Donabate, North Dublin Housebuilder Cannon Kirk, through the entity Aledo Donabate, has entered initial talks with An Bord Pleanala to fast-track proposals for a €460 million residential project at Corballis East, Donabate. The 1,368 units will be split into 594 one and two bedroom apartments; 46 sheltered accommodation apartments; 352 duplex units; and 376 two, three and four-bedroom houses. In addition to housing, a 37-acre nature park forms a large component of the proposed development and would provide a green link to Donabate railway station. Other planned amenities include a 24-unit primary school and a c.3,200 sq. ft. retail space. Sunday Times, 2nd August
Dun Laoghaire, Co Dublin The Cosgrave Property Group has sold 368 apartments it is developing in Dun Laoghaire, Co Dublin to Deutsche Bank subsidiary DWS for c.€200 million (€543k per unit). Due for completion in stages between April 2021 and January 2022, the units at Cheevers Court and Haliday House are distributed between two buildings of five and seven storeys over a basement car park. The portfolio comprises 46 one bedroom apartments, 9 one bedroom plus study apartments, 248 two bedroom apartments/penthouses and 65 three bedroom apartments/penthouses. The Irish Times, 29th July
Prestige Portfolio DWS has also paid c.€145 million to acquire a portfolio of 317 residential units the MKN Property Group is developing in Dublin (€457k per unit). Known as the Prestige Portfolio, it consists of a mix of existing and new-build apartments and houses distributed across four schemes in the north Dublin suburbs of Swords, Raheny, Clontarf and Killester. The sale represents the largest private rental sector (PRS) or build-to-rent deal to complete this year. The Irish Times, 29th July
Construction Costs Rising construction costs have added €41k to the cost to deliver a 3-bed semi-detached house in greater Dublin in the last 4 years, according to a study by the Society of Chartered Surveyors (SCSI). The detailed survey of 30 live sites found hard costs comprised 48% of the overall cost of providing a new house. SCSI found the average cost of building a 3-bed semi in the greater Dublin area is now €371k. This includes land at €61k, VAT of €44k and a developer’s margin of €44k. The cost of delivering social housing is significantly lower at between €210k and €230k. Irish Independent, 30th July
Francis St, Dublin 8 CBRE is guiding €3.2 million for a five-storey building at 98-99 Francis Street, Dublin 8 extending to 7,094 sq. ft. with a ground-floor retail unit and seven residential units overhead. The residential component consists of three one-bed apartments and four two-bed apartments, including a top-floor penthouse. The apartments are fully let and producing a gross rental income of about €180,000 per annum. The ground-floor retail unit has own-door access and extends to 1,089 sq.ft. The unit has planning permission for food and beverage use, and offers the prospective buyer the opportunity to increase the building’s current rental income. The Irish Times, 29th July
Dublin 15 Harvey are guiding €1 million for Unit 8 at Plato Business Park in Dublin 15. Situated within the Damastown Industrial Park, the property comprises a modern, semi-detached industrial warehouse facility with two-storey office accommodation, extending to 12,519 sq.ft. Unit 8 is leased in its entirety to 7-Day Auto Limited until August 25th, 2024. The annual rent is €90,000, following the settlement of a 2019 rent review. The Irish Times, 29th July
Quantum Distribution Park, Kilshane Cross Iput is planning a €120 million logistics park near Dublin airport as part of a further expansion of its industrial portfolio. Quantum distribution park will comprise four standalone warehouse units, totalling 600,000 sq. ft. The company lodged a planning application for the development with Fingal county council last week. Iput is already the largest owner of modern logistics assets in Dublin, with a portfolio that extends to 31 properties comprising 2.4 million sq. ft. It controls more than 10% of the modern logistics stock in the capital. Sunday Times, 2nd August
Burlington Rd, Dublin 2 The Irish Times understands that Henderson Park Capital have sold the Dublin headquarters of the EBS Building Society to the German investment fund, KGAL for c.€94 million. The property at 2 Burlington Road forms part of the Capital Collection, a portfolio of five prime Dublin offices that Henderson Park acquired as part of its €1.34 billion buyout of Green REIT in 2019. The property is a six-storey building comprising some 86,000 sq.ft. of grade A office space and 33 car parking spaces. The Irish Times, 29th July
