Malahide, Co Dublin FBD Hotels and Resorts (FBD H&R) has acquired the Grand Hotel in a deal worth approx. €55m. The Grand Hotel, which has 202 bedrooms, has been in the ownership of the Ryan family since 1974. The agreement, subject to approval by the Competition and Consumer Protection Commission, will see it become the seventh property in FBD H&R’s luxury four-star and four-star superior hotels and resorts portfolio. FBD H&R signalled that it plans to invest in upgrading the Grand Hotel over the coming period. The Business Post, 16th January
Dame Street, Dublin 2 A project to create a rooftop bar at the revamped Central Bank building, which stalled this month, is expected to resume in the coming weeks. Works stalled on the fit-out project due to financial issues that arose at Pure Fitout, the Belfast-based retail and commercial shop fitter, that is the main contractor on the project. Last year, NolaClan agreed a €1.2m annual rent deal to take on the space, which is spread across the top two floors of One Central Plaza. A spokesman for NolaClan, the hospitality group behind 37 Dawson Street and House, has now confirmed that works on the rooftop bar and restaurant will resume next month. The Business Post, 18th January
Santry, Dublin 9 Permission for a 221-bedroom purpose-built student accommodation scheme is being brought to market by Cushman & Wakefield at an asking price of €7.5m. The site comprises 0.57 acres and is on a prime corner pitch at the junction of Santry Avenue and Swords Road, close to Dublin City University. Architect John Fleming designed the scheme, which comprises 221 bedrooms of 151 sq. ft – 269 sq. ft in size, all within a seven-storey structure. On the ground floor there is a reception area, communal lounge/social room, co-working area, a library/meeting room, a games room, a gym, and a cafe. The Irish Times, 15th January
St Stephen’s Green, Dublin 2 Aviva’s Irish Commercial Property Fund sold three prime properties off the corner of Grafton Street and St Stephen’s Green for approx. €10.5m. The purchaser is believed to be the Treacy Group which already owns shopping centres and retail parks in Kildare and Tipperary. The price is understood to be a substantial discount to the €13.5m which had been quoted by Savills. The deal comprises Numbers 1, 3 and 5 St Stephen’s Green, as well as a separate mews building to the rear at 7 Anne’s Lane, comprising 15,758 sq. ft. A feasibility study prepared by SSA Architects for Number 3 and the Anne’s Lane mews demonstrated potential for a development of 11 apartments, including an open courtyard. The Irish Independent, 15th January
Francis Street, Dublin 8 QRE Real Estate Advisers has brought the ground floor and basement levels at 144/145 Francis Street to market for lease with a guide of €45k pa on flexible terms. The property comprises a mid-terraced retail unit extending to approx. 1,180 sq. ft over ground and basement levels. The unit is suitable for a variety of uses, subject to planning permission and has excellent street frontage. The property was previously in use as a tattoo parlour and barber shop and is fitted out to provide for a retail occupier split over ground and first floor. The Business Post, 17th January
Donnybrook House, Dublin 4 The Brazilian Embassy is moving into Donnybrook House this week following a deal brokered by Savills on behalf of Mm Capital. The embassy has signed a 12-year lease and joins other tenants such as Mark Anthony Brands, DRES Properties, Spaces, Logicalis, Quooker, Raw Gyms and Giraffe Creche. Just 4,000 sq. ft remains in Donnybrook House. Savills Press Release, 17th January
Monaghan County Council is seeking approx. €4m for three prime industrial development areas, a short distance east of Monaghan town. The three areas (A, B, C) are being brought to market by Avison Young, and are approx. 16 acres in total (€250k per acre), comprising of area A of 2.4 acres, area B of 6 acres and area C of 7.6 acres. The lands are positioned in an accessible and high-profile location off the N2 at Annahagh Roundabout. The Irish Times, 15th January
North Docklands Yahoo has moved into new offices at the EXO building in the Dublin Docklands. The 35,703 sq. ft space will be used to house staff working in engineering, R&D, legal, finance, sales, operations, customer care and security, the web services company said. Yahoo has been in Ireland for 29 years and its last office move was 10 years ago when it took a nearby unit in the Docklands that could hold up to 450 staff. The Irish Independent, 21st January
Rathnew, Co. Wicklow Permission is being sought for the construction of 99 homes and a créche at Ballybeg on a site zoned residential comprising of 9.85 acres, owned by Rathnew Partnership. The lands, subject of this application, are one of three separate sites which adjoin each other. Separate applications have been submitted in relation to the two other sites. The 99 houses will consist of 18 four-bedroom homes, 55 three-beds and 26 one and two-bedroom homes. The western boundary of the site abuts the N11 motorway, between junctions 16 and 17. The Irish Independent, 17th January
Malahide Road, Dublin 17 Plans are in the pipeline for a €42m apartment development. The application, lodged by Kilbarron ICAV Sub Fund 1, will see the creation of 138 units at site 10 on Mayne River Avenue. The JSA Architects-designed scheme will see a mix of one and two-bedroom apartments across two blocks rising to eleven storeys. A planning decision is expected in late Q1 2025. The Business Post, 18th January
County Roscommon Plans have been submitted to Roscommon County Council for a €25m residential development. The development designed by Turner Design Services, proposes 99 residential units comprising 97 houses and two apartments. The scheme, located in Monksland will see a mix of two, three and four-bedroom units and a crèche facility. A planning decision is expected in late February. The Business Post, 18th January
Ratoath, Co Meath Planning has been approved for a €25m Large Scale Residential Development at Ballybin Road. The planning was for the demolition of two existing houses, and agricultural sheds to allow for the construction of 141 residential units. Designed by John Fleming Architects, the scheme proposes 117 houses and 24 apartments. The Business Post, 18th January
Blarney, Co. Cork Plans for a €50m Large Residential Development at Shean Road in Blarney has been approved by Cork City Council. The project for Clockstrike Limited will see a mix of 130 houses and 116 apartments built over the coming years. The Ringwood LRD scheme will bring housing supply to the Cork town, which will also see the creation of a 61-space childcare facility. The Business Post, 18th January
Oughterard, Co Galway The green light has been given by Galway County Council for a €10m residential development in Oughterard. The project for Solus Holdings ILC and designed by ONOM Architects, will see 35 houses and eight two-bedroom apartments constructed on the Main Street of the Galway village. The Business Post, 18th January
Portmarnock, Co Dublin Works are expected to commence in the coming weeks on the construction of CN1 – CN7 blocks, comprising 107 units, as part of a €51m residential development on Station Road in Portmarnock. The Maynetown Large Residential Development for Quintain will see a total of 195 units delivered over the coming years in a mix of 169 houses and 26 duplexes/apartments. The Business Post, 18th January
2024 Land Sales New data released by CBRE has shown that land sale transactions topped more than €900m in 2024, with €415m worth of land sales recorded in the final 3 months of 2024. The top five deals of the year represented half of the total spend in 2024 and approx. 60% of all land sales were linked to the residential sector. The level of spending on development land was approx. three-times the total spendings recorded in 2023. In Q1 of 2024, just under €50m worth of land sales were recorded in Ireland, with developers feeling uncertain about purchases due to the impact of higher interest rates and building inflation. The Business Post, 14th January
Cost Rental The Minister for Education has confirmed that teachers will have housing reserved for them in cost-rental developments to alleviate recruitment shortages at both primary and secondary school levels. Cost-rental is available for those with a net household income of less than €66k a year in Dublin and €59k elsewhere in the State. It is typically between 20% and 40% below market rent. The high price of rental accommodation for young teachers is one of the factors that has led to acute shortages especially in the greater Dublin area. The Government’s Housing for All plan envisages the building of 18k cost-rental units between now and 2030 though the targets may well be revised given the demand for the scheme. The Irish Times, 18th January
Luas Extension The State agency behind the proposed Finglas Luas extension rejected submissions from Dublin City Council for the tram line to cross the M50 to a park-and-ride facility near Dublin Airport. Transport Infrastructure Ireland (TII), which is developing the 4km extension from Broombridge to Charlestown, also rejected a proposal from the council to have the line link up with the proposed Metrolink near Santry. TII’s preferred route would see the line terminate at Charlestown, east of the junction of the M50 and N2, with a large park-and-ride facility at St Margaret’s Road. A planning application was submitted in November and the line is expected to be built within four years of permission being granted. The Irish Times, 17th January
Carna, Co Galway Plans are to be lodged with An Bord Pleanála for a 450MW wind farm, with 30 turbines more than 304m high. The 30-turbine Sceirde Rocks Offshore Wind Farm by Fuinneamh Sceirde Teoranta (“Fuinneamh”) is to be located 5km to 11.5km off the west coast, with Carna in Galway the nearest settlement. Accounts recently filed by Fuinneamh show the company has already invested €31.7m on project costs in 2023 and 2024 and is to bring investment of up to €70m in local community initiatives. Subject to the 10-year consent being granted, construction is currently expected to begin in 2026, with the first generation of electricity from 2030. The wind farm is to be operational for 38 years. The Irish Times, 16th January
An Bord Pleanála has published its decision record on green energy project applications. The board said it has granted planning permission to approx. two thirds of the 69 wind and solar applications in the last two years. It said it approved 47 wind and solar development applications in 2023 and 2024 and refused permission for 21 proposals. Just one of these refusals was for a solar project while the rest were wind energy developments. The board also partially permitted one other wind energy project. The Irish Times, 17th January
Apollo made a 16% return on €626m worth of commercial loans it acquired in 2017 and which were primarily linked to the Harcourt Group. The loans were bought by Apollo for just €300.2m from NAMA. Apollo used a Luxembourg special purpose vehicle, EPF Acquisitions 65, to acquire them. The loans had been held against a raft of assets, including six Harcourt-controlled shopping centres. The shopping centres were the last remaining significant asset charged to EPF, and these were sold in July 2023. A guide price of €100m had initially been put on the shopping centres. They were sold for a reported €75m. Accounts for the Apollo vehicle in Luxembourg show that at the end of 2023, it had received cash collections of €348m in relation to the loans, with no amounts remaining apparently outstanding at that time. The Irish Independent, 20th January
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Blarney, Co Cork JCD Group’s Blarney Business Park is now heading to 750,000 sq. ft, making it one of Cork’s largest industrial and logistics locations. Paardekooper, an international company specialising in sustainable packaging, is taking the 27,000 sq. ft grade A block 9005, with 12m eaves, a signal LEED gold cert and A3 BER, on a lease at approx. €13 psf. Paardekooper is relocating from Boland Industrial Estate on the old Mallow Rd. Since buying the part-developed Blarney Business Park just north of the city JCD Group has added 410,000 sq. ft and will complete it in 2025 to some 750,000 sq. ft in total, adding four more LEED gold buildings of 10,000 sq. ft to 57,000 sq. ft in an approx. €20m further investment. The Irish Examiner, 12th December
Kevin Street, Dublin 2 Bentall GreenOak, a Florida-based property investment firm, has appointed Nick O’Dwyer and John Boland of Grant Thornton as Joint Receivers over the €475m Camden Yard project. Westridge acquired the site from TU Dublin in August 2019 for approx. €140m, nearly twice the €80m guiding price. Work on the €475m mixed-use project at the former DIT campus on Kevin Street halted in recent months, as the Developer attempted to raise fresh finance. Bentall GreenOak provided the senior debt with Fairfield Real Estate Finance providing the mezzanine debt. The Currency, 13th December
Leeson Street, Dublin 2 Kroll Advisory Ireland has signed a long-term lease to occupy the second floor of 18 Lower Leeson Street. The property, formerly known as Ossary House, has generated substantial interest since an extensive renovation was carried out by Aviva. Renovations include locker facilities, along with improving its sustainability credentials to LEED Gold with an A3 building energy rating. The building extends to 24,455 sq. ft of office space. Tenants include those from the aviation, financial and insurance sectors and the building is now 60% leased, based on the recent lettings to Kroll, Falko and Lockton. The Business Post, 13th December
Sir John Rogerson’s Quay, Dublin 2 Zurich Insurance’s Technical Centre of Excellence for EMEA and Zurich Treasury Services have taken up office space on the fourth floor of 76 Sir John Rogerson’s Quay. The let comes some two years after the insurer had agreed to lease space on two floors in the state-of-the-art, A-rated building at an annual rent of €751k. Zurich delayed its office move until several defects identified in Zurich’s office space were remedied by the landlord, AM Alpha Lux Invest 130 SARL. It now has a new lease for approx. 9,700 sq. ft on the fourth floor of the building. The uptake leaves only the ground and third floors of the building – 13,150 sq. ft, or 18% of the building’s total space, now available to let. The Business Post, 13th December
Connaught House, Dublin 4 Fine Grain Property has acquired Connaught House, with tenants including Alkermes Pharma, Philip Lee, Macquarie, and CBRE. This investment closed at below the €80m asking price and represents an attractive net initial yield of more than 7.5% with the potential to be repositioned or developed into sustainable, income-generating investment properties. The seven-storey property provides 116,000 sq. ft of lettable space, which is currently 86% occupied. The property has a WAULT of 4 years to the next break. Fine Grain will invest €10m to sustainably reposition Connaught House as a best-in-class sustainable workplace community offering BER A energy rated spaces, from the current D1. This acquisition expands Fine Grain’s Irish portfolio to 21 properties valued at €370m, comprising 1.3m sq. ft. Lauder Teacher Press Release, 17th December
Goatstown, Dublin 14 Orchid Residential, a property development firm owned by the O’Reilly Hylands, said it hopes to build a 220-bed purpose-built student accommodation (PBSA) development in Goatstown ranging from four to six storeys. It intends to apply for planning permission for the large-scale residential development from Dún Laoghaire Rathdown County Council. Orchid has already tried to build a 239-bed student accommodation development on the same site. In late 2020, it lodged an application to build the property with An Bord Pleanála, who granted the proposal the following February. O’Reilly Hyland said Orchid was also considering delivering student accommodation in other European cities. However, the validity of the permission was queried in the High Court and, on the consent of An Bord Pleanála, was quashed in March 2022. It is understood the proposed development would represent an additional investment of approx. €30m above what it cost Orchid to buy the land. There is currently a shortage of PBSA across Ireland. In September, a paper published by the Department of Education showed that publicly owned PBSA was oversubscribed by approx. 29,773 applications for the 2023/2024 academic year. The Irish Independent, 15th December
Terenure, Dublin 6 Builders Lioncor are planning for a 284-unit Large Scale Residential scheme at Terenure College, Dublin. The plans come approx. 2 years after An Bord Pleanála refused Lioncor for a build to rent 364 unit scheme on former playing pitches at Terenure College. Now, Lioncor subsidiary 1 Cellbridge West Land Ltd is proposing a scaled down plan omitting 80 units from the original scheme. The new plans will be designed as a “build to sell” development to meet the needs within the Dublin 6 area facilitating people downsizing their home who wish to remain in the locality as well as providing new housing stock. The scheme comprises of 265 apartments and 19 four bed houses. The apartments comprise of four apartment blocks comprising 117 one-bed apartments, 129 two-bed apartments, 9 three-bed apartments and 10 studios along with a creche. The scheme will provide 165 car-spaces and 633 cycle spaces. The Irish Times, 16th December
