make way for additional bedrooms. A decision is due on the appeal in April. The Irish Times, 17th December
Dublin 2 The O’Callaghan Hotel Group are looking to acquire St Andrew’s Court, a block of 14 dilapidated flats for senior citizens at the corner of Fenian Street and Sandwith Street, close to two of its city-centre hotels. In exchange, the company will transfer to the council ownership of 28 apartments and a ground-floor retail premises it plans to start building in the New Year. The completed social housing development would be delivered by August 2022 which would be far in advance of any new development by DCC on the St Andrew’s Court site and at no cost to the State. The proposal will be put to city councillors this week. The Irish Times, 22nd December
2020 Office Market According to Marie Hunt of CBRE, 2020 started out with a healthy carryover of activity from 2019, and expectations were for an equally-buoyant year of office leasing activity in Dublin and in regional cities. However, the onset of Covid-19 had an immediate impact on the office sector from mid-March onwards. Transactional activity effectively halted during this initial lockdown, with Q2 being the worst quarter on record for the Dublin office market in terms of take-up. Supported, in the main, by activity driven by lease events, total take-up in the Dublin market reached c.1.4 million sq.ft. in the first nine months of 2020. There is currently c.323,000 sq.ft. reserved but even if all of this stock signs by year-end, annual office take-up in the capital will be considerably lower than in recent years. The overall rate of vacancy stood at 8.64% at the end of September and is expected to increase further in Q4. The Irish Times, 16th December
Cork Airport Business Park Yew Grove Reit has agreed the letting of 20,268 sq.ft. (the first floor) of unit 2600 at Cork Airport Business Park to Alter Domus Fund Services Ireland, along with 79 car parking spaces. The lease term is 15 years with break options at five and 10 years at a headline rate of €16.50 per sq. ft. plus a licence for 79 additional car spaces at a rent of €200 per car space per annum. The Irish Independent, 16th December
Kevin Street, Dublin 2 Dublin City Council has given the green light to a €475 million plan to construct a mixed-use scheme for the redevelopment of DIT’s former Kevin Street Campus in Dublin 2. Last May, Westridge Real Estate lodged plans for the development of c.572,000 sq.ft. of office accommodation in two 11-storey blocks, and 299 build-to-rent apartments across three buildings of up to 14 storeys in height. Westridge acquired the 3.57 acre site for €140 million in August 2019 (€39.2m per acre). Planning was granted after the developers reduced the scale of the proposal where the quantum of office space has been reduced to c.538,000 sq.ft. in response to local authority concerns. The council has ordered that the developers pay €3.9 million in planning contributions towards public infrastructure, and an additional €1.5 million in respect of the Luas Cross City Scheme. The Irish Times, 21st December
Yew Grove Reit has sold €2.4 million of ‘non-core’ properties. The company sold a vacant industrial unit in Stillorgan for €1.46m last month. The sale price was 11% ahead of the June 30 independent valuation. The company also sold units at Centrepoint Business Park, Clondalkin, county Dublin, for €950,000, which completed earlier this month. Irish Independent, 16th December
Dundrum Town Centre owner Hammerson is to seek admission to the Irish Stock Exchange ahead of the UK’s exit from the European Union at the end of the month. In a statement, Dundrum Town Centre owner Hammerson said it was seeking admission of its entire issued ordinary share capital to the secondary listing segment of the official list of the stock exchange, which trades as Euronext Dublin. The secondary listing on Euronext Dublin will enable Hammerson to maintain an efficient holding structure across its portfolio and guarantee an EU equivalent trading venue for Hammerson’s shares. Along with Dundrum, the property giant owns stakes in the Swords Pavilions and Ilac shopping centres in Dublin, where it also plans a major redevelopment of the area around Moore Street. The Irish Times, 18th December
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
South Circular Rd, Dublin 8 Hines and APG have submitted a fast-track planning application to An Bord Pleanála for Phase 2 of their Player Wills development on South Circular Road, Dublin 8. The development will include 732 new residential units, two new parks and an artistic centre. A key aspect of phase two will be the retention and transformation of the iconic former Player Wills factory as a new mixed-use space. It will accommodate 287 new residential units, of which 240 will be new shared living industrial-style loft units with dedicated tenant amenities, including c.11,000 sq.ft. of living space. The shared living units will be different from co-living units in two respects: while they are single-occupancy units, they will extend to an average of c.258 sq.ft. each, compared to the minimum of c.129 sq.ft. for co-living. The Business Post, 13th December
Phibsborough, Dublin 7 MM Capital has submitted an amendment to its planning application for the redevelopment of Phibsborough shopping centre in Dublin 7. Instead of the 334-bed student accommodation section, there will be a 321-bedroom shared living component extending to over 129,000 sq.ft. It will also accommodate over 21,500 sq.ft. of communal/shared amenity space. These amenities will include a gym, lounges, wellness spas, a café and co-working space. The centre piece of the redevelopment is a new public plaza which will become the village centre of Phibsborough. It will also connect into Dalymount Park once that is redeveloped. The Business Post, 13th December
The Business Post understands that Hines King Street has filed High Court proceedings against Dún Laoghaire-Rathdown County Council over a dispute related to the funding of €57 million worth of public infrastructure. Hines, the property developer, and King Street Capital, the private equity fund, are the partnership behind the Cherrywood strategic development zone (SDZ) project in Dublin. The Business Post understands that Hines King Street initiated the proceedings after the council did not adhere to the terms of a pre-agreed development contribution scheme which was adopted by the local authority in June 2017. Under the arrangement, Hines King Street would be entitled to offset the cost of constructing common infrastructure against future development contributions. The €57 million investment in the Cherrywood area by Hines King Street has created 5.5 kilometres of new roads, pathways and cycle ways. Three new parks have also been created in the SDZ. The Business Post, 13th December
EY benchmark analysis based on the STR data for 10 different European countries has found that hotel occupancy rates in Dublin were 56% lower than region hotel occupancy rates during the last week of July and second week of September 2020. This trend is also witnessed in Europe, as occupancy rates in main capital cities are on average 41% lower than their regional counterparts.
Irish regional hotels have performed relatively well during the summer period analysed with a 54% occupancy rate, outperforming their European counterparts. Dublin hotels have underperformed with a 24% occupancy rate compared with 38% in Berlin.
Ireland’s relative urban tourism weakness is a result of three main factors. As a small island economy, the levels of business tourism are very high, especially into Dublin where a significant proportion of Ireland’s most successful businesses are located. Irish residents with a higher purchasing power are located in Dublin and would be the ones driving the domestic tourism market. They decided to leave Dublin to work remotely or holiday. Lastly, overseas visitors were driven away by the quarantine measures introduced. EY: What now for city tourism? December 2020
Cork City Ibec are to set up a ‘Munster hub’ in Cork’s Penrose Dock office development. Ibec confirmed they will lease 5,000 sq.ft. at Penrose Dock 1, aiming to take occupation in the second quarter of 2021. The announcement brings the occupancy level of the 250,000 sq.ft. quayside scheme to 80%. Ibec joins the likes of Varonis, Minelab, Remitly, Qualcomm, Sophos, Cloudera, Grant Thornton, Matheson and Flexispace, at the Wilson Architecture-designed Penrose Dock 1 and 2 buildings on 1.7 acres. The Irish Examiner, 10th December
Clontarf, Dublin 3 A private Irish investor has purchased 18 apartments at Tudor House and Beechfield House in Clontarf, Dublin 3 for €4.5 million (€250k per unit). The Tudor House and Beechfield House development is located on Oulton Road just off Clontarf Road. Two of the apartments were sold when the scheme was completed by its developer and vendor in 2005. Consequently, the investment comprises nine apartments within the redeveloped period buildings and nine apartments within the modern block. The portfolio consists of nine one-bedroom apartments and nine two-bedroom apartments. The investment is currently generating a gross annual rental income of c.€243,000, this is expected to increase to €267,000 per annum once the vacant show unit is re-let at its estimated rental value of €2,000 per calendar month. The Irish Times, 9th December
Phoenix Park, Dublin 15 Ires Reit is to acquire 146 apartments at the Phoenix Park Racecourse in Dublin 15 for €60 million (c.€411k per unit). The deal includes a mix of apartments, duplex units and houses, including 20 one bed and 113 two bed units. Most of the residential units were built in 2002-2007, with 26 constructed this year in a block overlooking the Phoenix Park. At present, some 137 of the residential units are currently rented, with nine residential units available for immediate rent. Rents at two-bed units in the development are currently on the market for c.€1,850 – €2,025 per month. The Irish Times, 14th December
Social Housing UK insurance company Legal & General has teamed up with housing agency Clúid to invest €54 million in social housing projects in the Republic. The deal, which will deliver c.200 social homes, marks the first large-scale investment in social housing here by a big international player and the first time an approved housing body (AHB) has secured financing on this scale from a private entity. Delivery of the new homes financed through the agreement is expected to begin in the first quarter of next year, and most are expected to be located in the high-demand urban centres of Dublin and Cork. The Irish Times, 14th December
Blackrock, South Dublin Lioncor, a joint venture between Alanis Capital and US private equity company Oaktree, has paid c.€16 million for a prime residential holding immediately adjoining Blackrock College in Dublin. The Cross Avenue site (3 acres) also includes two residential properties, Tower Green and Clareville, with extensive frontage (158m) on to Cross Avenue, close to its junction with Mount Merrion Avenue. The property is located 7.5km southeast of Dublin city centre. The lands were put up for sale in May 2019 by agent Avison Young (formerly GVA Donal O’Buachalla) at a guide price of €20 million. The Irish Times, 9th December
Residential Planning Permission Planning permissions for houses and apartments jumped 22% in the third quarter as the construction industry rebounded from the first Covid-19 lockdown. Central Statistics Office (CSO) figures show the number of planning permissions granted for dwelling units between July and September was 12,942, of which 7,214 were apartments and 5,728 were houses. This represented an annual increase of 22.2%. The number of apartment units granted planning (7,214) was up 27.5%. The Irish Times, 11th December
Housing Supply According to an analysis of the housing market conducted by the Banking and Payments Federation Ireland (BPFI), housing supply is unlikely to meet demand until at least the end of 2023. The Federation concludes the number of completions will exceed 19,000 units for the year in comparison to c.21,000 in 2019. The Federation estimate that 35,000 new units would need to be constructed per annum to keep up with demand and that this will not be achieved until 2023. The Irish Times, 8th December