Hibernia REIT expects “a modest decline in the company’s net asset value per share over the 6 months to 30th September 2020”. The listed landlord said 98% of its commercial rent for quarter ended September 2020 was now received or on an agreed monthly payment plan. In its residential portfolio 98% of rent for July has been collected. At 30th June 2020 Hibernia had net debt of €235 million and cash and undrawn facilities of €160 million. Irish Independent, 29th July
1 Warrington Place, Dublin 2 Regeneron has agreed to sub lease 14,000 sq. ft. at One Warrington Place from the building’s main tenant Bord Gáis Energy for a term of five years. The Irish Times understands that a rent of €60 psf and €4,000 for each of the basement car parking spaces has been agreed between the parties. The Irish Times, 29th July
Tara Street, Dublin 2 A proposal to build an 11-storey office tower over the Dart line in Dublin city centre has been significantly scaled back. The original proposal by Esprit Investments Limited, submitted last year, would have included c148k sq. ft of office space and 49 apartments over the rail line between Tara and Pearse Street Dart stations. Planners had said they had serious concerns about the height of the building and a revamped design was submitted in July which omitted the residential element of the project and reduced the height from 44m to 35m. However, Dublin City Council has again expressed reservations about the height and design of the building and has asked the developer to submit further information. Business Post, 2nd August
Dublin Office Market Just 83,000 sq. ft. of office space was let in Q2 2020, bringing take-up for the first half of the year to 900,000 sq. ft., which is just over half the level witnessed during the same period in 2019. The vacancy rate stood at 7.3% at the end of Q2, up from 6.5% in Q1 and from 6.4% in Q2 2019. €257.5 million worth of office investments changed hands in Dublin during Q2 bringing volumes for the first half of the year to €621.4 million, 17% ahead of the same period last year. Knight Frank, Dublin Office Market Overview Q2 2020
Blanchardstown Centre The owner of Blanchardstown Centre has said there is likely to be a decrease in rents at its portfolio of shopping centres. Jon Gray, president of Blackstone said the future will be very challenging for enclosed malls like Blanchardstown Centre. The prolonged closure of many malls during lockdown has resulted in Blackstone’s retail business recording rent collections of close to 50%, compared to a 95% collection rate in their residential business. Blackstone acquired Blanchardstown Centre in 2016 for €945 million. Business Post, 2nd August
Hammerson, which owns Dundrum Town Centre, is considering raising capital and selling some of its most prized assets to see out the coronavirus crisis that is battering shopping centres and retailers. Hammerson has collected just over 30% of the rent due for the third quarter and has c£2.4 billion of debt. The shopping centre owners said it is looking to raise £600 million and is also in advanced talks on the terms of a sale of its 50% stake in VIA Outlets to its Dutch pension fund partner. The luxury outlets unit has been one of Hammerson’s best performing businesses in recent years. The Irish Times, 3rd August.
St Vincent’s Hospital in Fairview, Dublin 3 is seeking a partner to develop a new purpose-built hospital facility in exchange for a significant undeveloped land holding of c13.4 acres. The new hospital facility will accommodate a mental health campus and a number of day centre facilities in what is known as a “multifunctional mental health facility”, comprising 100 single bedrooms for continuing care. Savills have been instructed to seek a development partner for the 21.4-acre site, which is located in between the residential neighbourhoods of Drumcondra, Marion and Fairview. Business Post, 2nd August
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PWC Report:
The latest report by PWC on European loan sales shows that on a par value basis, Ireland had the fourth highest amount of loan sales transacted in H1 2015. With €7.5bn of loan sales, Ireland was fourth behind Germany (€18bn), the UK (€13.5bn) and Italy (€8bn). The report also states that there is currently €11bn worth of loan sales in progress in Ireland. The €18.5bn of loan sales which PWC are forecasting for Ireland in 2015 would represent a c. 40% drop on the 2014 figure of €30.5bn. The Irish Times, 20th July
Windmill Lane:
A joint venture between Hibernia REIT and Starwood is to develop 120,000 sq. ft. of office space, 15 residential units and 7,000 sq. ft. of retail space at Windmill Lane, Dublin 2. Hibernia purchased the site from Starwood for €7.5m in June 2014. However as part of the terms of the transaction, Starwood retained an option to purchase 50% on a joint venture basis, for which they will now pay Hibernia €4.9m. The €4.9m figure is based on 50% of the purchase price, a return of c. 7% per annum and a sum to cover the costs incurred to date by Hibernia. Hibernia expect the development to be completed by 2017. The Irish Times, 24th August
Project Wave:
Planning permission has been sought for the initial development phase of a c. 5.4 acre site on North Wall Quay within Dublin’s Strategic Development Zone. Project Wave is capable of facilitating over 538,000 sq. ft. of commercial space and in excess of 250 apartments. While NAMA own the site, in December 2014 they appointed Oxley Holdings and Ballymore Properties to develop the site. Oxley and Ballymore will acquire a long leasehold interest in the site with NAMA retaining the freehold interest, assuring the state-owned agency of a secure income stream and a percentage of any sales proceeds. The Irish Times, 19th August
Grafton Capital Hotel:
Having purchased the Grafton Capital Hotel earlier this year for €12m, Eamon Waters is believed to be planning a refurbishment of the premises. Waters is expected to increase the number of beds from 74 to more than 90, with plans also to replace the Break for the Border pub with a café and courtyard. Waters purchased the hotel from Liam O’Dwyer and Julie Gilhooly. The Sunday Times, 23rd August
Hotel Ibis Dublin:
Hetherley Capital Partners has purchased the three star, 150 bed Hotel Ibis Dublin on the Naas Road, Dublin 22, for a figure believed to be in excess of €5m. The transaction was completed under a sale and franchise agreement, with the hotel immediately franchised back to AccorHotels, the existing operator of the hotel. The hotel, which was built in the mid-1990s, was subject to extensive refurbishment works in 2007 / 2008. The Irish Times, 19th August
IBRC Shopping Centre:
The sale of the Whitgift Centre in London for £80m has crystallised a c. £80m loss for the taxpayer. 132 Anglo customers had been investors in the shopping centre, which had been recently valued at £120m by Cushman & Wakefield. However the liquidators of IBRC decided to progress with the sale at £80m after a second valuation of less than £80m was received. Other third party interests in the centre had complicated the sales process, with Croydon Borough Council having initiated a potential compulsory purchase order, whereby they would have seized control of the asset. The Sunday Business Post, 23rd August
Arnotts:
Developer Noel Smyth’s Fitzwilliam Finance Partners is clear to complete the outright purchase of Arnotts department store after the Competition and Consumer Protection Commission approved the transaction. With Fitzwilliam Finance Partners and Apollo both owning a 50% stake in Arnotts, each sought to acquire the other’s interest this year. A deal was struck eventually when Fitzwilliam reached an agreement with Apollo to purchase their 50% stake. Arnotts accrued nearly €400m of debts in the build up to the recession by purchasing property adjacent to the store. RTE, 21st August
Allsop Auction:
Allsop are to hold their largest commercial property auction in September when 278 assets with a combined reserve of €60m are to go up for sale. One of the most attractive lots is a Georgian building on 10 Harcourt Street which includes two warehouses to the rear, for which the reserve range is €2.9m – €3.1m. The auction boasts a large number of retail investments for which the tenants include Ladbrokes, Boylesports, O’Briens and Dealz. The Irish Times, 19th August
Housing Measures:
Limits on rent increases, tax breaks for landlords, easing of development levies and state assistance for developers are expected to be amongst a range of measures approved by government next month in an attempt to ease the pressure on the housing market. Rent increases within tenancy are to be limited to the rate of inflation, with the market rate of rent applying to new tenancies. Any changes to legislation are likely to be for a fixed term, with the end of 2019 a probable expiration date. The Sunday Business Post, 23rd August
Cork Site:
Bridgedale Homes are believed to have paid c. €3m for a six acre site in Blackrock, Co. Cork. The site, which has planning permission for 18 detached homes of 2,400, 2,800 and 3,400 sq. ft., attracted the interest of a number of developers from Munster and Leinster. The site was previously purchased by Howard Holdings in 2006 for €10.7m. The sale of the site was handled by DTZ on behalf of the receiver, KPMG. The Irish Examiner, 20th August