Cork City, Cork Two pedestrian bridges linking the site of the stalled Cork Event Centre to the opposite quays are being built at a cost of €8.5m, with no sign yet of the event centre going ahead. The bridges, which will cross the south channel of the River Lee and link with Crosses’ Green and French’s Quay/Proby’s Quay, are scheduled to be completed by mid-2025, while the event centre faces further delays as the project must be re-tendered. The decision by Cork City Council to re-tender is in the wake of legal concerns that the level of State aid, potentially €87m, could fall foul of EU procurement rules. The Irish Examiner, 12th December
Dublin Airport Gerry Gannon is set to reopen a 6,122-space car park near Dublin airport in March 2025 after the developer completed a deal with the construction magnate Maurice Regan to finance his debts outside the National Asset Management Agency. Gannon signed a deal with Apcoa to get the former Quickpark facility to operate under Apcoa’s Park2Travel brand. The car park has been closed since 2019 however the DAA made an offer to buy the car park for €70m in 2022, but the deal was blocked by the Competition and Consumer Protection Commission due to the level of market share the DAA would have as a result. The Sunday Times, 15th December
Grand Canal, Dublin 2 Waterways Ireland and Iput Real Estate Dublin are joining as a public-private partnership to upgrade the public areas along Dublin’s Grand Canal between the Leeson and Baggot Street bridges. The works will be carried out on the northern towpath of the canal along Wilton Terrace. The area is in front of Iput’s landmark 600,000 sq. ft headquarter office development Wilton Park Estate, comprising 1, 2, 3 and 4 Wilton Park. The upgrade is intended to improve amenities along the canal bank including increased accessibility for pedestrians and mobility aide users; more public seating; two existing narrow paths will be replaced by a single, wider path and a canal-bank set-aside area. The Business Post, 16th December
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2024 Review 15 Dublin licensed premises have changed hands this year with a capital value of €53.3m, equating to an average price of €3.6m. There are a further 8 pubs at the sale-agreed/sold-awaiting-closing stage, with a capital value of approx. €29m. By comparison, last year 20 pubs were sold, with a capital value of €42.4m, and an average price of €2.1m. Devitt’s on Camden Street was sold earlier this year, for a price rumoured to be approx. €15m. The Irish Times, 5th December
Vicar Street, Dublin 8 An Bord Pleanála (“ABP”) has cleared the way for Harry Crosbie’s planned Vicar Street hotel scheme for Dublin 8 after invalidating the sole appeal against the hotel proposal on technical grounds. The board invalidated the appeal after the appellant enclosed the incorrect Dublin City Council (“DCC”) procedural letter with the appeal. Instead of enclosing the council’s acknowledgment of her objection, the appellant enclosed the council letter confirming that planning permission had been granted. DCC gave the go-ahead for the scheme in late October for a planned four-star, 182-bedroom “rock and room” concept hotel for Dublin’s Liberties area. The Irish Times, 5th December
Temple Bar, Dublin 2 Plans are to be lodged for almost a tripling in the room capacity of the Clarence Hotel. Keywell DAC has given notice that it is to lodge plans for the revamp and extension of the hotel with DCC. The plan is to increase the number of rooms from the current 58 to 162. The additional 104 bedrooms will include a six-storey extension at the site. The hotel refurbishment will comprise 91,967 sq. ft. The Journal, 7th December
Grafton Street, Dublin 2 Build-A-Bear Workshop is set to move into 47 Grafton Street in spring 2025. The property is owned by Irish Life and comprises 880 sq. ft on the ground floor. The lease has been agreed for a 10-year term, with the rent understood to be in the region of €250k per annum. Savills Ireland and Bannon were joint agents and negotiated the deal on behalf of Irish Life. BKL represented the tenant. The retailer already has outlets in Dundrum Town Centre and Blanchardstown and operates over 400 stores globally. The Irish Independent, 5th December
2024 Review According to Colliers, retail was the most traded asset class in the first three quarters, making up more than 33% of all property activity this year. Should the sale of Blanchardstown Shopping Centre close by year-end, retail property investment activity is expected to top €1b in 2024, the highest level since 2016. €417m has been spent on retail property in the year to date. Shopping centres account for the largest proportion, at 43%, with the next largest asset class being retail parks at 34%. Only 20% of the spend has been from Irish investors. The Irish Times, 5th December
Douglas, Co Cork Douglas Court Shopping Centre is seeking to expand with the addition of an upstairs health and wellness centre. Cork City Council has received an application from the Douglas Court Partnership for a change of use of storage areas on the shopping centre’s first-floor level to facilitate the provision of a health and wellness centre. The development will comprise 8 units in the property. The development will provide uses such as fitness, health and wellness use and hair and beauty treatments, which future operators may require. The Irish Examiner, 6th December
Kilshane Cross, Dublin 11 Unit 3, Quantum Distribution Park has become available for either a lease assignment or sub-letting to prospective tenants. Agent CBRE is guiding a rent of €12.75 psf for a subletting, or else a tenant can take over the lease on assignment at €9.65 psf. There is approx. 13 years to run on the existing lease. The logistics facility extends to 178,14 sq. ft incorporating 13,992 sq. ft (7.85%) of office accommodation. It is finished to high sustainability standards: LEED Gold, BREEAM Excellent and BER A3. The Irish Independent, 5th December
Shanbally, Co Cork Rare disease specialist BioMarin Pharmaceuticals will invest €60m to expand its Cork plant – the company’s only manufacturing facility outside the United States. The biotechnology group said it will build a four-storey laboratory at the Shanbally site to allow for increased production of its current medicines and capacity for future products. The Irish Times, 9th December
Nationwide Retail giant Spar Group is set to invest almost €24m for “capital expenditure” in its Irish business, BWG Foods, which is based in Tallaght. BWG Foods, which has a substantial business nationwide with over 1,000 Spar, Eurospar, Mace, Londis and XL stores, has emerged as one of Spar Group’s most successful businesses. The South African-listed group first invested in BWG when it paid €55m for an 80% stake in 2014. The Irish Independent, 8th December
Grand Canal Dock, Dublin 2 A building designed to house Ireland’s most environmentally and employee-friendly workspaces was launched this week. The Sidings by Bartra on Clanwilliam Terrace is the country’s first ‘triple-platinum’ awarded construction project. On the 10th floor, employees can enjoy a large wraparound terrace, featuring a 190m landscaped walkway. The ground floor has dedicated street-level access to secure parking for approx. 200 bicycles, and the bike storage area also includes repair stations, clothes driers, showers and lockers for cycling commuters. Designed by Dublin-based TOT Architects, The Sidings was awarded LEED Platinum status by the US Green Building Council. The Business Post, 5th December
Merrion Road, Dublin 4 Local residents are stalling plans by builders Lioncor for a 200-bedspace purpose-built student accommodation scheme for Merrion Rd. Last month, DCC granted planning permission to a Lioncor subsidiary, 1 Merrion Compound Land Ltd, for the two-block six-storey scheme at Merrion Gates, 169-177 Merrion Road despite the opposition of residents. However, the scheme is now stalled with two separate third party appeals lodged contending that the proposed development is out of scale with the existing site, will constitute overdevelopment of the site and is architecturally out of sync with the immediate surrounding buildings and dwellings. The Irish Independent, 6th December
Mardyke Walk, Cork City Long idle waste ground at the western end of Mardyke Walk is finally set for development as work gets underway on a series of apartments and duplexes that will replace a terrace of homes demolished several years ago. The site at Carmelite Place has been the subject of a series of planning applications going back over 20 years. Six terraced homes and a shop called Carmelite Stores used to occupy the site, but these were demolished more than a decade ago and in 2018, the land was entered into Cork City Council’s Derelict Sites Register. A building contractor has now started work on the trapezoidal-shaped parcel of land that fronts Western Road and the western tip of Mardyke Walk, behind an AIB branch. Plans for a new, modernist, residential development on the approx. 0.25-acre site for 14 dwellings across a series of joined three-storey blocks over a raised podium, in a linear building are underway. The Irish Examiner, 5th December
Mitchelstown, Co Cork MDR Developments Ltd has been granted planning for 43 new dwellings in Mitchelstown. The development will also comprise a central public area, with two parking spaces for each dwelling, with the site area comprising 5.36 acres. Access to the development will be provided via an existing estate entrance and internal road network at the Sliabh Álainn residential development in Brigown, Mitchelstown. The Irish Examiner, 5th December
Appian Way, Dublin 6 RGRE J & R Valerys Limited has failed in an appeal to quash DCC’s demand for unpaid vacant site levy fees for a multi-million-euro Dublin 6 site. The appeal over the local authority’s 2022 levy demand was brought by the receivers, Declan McDonald and Ken Tyrrell of PwC. The appeal to An Bord Pleanála centres on the council’s site valuation. The council valued it at €4.5m in May 2019, before revising this down to €4m in late 2022. As the levy is charged at seven per cent of market value, the council is demanding payment of €315k. Two previous failed appeals against council demands for payment in 2020 and 2021 were also brought by RGRE J & R Valerys before entering receivership. Both cases also centred on the council’s valuation of the site and the amounts demanded. The company argued that it received a valuation in March 2021 of between €3m and €3.25m. In those cases, the planning inspector handling the appeals found the levy amount was correctly calculated and affirmed the council’s payment demand for the two years. The Currency, 3rd December
BNP PRE Ireland Construction PMI Report The BNP Paribas Real Estate Ireland Construction Total Activity Index posted 47.5 in November, down from 49.4 in October and signalling a reduction in total construction activity for the third straight month. Housing activity however increased for the third consecutive month in November but commercial activity fell, and civil engineering work was down again. John McCartney, Director at BNP Paribas stated: “Firstly, overall construction activity is being dragged lower by a contraction in commercial building. This is not necessarily a bad thing as some segments of the commercial market are over-stocked with space, and a slowdown in production will give demand a chance to catch-up with supply. Secondly, residential construction is bucking the overall trend, and activity has been expanding almost continuously since March. This dovetails with recent commencements data and suggests that 2025 will be significantly better than this year for housing delivery. Thirdly, the general air of optimism in the sector remains, with the forward-looking PMI elements such as order books, hiring and materials purchasing all pointing in a positive direction. BNP Paribas, 9th December
Hibernia Group Hibernia, one of the biggest property developers and landlords in Ireland, has seen total assets fall below €1bn for the first time since it was acquired in 2022 by Brookfield Asset Management in a deal valued at €1.1bn and delisted from the Irish Stock Exchange. Since it was acquired, Hibernia has focused on integrating into the Brookfield Group, with hundreds of millions of euro worth of Irish property transferred to other Brookfield entities. The most recent set of accounts for Hibernia Real Estate Group Limited show its combined assets are now valued at €826.6m. At the end of March 2022, the firm’s combined assets were valued at €1.48bn. The recent transfers of property assets by Hibernia to other Brookfield entities has made it difficult to estimate the exact value of Hibernia’s real estate portfolio. Newly released financial records showed the company’s property portfolio took a €92m hit in the year to the end of March 2024. In the previous financial year, the company also reported a large loss on its investment properties, with the value down €139.5m. The most recent set of accounts for the firm show it has €168.1m worth of property after shifting €445.1m of office and €130m of residential assets to other firms by way of intercompany transfers. As a result of the transfers, rental revenue was down from €48.8m to €25.1m. The Business Post, 9th December
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Athlone, Co. Westmeath H&M has signed a 10-year lease for its new store, which is an amalgamation of two units at ground-floor and first-floor levels. It will increase the retailer’s store size from 11,887 sq. ft to 15,192 sq. ft, after an investment of €3m in store re-fit. The letting agents are Bannon and Cushman & Wakefield. The shopping centre, which opened in 2007 and is the largest such outlet in the midlands, now has 98% occupancy. The Irish Times, 27th November
Cork City A €60m expansion of retail giant Penney’s Cork city centre store looks set to start by next April after more than a 3-year delay. The Irish Examiner understands that final processes are being worked through in relation to the Elbow Lane title, after a public right of way was extinguished by a vote of Cork City councillors last July. The Irish Examiner, 28th November
Rathcoole, Co Dublin Launched to market by Kennedy Wilson on a leasehold basis, Unit 502B Greenogue Business Park is up for let in Q1 of 2025. The unit extends to approx. 22,217 sq. ft and includes approx. 6,350 sq. ft of three-storey offices. CBRE and Harvey are quoting an annual rent of €306k/€13.75 sq. ft. The property is undergoing a refurbishment, which will take the BER to a rating of A2. Kennedy Wilson acquired 12 units across the Greenogue and Aerodrome Business Parks, Co Dublin, for approx. €39m in 2022. The Irish Times, 27th November
Collon, Co. Louth Two industrial units on the Slane Road in Collon, Co. Louth have come to the market with a combined price tag of €8m. The larger unit is on sale for €5.5m and comprises 47,000 sq. ft. which was constructed in 2015. The second unit is on sale for €2.5m and has an area of approx. 15,590 sq. ft. The unit has been used for car and tractor sales and service. The units are located 1km south of Collon, 10km from Drogheda. The Irish Independent, 27th November
2024 Review According to Harvey Industrial Specialists, the Dublin industrial and logistics market saw its post-pandemic rental surge stabilise in 2024. New-build rents held at €13 sq. ft. However, recent quoting rents suggest an increase to €13.50–€13.75 per sq. ft during 2025. In 2024, new building completions in Dublin totalled about 1m sq. ft, a decrease from the 2m sq. ft recorded in 2023. Current forecasts indicate a recovery to around 1.5m sq. ft in 2025. Take-up also declined, with 2024 expected to register less than the 3m sq. ft recorded in 2023. The Business Post, 30th November
Limerick City Fine Grain Property, an Irish-owned property investor, has acquired The Three Building, a 47,000 sq. ft office building at the Plassey Innovation Campus just outside Limerick city for €7.5m. This acquisition brings Fine Grain’s holdings at the “strategically important” location next to the University of Limerick to five buildings and close to 260,000 sq. ft, according to a statement from the company. The Business Post, 29th November
Adelaide Road, Dublin 2 Apple is set to take three floors capable of housing hundreds of staff at Four & Five Park Place in Dublin city centre on a long-term lease. Apple are in advanced discussions to take roughly 60,000 sq. ft at the building, which was developed by Clancourt. It is understood that a deal is likely to be done before Christmas, with Apple likely to locate several hundred staff at the site. The Business Post, 30th November
Fitzwilliam Place, Dublin 2 12-13 Fitzwilliam Place, two properties and mews on Lad Lane, which generate rents of €235k per annum, have sold for almost €4m, which was below the €4.4m guided by agents Colliers. There is potential for further income as the first, second and third floors of No 13 are vacant, as is 12 Lad Lane mews. No 12 Fitzwilliam is occupied by Reddy Charlton LLP which also occupies the basement of No 13. All four buildings offer a combined floor area of 11,490 sq. ft and the tenants also benefit from 15 car-parking spaces. The Irish Independent, 28th November