Swords Central Shopping Centre The Irish Times understands that a fund managed by Davy Real Estate has purchased the Swords Central Shopping Centre in Dublin for c.€11 million. The purchase price represents a significant discount on the €21.5 million guide price when it was initially brought to the market in September 2018. The scheme produces a rental income of €1.3 million from 12 shops, with 30,000 sq.ft. of retail accommodation and a 320-space car park producing an average annual income of €280,000. The Irish Times, 9th December
Retail Sector It is projected that the year-end investment turnover figures for retail will represent a record low 2.5% of an anticipated total investment market turnover of €3 billion. This from a sector that represented 24% of investment turnover for the last decade (to 2019), but descending rapidly from a high of 53% in 2016 to a previous record low in 2019 of 9%. Unsurprisingly for 2020 High Street retail has been worst affected with Grafton Street experiencing a 66% reduction in footfall for March to October. While the street’s footfall figures had been holding steady at 25 million for the last two years, the 2020 outcome will be closer to 13 million. 65% of the limited 2020 retail investment transactions were grocery deals. The Irish Times, 13th December
The industrial and logistics sector has seen a change in attitude from the investment community over the last few years with the influx of international private equity companies competing for much of the available industrial and logistics stock in Dublin, both vacant and tenanted. This competition has intensified in recent months, and looks set to continue with trends such as accelerated e-commerce uptake and population growth providing investors with confidence in the long-term future of the sector. Take-up in Dublin in 2020 is unlikely to reach the 3.5m sq.ft. achieved in 2019, but this will be as a result of supply levels being unable to meet the demand in the market. There are currently just five modern, warehouse units of 20,000 sq.ft. or greater for sale or to let and available for immediate occupation in the entire Dublin market. The Irish Times, 15th December
BidX1 Auction A Ballsbridge apartment building was the top seller at the BidX1 auction on December 9th, through which over 100 properties generated more than €20 million in sales. The end-of-terrace apartment building, Embassy Lodge, Prince of Wales Terrace, Ballsbridge, Dublin 4, sold for €1,449,000 or €349,000 over its €1.1 million guide price. Located off Sandymount Avenue, it is within walking distance of Ballsbridge, Sandymount Village and Sandymount Dart station. It comprises two two-bedroom apartments and two one-bedroom apartments which range in size from c.430 sq.ft. to 678 sq.ft. Only one of them, a one-bedroom apartment, is occupied and this 678 sq.ft. unit has a current annual rent reserved of €15,744. A 3.2-acre residential development site in Rush, North Dublin sold prior to auction. It had been guiding €1.75 million. Situated on Brook Lane, Hayestown, Rush, it is zoned residential and comes with planning permission for 40 residential houses. The Business Post, 13th December
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
18/19 College Green, Dublin 2 Having been acquired by the Mac Group for €4.65m in 2018, the property has returned to the market at a guide price of €5.2m with TWM. The price now being sought reflects a capital value of €515 per sq. ft. based on its net internal area of 10,097sq ft.
Tesco Ireland is the tenant on the ground floor and basement on a 25-year lease from 2013 with tenant break options in 2023 and 2028. The passing rent is €62,426 per annum with five yearly CPI linked rent reviews. The rest of the building is vacant, and a feasibility study done by RKD Architects suggests that the five upper floors could be extended, and a floor could be added, all subject to planning permission. The Irish Times 2nd December
Aldi Store, Rathnew, County Wicklow Ardale Property Group has sold the Aldi store in Rathnew for c€4.82m. The building, on a 0.81-acre site, is 17,308 sq. ft. and has 75 surface car parking spaces. The Aldi lease is 25-year FRI with a tenant break option in year 15. The passing rent is approximately €348,000 and is subject to five yearly CPI linked rent reviews. The purchase price represents a net initial yield of 6.56% and a capital value of €279 per sq. ft. Ardale has planning permission for 40 residential units on the next phase of this scheme and planning for 255 residential units on an adjacent site. Overall, more than 700 residential units will be built on the company’s landholding in the area. The Irish Times, 2nd December
Blanchardstown Shopping Centre The Sunday Times reports that Blackstone Real Estate is facing losses of €211m as Goldman Sachs, the largest holder of the mezzanine debt, takes control of Blanche Holdco SARL, the owner of the shopping centre. The senior lenders are AIB, Morgan Stanley and AIG. The centre was purchased by Blackstone for in excess of €1bn at an LTV of 78%. Blackstone has declined to inject additional capital into Blanche to cure LTV covenants breaches and has ‘handed back the keys’. The Sunday Times, 6th December
76 Sir John Rogerson’s Quay Rabobank has agreed to let 23,500 sq. ft. on the sixth, seventh and eighth floors of the building at a rent of €57 per sq. ft. on a ten-year lease with an option to renew for a further ten years. The entire property, developed by Targeted Investment Opportunities, an umbrella fund involving NAMA, Oaktree Capital and Bennett Construction, consists of two buildings and comprises 75,498 sq. ft. The Irish Times 2nd December
Residential Mortgage Approvals Mortgage approvals for house purchases rose to a record high in October, as the Irish housing market continued its impressive rebound from the lockdown period with growth of 20% yoy (+27% yoy in September), with the number of First Time Buyer approvals up 31% yoy in October. Approvals for movers increased by a more subdued 4% yoy in October, while Buy-to-Let approvals continue to be anaemic (-23% yoy). In all cases, the average loan size grew, leading to a 26% yoy increase in the value of approvals for houses in October.
The Central Bank noted last week that the banks initially reacted to the COVID-19 shock by restricting access to exemptions from the loan-to-value and loan-to-income limits. Given the more resilient performance of the market in recent months, it is likely that banks have loosened up on this aspect, thus contributing to the rebound in September and October. Goodbody Stockbrokers, 7th December
Buoyant Year for €1m Plus Houses The Irish Times notes that agents are reporting that there has been a surge in demand for €1m plus houses with demand coming from a mixture of local and expats returning from the UK and to some extent the USA. While the top five Dublin sales this year range between €3.5m and €6.2m, those sales compare somewhat conservatively with recent years, when the range has been closer to between €5m and €10m. The new trend is the volume of €1m-plus sales going through and completing in record time, at or just above the asking price. The Irish Times, 3rd December
Milltown, Dublin 14 The Irish Times reports that Winterbrook has purchased the 3.95-acre Mount St. Mary site in Milltown from the Marist Fathers for c€20m. Funding for the acquisition and development of the site is being provided by Winterbrook’s shareholder, BGF (€4m), and Activate Capital (€35m). Winterbrook has appointed Reddy Architecture + Urbanism to develop plans for a high density apartment scheme with supporting facilities. The Irish Times, 2nd December
Ashtown, Dublin 15 Ruirside Developments has been granted a strategic planning application by An Bord Pleanála for a €159m apartment scheme. The development, which is located on Rathborne Avenue, Ashtown, Dublin 15, will include 725 dwellings, 107 of which will be studio units, 226 will be one-bed units, 376 two-bedroom units and 16 three-bedroom units. The development will also include a licensed discount food store spanning about 2,549 square metres gross, a café/restaurant unit of about 199 square metres, and a creche facility of some 724 square metres. The Business Post, 6th December
Rathcoole, County Dublin. Romeville Developments has been granted a strategic planning application by An Bord Pleanála for a €44.8m housing scheme on a site located to the east of Stoney Hill Road in Rathcoole, Co Dublin. The works include the demolition of five existing residential properties and associated outbuildings and will consist of the construction of a residential development of 204 units, comprising 151 houses (including duplexes) and 53 apartments. The Business Post, 6th December
Milltown, Dublin 14 Rohan Holdings, known for developing office and industrial space, looks set to enter the PRS market via the proposed acquisition of a prime residential site, the former Murphy & Gunn BMW site in Milltown plus the adjoining school building owned by the Jesuit Order. The reported price is approximately €7m which is 8% above the €6.5m quoted by joint agents Knight Frank and Avison Young. The site has 43 metres of road frontage on Milltown Road and is zoned Z1 Residential under the Dublin City Development Plan 2016-2022. According to a feasibility study prepared by Reddy Architecture, the site can accommodate 67 apartments over a basement carpark, subject to planning permission. The Irish Times, 2nd December
Ashbourne, Co. Meath A 241 acre farm in Ashbourne , Co. Meath sold for €7m, nearly €30,000 per acre, through Coonan Property. Located to the south of the town, it straddles the M2 Slane to Dublin Road. While it is farmland, it is considered to have good prospects of being rezoned for residential development with as much as 2km of its borders running alongside existing residential developments. Adjacent lands have also been included in a local authority draft development plan which will facilitate further residential development. Last December, investors bought a nearby farm with long-term development prospects near Ashbourne, for around double agricultural land prices. The Irish Independent, 3rd December
Navan, County Meath Smith Harrington is offering 32.42 acres of development land to the market in Navan, Co. Meath. Located in close proximity to the M3 motorway and the N2, and just 2km from Johnstown and 5km from Navan town centre. The site is zoned E1/E2; Strategic Employment Zone (High Technology Uses & General Enterprise and Employment). Included in the 32.42 acre sale is five acres of good-quality agricultural land and a small section of approximately 0.42 acres zoned F1 Open Space. The land is being offered in one or more lots with guide prices available on request. The Irish Times, 2nd December
Castletroy, County Limerick Lioncor Developments has been granted planning permission for a €44m residential development in Newcastle, Castletroy, Co Limerick. The Strategic Housing Development allows for the construction of 200 residential units comprising 85 houses, 34 duplex units and 81 apartments. The Business Post, 6th December
Unit 21 Fonthill Business Park. Clondalkin, Dublin 22 The Irish Times reports that industrial specialist, Harvey, is offering the property by way of sublet or lease assignment as the current tenant, Healthcare 21, is relocating to another property. The property consists of 86,252 sq. ft of warehouse and office space. The existing lease expires in in June 2023 and the current passing rent is €650,000 per annum (€7.54 per sq. ft.) with fixed uplifts to €675,000 and €700,000 in June 2021 and June 2022 respectively. The Irish Times, 2nd December
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Dublin 3 Lisney is guiding €8.95 million for a fully let office block at Dublin’s East Point Business Park. Block G is a three-storey building extending to 26,510 sq.ft. (€338 psf) with a parking provision of 49 surface car parking spaces. The building is 100% occupied and let on a floor-by-floor basis to two tenants: gaming company Activision Blizzard and polling firm Red C. The two tenancies are set to deliver a contracted rental income from May 2021 of €590,352 per annum. Block G’s 0.75-acre plot could potentially accommodate a refurbishment or development that would more than double the size of the existing property to 60,000 sq.ft, subject to planning permission. The Irish Times, 25th November
If you are interested in purchasing this asset and require financing, please contact Origin Capital as we can arrange senior debt facilities of up to €6m for the purchase of this Asset.