NAMA London Building:
In 2010, developer Gerry Barrett’s Edward Holdings sold Bow Street Magistrates’ Court in Covent Garden, London to Austrians Rudolf and Christian Ploberger. The property was sold for £25m to reduce his NAMA exposure. The Plobergers have now put the property back on the market, however the guide price has increased three-fold to £75m. A portion of the increase in value can be attributed to the approval of planning permission to convert the property into a five star hotel and museum. The Sunday Business Post, 23rd August
Google Data Centre:
Google have confirmed that they are to develop a second data centre in west Dublin, at a cost of €150m. The data centre, expected to be in excess of 300,000 sq. ft., is to be located alongside their existing data centre at Profile Park near Grangecastle, west Dublin. Approximately 400 jobs will be created during the development of the data centre with several dozen permanent positions being generated once the data centre opens. Ireland is an attractive location for data centres as its cool climate allows operators to save money on energy costs. RTE, 21st August
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Project Arrow:
NAMA’s largest loan portfolio, the €7.2bn Project Arrow, is believed to have drawn the interest of at least five multi-billion euro funds. Cerberus, Lone Star, Deutsche Bank, CarVal and Apollo are among the primary candidates to purchase the portfolio, for which indicative bids were submitted last Friday. Per the information memorandum sent to prospective bidders, the portfolio consists of 367 borrower connections secured by 2,402 properties. The Sunday Business Post, 16th August
Block R Building:
The Central Bank has been selected as the preferred bidder for the Block R building at Spencer Dock, Dublin 1. The building had been on the market with a guide price of €90m through joint agents CBRE and Savills. The 128,000 sq. ft. Grade A office building is currently owned by Goldman Sachs, NAMA and Hines. Existing tenants include the Central Bank themselves and the OPW, with a current annual rent roll of c. €4.9m. The property is located near the Central Bank’s proposed new €140m headquarters in North Wall Quay. The Sunday Business Post, 16th August
Harcourt Terrace:
Lisney are guiding €3m for a 75% stake in 6 – 7 Harcourt Terrace in Dublin 2, a four storey over basement Palladian-styled property. The property measures 7,975 sq. ft. and has 8 car spaces. The whole of the property has been let to Burke-Kennedy, Doyle & Partners, who are occupying the property on a 35 year lease from December 1989. The contracted rent of €325,000 p.a. has been abated to €185,125 for the past four years. The Irish Times, 12th August
Hilton Hotel:
The four star, 120 bed Hilton Hotel on Kilmainham Square in Dublin is to be purchased by Tifco for an undisclosed amount. The current owner of the hotel is the Lalco Hotel Group, which is run by developer John Lally. Tifco is an Irish hotel operator backed by Goldman Sachs and currently operates hotels in Ireland and Germany under the Crowne Plaza and Holiday Inn Express brands. Goldman purchased Tifco’s loans from IBRC and then converted their interest into an equity stake in the company. The Sunday Business Post, 16th August
Ten Square Hotel:
Paddy Kearney’s Kilmona Group is believed to be close to completing the purchase of the Ten Square Hotel in Belfast. The boutique four star, 22 bed hotel was placed into receivership by Cerberus earlier this year. The debt attached to the hotel was sold to Cerberus as part of NAMA’s Project Eagle, with John Miskelly being the hotel’s former owner. The hotel was valued at c. GBP£4.2m per the latest accounts of Miskelly’s Yorkshire House Limited. NAMA Wine Lake, 16th August
Castle Oliver:
An Australian family have paid c. €3m for Castle Oliver in Ardpatrick, Co Limerick. The 14 bed, 23,000 sq. ft. castle is situated on 15 acres and had been on the market with a guide price of €2.95m. The new owners are planning to turn the property into their European residence, therefore it shall cease trading as a hotel. The previous owners were Emma and Declan Cormack from Northern Ireland. The Irish Independent, 14th August
Lidl Development:
Lidl is believed to have paid in excess of €2m for a site in Bishopstown, Co Cork. The site had been on the market with agents Coughlan Downing with a guide price of €1.3m. Lidl is now expected to seek planning permission to develop a new supermarket on the premises. The site is directly opposite a site where there is to be a new Aldi store, with Aldi’s unit close to completion. Aldi is believed to have paid c. €3m for their site. The Irish Examiner, 13th August