Cork Market Cork’s prime office rents may see upward pressure due to declining availability of office space as well as the cost of developing new offices. According to Cushman & Wakefield, prime Cork office availability declined to 13.1% at approx. 936,460 sq. ft in Q3 this year. That compares with gross availability of 8,019,113 sq. ft or 16.7%, in Dublin. Cushman estimates that approx. 17,222 sq. ft of space was taken up in the Cork office market in Q3, bringing the total for 2024 so far to 138,854 sq. ft. The Irish Independent, 28th November
2024 Review According to Knight Frank, the office sector has been the best performing on the occupier side, with total take-up to reach in excess of 2m sq. ft for the year as a whole. Large transactions from occupiers such as Stripe, EY, BNY Mellon have led demand. Knight Frank forecasts a similar, if not higher, level of take-up will be achieved next year, with 2025 off to a good start with a strong level of reserved stock in place. More clarity on hybrid working policies and increasing return to the office mandates are also allowing occupiers to make more detailed decisions about the amount and type of office space they need, which is expected to further support demand in 2025.The Business Post, 30th November
Galway Glenlo Abbey Hotel and Estate, controlled by US billionaire John Malone, recorded a near 20% bump in profits last year following an uptick in revenues last year, new financial filings have shown. The five-star, 73-room hotel just outside Galway city is part of the MHL Hotel Collection, which owns a string of luxury properties including The Intercontinental in Ballsbridge, the Powerscourt Hotel Resort & Spa in Wicklow and The Spencer Hotel in Dublin’s IFSC. New accounts published for Baswal Limited, the firm behind Glenlo Abbey, show its turnover rose from €12.5m to €13.7m in 2023. The increase in sales led to a rise in gross profits at the firm, up from €2.7m in 2022 to €3.2m last year. The Business Post, 2nd December
Naas, Kildare Aldi Ireland has purchased a 60-acre site, investing €24m in the Irish business. The site is close to Aldi’s existing distribution centre and corporate headquarters in Naas. Last year the firm expanded its store network, opening six stores as part of a capital investment of €67m across the year. The retailer plans to expand its store network in Dublin with an investment of €73m in 11 new stores with the creation of 350 new full-time jobs over five years. The Business Post, 25th November
Baggot Street, Dublin 2 61 Lower Baggot Street is for sale through Hunters Estate Agency. The mid-terrace, four storeys over basement house of 5,166 sq. ft is guiding at €3m. It also includes a self-contained two bedroomed apartment at basement level. The Business Post, 30th November
2024 Review According to Colliers, 2024 has been difficult within residential and country markets. Influences in the marketplace have been a lack of supply, international financial market unease, interest rate movement and the results of European and US elections. In 2025, Colliers anticipate market pressures to remain like those of 2024. However, if interest rates continue to ease, green mortgages are effective and new builds come online, they anticipate continued improvement on the availability of property thus opening the market to increased activity. The Business Post, 30th November
Dun Laoghaire, Dublin 18 Co-living apartments can be used for Airbnb-style holiday lets, due to a planning loophole, it has emerged. Dun Laoghaire Rathdown County Council has dropped a planning enforcement case against co-living developer Bartra following legal advice the company could use its “Niche Living” apartment scheme for holiday lets. Studio apartments in the 208-bed block on Eblana Avenue are being advertised with a two-night stay costing €278. Co-living schemes were introduced as a separate housing category in the planning system in 2018. The Irish Times, 28th November
Q3 Agricultural Land Market Review According to Sherry Fitzgerald, agricultural land price inflation has returned to a more sustainable level with values rising by 3.5% during the first 9 months of the year. The weighted average price of an acre of general farmland reached €12,342 in Q3. Land values rose in most regions from Q1-Q3 of 2024. Marginal grassland grew the most at a rate of 3.7% from Q1-Q3, followed by prime arable land with a 3.5% increase. Prime grassland grew by 3.3%. Sherry Fitzgerald, 28th November
Abbey Street, Dublin 1 9 Lower Abbey St facing the Luas stop and Wynn’s Hotel, has gone sale agreed. Estate agent Lisney had been guiding €2.75m for the property which is being sold by The Methodist Church in Ireland. It is believed to be earmarked for a new cultural venue, but a Lisney spokesperson declined to comment. The property extends to approx. 10,742 sq. ft. The Independent, 28th November
Lauder Teacher Colm Lauder, and Andrew Teacher, two renowned and highly regarded real estate advisors, have announced the launch of a new strategic consultancy, Lauder Teacher, which will be focused on strategic communications, investor relations, and business strategy. It will be headquartered in London, with additional offices in Dublin and Monaco. Press Release, 28th November
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Molesworth Street, Dublin 2 Waste tycoon Eamon Waters has reached a multi-million-euro agreement to buy Dublin’s Buswells Hotel. Waters agreed terms on a €16.4m sale of the city centre hotel earlier this year. It has emerged, however, that new bidders have also expressed an interest in acquiring the property and no deal has yet been concluded. The Business Post has learned that heads of terms were agreed between Sretaw, his private equity firm, and Interpath Advisory in August. Buswell is being sold by Savills on behalf of special liquidators of the Irish Bank Resolution Corporation. It has a guide price of €22m. Under the terms of the proposed deal, Waters’ Sretaw entered into an exclusivity period until the end of September. The bulk of the sale price was to be paid this week, with the proposed acquisition set to close on January 1, 2024. The agreed price of more than €16m in cash included payment of a €1m deposit on the date of signing, with the balance to be paid by the end of the year. The Business Post, 17th December
Mount Street, Dublin 2 Esprit Investments is seeking permission to build what will be one of Dublin’s biggest hotels on Mount Street. A planning application lodged with Dublin City Council just days ago shows that Esprit intends building a 300-bedroom hotel and apartments on a site bounded by Mount Street Upper, James’s Place East and Herbert Street in central Dublin. The application seeks permission to demolish existing buildings at 38 to 43 James’s Place East and replace them with a seven-storey hotel. Esprit is also applying to convert 38 to 40 Mount Street Upper from offices to incorporate them into the hotel. Dublin City Council’s planning section website states that Esprit’s application is open to observations from the public until January 15th 2024. The Irish Times, 14th December
Sandyford Business Park, Dublin 18 Whitbread has purchased the long leasehold interest of a site in Sandyford Business Park. The 0.57-acre site marks its first acquisition in outer Dublin, as the group eyes a portfolio of 3,500 Premier Inn rooms in Ireland. Located at 5 Arkle Road, the plot is currently occupied by The Wall Climbing Gym. The building extends to 13,283 sq. ft and includes approx. 24 car park spaces. Prior to the gym, the space was let to Crossan Motors. Whitbread plans to bring forward proposals for a 150-bedroom Premier Inn, with the planning application to be submitted in the new year. Currently, the hospitality group operates four Premier Inn hotels in Dublin City Centre as well as another hotel at Swords near Dublin airport. React News, 14th December
South Frederick Street, Dublin 2 JMK Group, a UK-based hospitality company, has emerged as the frontrunner to buy the old New Ireland Assurance offices on South Frederick Street in Dublin City Centre. The property came on the market in October for €12m. While it is in the early stages of the property sale, which is being marketed by CBRE, The Sunday Times understands that JMK is close to doing a deal. Nos. 5-9 South Frederick Street formed part of New Ireland’s old headquarters. The Dawson Street segment of the headquarters was sold in 2018 for €38m to Core Capital and Oakmount. The Dawson Street offices have since been redeveloped and let to the stockbroker Goodbody, with the ground floor earmarked for a restaurant. The South Frederick Street building measures approx. 39,000 sq. ft, comprising five storeys of office space over a basement car park. The Sunday Times, 17th December
Naas, Co Kildare The former owners of the Leinster Leader newspaper have sold its former premises on a 0.4-acre site in the centre of Naas for €1m. That price was 54% more than the €650k which Jordan Auctioneers had quoted for it prior to its recent auction. The vendor is Clylim Properties Limited. Located at 19 & 20 South Main Street, Naas, the property includes a three-storey office building extending to 5,705 sq. ft; a residence extending to 1,906 sq. ft, known as the Manager’s House, as well as a former printing works to the rear extending to 10,495 sq. ft. The Irish Independent, 14th December
Santry, Dublin 9 The Cosgrave family of property developers have sold a retail park in an off-market deal. Gulliver’s retail park in Santry was sold for in excess of €30m to a group of wealthy individuals. The retail park, which was built in 2005, has 16 units, and shops on the site include Lidl, Homebase, EZ Living Interiors and McCabes Pharmacy. McDonald’s, the fast-food giant, and Costa Coffee are also at the retail park. Jysk, the Danish furniture retailer, opened its first Dublin store at Gulliver’s in 2020. The chain signed a ten-year lease with the Cosgraves, paying an annual rent of more than €107k, according to the property price register. Gulliver’s retail park was opened as part of the expansion of the Northwood business campus, which lies off the M50 exit to Ballymun. The Cosgrave brothers bought 50 acres for approx. €28m from the IDA. The Sunday Times, 17th December
Grafton Street, Dublin 2 Swatch, the Swiss watchmaker, is preparing to reopen a shop in Dublin, as Grafton Street continues to recover from the pandemic. The company closed its previous store, at No. 55 on the prime shopping street, in 2020 but will soon reopen at No. 80. In a planning application submitted to Dublin City Council last week, Swatch proposed turning the ground floor of the store, which is next door to Bewley’s café, into a retail area for “jewellery and associated items”. The shop is currently occupied by Molton Brown, the beauty brand. The Sunday Times, 17th December
Clonskeagh, Dublin 14 The guide price for vacant offices at Block 7 Richview Office Park, Clonskeagh has been reduced from €3.5m to €3m. Located on a complex adjoining UCD, the property comprises 8,600 sq. ft in a three-storey office building which is laid out with reception space at ground level and a mix of open plan and meeting rooms on the two upper floors. It also comes with 24 dedicated surface car spaces. In 2014 a private investor paid €3.3m for the premises which was then the Irish head office of McDonald’s Restaurants generating an annual rent of €256.3k, giving the new owner a 7.32% yield. The Irish Independent, 14th December
James Street, Dublin 8 A partly let apartment block at 181 James St and located between St James’s Hospital and the Royal Hospital Kilmainham, sold at a recent auction for €1.211m, or 42% over the €850k guide price quoted by Artis estate agents. Comprising five apartments and a ground floor retail unit extending to a combined 5,539 sq. ft, two of the apartments were tenanted with rents totalling €34.7k pa. The other units were vacant. It is surrounded on three sides by a cleared site with planning permission for a 145-bedroom hotel. The Irish Independent, 14th December
Clongriffin, Dublin 13 The Land Development Agency (LDA) has paid €44m for a large tract of land in Clongriffin that has the capacity for more than 2,300 homes. The 32.6 acres of land, spread across two sites beside Clongriffin railway station, has been acquired from NAMA. The residential developments planned for the sites, which are 27.4- and 5.2- acres in size respectively, have been dubbed Project Capital North and Barina. The permissions in place for the Project Capital North site involves four separate applications for 1,823 units. The LDA has said it plans to prioritise the development of two apartment blocks on the lands to deliver more than 400 homes. Construction on part of the Project Capital North is expected to commence in September 2024, with the first homes delivered on the lands in 2026. The agency plans to reassess the potential of the other permissions and will potentially seek new planning permission for the rest of the site. The Business Post, 18th December
Naas, Co Kildare The construction of 219 affordable and social homes has commenced on the former Devoy Barracks in Naas. Andrews Construction was appointed by the LDA as the contractor and is set to deliver the first homes in 2025. As part of the former Devoy Barracks complex, the site was made available to the LDA by the Housing Agency. The homes will be A-rated and are being constructed on a 10.23-acre site. The housing mix includes 42 two-storey, three-bed houses, 177 apartments and duplexes consisting of 64 one-bed, 105 two-bed and eight three-bed units. An Bord Pleanála approved the Strategic Housing Development in October 2022. The Business Post, 14th December
Galway Port Lands The LDA is in “advanced talks” to take on a three-acre site with potential for 250 homes from the operators of Galway port. It is close to striking an agreement with Galway Harbour Company that would give it control of a three-acre site located in Galway city centre. The land, located within the inner harbour area of the Galway port lands, has the capacity for 250 homes. Galway Harbour Company is a commercial semi-state entity owned by Galway City Council. The Business Post, 17th December
Horgan’s Quay, Cork The first large-scale apartment scheme in Cork City’s docklands is set to go ahead after the LDA swung in behind a stalled Clarendon Properties/Bam Ireland residential project on Horgan’s Quay. The move should see the first of 302 apartments delivered by the end of 2025, with the majority being made available at cost-rental, at least 25% below the regular local market rate. The LDA is also planning to deliver 350 homes at an ESB site in Wilton. The Horgan’s Quay site breakthrough is significant as the absence of residential had been the major gap in the €160m mixed-use development which, to date, consists of two office blocks. The Irish Examiner, 14th December
Residential Tenancies Board (RTB) Survey More than a quarter of small landlords are “likely or very likely” to sell their rental properties in the next five years, new research by the RTB has shown. Since 2020, the RTB has conducted a series of surveys of small, medium and large landlords to ask their views on the Irish rental sector and challenges faced by landlords. Results from the latest survey of small landlords, who own between one and two rental properties, has shown individuals in this cohort of the market are increasingly likely to sell in the next five years. The results showed that 52% are “unlikely or very unlikely” to sell, which was on par with 2020, and 20% of small landlords are “unsure”. As part of Budget 2024, the government announced new tax breaks in a bid to retain small landlords in the market. Further analysis by the RTB of the small landlords who signalled their intention to sell their rental assets has shown that 48% said their “main motivation is that they no longer wish to be a landlord”, up from 45% in 2020. The Business Post, 13th December
House Price Inflation Home prices rose by 2.3% in the year to the end of October, with the growth driven by increases outside of Dublin, new data from the CSO has shown. In Dublin, house prices decreased by 0.6% in the 12-month period, with residential prices up 4.5% in the rest of the country. Over the past 20-month period, property price growth has gradually eased from a 15.1% peak in February 2022 to a near three-year low of 1.1% in August 2023. The following month in September, prices rose by 1.4%. The new data from the CSO has shown that annual house price inflation has accelerated in recent months, as prices grew at their fastest monthly pace in 14 months in October. The CSO data on house prices is based on the body’s Residential Property Price Index, which has tracked prices since 2005. The data has shown that house prices are 5.1% above the highest level at the peak of the property boom in April 2007. Compared to early 2013, property prices nationally are up 134.3%, with prices in Dublin up by 132% from their February 2012 low. The Business Post, 13th December