The Sunday Times understands that Oaktree Capital Management is believed to be one of a small number of parties negotiating with Colony to take over its interests in two Ronan Group Real Estate (RGRE) developments. RGRE and Colony hired Eastdil Secured in July to market a majority stake in the Fibonacci Square and Salesforce Tower developments. Since then, Oaktree replaced Colony as the main funder of RGRE’s bid to acquire an 80% stake in the development of the former Irish Glass Bottle site in Dublin. Colony is also seeking a buyer for properties in its extensive Dublin investment portfolio, including its 75% stake in Burlington Plaza and a 72% stake in the Three Ireland headquarters on Sir John Rogerson’s Quay. The properties were acquired through Nama’s sale of the Project Tolka loan portfolio. The Sunday Times, 29th November
Dalkey, South Dublin Irish Life’s Irish Residential Property Fund has acquired 94 luxury apartments that are being developed in Dalkey, south Dublin. The Irish Times understands Irish Life has agreed to pay c.€49 million (€521k per unit) to secure ownership of the Harbour Road scheme in advance of its scheduled completion in the second half of 2022. The development will comprise a mix of one-, two- and three-bedroom apartments distributed across two blocks overlooking Dalkey Island. The Irish Times, 26th November
Stillorgan, South Dublin Ires Reit is engaged in exclusive talks to acquire a portfolio of 25 high-end apartments in Stillorgan, south Dublin for c.€10.6 million (€424k per unit). Ires Reit’s expected purchase of the Atrium apartments will bring its overall holding at Beechwood Court to 126 units. The Atrium portfolio comprises 24 two-bedroom units and one three-bedroom unit, along with 25 car-parking spaces at basement level. Eight of the apartments have been held vacant while the remaining 17 units are being sold with the existing tenants in place. The Irish Times, 25th November
Malahide, North Dublin Lisney is offering a 3.68 acre site for sale with full planning permission for the development of 13 detached houses ranging in size from 3,616 sq.ft. to 4,510 sq.ft. arranged within a private cul-de-sac setting. The site is located within a short distance of the grounds of Malahide Castle on the eastern side of the Dublin Road, on the approach to Malahide village. The Irish Times, 25th November
Marino, Dublin 3 The Irish Times understands that Greystar has made an unsolicited offer of c.€180 million for the Griffith Wood portfolio where Cairn Homes is developing 385 homes on a site at Griffith Avenue in Marino, Dublin 3 (€468k per unit). The scheme, which is currently under construction, is set to comprise 377 apartments and eight houses. The apartments will be distributed across seven blocks ranging in height from four to eight storeys, and will be complemented by the provision of 367 car parking spaces, 682 bicycle parking spaces, as well as a creche and a gym for residents. The Irish Times, 25th November
Old Naas Rd, Dublin 12 An Bord Pleanála has given the green light for a mixed-use development which will include as many as 1,102 apartments on the Naas Road in Dublin. In total it will comprise nine buildings ranging in height from seven storeys to an 18-storey building that will accommodate offices on a site at the Royal Liver Assurance Retail Park on the Old Naas Road, Dublin 12. The mixed-use development will also include offices, a crèche, community centre, retail, gyms, cinema facility, café, bar, restaurant, medical centre and pharmacy uses with a total gross floor area of more than 1.39 million sq.ft. The development will also include a plaza area. The Irish Independent, 26th November
BidX1 Auction Three Dublin city multi-unit residential lots with guide prices exceeding €1 million are among the commercial development and residential properties which BidX1 will auction on December 9. One of the properties is Embassy Lodge in Ballsbridge, Dublin 4, which has four apartments and a €1.1 million guide price. Located off Sandymount Avenue, it comprises two two-bedroom apartments and two one-bedroom apartments, the units range in size from 430 to 678 sq.ft. Only one of them, a one-bedroom apartment, is occupied and this 430 sq.ft. unit has a current annual rent reserved of €15,744 (€36.61 psf). The Business Post, 29th November
Social Housing Tuath, a housing charity with more than 5,500 units, has bought the Plaza building in Park West Business Park in Dublin 12 from Harcourt Developments. It has begun work on transforming the building, which has been vacant for several years, into 84 two-bedroom apartments, which will be provided to social housing tenants. Tuath is also converting a 1960s office block at Springville House in Blackrock, Cork, into a development of 35 homes within the fabric of the existing building. The Sunday Times, 29th November
Castleknock, Dublin 15 A decision by Fingal County Council to reject plans for an extensive development in Dublin that would have included the country’s tallest building has been appealed by the company behind the proposed scheme. The project would include a 459-bedroom hotel in a 28-storey block at junction 6 in Castleknock, as well a significant amount of office space in a total of four blocks. In rejecting the scheme last month, the council said that the proposed development would represent an “intensive overdevelopment” and would be “seriously out of character with the pattern of development in the area”. The Irish Independent, 27th November
Tallaght, Co Dublin Discount retailer Dealz is set to expand its Irish operation yet again with the planned opening in December of a new 10,764 sq.ft. store at Belgard Retail Park in Tallaght, Co Dublin. The Irish Times understands that Dealz have entered into a new 10-year lease at a rent of €200,000 per annum (€18.58 psf) on the unit occupied formerly by Mothercare. Dealz now have over 100 stores in Ireland with the latest addition to its network bringing its total in Dublin to 17. The Irish Times, 25th November
Tallaght Shopping Centre The company which owns the freehold interest in The Square Tallaght Shopping Centre in Dublin, The Square Management, has included a note regarding its going concern and the refinancing of its intermediate parent company OCM Luxembourg Square Retail and its “significant third party debts which mature in less than 12 months” in its results published for the year ended September 30th 2019. It said it is confident it would continue to receive support for at least a year and that it expected trading to approach normal levels by the first quarter 2021. The Sunday Independent, 29th November
Data Centres A total of €1.25 billion has been spent on the construction of data centres in Ireland this year and €6.7 billion is expected to be spent on building them over the next five years, a new industry report has found. The Host in Ireland biannual report into the country‘s data hosting industry found that the effect of Covid-19 on it had been minimal, while construction and planning applications for new projects continued apace. There are now 66 operational data centres in Ireland, 11 under construction, 29 with planning approved and another five that have submitted planning applications. The vast majority of existing and planned data centres are for the Dublin region. The Business Post, 29th November
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Dublin 2 Hibernia Reit has secured US real estate group Hines as tenants for the entire third floor of its Central Quay office building in Dublin’s south docklands. Extending to 11,250 sq.ft, the third floor has the capacity to accommodate more than 100 workers. The ground floor has been reserved by another occupier and CBRE is now offering the fully-fitted first floor which extends to 11,041 sq.ft. to the lettings market. The property is available for immediate occupation. The Irish Times, 17th November
Dublin 2 US-headquartered Pimco Global Advisors has agreed to sublease the third floor of the Harcourt Building on Harcourt Street for a term of eight years. The floor space extends to a net internal area of 11,300 sq.ft. and the rent is understood to be in the region of €57 psf and €4,000 for each of the basement car parking spaces. The property will become Pimco’s new Irish headquarters and will give it the capacity to grow its Dublin-based workforce to more than 100 people. The Irish Times, 18th November
Dublin 2 Browne Corrigan Chartered Surveyors are guiding €55-€58 psf for the remaining office space at Pepper Canister House on Mount Street Crescent in Dublin 2. The property comprises a five-storey office block extending to 10,000 sq.ft. and 10 car parking spaces. The second, third and fourth floors of the building are available to let. All three floors (5,600 sq.ft) are available for occupancy by a single tenant or on a floor-by-floor basis along with an allocation of car parking per floor. The Irish Times, 18th November
Dublin 1 Developer TIO has reached practical completion of North Dock Two and the wider North Dock scheme. Located next to the 3 Arena, the scheme extends to 202,000 sq.ft. in total distributed between North Dock One (95,000 sq.ft.) and North Dock Two (107,000 sq.ft.). While Gilead Sciences have agreed to occupy more than 30,000 sq.ft. at North Dock Two, The Irish Times understands that heads of terms have been agreed on the letting of a further 15,000 sq.ft. and the remaining 62,000 sq.ft. of space is being offered by joint agents JLL and Savills at a rent of between €52.50 and €55 psf. The Irish Times, 18th November
Dublin Office Market Total office take-up in Dublin reached c.229,500 sq.ft. during Q3 2020. While this is an improvement on Q2 take-up, it is still very low compared to pre-pandemic levels of market activity. This brings total take-up for the first nine months of the year to c.1.45 million sq.ft. which is a decline of 32% relative to the same period in 2019. There were 29 lettings completed during Q3, up from just 13 in Q2, while the average deal size was less than 8,000 sq.ft. BNP Paribas Dublin Office Market Q3 2020
Dawson St, Dublin 2 The Irish Times understands that AM Alpha are set to acquire Royal Hibernian Way on Dawson Street for c.€75 million. Joint agents JLL and TWM had been guiding €80 million when they brought the scheme to the market on behalf of Aviva in September. Royal Hibernian Way is a mixed-use development extending to 92,888 sq.ft. The bulk of the scheme (72,000 sq.ft) comprises office accommodation while some 21,000 sq.ft. is dedicated to retail and hospitality. The majority of the office space (66,000 sq.ft.) serves as the headquarters for Davy Stockbrokers, while the remaining offices, located at 12 Duke Lane, have been left vacant intentionally by Aviva as planning permission has already been achieved to double the size of the building. The Irish Times, 18th November