Elverys:
The sports retailer Elverys, which was bought out by management last year, has purchased a number of properties from the firm’s previous owners John and James Staunton for €2.75m. The properties acquired are spread across the country in Mayo, Donegal, Cork and Tipperary. The purchase was part-funded by Capita Trust Company, who provided debt facilities of €1.8m. Capnua sourced investor funding of €16.75m for the management buyout in 2014, which was led by Patrick Rowland. The Sunday Times, 16th August
Mortgage Drawdowns:
The Banking and Payments Federation report that there were 6,250 mortgage drawdowns in Q2 2015, amounting to €1.08bn. In value terms this was a 32.3% increase on Q2 2014. However percentage wise, the 64% jump in Q1 2015 compared to Q1 2014 was much greater, reflecting the introduction of the Central Bank’s new mortgage lending criteria. Owner occupier mortgages accounted for 90% of the €1.08bn drawn down in Q2 2015. The Irish Times, 14th August
Sorrento Terrace:
An unnamed US buyer has paid c. €10.5m for No. 1 Sorrento Terrace in Dalkey, Dublin’s most expensive residential property. The property had been on the market since 2013 for €12m. Sherry Fitzgerald and Lisney acted as joint agents on the sale, which was brokered through Christies International. Terry Coleman, the previous owner, purchased the property in 1998 for c. €7.5m and spent over €13m on a comprehensive refurbishment of the property before putting it on the market in 2006 for c. €30m. The Irish Times, 13th August
IPUT Portfolio:
The Irish commercial property fund IPUT has seen the value of its portfolio grow by c. 30% in a year. In IPUT’s latest report to their investors, the fund said their assets are now worth nearly €1.5bn. Growth of 6.1% was recorded in Q2 2015 from a combination of rental income and capital gains. Total rental income for the quarter was c. €21m. IPUT continued to add to its portfolio during the quarter, paying €80.5m for a 70.8% stake in Riverside One, Sir John Rogerson’s Quay. The fund plans to spend up to €500m this year, having spent €382m in 2014. The Sunday Business Post, 16th August
Trinity College:
Dublin City Council have granted planning permission to Trinity College for a €70m business school on the Pearse Street side of the campus. The six storey building will be almost 129,000 sq. ft. in size and will consist of two auditoriums and multiple lecture theatres. Trinity are hoping to commence construction shortly with the goal of having the building completed by September 2018. The development will be part funded by the European Investment Bank, who recently approved a €70m loan facility to Trinity. The Irish Times, 15th August
Dublin Port:
The European Investment Bank has approved a €100m loan facility to part fund the expansion of Dublin Port. The Alexandra Basin Redevelopment Project is a €230m project designed to increase the port’s ability to handle large ships. The project will deepen and lengthen 3km of the 7km of berths and also deepen the entrance channel. It is expected to take five years to complete the project. The Irish Independent, 16th August
Industrial Market:
The latest report from Savills on the Dublin industrial market focuses on the recovery of the market. According to Savills the take up for H1 2015 was c. 2.37 million sq. ft., more than double the H1 2014 figure. Sales continue to outpace lettings in the sector, with 61% of transactions coming from sales of units. In terms of transacted space, southwest Dublin is at the forefront, representing over two-thirds of transactions. Average prime industrial yields tightened to 8.1% in June 2015, with prime rents at c. €6 – €7 psf. Savills Industrial Market in Minutes, August 2015
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Dublin Docklands:
Greg Kavanagh’s New Generation Homes, who are backed by M&G Investments, has been identified as the preferred bidder for a c. €40m site in Dublin’s docklands. The 2.4 acre site is located on Lime Street, which is within Dublin’s Strategic Development Zone. New Generation are expected to lodge a planning application for a mixed use development, comprising office buildings and residential accommodation for the site. One of the underbidders, Johnny Ronan, is believed to own the freehold title of some elements of the site. The Sunday Business Post, 9th August
Cedarhurst Building:
The Sunday Times understands that the sale of the Cedarhurst building on Arkle Road in Sandyford is close to completion. Lisney are acting as the agent for the two storey office building which has a guide price of €3.9m. The property has a total internal floor area of 17,443 sq. ft. and sits on a 0.65 acre site. The site has significant redevelopment potential, with its zoning allowing for a six storey building to be built. The Sunday Times, 9th August
Microsoft Building:
BAM Construction have been awarded the contract to build Microsoft’s new office in Leopardstown. It is believed that the proposed c. 375,000 sq. ft. office building will be worth over €100m once completed and will create up to 150 jobs during construction. The majority of Microsoft’s 1,200 Irish employees are expected to have moved to the new office by the end of 2017. The Irish Independent, 8th August
Dublin Supply:
With surging demand through record tourism numbers and a recovering local economy, the immediate outlook for the Dublin hotel market is strong. The hotel research company AM:PM have however identified the lack of new hotel rooms as a risk to the sector over the medium term. It appears unlikely that the current requirement of 5,000 new rooms by 2020 will be met, with only 500 new rooms estimated to be completed by the end of 2017. The Ballsbridge and Clyde Court hotels in Ballsbridge, recently sold under Project Trinity, could also close as part of a redevelopment. This would temporarily reduce the supply of rooms by 585. Just three hotels have opened in Dublin in the past five years. The Sunday Times, 9th August
VAT Rate:
The reduced VAT rate of 9% for the hotel and restaurant sector is expected to remain unchanged in the forthcoming budget. Although it costs the government c. €350m per year, it is seen as vital to the thriving tourism industry. The reduced VAT rate is credited with the creation of 31,000 jobs since it was introduced three years ago. The Sunday Business Post, 9th August
Hennebry Refinance:
Former Leinster rugby player Paul Hennebry has exited NAMA after refinancing his c. €25m par value loans with Cardinal Capital. Hennebry, along with his brothers Michael and Barry, is also close to completing the purchase of the Citi Hotel in Dame Street, Dublin 2. The Irish Independent believes that the deal will close in the next week. The Irish Independent, 9th August
Cabinteely Development:
O’Flynn Capital Partners have been denied planning permission for their proposed 164 house scheme in Cabinteely, Dublin 18. Dun Laoghaire – Rathdown county council cited the risk of flooding as the primary reason for refusing the application. Michael O’Flynn, who purchased the site last year for c. €13m, was still confident that his company would be able to progress with the development of the site. The Sunday Times, 9th August
Clongriffin Development:
Hollywood New Homes have sought planning permission for 124 apartments in Clongriffin, Dublin 13. The apartments are to be constructed in either five or six storey buildings with penthouse units on top. Hollywood have already completed the construction of a 150-unit scheme of apartments and family homes in Malahide, north Dublin. The Irish Independent, 9th August
Holiday Home Market:
Estate agents are reporting a recovery in the holiday home market this summer, citing the recovering economy, low deposit rates, stronger sterling and improved infrastructure as key factors. The extension of the M11 motorway, which links Dublin to Wexford, has played a factor in the recovery in Rosslare, where there has been 55 units sold so far in 2015. In comparison, there were only 29 units sold in the same period for 2014. The Irish Times, 6th August
H1 2015 Sales:
According to the latest figures from the Property Price Register, the number of property transactions completed in H1 2015 (21,425) was more than 33% higher than the same period in H1 2014 (15,920). However with the surge in transactions in Q4 2014 due to the impending new mortgage rules and the ending of CGT exemptions, the figures for H1 2015 are only 49.6% of the total figure for 2014 (43,164). The Irish Times, 6th August
D4 Site:
Joint agents McNally Handy and Hooke & McDonald are guiding €1.75m for three three-bed semi-detached properties on South Lotts Road, Dublin 4. Adjacent to the three properties is a 0.11 hectare site for which McNally Handy is guiding €1m. The combined purchase of these two assets could appeal to developers due to their attractive location. The assets are alongside the Gasworks apartment scheme which contains c. 600 apartments. The Irish Times, 5th August
Blackrock Clinic:
Joseph Sheehan, who owns 28% of Blackrock Clinic, has secured a €50m debt facility from HIG Capital. The facility will be used to repay two loans which are secured by his shares in the clinic. Under the terms of the agreement HIG Capital will charge 20% interest and be entitled to 15% of the proceeds of any sale of Blackrock or Galway Clinic after the debt is repaid. €29.4m will be used to repay Breccia, a company owned by fellow shareholder Larry Goodman. Breccia previously tried to appoint a receiver over Joseph Sheehan’s shareholding in December 2014. The Sunday Business Post, 9th August
Commercial Property Turnover:
BNP Paribas’ latest research on the Irish commercial property market reports turnover of €671m in Q2 2015, down 30% on Q1 2015. €323m of this figure was from transactions in Dublin, with 64% of the €323m being prime office properties. Of the €348m spent outside of Dublin, c. €67m was from office market transactions, re-affirming the belief that confidence in the property market outside of Dublin has recovered. The Irish Times, 5th August
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Project Jewel:
NAMA has shortlisted five bidders for its €2.4bn par value Project Jewel portfolio; Allianz Real Estate, Hines, Hammerson, Davidson Kempner and Colony Capital. Bloomberg has also reported that Hines are bidding for the portfolio on a joint venture basis with the Kuwait Investment Authority. With investment banks such as BAML and Morgan Stanley keen to lend against Dundrum Town Centre, the equity cheque required by the successful bidder may only be a fraction of the expected €1.6bn – €1.7bn purchase price. CoStar Finance, 30th July
Project Poseidon:
Lloyds have announced that they are to sell their final loan portfolio to Goldman Sachs, CarVal Investors and Bank of Ireland. The majority of the commercial property portfolio is to be purchased under a joint venture between Goldman and CarVal, who are to pay c. €1.18bn for c. €3.7bn of assets (68% discount). In a separate transaction Bank of Ireland are to purchase c. €200m of performing loans. Project Poseidon consists of c. 5,000 loans to c. 3,500 borrowers and reported a pre-tax loss of c. £130m for year ended 31 December 2014. The sale will leave Lloyds with less than £30m of commercial property exposure to the Irish market. CoStar Finance, 30th July
Project Arch:
Deutsche Bank have been chosen as the preferred bidder for NAMA’s €608m par value Project Arch loan portfolio. Deutsche’s bid of €164m reflects a discount of 73% for the non-performing loan portfolio. Project Arch consists of loans to five developers with the majority of the loans and assets attributable to Jerry O’Reilly, Terry Sweeney and Ronan O’Caoimh. The portfolio generates cumulative rental income of €3.83m and EBITDA of €4.51m. The key assets in the portfolio include the four star, 261 bed Radisson Blu Hotel & Spa in Galway and the four star, 118 bed Kilkenny Ormonde Hotel. CoStar Finance, 31st July
The Liffey Portfolio:
CBRE are guiding €57.5m for four NAMA office properties located in Dublin City which have rental income of €2.73m p.a. The properties are located at Kilmainham, Pearse Street, Sir John Rogerson’s Quay and Schoolhouse Lane with a total floor area of 157,534 sq. ft. The current vacancy rate of 20% means there is potential to significantly increase the rental income from the portfolio, with the current yield of 4.5% forecasted to rise to 6.6% upon full occupancy. The properties are also available to be purchased on an individual basis. The Irish Times, 29th July
Docklands Development Site:
The $85bn real estate investment firm Hines, together with NAMA, is to seek planning permission for c. 500,000 sq. ft. of prime office space, 165 apartments and a 169 bed hotel. The development is proposed at North Wall Quay, Dublin 1, on a site which is run by receivers Luke Charleton and David Hughes of EY. Should the development proceed the hotel is to be located on the site of the former British Rail Hotel building adjacent to a nine-storey office block and a seven-storey mixed-use building. The Sunday Business Post, 2nd August
Clarion Hotel:
Joint agents CBRE and Savills are guiding €30m for the sale of the four star Clarion Hotel in Cork City. The 191 bed hotel, which was opened in 2005, enjoys a prime waterfront location in the heart of Cork City. The current operators of the hotel are the Choice Hotel Group. The Clarion is let to Merzolt Limited at €2.4m p.a., with c. 25 years remaining on the lease. Based on the lease agreement the Clarion offers a net initial yield of 7.66%. The Irish Times, 29th July
InterContinental Hotel:
The operator of the InterContinental Dublin (formerly Four Seasons), InterContinental Hotels Group, has held initial talks with Starwood Hotels & Resorts to create the world’s largest hotel group. Starwood is believed to be holding talks with a number of parties over a possible merger, with US hotel group Wyndham a strong candidate. InterContinental Hotel Group has a market capitalisation of $9.5bn. The Irish Times, 31st July
Glenroyal Hotel:
The Glenroyal Hotel in Maynooth, Co. Kildare has been sold to The Comer Group for close to its €10.5m asking price. The 3 star, 113 bed hotel comprises three storeys with a total floor area of c. 130,820 sq. ft. The sale of the hotel, which formed part of NAMA’s Crystal Collection, was completed under the instructions of receivers Michael McAteer and Paul McCann of Grant Thornton. NAMA’s Crystal Collection is a seven-hotel portfolio with a cumulative guide price of €35m. The Irish Independent, 29th July
Glenoaks Hotel:
The two star, 36 bed Glenoaks Hotel in Galway has been brought to market by O’Donnellan & Joyce, who are guiding €1.5m for the property. The hotel can either be purchased with the current tenant in situ or alternatively with vacant possession from February 2016. With NUI Galway in close proximity there is also development potential to convert the property into student accommodation, subject to planning permission. The Irish Times, 29th July
Cork City Development:
John Cleary Developments have been granted planning permission by Cork City Council for their proposed €50m redevelopment of the former Capitol Cinema site in Cork City. Once complete the 85,000 sq. ft. site will feature three floors of retail units with 36,000 sq. ft. of high-spec office space. The developer, John Cleary, has advised that negotiations for pre-lets of the retail and office units are at an advanced stage. The Irish Examiner, 29th July
Price Growth:
Ratings agency S&P predict that the housing market in Ireland will report the strongest rate of growth across the Eurozone in 2015, with growth of 9% projected. This figure is higher than fellow member countries such as Germany (5%) and Portugal (4%), and also above the UK (7%). The rate of growth in Ireland is expected to slow to 5% in 2016 and 3% in 2017. S&P however have noted the effects of the new mortgage criteria imposed by the Central Bank, with house prices in Dublin flat over the first seven months of the year. The Irish Times, 31st July
Housing Affordability:
The State’s Housing Agency has deemed that properties in Dublin, Kildare and Wicklow are no longer affordable. For properties to be affordable a two income household should be able to service a 30 year mortgage on less than 17% of their combined net income. Houses in Dublin now cost 29.5% of income, just shy of the 2008 level of 30.3%. The agency also believes that a minimum of 63,000 properties need to be built in Ireland over the next three years, with Dublin accounting for 50% of the requirement. The Irish Times, 30th July
DIT Accommodation:
Global Student Accommodation, who operate tens of thousands of student beds worldwide, have paid c. €5m for a site near the new DIT Campus at Grangegorman. The group are expected to submit a planning application to develop hundreds of student bedrooms on the 1.86 acre site, for which they are believed to have paid well above the €4.25m guide price. The new campus is to be used by more than 10,000 DIT students when it opens in 2017. The Sunday Times, 2nd August
Investment Returns:
Irish investment properties achieved total returns of 6.3% in Q2 2015, according to the latest report by MSCI. The office market was the strongest performer, with 7.4% growth recorded for the quarter and 37.7% year on year. The industrial sector also performed admirably, reporting growth of 2.5%. Prime retail rents on Grafton Street were up 4.4%, while values on the street have risen by 49% over the past 24 months. The Irish Times, 29th July
Facebook Data Centre:
Meath County Council have granted planning permission to Facebook for the development of their proposed €200m data centre campus in Clonee, Co. Meath. The data centre is to be constructed in two phases over ten years on a 220 acre site. The development has been hailed as a major success for Meath due to the significant employment opportunities it will create whilst under construction. The Irish Times, 31st July
Convention Centre:
The Irish Infrastructure Fund have purchased a contract to operate the Convention Centre in Dublin. The contract will expire in 2035 and the fund is believed to have paid c. €100m to complete the transaction. The sale of the contract also includes a licence to build a 330 bed hotel on an adjacent site. The Office of Public Works own the building itself, which has hosted over 1,100 events since first opening in September 2010. The Irish Times, 1st August
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