Land Aggregation Scheme A scheme to bail out local authorities who bought land during the Celtic Tiger era and were unable to repay the loans to the Housing Finance Agency (HFA) has resulted in a potential loss of €80m to the taxpayer, the Public Accounts Committee (PAC) has heard. At a meeting of the committee, Comptroller and Auditor General Séamus McCarthy outlined a report his office completed on the Land Aggregation Scheme. The scheme was established in 2010 to alleviate the financial burden on local authorities related to maturing HFA loans. In all, 73 sites were accepted into the scheme on the basis that they had reasonable development potential for social housing. Approx. €132m was paid for the sites. The lands have since been transferred to the Housing Agency, which is separate to the HFA. As of August 31st, 2023, the Housing Agency retained ownership of 60 sites, with an estimated market value of just over €56m. Its officials said that the gap between what has been paid and their value, plus other costs to the State, could be approx. €80m. The Irish Times, 14th December
Social and Affordable Housing The Government is at risk of missing targets for delivery of social and affordable housing, newly-released figures indicate. Just over 4,800 social homes were delivered in the first nine months of the year, of which 2,642 are new-builds. This is far short of the target for new-builds for the year in Minister Darragh O’Brien’s Housing for All plan, which is set at 9,100. Meanwhile, approx. 2,000 “affordable housing supports” were delivered in the same period, less than half of the 5,500 target. Figures published by the Department of Housing show that 4,815 new social homes were delivered by the end of September. These include 2,642 new-build homes, 1,033 acquisitions and 1,140 homes delivered through leasing programmes. The department also said more than “2,000 affordable housing supports” were delivered in a number of ways, including through approved housing bodies, local authorities and the shared equity First Home Scheme. The Irish Times, 13th December
Ballsbridge, Dublin 4 The U.S. government plans to spend approx. $700m acquiring the former Jury’s hotel in Ballsbridge, Dublin, and building a new embassy there. The State Department notified Congress on 11th December that it intends to buy the former Jury’s Hotel in Ballsbridge for approx. $171m, demolish it and construct new embassy buildings on the site. According to a note sent to Congress, the total costs of acquiring and demolishing the existing building and designing a new premises will come to approx. $688.8m, The Associated Press reported. The new building on the old Jury’s site would include the embassy, a residence for U.S. Marine guards, support facilities and parking, the notice to Congress says. Planning permission was granted in December 2022 to split the site, which houses the former Jury’s Hotel and the prestigious Lansdowne Place residential development. While U.S. authorities are thought to have reached an agreement to buy the former Jury’s Hotel from developer Chartered Land, it is expected to remain in its current embassy building for up to 10 years until the construction of the new premises is complete. Bisnow, 18th December
Ires Reit Vision Capital, an activist shareholder in Ires Reit, has called for an extraordinary general meeting (EGM) to allow shareholders oust five directors, in a new letter. The letter by the Canada-based investment firm, which included the demand for an EGM, has come following the announcement in October that Margaret Sweeney will retire as chief executive of Ires Reit next year. Vision Capital has been a shareholder in Ires Reit since 2014 and owns more than 26m ordinary shares in the company, which means it has a 5% stake. Vision Capital’s resolution has proposed the replacement of five directors, including Sweeney, chief executive, Declan Moylan, chair of the board, Brian Fagan, chief financial officer, Joan Garahy and Tom Kavanagh, who are two other directors serving on the remuneration committee. The Business Post, 18th December
Dublin Airport DAA has written to the owners of a 260-acre block of land between the runways at Dublin Airport inviting them to a fresh round of talks over a potential landmark sale of the site. In a letter to aviation tycoon Ulick McEvaddy and his brother Des, along with Seán Fox and Brendan and Orla O’Donoghue, the airport operator reiterated that a bid it lodged earlier this year remained on the table. DAA, the operator of both Dublin and Cork airports, made a €75m offer on the land in September, which was rejected. The consortium is hoping to sell the block of land, which has been described as a strategically located asset, for €210m or more. The block of land remains on the market for sale. It’s understood a decision on the site’s future will be made by the landowners in January. The Business Post, 17th December
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Ballycoolin, Dublin 15 A 6.26-acre industrial infill site in the well-established Northwest Logistics Park, Ballycoolin is being offered for sale, guiding €4m (approx. €639k per acre). It is zoned ‘General Employment’ within the Fingal County Council Development Plan 2023-2029 to “provide opportunities for general enterprise and employment”. Regular in shape, it is bounded by Northwest Logistics Park estate road to the north which provides site access, and Kilshane Way to the south. The surrounding area is home to notable occupiers which include Amazon, Rhenus Logistics, DSV, DB Shenker, Renault Trucks and many more. The Irish Independent, 7th December
St Patrick’s Street, Cork A reopening of Cork’s iconic Roches Stores/Debenhams large department store building is being slated for the middle of next year by its new Irish owners, Intersport Elverys, with plans for a hotel of up to 180 bedrooms towards the rear of the 1.6-acre city centre site. The Co Mayo-based sports and leisure wear company will occupy the front centre portion of the large premises. In advance of the opening, earmarked for Q2 2024 and taking as much as 40,000 sq. ft for its own presence, the company is meeting with Cork City Council this side of Christmas to outline its wider plans for the balance of the 160,000 sq. ft property which it acquired earlier this year in an approx. €12m purchase via Cushman & Wakefield, acting for Debenhams receivers. The Irish Examiner, 6th December
Camden Row, Dublin 8 ORHRE Camden Row Limited has secured planning approval for a 195-bed hotel on Camden Row in Dublin’s city centre. Dublin City Council last week granted permission to develop a seven-storey hotel at the site, set to include a gallery, restaurant and garden. The development will involve the demolition of the existing four-storey office block which is bound to the west by Technological University Dublin’s Focas campus and adjacent to St Kevin’s Park. The building was purchased for a reported €9m in January. Discussions are under way to decide an operator for the site, which is intended to be a four-star hotel. Construction is due to begin in the third quarter of 2024 and conclude by the end of 2026. The Sunday Times, 10th December
Kenmare, Co Kerry A local man with a background in hospitality is understood to be the preferred bidder in advanced talks around the sale of the Brennan brothers Lansdowne Hotel in Kenmare. The sale is expected to close before Christmas. The Brennan brothers are understood to be happy with the choice of preferred bidder, following interest in the hotel from local, national and international parties. The Irish Examiner, 7th December
Travelodge Accounts A Travelodge firm recorded a pretax profit of €8.65m from operating a Dublin hotel exclusively for International Protection (IP) applicants last year. Pumkinspice Ltd secured a contract in early 2022 from the State to house IP applicants at its newly constructed 393-room hotel on Townsend Street in Dublin 2. The directors say “the hotel secured a State contract and traded exclusively under this contract in 2022”. New accounts for Pumkinspice Ltd show that in its first year to trade, the hotel firm recorded revenues of €18.54m last year from the State contracts. Giving an insight into the cost of constructing hotels in the capital, Pumpkinspice directors said the firm’s capital costs totalled €74.6m at the end of 2021, just over two weeks before the hotel opened on January 17th, 2022. The company’s EBITDA totalled €12.15m for 2022. The company continued with the State contract until April of this year when it opened to trade as a hotel with the public. The company recorded a post-tax profit of €8.25m for 2022 after incurring a corporation tax charge of €405k. The Irish Times, 8th December
Drumcondra, Dublin 9 Jay Bourke, the well-known publican and restaurateur, is planning to reopen the landmark Quinn’s pub in Drumcondra. Closed since January 2020, Quinn’s was saved from demolition after planning authorities ruled last year that replacing it with a five-storey apartment block would “result in the loss of a historic Victorian building and would detract from the built heritage of the area”. The businessman regards Quinn’s as a “great opportunity”, and plans to reopen its nightclub as he believes there is a latent demand for more late-night venues in Dublin. Based at 42 to 44 Drumcondra Road, the pub was once owned by the ex-billionaire Sean Quinn. The three-storey-over-basement property was eventually bought by Discipulo Developments, registered in Cork. After planning permission was refused by Dublin City Council, Discipulo put forward a revised scheme and lodged an appeal, arguing that a conservation officer’s rationale for keeping the Quinn’s building “appears to be based on its significance to GAA fans, which is a regrettable priority amid a national housing crisis”. The Irish Independent, 9th December
Hospitality Sector Irish hotel transaction volumes are expected to be approx. €600m for year-end 2023. This is being driven primarily by the recent Dean Hotel Group/Press Up portfolio sale at a reported €350m, which is expected to complete in the coming weeks. The balance of activity comprised five Dublin hotel sales, with a combined value of approx. €120m, and 11 hotel transactions outside of Dublin for a further €140m. The Irish hotel market has also enjoyed strong trading conditions during 2023 with occupancy levels, as of year-to-date October, trending in Dublin at 84% and Cork at 79.8%. RevPAR also achieved record levels with Dublin reaching €152 and Cork at €124. The sector also had to contend with the many challenges, experienced by all businesses, in particular higher interest rates, increased VAT rate from 9% to 13.5%, prolonged expensive utility costs and a shortage of skilled labour. Private investors, high net worths/family offices and hotel groups have dominated transactional activity in the Irish market this year with institutional and private equity groups less active. The Irish Times, 6th December
Licensed Property Sector The Dublin licensed property market throughout 2023 was somewhat subdued when compared with the sales activity of the two previous years. The impact of rising interest rates, challenging debt-market conditions, substantial overhead increases and the shortage of skilled staff all took their toll. In 2023, just 17 licensed premises changed hands with a capital value of €31.8m. This compares with 30 pubs changing hands in 2022 with a capital value of approx. €97m, representing a 67% decline in the value of activity and a 43% drop in the number of deals. The first quarter of 2023 saw the completion of several pub sales which had been launched to the market in the third and final quarters of 2022. The trend of off-market deals, which was a feature of the market during 2022, continued with 4 Dame Lane being sold for approx. €5m, the highest price paid for a pub in Dublin this year. The final quarter of 2023 saw several pubs changing hands ahead of the busy Christmas trading period. A key feature of these sales was that they were acquired by long-term publican families. The Irish Times, 6th December
St Stephen’s Green, Dublin 2 Grafter, the serviced office associate of Oakmount property group, has opened its largest and most prestigiously located premises at Smyth House at 6-7 St Stephen’s Green. Since it saw its first occupier last week, already Grafter has received bookings for 60% of Smyth House’s office space and they include bookings from three companies in the tech, recruitment and legal sectors. Rates range from €30 per day or €250 per month per desk for co-workers and up to €900 per month per desk for companies requiring a private room. The Business Post, 5th December
Office Sector 2023 was a difficult year for the Dublin office market. Just 1.3-1.5m sq. ft will likely transact in total this year, roughly half of the 2.6m sq. ft that signed in 2022. There was strong demand from the professional services, finance and State sectors. The technology, media & entertainment, and telecommunications sector, however, was a more mixed picture – smaller companies were active, but the larger names were particularly impacted by the cyclical and structural headwinds, contributing significantly to the additional 1.3m sq. ft that was added to the subletting or “grey market”. When combined with the 1.1m sq. ft of speculative new-build space that was delivered, the vacancy rate is now approaching the 15% mark, up from 10.5% since the end of last year. Cautious demand at a time of increased supply has seen prime rents slip back from the €70.00 per sq. ft observed at the end of 2022 to €62.50-€65.00 per sq. ft currently. Enhanced incentives and rent-free terms however are maintaining a floor under prime rents close to this level. The Irish Times, 6th December
Maynooth, Co Kildare The former co-owners of Carton House golf hotel have withdrawn their planning application for its proposed Carton Care Village complex on lands at Carton Demesne near Maynooth. In October, Carton Demesne Developments Ltd lodged plans for a three-storey 92-bedroom care home and two two-storey sheltered accommodation buildings comprising 40 independent living units. The firm is controlled by the Mallaghan family. The family firm’s proposed care facility, to be located within the walled gardens to the northeast of the house, has encountered widespread local opposition, while the Department of Housing also voiced “grave concerns” over the proposal. Kildare County Council was due to decide on the application on Tuesday, December 12th. However, ahead of the decision, in a letter on behalf of the applicants, BMA Planning has withdrawn the nursing home planning application. The Irish Times, 7th December
Development Land Sector The combination of high interest rates and uncertainty about investor purchases of apartment developments are causing the development land market to have its quietest year since 2015. According to Sherry FitzGerald, the value of development land transactions was well below average, reaching €82m in the third quarter of this year and was relatively unchanged from the second quarter. As a result, the first nine months of the year saw the lowest level of transactions since records began in 2015 to reach €226m and just half that recorded for the same period in 2022. The volume of transactions was also very low with only 572 land deals closing during the nine-month period, approx. a third lower than the corresponding period in 2022. Building and construction cost inflation has fallen from peak levels with wholesale material costs increased by an annual rate of 2.6% in September which is well below the high of 20.6% seen in July 2022. With expectations that interest rates have peaked and may fall, both of these cost factors together may encourage more developers back into the market. The Irish Independent, 7th December
Internal Spending Controls A recently published audit carried out by the Department of Housing found that a significant number of contracts across all departments at the country’s largest local authority were not compliant with procurement guidelines. It found that Dublin City Council had spent above and beyond what it had originally forecast for housing, engineering, infrastructure, and transport projects in the capital. The council has now moved to urgently address overspends on its projects by requiring an appraisal at each stage of construction to ensure that costings are sound and within budget. Furthermore, any substantial cost increases now need to be approved internally through a cost adjustment process “which requires the project sponsor to justify the cost increase,” a spokeswoman for the council said. In one instance, the 900 metre-long main street for the Belmayne development in North Dublin ended up costing the council €11.9m – 61% over the original tender price. The Business Post, 10th December