Leixlip, Co Kildare Geneva based Stoneweg are understood to have emerged as the preferred bidder on the sale of the former Hewlett Packard (HP) campus in Leixlip, Co Kildare. The 195 acre scheme, now known as Liffey Park Business Campus, was purchased by developer Michael O’Flynn and BlackRock Real Estate Assets in September 2018 for €51 million. The scheme’s current occupiers include Hewlett Packard Enterprise, Celestica, MGS and Global Entserv Solutions. The Irish Times understands that the purchase price agreed is c.€100 million. The Irish Times, 24th November
Rathcoole, Co. Dublin Harvey is guiding €2.2 million for a well-maintained warehouse and office facility at Greenogue Business Park in Rathcoole, Co Dublin. Unit 400 Grants Road is on a self-contained and gated 1.1 acre site. It extends to c.20,000 sq.ft. (€110 psf) and comes equipped with four automated level access doors, a loading yard to the rear and 27 car-parking spaces to the front and side of the property. The warehouse space extends to 16,103 sq.ft. while the offices are situated to the front of the unit and comprise 3,896 sq.ft. of fully fitted accommodation in turn-key condition. The Irish Times, 18th November
Cork City Cork City Council have granted planning permission to International Investment ICAV to construct a five to seven-storey hotel on MacCurtain St and Brian Boru St in Cork City. The site formerly housed the Coliseum cinema and is currently a bowling alley and arcade. Plans for the hotel include a bar and restaurant at ground floor level in addition to 171 bedrooms. The project can still be appealed to An Bord Pleanála and 23 conditions have been attached to the construction. Some of the conditions include provision for bicycle parking and conservation compliance with regards to the former postal sorting offices, which is a protected structure. The Irish Examiner, 20th November
Tyrellstown, Dublin 15 Hooke & MacDonald is guiding €9 million for the Tyrrellstown retail centre in Dublin 15. The 66,219 sq.ft. (€135 psf) commercial lot currently produces a net rental income of €1,012,112 per annum (€15.28 psf) from the existing tenancies, which have an average WAULT of c.7 years to expiry. The tenants include SuperValu, Hickey’s Pharmacy, Permanent TSB, Carry Out Off Licence and Paddy Power, with about 50% of the income secured against these five leading national covenants, which on average have approximately 10 years left to run on their leases. The projected estimated rental value is c.€1,153,000 per annum (€17.41 psf) once the vacant units have been let. The vacant units comprise a fully fitted and licensed pub and restaurant unit (9,666 sq.ft.), which has a high quality fit-out and is readily lettable. In addition, there are also three fully-fitted office suites that could be re-let or alternatively could (subject to planning permission) be converted to residential use. The Business Post, 22nd November
If you are interested in purchasing this asset and require financing, please contact Origin Capital as we can arrange senior debt facilities of up to €6m for the purchase of this Asset.
Blanchardstown Shopping Centre Goldman Sachs is seeking to take control of the Blanchardstown Shopping Centre from US investment giant Blackstone. The shopping complex has c.1.2 miilion sq.ft. of retail space, 180 stores and anchor tenants including Marks & Spencer and Penneys, as well as restaurants and a cinema. Blackstone bought the shopping complex from Green Property for €950 million in 2016. The planned deal will include the centre itself, two adjacent retail parks and external retail units, as well as a five-storey office block. The Irish Independent, 18th November
Grand Canal Dock Trinity College Dublin have appointed Savills to provide financial management and advice for the Trinity East project. The project involves the potential development of an estimated 1,076,391 sq.ft. innovation campus at Trinity’s current site at Grand Canal Dock. Upon completion, the 5.5 acre site is expected to comprise c.430,556 sq.ft of academic space, c.430,556 sq.ft of commercial space and c.215,278 sq.ft. of cultural and supporting uses, with an estimated gross development value of €1 billion. The Irish Independent, 19th November
Irish Investment Market Irish investment turnover reached just under €700 million during the third quarter of the year, representing an increase of 63% relative to Q2. This brings total investment for the first nine months of the year to just over €1.8 billion, which is a decline of more than 40% relative to the same period in 2019. The top performer in Q3 was the residential investment sector which saw €470 million invested across 1,016 residential units. The office sector saw €216 million invested across 8 transactions. While total turnover for the year is unlikely to come close to last year’s record €7.3 billion, there was €1.8 billion worth of property assets on the market moving into Q4 with just under a quarter of this at sale agreed. BNP Paribas Irish Investment Market Q3 2020
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Dublin 2 Amundi Real Estate has acquired the newly-developed Fitzwilliam 28 office scheme in Dublin city centre for c.€180 million. Fitzwilliam 28 was brought to the market in January by joint agents Savills Ireland and Bannon at a guide price of €168 million. Knight Frank advised Amundi Real Estate on its acquisition of the property. The building’s owners, the ESB, had agreed to lease the property in its entirety to Slack Technologies prior to offering it for sale. The Irish Times understands that Slack Technologies is set to pay in excess of €7.7 million in rent per annum for the building. The building in its entirety comprises 135,617 sq.ft.(€1,327 price psf and €56.78 rent psf) and gives Slack the capacity to add as many as 1,100 jobs in Dublin. The Irish Times, 12th November
Dublin Office Market The take up in the Dublin office market in Q3 2020 was almost 217,000 sq.ft, however many of the deals were agreed earlier in the year. While this is a significant increase on the c.74,000 sq.ft. completed in Q2 it is still a relatively modest quarterly activity figure. The vacancy reate was 9.5% at the end of September 2020. At the end of September 2020, there was just over 4 million sq.ft. of modern office accommodation vacant across Dublin. This means that supply levels are now back to where they stood 12 months ago. Construction activity continued with c.473,000 sq.ft. of accommodation finished in Q3 and with 4.46 million sq.ft. ongoing at the end of September 2020. Lisney Office Report Q3 2020
Spencer Dock, Dublin 1 Lisney, on behalf of the Central Bank of Ireland, is guiding €110 million for Block R in Spencer Dock. The property extends to a total area of 128,229 sq.ft. (€858 psf) and comprises seven floors of office accommodation, three ground-floor retail units and 46 basement car-parking spaces. The building was designed to be split into two self-contained wings (east and west). The majority of one wing (53,173 sq.ft. and 18 car spaces) is let to the Office of Public Works (OPW) under a 20-year lease from May 2015, at a passing rent of €1,582,719 per annum (€29 psf and €3,500 p.a. per car space). There is an outstanding rent review from May 2020 and the OPW lease contains a break option which is effective in May 2027. The remainder of the office space (64,835 sq.ft. and 25 car spaces) will be leased by the Central Bank on a short-term basis until April 30th, 2022, at an annual rent of €3,341,750 (€50 psf and €4,000 per car space). The three retail units are vacant. The Irish Times, 11th November
Santry, Dublin 9 The Cosgrave Property Group has sold 297 apartments it is developing in Santry in north Dublin to a joint venture between Round Hill Capital and QuadReal Property Group for €123.5 million (€415,825 per unit). Located at the centre of Northwood in Santry, Blackwood Square will, upon completion, comprise 297 apartments distributed across four eight-storey buildings over a basement car park. The scheme will have a concierge area and residents’ gym along with five commercial units and a creche at ground-floor level. The homes will comprise a mix of 4 one-bedroom units, 243 two-bedroom units and 25 three-bedroom apartments along with two one-bedroom penthouses, 15 two-bedroom penthouses and eight three-bedroom penthouses. The Irish Times, 13th November
Ires Reit Portfolio Ireland’s biggest private landlord Ires Reit has sold 151 apartments to a fund managed by Dutch property investment company Orange Capital Partners for €48 million (€317,880 per unit). The disposal included leased apartments in a number of locations in Dublin, including Dublin 8, the IFSC, Sandyford and Tallaght, as well as three small commercial units. Ires Reit took delivery of 95 new-build apartments in Hansfield Wood, Dublin 15, in August. At present, 81 out of the 95 apartments are leased and income-producing, with letting agreements in place for a further 10 homes. The Irish Independent, 11th November
Coolock, Dublin 17 Cushman & Wakefield is inviting offers in excess of €170 million for the 471 apartments set to be delivered on the site of the former Chivers factory in Coolock (€360,934 per unit). The sale of the portfolio is by way of a forward funding opportunity. Upon completion, the development will comprise 471 build-to-rent (BTR) units distributed across four blocks ranging in height from four to nine storeys. The scheme will include a mix of 61 studios, 138 one-bedroom units, 166 two-bedroom units and 106 three-bedroom units with 394 basement and surface car parking spaces and 650 bicycle spaces. Platinum Land is currently awaiting a decision on a further planning application for an additional 79 units to be added to the current proposed scheme. A decision is expected to be made early in December. The total projected stabilised gross income of the entire development is €10 million per annum. The Irish Times, 11th November
Dublin City Councillors voted against plans to build more than 850 homes on one of the largest sites owned by Dublin City Council on site at Oscar Traynor Road in Santry. The deal would have seen 853 homes built on the site, 428 of which would have been sold privately by Glenveagh. A total of 253 would be bought by the council for social housing and 172 would be sold to low and middle income workers qualifying for the upcoming affordable purchase scheme. The Irish Times, 16th November
Dublin 8 A strategic planning application has been awarded by An Bord Pleanála for a large housing development at the former Bailey Gibson Site in Dublin 8, which will consist of the demolition of all buildings and structures on the site, including nine buildings and an ESB substation to make way for development of the construction of 416 residential units in five blocks. The Business Post, 15th November
Dún Laoghaire, South Dublin Townmore Construction has started the main works on a €45 million shared living accommodation development for Bartra Capital on Eblana Avenue in Dún Laoghaire in south Co Dublin. The 208 bed-space, six-storey development will have “the provision of communal kitchen/dining/living and library spaces at each floor level to serve the residents of each floor”. The Business Post, 15th November
Athlone, Co Westmeath Planning permission has been granted to Castlestar (Athlone) for a development on a site which extends to c.38.6 acres of land located near Athlone, Co Westmeath. The development will comprise the construction of 426 residential units comprising 237 housing units and 189 apartment units as well as open spaces, a creche, outdoor play areas and parking. The Business Post, 15th November
Residential Completions Figures from the Central Statistics Office (CSO) show there were 5,118 new dwellings completed between July and the end of September, compared to 5,652 in July-September 2019, a reduction of 9.4%. The year-on-year reduction, however, was less pronounced than in the second quarter where 3,247 units were completed. Goodbody is forecasting 19,500 home completions in 2020, which is sharply down on pre-Covid estimates but better than expected given the severity of the lockdown in Ireland. The Irish Times, 12th November
Development Land Market In Q3 2020, the development land market in the Greater Dublin Area was significantly busier than the previous quarter with market turnover exceeding €60 million, bringing the total for the first nine months of 2020 to almost €180 million. There was only one transaction in Q3 in excess of €10m; the 52.6 acre site at Harbour Point in Bray, where Ballymore purchased the two lots for a price reportedly in excess of the €27.5m guide. In terms of supply, c.€270 million worth of lands remained either sale agreed (but not yet closed) or on the market available for sale at the end of September 2020. In terms of sale agreed sites, the combined asking prices were close to €180 million, including €125 million for the glass bottle site, while there was a further €90 million available for sale. Lisney, Development Land Report Q3 2020
Baldoyle, Dublin 13 Harvey have completed the sale of 67 Grange Close, a detached warehouse and office facility
Naas, Co Kildare Roche Group has taken the first steps to redeveloping Naas Shopping Centre in the Co Kildare town after Nama recently sold the building to the business. The Irish Times understands that Roche Group intends to spend €10 million redeveloping the complex as a shopping and commercial centre, and will seek permission for the work from Kildare County Council in early 2021, with the centre opening in 2022. The building lay unused from 2008 and Nama appointed Duff & Phelps as receiver to the property in 2017. It put the building on the market with a guide price of €4.5 million, a fraction of the original construction cost. The Irish Times, 16th November
Dublin Industrial Market Take-up in the Dublin industrial market reached c.600,000 sq.ft. in Q3 2020, 25% higher than in Q2 and 29% higher than the same period of 2019. This brought the total take up for the first nine months of 2020 to c.2 million sq.ft. Supply remains at a very low level with limited availability of quality second-hand stock. Supply fell to a historic low in Q2 2020 but did improve slightly in Q3. At the end of September the amount of stock available stood at approximately 3.62 million sq.ft. and the vacancy rate across Dublin was close to 5%. More than 764,000 sq.ft. of accommodation was under construction at the end of September, 80% of which was available. Lisney, Q3 2020 Dublin Industrial Report
OTHER
Dublin 8 QRE is guiding €1.5 million for 134 James’ St in Dublin 8. The property comprises a two-bay, four-storey over-basement building that had up until recently been in use as a music rehearsal studio. The site, in a prominent end-of-terrace position, extends to c.0.066 acres. The existing building (incorporating rear extension) extends to 5,220 sq.ft. and benefits from a right of way to the rear of the return over the adjoining site and on to Steeven’s Lane. Plans lodged by the vendor with Dublin City Council are seeking permission for the conservation, refurbishment, redevelopment and change of use of the building to provide a 20-bedroom hotel. The Irish Times, 11th November
Irish Investment Market Almost €700m worth of investment property transacted in Q3 across 15 deals. In Q3, PRS was the most dominant sector, accounting for 67.6% of market turnover. Offices was also active at 30.7% of the market with retail and mixed-use making up the remaining 1.7%. This brought the total transacted for the first nine months of 2020 to €1.8 billion. Up to €1.9bn worth of assets were on the market at the end of September 2020. These were at various stages of the sales process but with c.80% still available for sale and the remainder agreed or in advanced negotiations. Lisney, Q3 2020 Investment Report
Hibernia REIT Update The value of Hibernia Real Estate Investment Trust’s (Reit) assets fell 3.8% to €1.421 billion in the six months to September 30th 2020. Hibernia’s annual contracted rent rose 1% to €66.5 million, with its top 10 tenants accounting for €36.5 million of this. Hibernia Reit said it’s rent collection rates are running at 99% for commercial tenants and 98% for residential tenants. RTE.ie, 17th November
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Ballsbridge, Dublin 4 Colliers is guiding €2.5 million for 58 Northumberland Road in Ballsbridge, Dublin 4. The property comprises a two-storey over garden level end-of-terrace Victorian building of 5,040 sq.ft (€496 psf), with parking for up to six cars, and a large east-facing rear garden. The garden level and hall floor, comprising 3,325 sq.ft. are held under a lease to Dental Care Ireland Management, trading as Northumberland Dental Care for a term of 25 years from August 31st, 2015, at a rent of €130,000 per annum. There are fixed uplifts to €142,500 per annum on September 1st, 2025, and to €155,000 per annum on September 1st, 2030. There is a tenant break option on March 1st, 2028, providing 6.5 years of guaranteed income to the break option and 20 years to the expiration of the lease. The upper floors of the property extend to a total area of 1,715 sq.ft. and are vacant currently. The Irish Times, 4th November
Killester, Dublin 3 Mason Owen Lyons is guiding €1.4 million for a branch property let to Bank of Ireland in Killester, Dublin 3. Located at 189 Howth Road, the two storey property extends to 2,564 sq.ft (€546 psf). Four parking spaces are included to the front and a small yard to the rear has pedestrian access from a laneway. The property generates an annual passing rent of €91,762 (€35.79 psf) with upward only rent reviews every five years. The 25-year FRI lease dates from September 2007 and there are no break options. The Irish Independent, 5th November
Wicklow St, Dublin 2 The Irish Times are reporting that 12 Wicklow St has been acquired in an off-market transaction for just over €2 million by a premium Irish retailer. The property had lain vacant since the pre-pandemic departure of UK retailer Joules. The entire building extends to 3,272 sq.ft (c.€611 psf), and the upper floors are currently occupied by two service occupiers. The Irish Times, 4th November
Cork City The Irish Examiner are reporting that Amazon is seeking up to 100,000 sq.ft. of office space in Cork city. However, it remains uncertain if the retail giant is seeking the office space in addition to the c.90,000 sq.ft. it currently occupies in Cork Airport Business Park across three separate buildings employing approximately 800 (its Cork Customer Care centre alone occupies 47,000 sq.ft). The company is also seeking a Cork logistics building of 60,000-80,000 sq.ft. for ‘final mile’ delivery as its online sale presence ramps up nationally. The Irish Examiner, 4th November
Cork Office Market A total of 80,000 sq.ft. of office accommodation was occupied in Q3 2020, with key occupations including Sophos and Grant Thornton at the newly completed Penrose Dock development. Year-to-date take up now totals 135,625 sq.ft. across 18 deals which remains below the levels of take up witnessed at the same point in 2019. At the end of September, availability in the Cork office market stood at c.848,000 sq.ft, up significantly on the previous quarter. The increase in available space stems from both the release of c.119,000 sq.ft. of second-hand stock back to the market, and the completion of new office space at Penrose Dock. Correspondingly, the vacancy rate rose to 12.2%. However, when signed and reserved space is considered, the net vacancy rate stands at 8.4%. Cushman & Wakefield, Cork Office Market Q3 2020
Galway Office Market In the nine months to the end of September office take up totalled almost 26,000 sq.ft, across just 8 deals. Supply remains low in the Galway office market. At the end of September, availability stood at just 163,000 sq.ft, down 6% from the previous quarter. Correspondingly, the vacancy rate fell to 4.9%. At the end of September, construction continued on approximately 255,000 sq.ft. of space across two schemes. Approximately 129,000sq.ft. of this is located in the city centre, at the Bonham Quay development. Cushman & Wakefield, Galway Office Market Q3 2020
Limerick Office Market Almost 37,000 sq.ft. was taken up in the three months in the Limerick office market, largely led by deals from earlier in 2020 or 2019. Positively, the volume of space signed/reserved rose in the three-month period. In the nine months to the end of September 2020, take up totalled 95,260 sq.ft. At the end of September, availability in the Limerick office market stood at 421,407 sq.ft, down 29% from the same point in 2019. The corresponding vacancy rate stood at 9.9%. There is currently no office space under construction in the Limerick office market. However, demolition works are continuing at Bishopsgate development in the city centre. Once under construction, this scheme will aim to deliver approximately 79,653 sq.ft. of Grade A office space to the Limerick market. Cushman & Wakefield, Limerick Office Market Q3 2020