Society of Chartered Surveyors Ireland (SCSI) Report The average cost of building a new three-bed home in Ireland has increased to just under €400k this year, a new report has found. The ‘2023 real cost of new housing delivery’ report published by the SCSI shows that ongoing inflation in construction materials, wages and energy has driven the cost of housing construction to record highs. In the Greater Dublin Area, the cost of building a three-bed semi-detached home has risen to stand at a record €461k. The new SCSI report shows that the cost of building a three-bed home in Dublin is now more than 20% higher than the cost to build the same house three years ago and approx. 40% higher since the surveyors body published its first housing costs report in 2016. The SCSI found that the cheapest area for housing delivery is the Northwest region, where the cost of building a three bed home stands at €354k. The surveyors body said the main drivers of construction cost inflation over the last three years were so-called hard costs such as bricks and mortar (up 27%), while soft costs such as land, development levies, fees, vat, profit margins increased 21% in the period. The Business Post, 7th December
Planning permissions granted for apartments more than doubled in the third quarter, according to the latest planning data. The CSO figures show planning permissions were granted for 4,803 apartment units between July and September, which was 105% up on the same quarter last year. Dublin accounted for 64% of apartment planning permissions, with Dublin City Council accounting for approx. half. Overall the CSO figures show there was an annual increase of more than 43% in the total number of dwelling units approved across the State in the third quarter at 9,662 units compared with 6,743 units in the same quarter last year. An annual decrease of 23% was recorded in the second quarter of 2023. The number of dwelling units granted during the third quarter was almost evenly split between houses (4,859) and apartments (4,803). For the nine-month period of January to September this year there was an overall growth of 13% in the total number of dwelling units approved when compared with the same period in 2022. There was an annual rise of 32% in multi-development houses receiving planning permission in the third quarter compared with an annual decrease of 6% in the previous quarter. The Irish Times, 7th December
Fire Safety Defect Funding Minister for Housing Darragh O’Brien has announced funding for interim fire safety measures to assist owners of defective apartments and duplexes in advance of a more comprehensive State support scheme being finalised. Earlier this year, the minister received Cabinet approval for a scheme to address historic fire safety issues and other defects in apartments constructed between 1991 and 2013 worth up to €2.5bn. However, given there is estimated to be up to 100k affected buildings, a code of practice for remediating the defects recommended the implementation of interim measures in the short term. The interim measures scheme, which opened for applications on Monday, will be administered by the Housing Agency on a nationwide basis. The scheme will provide for the full funding of interim measures in order to provide an acceptable level of fire safety in buildings, pending completion of the full remedial works. Full remedial works will be funded under a statutory scheme that will be legislated for next year. Work is already underway in the Department on drafting this legislation. The Irish Times, 11th December
Cost-Rental and Social Housing Approx. 3,000 cost-rental and social homes are to be built at sites across Dublin by housing charity Respond in the largest mixed-tenure housing programme undertaken since the property crash more than a decade ago. Just under half the homes will be cost-rental housing while the remaining homes will be allocated to people on the social housing waiting lists of the Dublin local authorities in the areas where the homes will be built. The first tranches of homes, just over 1,800 of the 2,906 total, will be built at four sites in the north and west of the city, in the Dublin City, Fingal and South Dubin County Council areas. The largest development will be in the Fingal area at Charlestown, north of Finglas village, where 590 apartments are to be built at Pipers Square, of which 284 will be cost-rental homes with 306 social homes. All of the four developments will be on-site in 2024, Respond said, with locations for the remaining 1,099 homes announced in the new year. The Irish Times, 12th December
BNP Paribas Real Estate Ireland Construction Report Activity in the construction sector fell for the fifth consecutive month in November, according to new analysis by BNP Paribas, with housing output decreasing to the largest extent since April. The headline BNP Paribas Real Estate Ireland Construction Total Activity Index – which tracks changes in the total volume of construction activity compared with one month previously – slipped further away from the no-change 50.0 mark last month, posting 44.5. This was down 6% MoM, pointing to the most marked reduction in construction activity in 2023 so far. A slowdown in the economy, the completion of projects and delays in decision making at client level were identified as factors leading activity to fall. House building declined a further 3.8% MoM, according to the data. Figures from the Department of Housing show construction commenced on 2,624 homes in October, up 42.5% on the same month last year. The commercial property sector, meanwhile, fell back into a state of contraction after returning to growth in October. The Business Post, 11th December
Dublin Airport The owners of the 260-acre block of land between the runways at Dublin Airport are expected to make a decision regarding its future early in the New Year. The block of land remains on the market for sale but it’s understood a decision on the site’s future will be made by the landowners in January. Aviation tycoon Ulick McEvaddy and his brother Des, along with Seán Fox and Brendan and Orla O’Donoghue, were considering applying for planning permission for a third terminal on the site by the end of this year. The consortium are hoping to sell the block of land, which has been described as a strategically located asset, for €210m or more. A number of bids have already been received for the land, including a €75m offer from DAA that has been rejected. The Business Post, 11th December
Newbridge, Co Kildare An Bord Pleanála has given the green light to drinks giant Diageo to construct its planned €200m brewery for Newbridge. The new facility, which will operate 24 hours a day, will brew lager and ales including Rockshore, Harp, Hop House 13, Smithwick’s, Kilkenny and Carlsberg. In a statement on Monday, Diageo said that it expects to commence construction work on the project “in early 2024″. The Irish Times, 11th December
Dún Laoghaire, South Co Dublin The refurbishment of Dún Laoghaire Baths, which more than doubled in cost from an initial €8.7m to €18.2m, has been criticised in an audit by the Local Government Audit Service. The statutory audit report on Dún Laoghaire Rathdown County Council’s spending for 2022 also found rates arrears owed to the council increased to €25.3m in the year, up from €21.4m in 2021. The audit further found housing rents owed to the council increased from €5m to €5.4m during the year. Referring to the baths project the audit service report said a “more defined” and “comprehensive” project brief could have “identified unforeseen costs” as “required by the public spending code”. The baths, which date from 1843, closed in 1997, and were the subject of a 17-year campaign by locals to have them refurbished and reopened to the public. After a five-year work programme the baths reopened last December. The audit noted the council secured a grant of €1.1m for the project from the European Regional Development Fund and had “reacted in a timely manner to control the increasing costs by seeking legal advice”. The Irish Times, 12th December
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St Stephen’s Green, Dublin 2 Kennedy Wilson is said to be weighing up the disposal of The Shelbourne hotel in Dublin for €260m. The US investment firm has reportedly appointed Eastdil Secured to sound out buyers for a 50% stake in the hotel for approx. €130m. However, the company is also considering offloading the entire property, which was valued at €236m, according to accounts filed earlier this year. It bought the hotel located on St Stephen’s Green in 2014 for €138m in a distressed sale at a significant discount. Later, the company invested €36m to refurbish the premises between 2015 and 2017. The 265-bedroom property generated higher income this year on the back of increased visitor travel since the pandemic, achieving approx. €15.3m. The Shelbourne hotel is the only operating hotel fully owned by Kennedy Wilson. The hotel is under a management agreement with Torriam Hotel Operating Company, a Marriott subsidiary, which will expire in 2026. React News, 4th December
Stephen’s Lane and Dame Street, Dublin 2 Investment manager Colm Wu has sold two Dublin South City Centre properties. 37 Dame Street has sold for €2.3m which is a discount to the €2.8m which was quoted for the premises when it was offered for sale last year. The premises is well located, between Trinity St and South Great George’s St, and opens to the rear onto Dame Lane with its Stag’s Head bar. Extending to 6,818 sq. ft, it comprises a five-storey former house over a concealed basement. The former Dobbins property at 15 Stephen’s Lane was in need of significant refurbishment and sold for €850k, which was a 43% discount to the €1.5m sought for it early last year. A mews style property, it is believed to have been bought by a builder and is well located between the two Mount streets. A purpose-built two-storey restaurant building, it extended to 3,778 sq. ft with capacity for more than 100 covers. Robert Colleran was the agent handling both sales. The Irish Independent, 30th November
JLL Hotel Report According to JLL, robust hotel market demand is evident by key indicators such as Dublin Airport reporting record passenger numbers with over 120k passengers travelling through the two terminals on Sunday, July 30th. Passenger volumes remain strong, with 2.8m passengers in the month of October, a 4% increase on the same month last year. This is reflected in the performance of the hotel sector. In June, for instance, Dublin city achieved a 91% occupancy level, a record €258 average room rate, and a RevPAR of €234. This broke the existing RevPAR record set, when 400k people attended the Garth Brooks concerts in Croke Park in September 2022, by 8%. In a year when investors have questioned the fundamentals of other real estate sectors, hotel investment volumes remain strong, with JLL forecasting more than €500m worth of transactions. Should this figure be achieved, it would represent an increase of approx. 20% on 2022. The profile of buyers for the first half of the year was predominately comprised of high-net-worth individuals and hotel operators. Q3 was a quiet and uncertain period, with back-to-back increases in interest rates. The Irish Times, 4th December
Ballymahon, Co Longford Center Parcs has secured planning permission for a €100m expansion of its holiday village at Longford Forest which includes approx. 200 new lodges. An Bord Pleanála rejected an appeal by a number of parties including an environmental group against plans by the UK-based operator of leisure resorts for a major expansion of accommodation and leisure facilities at its Irish centre. The board has upheld last year’s decision by Longford County Council to approve the construction of 198 new lodges across three zones at its Longford Forest resort outside Ballymahon. The expansion of the 395-acre holiday village also includes external saunas and pods, a new lakeside restaurant and coffee shop as well as an extension of several existing restaurants and additional staff facilities. A new car park will provide 313 parking spaces for staff vehicles. Longford Forest currently provides 466 self-catering lodges and 30 apartments. The Irish Examiner, 30th November
Walkinstown, Dublin 12 Colliers has concluded the off-market sale of an ultra-modern Bank of Ireland premises in Walkinstown, Dublin 12 for €4.175m (NIY 6.42%; €352 per sq. ft) to French fund FPS Europe +, a specialised professional fund owned by MNK Partners. The premises at 177 Drimnagh Road, which comprises a part single and part two storey detached premises, spans 11,830 sq. ft. The property is let on a FRI Lease to Bank of Ireland from October 24th, 2012, for a term of 25 years, with no break options. The lease is subject to five-yearly fixed rental uplifts of 15%. The passing rent is €294.9k pa with the next fixed uplift in 2027, at which point the rent will increase to €339.16k pa. The final rental increase to €390k pa in 2032 will provide the new owner with an increased return of over 8.4%. The Business Post, 2nd December
Applegreen and M&S are significantly extending their partnership, signing a ten-year deal that will add up to 60 new M&S Food service points at Applegreen locations. Fifteen new outlets will be open by the end of 2024, adding to the five already in operation, and all of the new outlets will also offer click and collect services for M&S Clothing and selected homeware ranges. The first M&S Food shop at an Applegreen opened last November at Mountgorr in Swords in North Co Dublin. Further outlets were added in Booterstown in South Dublin, Celbridge in Co Kildare, Kinsealy in Co Dublin and the M11 services area at Cullenmore, in Co Wicklow. The first of the new stores will be in Louth, Meath and Limerick, with other locations to be announced throughout the year. The outlets carry a range of up to 400 M&S products including fresh fruit, salads, Irish sandwiches and dinner options. The Business Post, 4th December
Rialto, Dublin 8 Plans have been lodged for a €26m mixed-use Large Scale Residential Development (LRD) development in Rialto. The project is located at the former G4S property on Herberton Road. The plans, submitted by Herberton Road Development Limited, propose the construction of 120 apartments and a community cultural space. It incorporates studios, co-working space, meeting room and a reception area. The Business Post, 1st December
Clongriffin, Dublin 13 Developers Gannons are selling a mixed-use investment in Clongriffin which comprises eight commercial units and five residential apartments. Joint agents Knight Frank and Colliers are quoting €1.715m (gross yield 10.1%) for the properties which are spread between premises on Main Street and Park Avenue in Clongriffin. Five of the commercial units are occupied and generating €82.1k pa. The current tenants in situ include a Centra convenience store, a restaurant, barbers and beauty salon and a community hub. The five apartments consist of three-bedroom apartments, four of which are within blocks on Park Avenue and one which is located in a block on Main Street. The apartments extend on average to 1,040 sq. ft and are privately let and generating a gross income of €101k pa. The Irish Independent, 30th November
Drimnagh, Dublin 12 Plans from a Conor McGregor company to build a 113-unit apartment block in his native Drimnagh have attracted opposition from locals, including a couple in their 80s. Emrajare Ltd lodged plans for the eight-storey, mixed-use development with Dublin City Council last month. They would involve the demolition of the Marble Arch pub that MMA fighter Mr McGregor bought two years ago, reportedly paying up to €2m. The LRD application also foresees the demolition of warehouse buildings/structures on the 0.72-acre site, with Emrajare to build a restaurant/bar/cafe, a gym and a retail unit in addition to the apartment scheme. The Marblearch LRD apartment element would consist of 57 two-bed units, 53 one-bed units and three studios. The Irish Times, 29th November
Castleforbes Business Park, Dublin 1 Eagle Street Partners has started construction of 702 apartments at Castleforbes Business Park in Dublin’s North Docklands. Catering for the private rental and social and affordable housing markets, the development will, upon completion, comprise 508 studios and one-bed units, 179 two-bed apartments and 15 three-bed apartments distributed across eight blocks with an 18-storey residential tower as its centrepiece. It will also include community and public amenity space and an adjacent hospitality offering. Eagle Street Partners is delivering the docklands development in a joint venture with Nuveen Real Estate and the Australian superannuation fund Hesta. Nuveen is acting as investment adviser to the joint venture while Eagle Street will act as developer and operator of the 702 rental apartments, under its resident space operating platform. The residential block is being financed by Apollo Global Management. The first phase of the scheme is expected to reach practical completion in the third quarter of 2025. The Irish Times, 30th November
Housing Initiatives According to Hooke & MacDonald, the Irish government’s Housing for All strategy is starting to make a significant difference across a number of areas of the housing sector. More than 40,000 first time buyers have secured their first home as a result of the Help-to-Buy initiative since its introduction in 2016; and the 16-month-old First Home (shared equity) Scheme has seen its 1,000th facility drawdown last month. The Croí Cónaithe (Cities) scheme aims to bridge the current “viability gap” between the cost of building apartments and the market sale price. Local authorities, the Land Development Agency and Affordable Housing Bodies are being funded by the government through a wide range of measures to supply subsidised housing for rent and to own. The one area that is currently not functioning properly is the private rented sector, which is made up of mostly smaller landlords (over 80%). Commentators and the Housing Commission have pointed towards a requirement to build 50,000 to 60,000 new homes per annum in Ireland to meet current demand. The Business Post, 2nd December