Dundrum, Dublin 14 Marlet Property Group has selected BAM Ireland as the main contractor for its latest residential development in Dublin. Green Acre Grange in Dundrum will, upon completion in the second quarter of 2022, comprise 253 one-, two- and three-bedroom apartments distributed across three blocks, along with a 2,100 sq.ft. creche facility. Some 43,000 sq.ft. at the south Dublin scheme will be given over to landscaped communal areas with 5,400 sq.ft. allocated to amenity spaces including a concierge service, gym, cinema, lounges and meeting rooms as well as play and outdoor recreation areas. Green Acre Grange is Marlet’s second residential development in the Dundrum area, with the Walled Garden, a 142-apartment scheme, due to be completed in the final quarter of 2021. The Irish Times, 4th November
Irish Residential Transaction Activity Excluding block sales and new homes acquired for social housing, the Property Price Register (PPR) shows that approximately 7,600 new dwellings transacted in Q2 2020. This represented a 42% fall on Q2 2019 and the smallest quarterly total in six years. For the first half of 2020, c.18,700 dwellings transacted, down 22% on the same period in 2019. Dublin noted the largest decline in sales, 28% year-on-year, with c.2,100 fewer transactions recorded. The decline in transactions was largely consistent across both the new and second-hand sectors. Comparing the first half of 2020 against the equivalent period in 2019, shows that new home sales fell 26%, with c.1,000 fewer sales year-on-year. A total of 2,800 new homes sales were recorded in 2020 so far. Sherry Fitzgerald, Irish Residential Market Review Autumn 2020
Baldoyle, Dublin 13 Harvey have completed the sale of 67 Grange Close, a detached warehouse and office facility at Baldoyle Industrial Estate in Dublin 13. The Irish Times understands that the purchaser was a neighbouring occupier who is understood to have paid slightly more than the €2.1 million asking price to secure ownership of the property. Some 26,130 sq.ft. of the building was available for owner occupation at the time of the sale. A self-contained unit within the property comprising 4,894 sq.ft. was let to New Ireland Motors, with a new lease signed by the tenant prior to the sale at an annual rent of €30,000 in year one, rising by €1,000 each year until year five. The Irish Times, 4th November
Cork Industrial Market Take up in the Cork industrial market reached c.589,000 sq.ft. in the nine months to the end of September 2020. The Cork industrial market looks poised to have its strongest year of take up since 2005. There have been a number of large occupations in the year, with 4 deals over 53,000 sq.ft. in size. Availability in the Cork industrial market stood at c.470,000 sq.ft. at the end of September, with a vacancy rate of just 3.5%. Cushman & Wakefield, Cork Industrial Market Q3 2020
Galway Industrial Market In the nine months to the end of September 2020, take up in the Galway market totalled 41,000 sq.ft. across just 5 deals. The third quarter of the year saw c. 5,000 sq.ft. occupied. The lack of available industrial space continues to hamper take up levels in the market. Large floorplates also remain in short supply in the Galway market, with just one unit in excess of 54,000 sq.ft. available. The third quarter of 2020 saw the completion of c.35,000 sq.ft. at Parkmore East Business Park. Cushman & Wakefield, Galway Industrial Market Q3 2020
Limerick Industrial Market The nine months to the end of September 2020 saw take up activity in the Limerick industrial market total 633,000 sq.ft. Take up in the year to date sits well above the long run-average of c.436,000 sq.ft. The nine months to September saw twenty deals in excess of 10,000 sq.ft. transact, with the average size deal standing at c.18,000 sq.ft. availability in the Limerick industrial market fell to 57,800 sq m. The corresponding vacancy rate declined to 6.5% in Q3. There are just two units in excess of 100,000 sq.ft. available, both of which are reserved. Of the available space in the Limerick market, c.289,000 sq.ft. of this is reserved. Cushman & Wakefield, Limerick Industrial Market Q3 2020
Aungier St, Dublin 2 Knight Frank is guiding €1.5 million for 16 Aungier Street in Dublin 2. The mixed-use property comprises a newly-fitted ground floor restaurant and six residential apartments overhead. It extends to a net internal floor area of c.3,552 sq.ft. The passing rent is in the order of €127,820 per annum on the assumption of re-letting one of the vacant residential units, held vacant for the purpose of the sale. The restaurant is let on a 35 FRI year lease from July 11, 2005 at a rent of €50,000 per annum, offering an unexpired term of 19.7 years and further scope for reversionary potential in the medium to long term. The Business Post, 8th November
Cork City The Irish Examiner understands that Camden Place on Camden Quay in Cork City has been sold to a UK/Irish group for €3.5 million. The high-profile Camden Quay site has a full planning grant for c.70,000 sq.ft. of offices but it is thought that the new purchaser will look at developing a hotel rather than offices. Cushman & Wakefield had been guiding €4 million when it was launched to the market in February of this year. The Irish Examiner, 4th November
O’Donnellan & Joyce enjoyed an 83% sale success rate at its live stream property auction where 25 lots were sold for €3.1 million. 4,000 viewers saw 30 properties be put under the hammer. The Business Post are reporting that some 150 people registered to bid on October 30 via internet, proxy and telephone bidding and auctioneer Colm O’Donnellan accepted a total of 408 bids worth €42,347,000 cumulatively into his digital auction room over a four-hour period. The next and final (live stream) auction of 2020, will take place on Friday, December 11. The Business Post, 8th November
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Baggot St, Dublin 2 Kennedy Wilson has sold the Baggot Plaza office block in Dublin for c.€141m to Deka Group. Kennedy Wilson acquired the 92,000 sq.ft. building on Upper Baggot Street as part of the Project Opera non-performing loan portfolio in 2013. Once it had vacant possession, the group added 37,700 sq.ft. to the building and transformed the site into a Grade A corporate headquarters. In 2015, Bank of Ireland signed a 25-year lease agreement for occupation the following year. The sale reflects a net initial yield of 4%. The Irish Independent, 31st October
Dublin 1 Insurance technology company, Companjon, have committed to a lease assignment from digital platform company WeTrade for offices at the IFSC in Dublin city centre. The agreement will see Companjon relocate to the fifth floor of Custom House Plaza 2. The company has agreed to a six year lease assignment from head tenant, WeTrade, at a rent of c.€43 psf. Located immediately adjacent to Connolly Station, Custom House Plaza 2 is a five-storey over basement office building extending to 29,430 sq.ft. built in the late 1990s. The fifth floor extends to 4,800 sq.ft. The Irish Times, 28th October
Dublin’s North Docklands The Irish Times understands that US real estate investor Cortland has withdrawn from a planned €315 million investment in hundreds of apartments being developed by Ronan Group Real Estate (RGRE) in Dublin’s north docklands. Cortland had been prepared since its selection as preferred bidder last year to purchase all 550 apartments and co-living spaces but that plan was put on hold and ultimately abandoned following repeated legal challenges from Dublin City Council in relation to the scheme’s height. In the past number of weeks the High Court overturned a fresh grant of planning permission from An Bord Pleanála to increase the height of two blocks within the development from seven to 11 and 13 storeys respectively. The Irish Times, 28th October
Youbid.ie saw 16 of the 18 (88%) lots sold at its latest auction, at an average of 13% above reserve prices, with the remaining two properties under negotiation. One property, a large, unfinished detached house at Moydriston near Kilnaleck in Cavan sold for €102,000 – an increase of two thirds on its reserve of €60,000. Two houses sold for c.50% more than their reserve – a detached two-bed Co Tipperary cottage with a reserve of €40,000 sold for €61,000 and a three-bed semi-detached house in Newtownforbes, Co Longford, sold for €119,000 from a reserve of €80,000. Youbid.ie’s next auctions take place on Thursday, November 19, and Wednesday, December 16. The Business Post, 1st November
Dunshaughlin, Co Meath Agent Lydon Farrell Property is offering a 31.5 acre landbank in Dunshaughlin, Co Meath for sale. The lands are located adjacent to the Gem Group’s newly-developed housing scheme, The Willows, and comes with the benefit of frontage on to the N3 (Old Dublin Road). The landbank is being offered for sale in one or more lots at a guide price in the region of €40,000 per acre, with the exact price per acre depending on the lot size. The site is predominantly Zoned E2 – General Enterprise and Employment which allows for industrial, manufacturing, distribution, warehousing and other general employment or enterprise. The Irish Times, 28th October
The Sunday Times understands that a subsidiary of a quoted Singaporean pawnbroker and second-hand jewellery retailer has emerged as the financial backer of a number of proposed co-living and apartment projects in Dublin. Maxi-Cash Capital Management Pte has registered a charge over lands owned by Asia Atlantic Investments (AAI). AAI is managed by Trinity House Investments (THI). The lands secured include a former Kenilworth Motors site in Terenure. Plans have been lodged to redevelop the former motor showrooms into a shared living space. The planned five-storey building would have 147 single bedrooms and 27 double rooms, providing accommodation for up to 201 people. AAI has also acquired sites in Finglas, Mulhuddart and Walkinstown. It plans to develop 1,500 new units comprising 1,000 private rental scheme units and 500 co-living apartments at the sites, pending planning permission. The Sunday Times, 1st November
Newcastle, Co Dublin A 2.1 acre site on the main street in Newcastle, Co Dublin has come available for sale through agent Knight Frank. The site is laid out in one block and enjoys c.100 metres of frontage to Main Street and Hazelhatch Road. The site also benefits from being identified as a Housing Capacity Site in the SDCC development plan 2016 – 2022. In the settlement strategy, Newcastle is designated as a “Small town within the Metropolitan Green Belt”. The front portion of the site is c.0.7 acres and is Zoned RES: “to protect and /or improve residential amenity”. The rear portion of the site is Zoned RU: “To protect and improve rural amenity and to provide for the development of agriculture.” Knight Frank Press Release, 2nd November
Dunboyne, Co Meath Knight Frank are inviting interested purchasers to submit best bids on a 27.3 acre site in Dunboyne, Co Meath. The site includes a detached 4 bedroom house which is currently occupied, on c.0.51 acres with the balance of the site currently in tillage. Under the Meath County Development Plan 2013-2019 approx. 13.34 acres are zoned residential. Under the Draft Meath County Development Plan 2021-2027 the residential zoning is to be increased to approx. 15.14 acres. Situated on the Navan Road in Dunboyne Town, the site is within a 1km walk of the Dunboyne Train Station. Knight Frank Press Release, 29thOctober
Galway TWM is guiding €3.75 million for 19 Mervue Business & Technology Park in Galway. Unit 19 comprises a mid-terrace industrial manufacturing property extending to 19,266 sqft (€194.64 psf) in one of the top IDA industrial park locations within Galway city. The property is fully let realising an annual rent of €187,209 (€9.72 psf) per annum to August 2021, after which a new ten-year fully repairing and insuring lease has been executed which will increase the annual rent to €298,871 (€15.51 psf). This ten-year lease incorporates a CPI-linked rent review in 2026. The Business Post, 1st November
Limerick City Cushman & Wakefield is guiding €9 million for the landmark former Debenhams building at 134-135 O’Connell Street, Limerick. The subject property comprises a four-storey over-basement commercial premises with dual frontage on to O’Connell Street and Sarsfield Street. The entire property extends to 72,113 sq.ft. (€124.80 psf) with the ground floor specifically extending to 21,590 sq.ft. and is within a short walking distance of Cruises Street, the proposed new city campus of the University of Limerick at Sarsfield Bridge, and Arthur’s Quay Shopping Centre. The Irish Times, 28th October
Grafton St, Dublin 2 Bagnall Doyle MacMahon are offering the ground floor (753 sq.ft.) and basement (492 sq.ft.) of 118 Grafton St for lease at a rent of €140,000 per annum (€112 psf). The retail premises occupies a prime location on Dublin’s main shopping street. The upper floor offices are also available to lease either separately or in conjunction with the retail unit. The office accommodation extends to 2,758 sq.ft. and is quoting a rent of €100,000 per annum (€36 psf). The Irish Times, 28th October
Fast Track Planning The head of the Office of the Planning Regulator has called on Developers with planning permission to build a combined total of more than 40,000 homes through the fast-track scheme to focus on delivering them instead of asking for further planning policy changes. Since 2018, a fast-track housing scheme has allowed developers to bypass local authorities’ planning systems, while new planning guidelines have also been put in place to encourage the development of apartments. Despite the new policies to speed up housing delivery, only a small fraction of homes approved under the fast-track scheme have started construction. The Business Post, 1st November
Supply of Housing The industry body, Irish Institutional Property (IIP), which represents large property developers has warned in a report that the supply of new homes is grossly out-of-kilter with demand and that this mismatch is “intrinsically linked” to affordability. As many as 47,000 homes will have to be built each year for the next five years just to meet demand, it says, while noting that the Government’s target in Project Ireland 2040 is just 25,000. The report estimates that Dublin alone needs an additional 125,000 apartments to meet demand. In its report, IIP estimates the typical development costs of a number of different housing types, noting delivery costs and affordability vary significantly by location and type. It puts the cost of a two-bed apartment in a semi-urban area at €455,000, rising to the €615,000 in city centre locations. The cost of a two-bed town house is put at €306,000. The Irish Times, 27th October
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Swords, Co. Dublin 230-240 Lakeshore Drive is being offered to the market with the benefit of full vacant possession by joint agents Lisney and CBRE at a guide price of €7.5 million. The subject property which is located in the Airside Business Park in Swords extends to 29,773 sq.ft. on a gross internal area basis (€252 psf) and benefits from 109 surface car-parking spaces. In addition, the current owners recently secured planning permission to develop a new double-height entrance along with a shower block to the rear of the building. 230-240 Lakeshore Drive had up until relatively recently served as the European headquarters of global cereal brand, Kellogg’s. The Irish Times, 21st October
Newry, Co Down A substantial 22 acre industrial development site on the edge of Newry, eight kilometres from the border, has come to market for sale through Belfast selling agent Inprio. The freehold site is being marketed at a guide price of £3.3 million, (c.€3.65 million) representing £150,000 (or €166,167) per acre. Outline planning approval was granted on January 30 last for industrial units and an associated access road. The 22-acre site is strategically located beside the A1 dual carriageway between Belfast and Dublin. The Business Post, 25th October
Dublin Hotel Sector Before the pandemic, JLL forecast that slightly more than 5,000 new hotel bedrooms would open in the capital by the end of 2022. Since then, the closure of construction sites has resulted in some delays to target opening dates. Furthermore, the economic shock being felt by the hotel sector globally has resulted in some schemes being abandoned and some being sent back to the drawing board for further consideration. Between March and October this year, JLL’s forecast for new hotel openings in the capital by the end of 2022 has fallen by nearly 25% from the previously estimated 5,000-plus bedrooms to c.3,850. Year-to-date (YTD) occupancy at the end of September for Dublin hotels was 34%, compared with 84% for the same period in 2019. In more recent months, occupancy levels were much lower than this – occupancy in Dublin in July was at 20%, at 30% in August and in September was 23%. These occupancy rates are just for the hotels that have remained open and trading. The Business Post, 25th October
Dublin PRS Market Hooke & MacDonald have highlighted the continued strength of Dublin’s private rented sector (PRS) market in the three-month period to the end of September 2020 with 1,016 homes sold for a total of €470 million to institutional investors. The sale of these residential units accounted for 67% of all investment sales in Dublin in the third quarter of 2020. In the first nine months of 2020 office PRS transactions accounted for 36% of all investment sales in Dublin. The largest transaction in the first nine months of this year across all categories of investment saw the Cosgrave Property Group secure c.€200 million from the sale of 368 apartments at Cualanor in Dún Laoghaire to Deutsche Bank subsidiary, DWS. The Irish Times, 21st October
Cork City An Bord Pleanála has given the green light for a 30-apartment student development between Victoria Cross and College Road in Cork, disagreeing with its inspector that it would negatively impact the area. The five-year planning permission for the student accommodation development at San Paula, Orchard Road, proposes the construction of a one to five-storey development including 30 student apartments in three blocks with a total of 216 bed spaces. The San Paula site was acquired in late 2017 for €1.9 million. The Irish Examiner, 22nd October
Irish Land Sales 11 land sales were completed between July and September 2020 with a combined value totalling c.€64 million between them. A CBRE Ireland report highlighted that this is a very significant increase on the previous quarter although the overall volume of transactional activity in the year-to-date has been severely impacted by Covid-19 and the economic backdrop. Over the year to end September 2020, the value of deals totalled c.€185 million, compared to €767 million at the same point in 2019. Average quarterly transaction levels in the market over the last five years has been c.€240 million per quarter. The Irish Independent, 22nd October
Irish Glass Bottle Site Nama has given Ronan Group Real Estate (RGRE) and their new partner, US private equity group, Oaktree, a four month extension, until December 18th 2020, on an original 30-day deadline to complete the €160 million deal on the former Irish Glass Bottle site in Dublin. RGRE had been selected with Colony in late July 2020 as preferred bidders for a controlling stake in the 37-acre site and given 30 days to complete. It is the largest vacant plot in Dublin and is earmarked to deliver more than 3,500 homes. The Irish Times understands that under bidders for the project had contacted Nama in September 2020 to express their continued interest in the site following the expiration of the original deadline The Irish Times, 24th October
Cork City A 105 acre landbank at Stoneview, just north of Blarney in Cork City has come to the market for Nama through agents Coldwell Banker with a guide price of €4.6 million (€43.8k per acre). The subject lands had previously formed part of a 2005/2006 proposal for up to 2,500 houses. The lands are fringing the N20 Cork-Mallow/Limerick road, as well as the main rail line linking Cork and Mallow/Dublin. The original Stoneview lands are understood to have extended to more than 250 acres with 178 acres being put up for sale in 2012. The 2012 lands were primarily zoned agricultural while there was planning for over 400 homes on a section, subject to conditions. The Irish Examiner, 22nd October
Loan Portfolio Sale Permanent TSB (PTSB) is to sell a pool of interest-only buy-to-let mortgages with a gross value of €1.4 billion to US bank Citigroup, with the loans set to be refinanced on international bond markets. The deal involves 3,400 borrowers and the loans have an average balance of €375,000 and are classified as performing loans with an average remaining term of 10 years. The Irish Times understands that PTSB will receive the €1.2 billion net value of the portfolio from Citigroup’s Citibank NA London for the loans. Loan servicing firm Pepper will ultimately manage the loans on a day-to-day basis on behalf of bond investors. After the transaction, PTSB will continue to have €900 million of interest-only buy-to-let loans on its balance sheet. The Irish Times, 27th October