Portlaoise, Co Laois Laois County Council has granted planning to Marina Quarter Limited for a €33m LRD at Dublin Road, Ballyroan in Portlaoise. The project will consist of 175 houses in a mix of two, three and four-bed units and 20 one-bed apartments as well as a crèche and two ESB kiosks. The Business Post, 1st December
Athlone, Co Westmeath Plans are in the pipeline for a €30m LRD in Cornamaddy, Athlone. The development for Glenveagh Homes Limited proposes more than 170 units in a mix of apartments and houses. A decision is due in early 2024. The Business Post, 1st December
Rathdrum, Co Wicklow Works have begun on a €20.2m residential development in Knockadosan, Rathdrum. The project for Oakway Homes involves the construction of 88 houses and four apartments. Regan Construction has commenced work on the first 19 houses. The Business Post, 1st December
Drogheda, Co Louth Louth County Council has just given the green light to Sionna Homes Ltd for a large residential development on a site which extends to approx. 9.39 acres, on lands at Boyne Road, Drogheda. The €39m project will see the construction of 42 houses in a mix of 22 three-beds, 20 four-bed units and 150 apartments. The latter will comprise 95 two-beds and 13 three-bed apartments. The Business Post, 1st December
Bundoran, Co Donegal Works are to begin imminently on a €10m social housing development at Gort na Gréine, Drumacrin, Bundoran, Co Donegal. The project is being built by Garyaron Homes Limited and includes the construction of 22 houses and 20 apartments. The Business Post, 1st December
Dominick Street Upper, Dublin 7 Fresh plans have surfaced to convert the Hendrons Building, a long-abandoned machinery workshop in Dublin 7, into apartments. The building, a modernist protected structure near the city centre, is owned by developer Eugene Carlyle. An application to redevelop the building into apartments has been filed with Dublin City Council by Phibsborough D7 Development Limited, a firm linked to Cafico International, a financial advisory business. The proposal for the building detailed plans to build a mixed-use development of 93 apartments across three residential blocks. The plans also include a café or retail unit, outdoor seating and a play area. A decision on the proposal by Dublin City Council is expected next year. The Business Post, 28th November
Cleeves Riverside Quarter, Limerick The “masterplan” for a major redevelopment of the former Cleeves factory site, which will see the grounds transformed for residential and commercial use, has been unveiled. Plans for the Cleeves Riverside Quarter development include the construction of up to 290 residential units on the historic industrial site, with scope for a further 275 residential beds for student accommodation. The project – which has been described as the “largest inner-city project ever undertaken in Limerick and one of the largest in the State” – is estimated to cost upwards of €500m, with a commitment of €35m already in place under the Urban Regeneration Development Fund (URDF). Limerick Twenty Thirty, the developer behind the project and a planning subsidiary of Limerick City and County Council, will seek expressions of interest for individual aspects of the plan in the new year. Limerick City and County Council purchased the grounds in 2014 and 2017 for a total of €4.1m. The Business Post, 28th November
Land Development Agency (LDA) The Coalition is close to a deal to provide “up to €3bn” in new funding for the LDA, giving it the firepower to build 5,000-6,000 new homes in the next three years. Although the LDA was set up as a State body to build social and “affordable” housing on public land, it has been criticised for the slow delivery of homes. The new money is approx. half the €6bn mooted when Minster for Housing Darragh O’Brien pushed to deploy a major portion of the State’s corporation tax windfall for social and “affordable” housing. But senior Government sources said the LDA never needed that entire sum in a single swoop, insisting the new package would be enough to fund its work through the early years of a new business plan for 2024-2028. In a deal under discussion at the Cabinet subcommittee on housing, the agency will receive an initial round of funding for 2024 until 2026. Also under discussion is a further injection from the Ireland Strategic Investment Fund, a separate sovereign wealth fund from which the LDA’s first €1.25bn was drawn. With agreement now in prospect on money for 2024-2026, the arrangement assumes the LDA will use such funds to deliver between 5,000 and 6,000 new homes by 2027. That is in addition to the pipeline of just over 3,000 homes committed under the first €1.25bn. The Irish Times, 5th December
Cherry Orchard, West Dublin Plans for more than 700 social and cost-rental homes in Cherry Orchard in west Dublin, in blocks of up to 15 storeys, have been submitted to An Bord Pleanála by the Land Development Agency (LDA) and Dublin City Council. The 547 cost rental and 161 social housing apartments represent the first phase in the development of more than 1,100 homes on a large land bank just north of Park West railway station and to the east of the M50. The apartment scheme is the largest joint project undertaken by the LDA and the City Council to date. The apartments are proposed in 16 blocks ranging in height from four to 15 storeys, with 28 studios, 263 one-bed, 368 two-bed and 49 three-bed apartments. With the Cherry Orchard area dominated by two-storey social housing, the new development is designed with a majority of cost-rental homes for low- and middle-income workers. The Irish Times, 1st December
Housing Construction Builders could complete more than 33,000 new homes in the Republic next year, say European forecasters. Industry forecaster Euroconstruct estimates that approx. 31,000 new homes will be built here this year, boosting Government claims that the final figure will top its 29,000 target. Euroconstruct says that the Republic could build 33,450 new houses in 2024, lending weight to industry and Government predictions that it will be a particularly strong year for residential construction. The organisation, which operates in 19 European countries, says the Republic will be the only one where building will grow strongly next year “up 7.9% during this period”. The Irish Times, 1st December
Peter McVerry Trust Minister for Housing Darragh O’Brien has said there was “no question” that the Peter McVerry Trust would need to be restructured in the future, after the Government had to bail out the homelessness charity. Mr. O’Brien received Cabinet approval this week for up to €15m in “exceptional” emergency funding for the charity, which has been battling a major financial crisis over recent months. The bailout will be paid to the charity in phases between now and March 2024, with the first tranche of approx. €4m to be released this week. There would be “conditions attached” to the State funding, which the Minister said he would lay out in correspondence sent to the charity. The Irish Times, 30th November
Church Street and Hammond Lane, Dublin 7 Plans for the construction of a purpose-built family court complex on a vacant Dublin City site bought by the State approx. 30 years ago have finally been published by the Office of Public Works. The Dublin Family Court complex will be constructed beside the Four Courts on a large derelict site in Smithfield bordered by Church Street, Hammond Lane, Bow Street, and the Red Luas line. The complex of 19 court rooms will replace the existing fragmented facilities for family law at Dolphin House, Chancery Street, Phoenix House and the Four Courts. The building, which will rise to six storeys, will include consultation spaces, staff and judicial accommodation, public waiting areas, space for mediation and domestic violence support services, accommodation for legal practitioners, and custody facilities. The development of the complex, which will rise to six storeys, is expected to cost more than €100m and has been dogged by delays since the site was acquired by the State in the late 1990s. The Irish Times, 30th November
JLL Report Annual returns on direct investment in Irish property recorded the largest decline in more than a decade, a new report from JLL Ireland has shown. The latest JLL Irish Property Index showed that annual returns “experienced a significant drop” of 9.7% YoY in the third quarter of 2023 – the largest decline recorded in the property investment market since the second quarter of 2010, according to the property investment manager. On a quarterly basis, values in the property investment market are down 1.3% in overall returns compared to the previous quarter. The current report assessed a typical institutional investment portfolio worth approx. €647m, which is weighted 53% offices, 19% retail, 15% industrial and 13% residential. The latest JLL analysis shows that that the rate of decline in property valuations QoQ has eased, after investment returns dropped 2.1% in Q2. Further analysis of the sample portfolio used by JLL Ireland showed that the capital value declined by 2.8% QoQ and decreased by 14.7% YoY. Rental values for office sector properties have remained stable across the last four quarters, with no significant changes. Meanwhile, retail’s rental values have recorded the first annual increase for the first time in ten quarters, up 2.5% YoY. The Business Post, 28th November
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Liberties, Dublin 8 German investor Deka Immobilien Investment has returned to the acquisition trail in Dublin with a deal for a new hotel in the city’s Liberties area. According to market sources Deka has agreed to pay c. €36m on a forward-commitment basis to secure ownership of the property. Upon completion in 2023, the new hotel will comprise 151 bedrooms along with three retail units. The hotel, which has been pre-let on a long-term lease to Premier Inn, forms part of the wider Newmarket Yards mixed-use scheme. The development will also include 413 apartments along with associated amenities. Newmarket Yards is being delivered by Carey Issuer, a company owned by Bain Capital. The Irish Times, 14th December
Clontarf Castle, Dublin 3 Turnover at Clontarf Castle, the four-star hotel, remained at only one-third of pre-pandemic levels last year, even as the business began rebuilding after a Covid-struck 2020. Accounts filed by Clontarf Castle Limited show that revenues grew slightly in 2021, rising to €4.96m from €4.1m the year before. At the end of 2021, the company had made an after-tax profit of €541k, the accounts showed, up from €334.4k in the previous year. In 2019, turnover at the business came to €12.5m, while its profits after tax totalled €3.1m. Clontarf Castle is owned by Tifco, the country’s second largest hotel operator, which has c. 3k bedrooms around the country. The Business Post, 16th December
Smithfield, Dublin 7 Lender GWM Group has refinanced a new hotel in Dublin with a €58.5m loan. The facility, from GWM’s Commercial Real Estate Debt Opportunities fund (Credo), replaces a construction loan sponsor JMK Group used to deliver a 249-room Hampton by Hilton-branded hotel in the city centre. React News, 19th December
Sandyford, South Dublin Singapore-headquartered real estate investment trust Mapletree has achieved 96% occupancy at its Nova Atria office scheme at Sandyford in south Dublin. Avant Money has signed a 10-year lease for 10,527 sq. ft on the penthouse floor of the development’s north block. The remaining 11,000 sq. ft of office accommodation on this level is in the process of being refurnished and will be available for occupation in spring 2023. Acquired by Mapletree for €167m in 2019, the Sandyford scheme comprises a total of 339,000 sq. ft of space distributed across two six-storey blocks, Nova Atria North and South. The rent agreed for the office scheme is understood to have been between €55 and €60 per sq. ft. The Irish Times, 14th December
Dublin Mason Hayes & Curran (MHC) is weighing up options for a new 140k sq. ft office in Dublin. MHC has mandated Savills to review potential sites in the centre of the Irish capital that can accommodate between 120k sq. ft and 140k sq. ft. React News, 14th December
Fairview, Dublin 3 Dublin City Council has approved plans for a 118-unit apartment scheme for Fairview on Dublin’s north-side despite some local opposition. The council has given the green light to Banner A Cuig Ltd for the three-block scheme, with two blocks rising to five storeys, under the new Large-scale Residential Development (LRD) planning process at a site at Fairview Strand and Esmond Avenue. The scheme comprises 57 one-bedroom units; 55 two-bedroom units and two three-bedroom units. The plan also includes an additional four units through the reinstatement of two homes at 61 and 63 Fairview Strand. Third parties can now appeal the decision to An Bord Pleanála. The Irish Times, 16th December
Chartered Institute of Building (CIOB) Report The government should defer stamp duty for investors looking to retrofit and flip properties in order to address “alarming” low levels of refurbishment, a new CIOB report has said. The paper outlined that property investors are “quite receptive” to changes to stamp duty and deferring the payment could encourage institutional funds to fix up older, less energy-efficient stock. Ireland’s built environment, which includes buildings, utilities infrastructure and transportation systems, contributes c. 40% of Irish carbon emissions. Within that sector, residential housing accounts for 43% of emissions, meaning homes account for 16% of national emissions. The government has previously used stamp duty changes to limit investor activity in the housing market. Since May 2021, investors who buy more than ten homes in a year are subject to a 10% stamp duty rate, instead of 1%. The Business Post, 17th December
Macquarie, the Australian bank, has established a €100m fund to buy homes in Ireland, new financial documents have shown. Broadstone Housing Investments Limited, an Irish entity controlled by the bank, has already started to use the funds to acquire second-hand homes in Carlow. The properties were sold to the Macquarie entity by Peppard Investments. The document added that the €100m would be put towards property acquisitions. It said more than €3.4m had been drawn down from the fund so far. The Business Post, 17th December
Irish Mortgage Arrears Central Bank of Ireland figures show the number of principal dwelling house (PDH) accounts behind in their payments fell by 342 in the third quarter of 2022, following a decline of 2,071 accounts in the previous quarter. At the end of September, c. 4.3% of all PDH mortgage accounts were in arrears of at least 90 days, representing 30,809 mortgage accounts. The total number of accounts in arrears was 45,746. The figures, however, show the number of cases of arrears of less than 90 days rose by 494 to 14,937. The outstanding balance on PDH mortgage accounts in arrears of more than 90 days equated to €6bn, equivalent to 6% of the total outstanding balance on all such mortgage accounts. Accounts in long-term mortgage arrears, behind for more than a year, accounted for 52% of all accounts in arrears but they also declined by 998 over the quarter. 16% of Irish home loans were in the hands of nonbank entities as of the end of the reporting period. The figures showed that 74% of PDH mortgages in arrears for over a year were held by nonbank entities. The Irish Times, 16th December
Rialto, Dublin 8 Fire safety defects have been detected throughout the Herberton apartment complex in Dublin’s Rialto, with remedial works required for up to 500 homes at an expected cost of several million euro. The large-scale estate of apartments and houses, built on the site of the Dublin City Council flat complex Fatima Mansions, is one of the largest city council regeneration projects to date, and among the few to have continued construction throughout the collapse of the property sector in the last recession. It has emerged in recent days that a block of apartments, sold by US real estate firm Kennedy Wilson to the council, requires “extensive” fire safety works, according to the council. Housing association Cluid has now confirmed fire defects have also been detected in blocks it owns and manages in Herberton, while managing agents for the complex say fire safety works have been required throughout the estate. The Irish Times, 16th December
Montrose, Dublin 4 Dublin City Council has granted planning permission to Cairn Homes for a major mixed-use development on former RTÉ lands at Montrose in Dublin 4, conditional on the developer paying c. €10m to the local authority. The decision, which comes more than five years after the company bought the eight-acre site from RTÉ for €107.5m, followed a lengthy process in which Cairn Homes was required to lodge a revised application in October. Cairn submitted the revised application for an even larger scheme, looking to build 688 apartments comprising 416 build-to-rent apartments and 272 build-to-sell units, a 192-bedroom hotel, 17 “age-friendly living” units and a creche facility, among other amenities across 10 blocks. Cairn is required to pay a €9.9m development contribution to the authority “in respect of the public infrastructure and facilities benefiting” the development in the area. The decision is likely to be appealed. The Irish Times, 15th December
Sir John Rogerson’s Quay, Dublin 2 The purchaser of 72 residential units in Dublin city centre is seeking €1.1m in compensation from a developer over an alleged delay in meeting certain requirements to have the properties ready by the closing of the sale, the Commercial Court has heard. Patrizia Grand Canal SARL bought the units, along with two commercial units, at Sir John Rogerson’s Quay from TIO South Docks Fund II Ltd under a €51.4m contract for sale in 2019. Patrizia says the defendant was obliged to have certain “completion deliverables” in place by last February but failed to do so and the properties were not ready until July 14th. The completion deliverables included certificates of building compliance, HomeBond certs, and the safety file for the works. The Irish Times, 19th December
The Citywest Transit Hub for refugees will be closed for new entrants over Christmas and Ukrainians thinking of travelling to Ireland have been asked to consider waiting until the new year. Ireland’s refugee reception system has been under huge pressure with more than 50k people from Ukraine and 18k asylum seekers from other countries being accommodated by the State. Many Ukrainians have made other accommodation arrangements and the number of people who have fled to Ireland from the Russian invasion of their homeland is expected to reach more than 70k by the end of the year. The Citywest Transit Hub in Dublin is used to process new arrivals before they are offered accommodation elsewhere in the country. The Irish Times, 16th December
Emergency Housing for Children The State child and family agency has been spending more than €500k a week housing children in hotel rooms, rented properties or other emergency placements, figures show. Emergency placements are used where a child is taken into State care and there is no available space in a residential or foster home, or where a previous care placement breaks down due to behavioural issues. Figures show in a number of cases Tusla is spending more than €1m a year on emergency arrangements to house some young people in care. There were 48 young people living in emergency placements in mid-November. That included 24 young people placed in rented accommodation, five in hotels, and 19 in other arrangements, such as an Airbnb letting or a Tusla property. The annual cost of the emergency placements was c. €800k per child, twice as high as the cost to house a child in a privately-run residential group home. Tusla’s internal analysis estimated the agency will spend c. €30m on emergency placements this year. The Irish Times, 19th December
Data Centres, Ireland A total of 21 new data centres are planned outside the Greater Dublin Area following the moratorium on new developments near the capital due to constraints on the energy grid. Major energy and technology companies have approached Eirgrid, the national grid operator, with plans to build 16 new, large-scale data centres, while a further five smaller-scale data centre projects are being discussed with ESB Networks, which handles connections for less significant developments. As part of the moratorium, Eirgrid and the CRU also mandated that any future developments must be built with on-site power generation to minimise their impact on the national grid. The Business Post, 17th December
Saggart, Co Dublin The owner of the Citywest hotel complex in west Dublin plans to build a large cemetery on the nearby site of former golf club lands. The 8,047-plot burial ground would be worth at least €20m, based upon the price of plots in other cemeteries in the area. Cape Wrath Hotel controlled by Tetrarch Capital, the owner of the Citywest complex, has submitted a planning application to South Dublin County Council (SDCC) for the proposed scheme. The proposed scheme also includes an office and reception building and 110 car-parking spaces. It is the second cemetery proposal from Tetrarch in recent months, following its submission of a plan for a smaller 5,806-plot facility adjacent to the Deep Park Hotel in Howth, where the company also wants to build a new hotel. The Irish Times, 15th December
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Molesworth Street, Dublin 2 The Murtagh family is poised to buy Buswells Hotel in Dublin City Centre for c. €22m. It is understood that the family has been in exclusive negotiations to buy the hotel for a number of weeks. The last accounts for the business filed in the Companies Office indicate that the hotel made a loss of €1.1m in 2020. The company was budgeting positive earnings last year. It made a profit of €900k in 2019. The Sunday Times, 11th December
Fade Street, Dublin 2 The landlord of the Market Bar in Dublin City Centre has objected to a proposed 280 sq. ft. expansion of the venue on the grounds that it would turn the popular venue into a “super-pub”. In September, Mercroft Taverns Limited, which operates the bar on Fade Street and the adjacent Chelsea Drugstore on South Great George’s Street, sought permission from Dublin City Council to open a new “tasting room” in the venue. The room, which would have space for ten people, would be created in part of a retail unit in the George’s Street Arcade that backs onto the current Market Bar premises. The Dublin city development plan has specifically outlined that so-called “super-pubs will be discouraged”. In November, the council gave the operators of the Market Bar permission to proceed with the tasting room on the basis that it “will likely create more variety and vibrancy within the premises”. The planning board is expected to make a decision on the expansion by April 2023. The Business Post, 10th December
Licensed Property Market To date in 2022, there have been 27 pubs sold in Dublin with a capital value of just over €91m, slightly ahead of the figures for 2021, when 23 pubs changed hands with a capital value of €85.65m, according to John Ryan of Bagnall Doyle MacMahon. The start of the year witnessed a brisk level of activity highlighted in particular with the completion of the sale of the TP Smith portfolio (The Auld Dubliner, The Norseman, TP Smith’s, Laguna and The 44) for a sum that was undisclosed, but is speculated to have been €34m. While activity in the second half of the year slowed considerably, the remaining two pubs in the Quinn Hospitality portfolio – JW Sweetman, Burgh Quay and The Barge, Charlemont Street – were offered for sale in the autumn, with JW Sweetman purchased for more than €5m while The Barge, at the “contract-signed, awaiting-closing stage”, achieved just below the guide price of €3.7m. There are several other pub sales either sale agreed and close to signing or at an advanced stage of the negotiating process. There are, however, some concerns on the horizon, such as the rapidly rising energy costs, food and beverages cost increases, skilled staff shortages and rising interest rates. The Irish Times, 7th December
Stephen’s Green, Dublin 2 Stephen’s Green Shopping Centre in Dublin City Centre is poised for a large expansion that will add two storeys to the existing structure, reducing the existing retail space and introducing offices. The investment will likely run to well in excess of €100m. A fund operated by the stockbroker and wealth manager Davy is preparing to submit a planning application for the redevelopment. Davy had been expected to redevelop the centre after paying a reported €175m for it on behalf of clients in 2019. The extension will bring the size of the building to just under 1m sq. ft of space, from c. 770k sq. ft. Shops, restaurants and cafés will occupy the ground and first-floor levels. Retail space will be reduced to 205,000 sq. ft, while there will also be a drop in the space given to existing cafés, restaurants and bars. More than 375,000 sq. ft will be offices. The owner also intends to reduce the number of car parking spaces by 138 to 551. The Sunday Times, 11th December
Retail Sector Rising prices, inflation and higher energy costs have impacted retailers and consumers alike during 2022, according to Eoin Feeney of Colliers. Consumer sentiment has fallen sharply, but we have not seen a significant corresponding decline in retail sales, which are still well above February 2020 (pre-Covid) levels. Covid, Brexit and UK company voluntary arrangements (CVAs) combined over 2020 and 2021 created an unprecedented spike in Irish retail vacancy levels. The hardest hit was the high-street sector. This time last year, 16 units (11% of total retail floor space) were vacant on Grafton Street. A host of leasing transactions during the year has brought vacancy down to a current level of six units (5.4% of retail floor space). Henry/Mary Street is lagging behind its southside counterpart and vacancy issues still exist. One of the largest retail buildings in Dublin city centre, the former Debenhams department store, remains shuttered. Vacancy here has fallen from a peak of 11 units (22% of retail floor space) to a current level of eight units (19% of retail floor space). Footfall has strongly rebounded in the main shopping centres and in many cases has exceeded pre-pandemic levels. This has been a record year for take-up in the larger suburban schemes with numerous major space user and anchor lettings or announcements. Rental growth will be a feature in many retail property subsectors in 2023. This is inevitable as strong occupier demand leads to competition between retailers to secure the limited number of better located and configured retail opportunities. The Irish Times, 7th December
Blanchardstown, Dublin 15 Flannels, owned by Frasers Group, is set to open its first store in Ireland, at Blanchardstown Centre in Dublin. The new space occupies 30,000 sq. ft and is located at the former Debenhams area on the ground floor. Flannels’ opening follows the recent unveiling of global brand Zara’s biggest store in Ireland, also at Blanchardstown Centre, which spans 52,000 sq. ft of retail space. React News, 12th December
Ballsbridge, Dublin 4 Meta has decided not to occupy Fibonacci Square in Dublin and will sublet 375,000 sq. ft of the development as part of a scaling back of plans for its European headquarters. The company had signed a 25-year lease on the development at the former AIB headquarters but has now instructed agents to sublet the blocks. Meta already occupies another part of the Ballsbridge campus and has begun moving staff there from its Grand Canal office building. The Business Post, 8th December
Office Market Significant increases in employment over the last two years along with the lifting of Covid-19 restrictions at the beginning of the year, resulted in a strong recovery in occupier activity, with take-up for 2022 on course to reach 2.5m sq. ft – equalling the market’s 10-year average according to Declan O’Reilly of Knight Frank. Demand for new space in city-centre locations led the way in 2022 as occupiers increasingly recognised the need to meet ESG targets and to create best-in-class workplace environments to attract and retain talent. In terms of supply, there were considerable delays with the delivery of space between 2020-2022, with some of those delayed schemes due to come to the market in 2023 – 2.1m sq. ft of space will be delivered in the city centre, of which 31% is pre-let. The combination of more cautious demand and additional supply is expected to place some downward pressure on prime rents, which are likely to slip to €65 per sq. ft throughout 2023. The Irish Times, 7th December
Rathcoole, Co Dublin The developers behind Dublin’s Greenogue Logistics Park have secured the largest, single industrial transaction of the year with an agreement to pre-let a new purpose-built warehouse to Irish-listed healthcare group, Uniphar. The new facility, which is being developed by Castlebrowne on behalf of Jordanstown Properties, will, upon completion, comprise 322,000 sq. ft of area. The Irish Times, 7th December
Housing Applications, Ireland Up to 35k homes are being held up in the planning system due to delays at An Bord Pleanála, according to figures from the Irish Home Builders Association (IHBA). No decision on strategic housing developments (SHDs) has been made since the end of October, after the board’s chairman took early retirement. Under regulations, the remaining four active board members are not allowed to make decisions on SHDs or strategic infrastructure developments. Since July, the board has decided on 563 cases, compared with 1,034 in the same period last year. The Sunday Times, 11th December
Housing Commencements There has been a decline in the number of new homes started over the past year. The rate of new homes being built on a rolling 12-month basis reached a high of 34.8k in March this year but has been in decline ever since. The number of new homes being built on a rolling 12-month basis fell to 27k at end of November 2022, compared to 30.5k this time last year. Despite the annual decline, the MoM drop off in new homes being commenced was reversed in November, when more than 2.5k new homes were started. Notices filed by developers with the Building Control Management System (BCMS), which are a signal that construction work is due to begin, showed a number of large apartment projects were commenced last month. The spate of new apartment developments being built has come at a time when many other developers have warned they will struggle to begin their own projects due to soaring construction costs and a lack of finance. The Business Post, 10th December
House Prices House prices would fall by 12% if 10k new private market homes were built annually, but climate change commitments are likely to hamper any move to boost supply, new analysis by the Economic and Social Research Institute (ESRI) has shown. The government has projected that 24k new homes – which includes social, private and one-off housing – will be built in 2022. Despite an increase in housing supply in recent years, CSO data has shown the number of new homes for sale on the open-market has stagnated at c 7.5k annually. The report by the ESRI further concluded that if overall completions rose to 35k a year, profits of construction firms would also increase by c. 0.6% and construction wages would rise by c. 1% in the long run. The Business Post, 9th December
Short-Term Letting No limit has been placed on the number of short-term letting licences that can be issued by Fáilte Ireland. Last week Catherine Martin, the Minister for Tourism, announced that property owners would be required to register each home they listed on websites such as Airbnb and Booking.com, and secure a licence from Fáilte Ireland, from early 2023. The new system has been set up in a bid to improve the regulation of 30k homes in the sector, and to potentially return up to 12k illegal short-term lets to the residential market. Property owners who let short-term without a licence could face a €300 fine. The bill has also redefined a short-term let as any property let for between one and 21 days at a time. The previous limit was a property let between one and 14 days. Residents are currently allowed to let their entire principal private residence on a short-term basis for a cumulative 90 days each year. If the 90-day threshold is breached, planning permission is required. If a house is not a person’s principal residence, the 90-day exemption does not apply, and planning permission is required. The Business Post, 12th December
BNP Paribas Report Irish construction activity decreased for the second month running in November as demand weakened amid ongoing inflationary pressures. The headline seasonally adjusted BNP Paribas Real Estate Ireland Construction Total Activity Index dipped to 46.8 in November from 47.4 in October, posting below the 50.0 no change mark for the second month running to signal back-to-back declines in total construction activity. Anecdotal evidence suggested that a drop in new orders and a market slowdown were behind the fall in activity. A combination of lower demand and price pressures led construction firms to make efforts to reduce stock holdings. BNP Paribas ROI Construction PMI, 12th December
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Cabra, Dublin 7 Knight Frank is inviting proposals for the three remaining retail opportunities at Hamilton Gardens, the new residential scheme delivered by UK-headquartered property investor and developer, Royalton, in Cabra, Dublin 7. Expressions of interest are being sought particularly for an artisan cafe, a pharmacy, and a hair/nail/beauty salon operator for the scheme. Aimed towards the upper end of the PRS, Hamilton Gardens comprises 485 one-, two- and three-bedroom concierge-serviced apartments with a range of on-site amenities. The Irish Times, 30th November
Duke Street, Dublin 2 British luxury handbag maker Mulberry has signed a lease with Hines to open a new shop on Duke Street in Dublin city centre. The company has commenced fit-out works of its new store at no. 24 and is expected to open for business in time for the Christmas trading period. Mulberry’s decision to locate on Duke Street follows a series of high-profile openings on Grafton Street and in its environs. Lego, Russell & Bromley, Skechers, and Mont Blanc have all taken stores in the area while high-end jeweller Paul Sheeran is to occupy the entire ground floor of Hines’ Chatham & King development. The Irish Times, 30th November
O’Connell Street, Dublin 1 The firm redeveloping Clerys has raised concerns that a nearby Starbucks will scare off potential cafés, and a separate prime retail unit will attract lower-quality tenants, unless the two spaces can be merged together for a large restaurant. OCES Property, which is revamping the department-store building on O’Connell Street, has asked Dublin City Council for permission to create a larger space on the ground floor that faces onto Earl Street North. Based on the planning permission granted for the development in 2016, one 700 sq. ft space on the ground floor has to be used for retail, while a separate 1,216 sq. ft unit must be used for food and beverage. A decision on the application is due to be made by the council before the end of the year. The Business Post, 3rd December
Blanchardstown Centre has unveiled international fashion retailer Zara’s newest store in Dublin, with the opening of its newest location at the centre. Comprising 52,000 sq. ft of retail space, the store is its largest location in Ireland. The brand formerly occupied a smaller unit of 14,000 sq. ft at the centre. React News, 2nd December
Co Cork and Co Louth The sales of two of Ireland’s best-known regional shopping centres are coming close to completion for c. €21m and €23m respectively. In the first instance, market sources believe that the Omniplex cinema group is set to acquire Scotch Hall Shopping Centre (guiding €21m) in Drogheda, Co Louth. The second deal meanwhile will see Urban Green Private, the real estate investment firm, secure ownership of Douglas Village Shopping Centre (guiding €21m). The first sale itself comprises 170,000 sq. ft of retail space and a vacant cinema, together with the adjoining multistorey car parks which provide 631 car-parking spaces. The sale also comprises an incomplete block with an expired planning consent. Also included within the centre is a former distillery building. In the case of Douglas Village Shopping Centre, as well as being anchored by Tesco and Marks & Spencer, the 230,000 sq. ft suburban Cork scheme counts TK Maxx, Eurogiant, Bank of Ireland and the recently opened Petstop within its tenant line-up. The centre sits on a 6.1-acre site just 3.5km south of Cork city centre. The Irish Times, 2nd December
Baggot Street Lower, Dublin 2 Leading corporate law firm, BHSM LLP (formerly Baily Homan Smyth McVeigh), has agreed a deal to relocate its offices to 76 Baggot Street Lower, Dublin 2. The firm will occupy the third floor at the landmark building on the basis of a lease assignment from Waystone. BHSM’s new offices are fully fitted out and comprise over 8,000 sq. ft of modern office space that includes a client reception area, several boardrooms and staff facilities. It is understood the passing rent is c. €50 per sq. ft with a remaining lease term of c. nine years. The Irish Times, 30th November
Hotel Outlook, Ireland The number of domestic trips by Irish residents in the summer of 2022 surpassed 2019 levels and Dublin Airport passenger numbers were 94% back to pre-pandemic levels as of October, according to Isobel Horan of JLL. Dublin city hotel market achieved a record 92% occupancy, with an average rate of €234.30 and RevPAR of €215.10 in September. This is the highest monthly RevPAR achieved in Dublin ever. Investment demand grew post-pandemic with c. €400m worth of transactions occurring so far this year and a further c. €150m under negotiation. The total investment volume for this year is likely to exceed 2021 levels. We have also seen the emergence of new transactional structures this year with the appearance of ground-rent sales with the largest hotel ground-rent deal occurring earlier this year. In relation to supply there have been several new openings across Dublin after multiple Covid delays. Where many hoteliers are reporting growth in top-line revenues, increasing energy, payroll, and other costs are affecting profitability. Lastly, a proportion of the Irish hotel stock is currently housing emergency accommodation, which has both positive and negative impacts on the sector. The Irish Times, 5th December
Cashel, South Tipperary Tipperary County Council has received 56 planning objections to the plan to build the Cashel Palace in Cashel in South Tipperary, in two buildings, each one-and-a-half storeys in height. The council’s decision is due on December 19th. The Irish Times, 3rd December
Hatch Street, Dublin 2 A long-standing plan to deliver a five-star boutique hotel at Hatch Hall, the former university residence hall on Hatch Street, Dublin 2, is set to be delayed further following the decision by its owners to sell the property. Just six months after it secured planning permission from An Bord Pleanála to convert and extend the Victorian building into a 60-bedroom hotel, Ashford Castle owners, Red Carnation Hotels, has instructed CBRE to offer it for sale. According to market sources, CBRE is seeking offers of c. €25m – €5m more than Red Carnation paid in 2019 to secure ownership of the property without its current planning permission. The Irish Times, 30th November
Dunboyne, Co Meath Davy Real Estate, has purchased Dunboyne Castle Hotel & Spa in Ireland on behalf of TMR Hotel Collection for a price in excess of €25m. The hotel, which has 145 rooms and a mews building with ten units, was sold off-market after 16 years in private family ownership. TMR Hotel Collection, a portfolio of Irish Hotels owned by investor Thomas Röggla, has appointed Windward Management to operate the facility. React News, 5th December
Crumlin, Dublin 12 11 St Agnes Road in Crumlin, Dublin 12, which is currently in use as a logistics facility by the State’s postal service provider, An Post, is being offered to the market by TWM at a guide price of €4m. As part of the deal, An Post will enter into a licence agreement with the purchaser on a short-term basis at market-level terms while the party in question seeks to secure planning permission to enhance the value of the asset. The property currently comprises a single storey building with a service yard which extends to 8,670 sq. ft. The building sits on a site of 0.44 acres and is zoned Z4 District Centre under the current Dublin City Development Plan. It is proposed to change this designation to Key Urban Village under the terms of the new plan, covering the period from 2022 to 2028. The Irish Times, 30th November
Dundalk, Co Louth Urban Green Private, the real estate investment firm, has secured planning permission from Louth County Council for the development of a single warehouse of 401,375 sq. ft along with parking for 50 heavy goods vehicles (HGVs) at Dundalk North Business Park. Urban Green Private paid €8.9m – or upwards of €330k an acre – to secure ownership of the 27-acre Dundalk site from the McWilliams Group in July of this year. The McWilliams Group is seeking buyers for the 54 acres remaining at Dundalk North Business Park. The lands are being offered to the market by joint agents CBRE and Property Partners Laurence Gunne on a site purchase or build-to-suit basis. The overall scheme has full planning permission for the development of 1.3m sq. ft of industrial and logistics space, along with a petrol filling station. The Irish Times, 30th November
Industrial & Logistics Sector Investors still favour the industrial and logistics asset class due to its strong fundamentals and have money to deploy in this sector, according to Kevin McHugh of Harvey. So, while 2022 will be a strong year for industrial and logistics investments, this will be mainly as a result of its performance in the first half of the year. Conversely, industrial and logistics occupier demand continues to outstrip supply, with the current vacancy rate standing at 1.5%. Industry challenges include energy, wage and raw materials inflation, weaker consumer sentiment, increased borrowing costs and supply-chain disruption. One of the few favourable developments recently was the dramatic fall in the cost of shipping containers which, according to Drewery Supply Chain Advisors, has dropped by 74% since November 2021. Occupiers’ ability to handle these difficulties so far is reflected in the take-up figure for 2022, which is likely to reach 4m sq. ft. Prime rents now range from €11.25 to €11.75 per sq. ft, but these are likely to be significantly higher in 2023, owing to rising build costs, higher investment yields and the supply/demand mismatch. New-build completions for 2022 will likely be close to 2m sq. ft. The Business Post, 3rd December
St Stephens Green, Dublin 2 Irish flexible workspace provider Grafter is to open its latest location at 6-7 St Stephen’s Green in Dublin city centre. The landmark Smyth House, the former flagship premises of UK fashion retailer Topshop, is set to become the company’s first combined office, retail and cafe offering, and will be open to the public as well as members. The property is owned by developer Paddy McKillen jnr and Matt Ryan’s Oakmount, who acquired it earlier this year from Iput for c. €17.25m. The Irish Times, 30th November
Beaumont, Dublin 9 Bartra Capital and Dublin City Council remain locked in “intensive discussions” over when work on more than 1,000 homes at O’Devaney Gardens in Dublin will commence, c. six months after construction was due to begin. The plans to redevelop O’Devaney Gardens have been beset with setbacks since the site was transferred to Bartra in 2019. Following the transfer the firm opted not to proceed with a fully-approved planning permission for 800 homes on the lands, and instead applied to build 1,044 homes in August 2020. That application faced several delays, and when a final decision on it was made by An Bord Pleanála, progress was further delayed when the planning board’s decision was judicially reviewed in November 2021. The legal challenge was filed by Bartra in a bid to overturn a ban on the sale of 524 homes being developed on the site to institutional funds. In June, councillors were told development of the 1,044 homes at O’Devaney Gardens would commence that month because Bartra had been successful in its legal case. But no construction work has commenced and no contractor has been appointed. The Business Post, 3rd December
Development Land Sector A sharp slowdown in development land sales was seen in the year to date with c. €470m worth of land changing hands in the markets which include the Greater Dublin Area, Cork, Limerick and Galway. According to research from Cushman & Wakefield, this represents a decline of c. 72%. This contrasts sharply with house price trends which saw near double digit increases over the last two years. The reduction in the numbers of development land deals can be attributed to a range of factors which are creating uncertainty. These include discrepancies between national and local planning policies as well as increased numbers of judicial reviews taken against approved planning applications. Currently, when analysing zoned lands for developments, pre-construction timelines on site are anywhere between 18 and 42 months, which amasses significant viability issues on projects. The Irish Independent, 1st December
Ailesbury Road, Dublin 4 The Republic of Austria and residents on Ailesbury Road in Dublin 4 are objecting to new “high rise” plans for 688 apartments on former RTÉ campus lands. Last month, Cairn Homes lodged the Large Scale Residential Development (LRD) application with Dublin City Council. It also includes a 192-bedroom hotel, with the apartments comprising 416 build-to-rent units and 272 build-to-sell units. The scheme is to be built across 10 blocks, with the block containing the hotel, reaching to 16 storeys in height. These plans represent Cairn’s second attempt to build on the lands that it purchased for €107.5m in 2017. A previous planning permission granted by An Bord Pleanála was quashed by the High Court on the back of an action taken by three local residents. A decision is due on the application later this month. The Irish Times, 1st December
Investment Outlook, Ireland With interest rates increasing and high-profile lay-offs in the tech sector, some institutional investors have hit the pause button, waiting for greater levels of transparency on pricing before re-entering the market, according to an article by Adrian Trueick of Knight Frank. This has resulted in lower transaction volumes in the final quarter, traditionally the busiest time of the year. Despite this, due to the strong performance in the earlier part of the year, total investment spend for 2022 will exceed €5bn (the third highest level of investment activity on record). Although some investors are sitting on the sidelines, others are taking the opportunity provided by reduced competition and higher returns to secure attractive deals. Although volatile borrowing costs are impacting pricing, with prime yields in both the office and private rented sector (PRS) markets increasing by 25-50 basis points (bps), there are indications that the slowdown in transactional activity may be relatively short-lived, with demand for Irish assets likely to rebound by the second quarter of next year. The Irish Times, 5th December
Investment Outlook, Ireland In a related article, Michele McGarry of Colliers noted that the commercial real estate landscape changed dramatically in the months between the industry’s two main international annual conferences (MIPIM, in France in March, and Expo Real, in Munich in October). This change and the uncertain landscape were in essence a reflection of geopolitical situations: the continuing war in Ukraine, the energy crisis, rapidly rising interest rates, rampant inflation, and climate change concern among other factors.
While it was noted that the market was not yet seeing distress, it may come in certain instances. Some buyers who took out five-year debt terms in 2017 or 2018 – when more than €6bn was invested – may struggle to refinance in the current, more expensive debt market and will have to release stock to the market. On the flip side, across all sectors, the market needs more transactional activity, and this is one way we are going to get it. There is no doubt that buyers want to see price adjustments as they are experiencing in other jurisdictions. Pricing will be impacted, by how much is yet to be seen. The costs of funding will remain an issue in the context of rising interest rates and the fact that we now have just two pillar banks in Ireland is not helpful. This will no doubt impact investment activity, although with high levels of global capital in the market and new funds targeting Ireland, overseas investment should remain robust. The Irish Times, Tuesday 6th December
Blanchardstown, Dublin 15 AstraZeneca’s new pharma manufacturing facility in Dublin is likely to be significantly larger than the company first planned and could now cost up to €600m. The Anglo-Swedish company announced in September last year that it would build a next-generation active pharmaceutical ingredient (API) manufacturing facility at its Alexion campus in Blanchardstown. At the time it said the project, which will be AstraZeneca’s first manufacturing facility in Ireland, would cost over €300m to build. The Business Post, 3rd December
Dublin Microsoft plans to build a large-scale gas power plant as part of a new €900m data centre development in Dublin due to its concerns about the severe constraints on Ireland’s energy grid. The planned investment will bring the total number of data centres operated by the US tech giant in Ireland to 15. Microsoft plans to construct a 170-megawatt (MW) on-site power plant alongside 21 diesel generators in a bid to offset the high-energy demand from the facilities. Microsoft said its data centre facility would consist of two buildings called Dub 14 and Dub 15, which were granted planning permission in May 2021, and will have a total footprint of close to 145,000 sq. ft each. It said the total investment required to build the two data centres and the standby gas plant will be €875m. The Business Post, 3rd December
College Green, Dublin 2 The cost of developing a civic plaza for Dublin’s College Green is set to soar, with Dublin City Council advertising a €10m contract for its design, which does not cover construction costs. The previous plans for the pedestrian and cycle plaza, submitted to An Bord Pleanála in 2017, were given an estimated cost of €10m by the council. However, this figure was to cover both the design and construction of the scheme. The new tender advertised this week by the council will cover only its design, with an indicative value of €10m. The Irish Times, 3rd December
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