Sub-€20 million Market Conor Whelan of QRE Real Estate Advisers outlined in The Irish Times how the sub-€20 million investment market in Ireland has been performing. In Q3 2020, the total spend in the sub-€20 million market came to €60 million, with just 15 transactions taking place. When compared to the level of activity in the pre-Covid first quarter, this translates to a reduction of 65% in the total number of transactions, or €109 million less in capital allocation to the sector. Unless a vendor is under pressure to sell at a discount in the current climate, they will hold. Mr Whelan is of the view that most vendors believe the current dip will prove itself to be a temporary inconvenience, which will be reversed with the movement along the upward slope of “V curve” in 2021. The Irish Times, 21st October
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Dublin 8 A 0.6 acre site has come to the market in the heart of the Liberties guiding €8 million. Located on Steeven’s Lane and less than 2km west of St Stephen’s Green, the subject site comes with the potential for up to 124 residential units, according to the feasibility study prepared for the sale. The feasibility study also noted that the site is capable of accommodating a hotel consisting of 266 bedrooms. The property, which is occupied currently by a three-storey office building and surface car park, is also located 250m from the 12.6 acre mixed-use scheme Ballymore is set to deliver on lands at Guinness’s St James’s Gate brewery. The Irish Times, 14th October
South County Dublin Ditton Investments has been granted a strategic housing development application for a c.€35 million mixed use development comprising 151 apartments, five commercial units, a medical centre and a restaurant/cafe on the Deansgrange Road next to Frank Keane Motors in south Co Dublin. The breakdown of apartment units for the project includes 75 one-bed apartments and 76 two-bed apartments. The Business Post, 18th October
Arklow, Co Wicklow Knight Frank has recently launched to the market a c.99 acre, zoned development site in Arklow, Co. Wicklow with a guide price of €1.95 million. The lands are zoned under the Arklow & Environs Local Area Plan 2018 – 2024. Under this Plan, the lands form the majority of Area Action Plan 2. Under the Concept Plan of Area Action Plan 2, c.39 acres of the holding are zoned Residential while c.22.6 are zoned for Employment, c.2 acres are zoned for Local Shops and c.9.76 acres are zoned for Education. A 10 year planning permission was granted on the lands in May 2004 for a mixed use development comprising 8 office blocks, retail outlets, transport terminus, hotel, 47 apartments and crèche. This grant has since lapsed. The site is accessed currently from the R772 over the Dublin and southeastern railway line. Exit 21 on the M11 is within 2km while Arklow train station is within 1km. Knight Frank Press Release, 14th October
Whitehall, Dublin 9 Roseberry Investments has been given the green light to build 124 build-to-rent apartments at the lands of the Bonnington Hotel on Swords Road in Whitehall, Dublin 9. It consists of 48 one-bedroom units and 76 two-bedroom units, each with a private balcony or terrace. The Business Post, 18th October
South County Dublin Agar has been instructed to sell a 45 acre site with development potential on the Old Quarry Road in Rathmichael in South Co Dublin. Four acres are currently zoned residential under the Dun Laoghaire-Rathdown County Council 2016-2022 Development Plan. There will be potential to increase that by another six acres in the county council’s next development plan in 2022. The property is three miles from the M50 and Leopardstown Racecourse and two miles from Cherrywood and comes with farm buildings, a derelict three-bedroom cottage fronting onto Pucks Castle Lane, and panoramic sea views from Dalkey to Bray Head. Agar is guiding c.€3 million (€67k per acre) and is open to selling the site in one or two lots. The Business Post, 18th October
Waterford Construction works are expected to start in Q2 2021 on a €20 million residential scheme in Knockboy on the Dunmore Road in Co Waterford. The Hollyhill Developments-owned site has planning permission to allow for the construction up to 89 units. The project breakdown provides for 57 houses and 32 apartments. The Business Post, 18th October
Sandyford, Dublin 18 Park Developments has submitted a strategic housing application to build 249 apartments in three blocks of up to eight stories, with a part 12/part 13-storey element in Block 1, over lower and upper basement levels. The c.€54.7 million apartment development is located at Murphystown Way, Dublin 18. A decision is expected to be made on the application by January 2021. The Business Post, 18th October
Dublin 2 BNP Paribas Real Estate is guiding €27 million for numbers 90 and 91 St Stephen’s Green. The property currently comprises a four-storey over lower-ground floor office building. The property extends to a net internal area of 26,587 sq.ft. (€1,015 psf). Standard Life currently occupy the entire property on a 10-year lease expiring on September 15th 2021 at a passing rent of €1.25 million per annum. The lease expiry in 2021 offers the prospective purchaser the opportunity to redevelop thereafter. Numbers 92 and 93 St Stephen’s Green are on the market currently with Savills Ireland at a guide price of €18 million. The Irish Times, 14th October
If you are interested in purchasing this asset and require financing, please contact Origin Capital as we can arrange senior debt facilities of up to €18m for the purchase of this Asset.
Killester, Dublin 3 Mason Owen & Lyons are guiding €1.4 million for 189 Howth Road, Killester, Dublin 3. It is currently let in its entirety to The Governor & Company of Bank Of Ireland, on a 25 year lease from September 2007 at a passing rent of €91,762 per annum. The property comprises a two-storey detached building with two storey extension to the rear. 4 car spaces are included in the sale and Bank of Ireland has exclusive use to these spaces. Mason Owen & Lyons Press Release, 14th October
If you are interested in purchasing this asset and require financing, please contact Origin Capital as we can arrange senior debt facilities of up to €1m for the purchase of this Asset.
Office Sector The office sector saw €216 million invested across 8 transactions during Q3 2020, bringing the total investment year-to-date to more than €841 million. Prime office assets have attracted significant interest from international investors, indicating their confidence in the Irish commercial property market and the longer-term trajectory of the Dublin office market and Ireland’s economy overall. BNP Paribas Real Estate Press Release, 19th October
Dublin Office Market Total office take-up in Dublin reached c.229,572 sq.ft. during Q3 2020. While this is a good increase on Q2 take-up, it is still very low compared to pre-pandemic levels of market activity. This brings total take-up for the first nine months of the year to c.1,454,473 sq.ft. which is a decline of 32% relative to the same period in 2019. There were 29 lettings completed during Q3, up from just 13 in Q2, while the average deal size was just under 8,000 sq.ft. The largest letting of the quarter saw Microsoft take 43,916 sq.ft. across three floors at No. 3 Dublin Landings. BNP Paribas Real Estate Press Release, 19th October
Cork City Cork City Council has granted the Tower Holdings Group planning permission for the proposed mixed-use development at the old Port of Cork site on the Custom House Quay. The scheme will include a hotel, a retail offering and a substantial maritime culture and heritage attraction. The new hotel accommodation will offer five-star luxury including a spa, swimming pool and gym facilities. The new tower will incorporate and restore the Custom House, and will feature a sky-bar and restaurant. The Business Post, 16th October
Cork City Planning has been granted to revamp The Easons building at 113-115 St Patrick’s Street, Cork City. The landmark building is due to be transformed into a Sports Direct later this year. Now, Heaton’s Unlimited Company, which is owned by Sports Direct, has been granted planning permission to commence works on transforming the building. Its plans propose the change the use of the space on the second floor of the building from storage to retail, expanding the retail element of the building. The Irish Examiner, 13th October
Dublin 8 Dublin City Council has given the green light to plans to turn James Joyce’s ‘House of the Dead’ on Dublin’s quays into a 50-bed tourist hostel despite numerous objections. The Council has granted planning permission for the proposal after the planner in the case concluded that the proposed change of use to a tourist hostel “will be the best way to secure its long-term conservation”. Among the objections was the Department of Heritage who claimed the proposal “will undermine, diminish, and devalue a site of universal cultural heritage, importance and part of the Unesco City of Literature designation”. The Irish Times, 16th October
Dublin 8 Raag Hotels, a joint venture between Britain’s Queensway Group and the €30 billion Wellcome Trust, confirmed on Monday that it has received permission to build a 95-bedroom property on St Augustine Street in Dublin City. Raag’s low-cost Point A division will run the new hotel, which will be the second to operate under this name in Dublin when it opens. The joint venture is preparing to open its first Point A hotel on Parnell Street on the city’s northside in April 2021. The Irish Times, 19th October
Irish Investment Market Irish investment turnover reached just under €700 million during the third quarter of the year, representing an increase of 63% relative to Q2. This brings total investment for the first nine months of the year to just over €1.8 billion, down 40% on the same period in 2019. Supply shortages and rising investor demand have meant that the private rented sector (PRS) accounted for 67% of total turnover in Q3 2020, with a total of €470 million invested and 1,016 residential units traded. Year-to-date, the residential sector has accounted for 42% of turnover, up from 36% in 2019, with the majority of this relating to the forward purchase of houses and apartments for rental across Dublin. BNP Paribas Real Estate Press Release, 19th October
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie