IRES Tallaght: IRES REIT has revealed that they have reached an agreement with NAMA to purchase a mixed use development in Tallaght, Dublin 24 for c. €83m. The development comprises 442 apartments, 197,460 sq. ft. of commercial space and an underground car park. The apartments consist of 161 one-bed, 237 two-bed and 44 three-bed units. Goodbody Stockbrokers noted that after the acquisition IRES would still have c. €200m to spend on further investments. The Irish Times, 17th December
One Spencer Dock: US investment fund Hines is understood to be the favourite to purchase One Spencer Dock in Dublin’s North Wall Quay, after bidding close to the guide price of €240m. The underbidders are IPUT and an investment company linked to Alan McIntosh. One Spencer Dock is a nine storey office block with a floor area of 226,624 sq. ft. and is let to PWC on leases which have c. 16 years remaining. The rent is understood to be in excess of €11m p.a. (c. €50 psf) The Irish Times, 16th December
3GCQ Building: A refurbished Victorian warehouse on Grand Canal Quay in Dublin’s south docklands is being offered for rent as office space by agents Murphy Mulhall for €850k p.a. The property, which is owned by Denis O’Brien and known as 3GCQ, contains c. 10,484 sq. ft. of office space on the ground floor and c. 8,611 sq. ft. of additional space on the lower ground floor. Since purchasing the property in 2012, Denis O’Brien has spent over €3m on its restoration. There are also five car spaces available to rent with the property. The Irish Times, 16th December
Tara Towers: Following the recent announcement that Dalata has been chosen as the preferred bidder for the Tara Towers hotel, Dalata has stated its intention to invest €4.5m renovating the hotel. Dalata is to pay €13.1m for the three star hotel, with the deal expected to close in January. Once the deal has been completed, the hotel is to be brought up to a four star standard and rebranded as a Maldron hotel. The Irish Times, 17th December
Cork Development: The proposed €50m redevelopment of the Capitol Cinema site in Cork City is set to commence in the next few weeks after being approved by An Bord Pleanála. The redevelopment is being undertaken by John Cleary, who also developed the City Gate and Albert Quay projects in Cork. Once completed, the 0.63 acre Capitol Cinema site will accommodate 85,000 sq. ft. of commercial space, including c. 36,000 sq. ft. of office space. According to John Cleary, talks with potential tenants are at an advanced stage. The Irish Examiner, 19th December
Raheny Development: MKN Developments Limited, which is owned by developer Brian McKeown, has sought planning permission to build 76 new homes in Raheny, Dublin 5. MKN are proposing to build eight terraced houses and a number of one, two and three-bed apartments on their 1.5 acre site. The apartments would be built on blocks three to five storeys tall should the development proceed. NAMA Wine Lake, 20th December
Negative Equity: This past week Minister for Finance Michael Noonan reported that the number of homes in negative equity is now below 100,000, a decrease of over 66% in three years. The number reached an all-time high in 2012 when the figure reported was c. 315,000. The reduction has been attributed to the recovery in the property market, particularly in Dublin, where price growth has been most evident. The Sunday Business Post, 20th December
Lusk Development: Developer Sean Reilly, through his company Station Construction, has sought planning permission for a multi-million Euro mixed use scheme in Lusk, north county Dublin. The scheme proposes the development of 83 houses, 73 apartments and over 140,000 sq. ft. of commercial and community space on a c. 17 acre site. Included in the commercial space is a c. 46,000 sq. ft. anchor retail store and c. 18,000 sq. ft. discount store. The Irish Independent, 19th December
Ghost Estates: The latest figures from the Department of the Environment show that the number of unfinished estates in Ireland has fallen from nearly 3,000 in 2010 to 668 in 2015. Furthermore, there are now 19,000 homes occupied across 492 of the unfinished estates, with an additional 2,000 homes completed but unoccupied. 324 estates were completed in 2015. Only 47 of the unfinished estates are owned by NAMA. The Irish Times, 17th December
Pubs Merger: Talks over a merger between the Mercantile Group and Danu Investment Partners are at an advanced stage. The Mercantile Group own a number of high profile pubs and restaurants in Dublin including Whelan’s, Opium and East Side Tavern. Danu also own a number of pubs including Café en Seine, The George and Howl at the Moon. The Mercantile Group is owned by Frank Gleeson while Danu is owned by Leonard Ryan, Mickey O’Rourke and Mark O’Meara, the founders and executives of Setanta Sports. Should the merger proceed, it is estimated that the group would have a cumulative turnover of almost €40m and over 500 staff. The Sunday Times, 20th December
Nursing Homes: A report commissioned by the Department of Health estimates that the required number of nursing home beds in Ireland may need to be almost doubled over the next 20 years to meet the demands of an aging population. Currently there are 29,600 beds in operation, 76% of which are provided through private operators. Assuming that 4.5% of over-65’s require care, then there will be a requirement for a further 24,000 nursing home beds by 2036, the equivalent of 250 nursing homes. The Fair Deal scheme is also viewed as inefficient as it does not account for costs or the level of care required by residents. The Irish Times, 19th December
Land Tax: The Economic and Social Research Institute believe that the government should consider the introduction of a land tax as the supply of new homes continues to fall short of required levels. The ESRI suggest that the land tax should be based on a similar scheme in Denmark, where a land tax was used as an incentive to get developers to either dispose of or utilise undeveloped land. The advice from the ESRI came as part of an economic report where they identified the shortage of new homes as a risk to the economic recovery in Ireland. The Irish Times, 18th December
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Project Clear: Following the announcement last week that a JV between Cairn Homes and Lone Star was chosen as the preferred bidder for Ulster Bank’s Project Clear, a number of failed bidders are reportedly unhappy with the conclusion of the bidding process. Their argument centres on the fact that the JV between Cairn Homes and Lone Star wasn’t formed until late in the bidding process. The JV was formed after Cairn Homes made it to the final round with their initial offer and Lone Star were unsuccessful. The JV was chosen as the preferred bidder following their bid of €503m. Underbidders included Michael O’Flynn, Bartra Capital and Cerberus. The Sunday Independent, 13th December
Harcourt Street: An unnamed group of investors have paid over €18m for a block of Georgian houses at 72 – 74 Harcourt Street in Dublin 2. The purchase price is c. €3m above JLL’s €15m guide price. The four storey over-basement block has an overall floor area of 35,000 sq. ft. with floor plates ranging from c. 6,000 sq. ft. to 8,000 sq. ft. There are also 50 car spaces available. While the property may suit as a hotel or office block, further capital investment will be required before it is fit for either purpose. A complete refurbishment of the property for office use would cost c. €120 – €150 psf, but should generate rents of c. €45 psf upon completion. The Irish Times, 9th December
Ashford Castle: Following the completion of a €45m refurbishment, the five star Ashford Castle is projecting a return to profitability in 2016 following a loss of c. €4m in 2014. The refurbishment was undertaken by the owners, Red Carnation Hotels, who acquired the 350 acre estate in 2013. Work completed on the hotel included the replacement of each of the 820 windows and the installation of a new roof, spa and cinema. Despite being closed for a number of months in 2014, the hotel reported revenue of c. €9m. The Irish Independent, 12th December
Castleknock Hotel: FBD Property and Leisure Ltd has sought planning permission for a €5.5m expansion and refurbishment of the Castleknock Hotel and Country Club in Castleknock, Dublin 15. The proposal seeks to add 43 bedrooms and three suites to the four star hotel, which would bring its capacity up to 190 rooms. The expansion will also see the development of a new leisure centre which will have its own entrance. FBD owns two other hotels in Ireland; Faithlegg House Hotel and the Tower Hotel, both of which are in Waterford. The Irish Times, 9th December
Nassau Street: Investment fund Meyer Bergman, fund manager BCP and developer Eamonn Duignan are to join forces to develop a number of large retail stores in Dublin city centre designed for international fashion retailers. The stores will be located in Nassau House and the adjoining buildings in Dublin city centre. Nassau House was purchased by Meyer Bergman earlier this year for €90m and currently produces annual rental income of €3.5m. There is also 80,000 sq. ft. of office space which may be redeveloped or extended. While BCP may hold up to 33% of the new venture, Meyer Bergman will hold the majority stake. Eamonn Duignan will be responsible for managing the development of the project. The Irish Times, 9th December
Dublin Development: Crekav Landbank Investments Ltd, which is led by developer Greg Kavanagh, is expected to lodge a planning application for 340 apartments in west Dublin later this week. The application will propose that the apartments are built over eight blocks in Carriglea Industrial Estate between Drimnagh and Bluebell. Each of the one, two and three bed apartments is designed to be larger than the current minimum size requirements necessary under the Dublin City Development plan. The Irish Times, 14th December
O’Flynn Construction: Developer Michael O’Flynn is set to focus on purchasing Dublin land banks after missing out on Ulster Bank’s Project Clear. O’Flynn recently secured €400m of funding from Avenue Capital and AIB, with the funding to be used to part finance the development of 10,000 homes over the next decade. O’Flynn already has enough land to develop 5,000 houses, the majority of which are located in Cork. The Sunday Independent, 13th December
Student Accommodation: A JV between US fund Harrison Street Real Estate Capital and London-based GSA Investment Management is set to invest as much as €250m in Dublin over the next five years developing student accommodation. Work has already commenced on their first project, a 400-bed development on a 2.5 acre site on Mill Street in Dublin 8. Harrison has already invested c. USD$4.4bn in the US, developing c. 60,000 beds. The Irish Independent, 11th December
Mortgage Arrears: The latest figures from the Central Bank on mortgage arrears show that the number of accounts in arrears for more than 720 days has fallen for the first time, with a 2% decrease to 37,269 recorded at the end of Q3 2015. The total number of accounts in arrears also fell to 92,291, the ninth successive quarterly decline. Accounts in arrears represent 12.3% of the total mortgage market, which has an estimated value of €102.5bn. The Irish Times, 11th December
Rental Market: The Private Residential Tenancies Board’s latest report shows that renting a property in Dublin now costs just €30 less than it did at the peak of the market in 2007. At the end of September 2015, the average cost of renting a house in Dublin was €1,408 (9.3% increase over the previous 12 months), while the cost of renting an apartment was €1,265 (8.2% increase). On a nationwide basis, the average cost of renting a home was €901 (8.6% increase). The Irish Times, 10th December
Cork Development: Cork City Council has granted an extension of planning permission for a scheme of over 250 units in Bishopstown, Cork. The application proposes the development of 119 apartments over three blocks and 133 houses on a 20 acre site. The extension of the original approval was sought by receivers Jim Luby and Tom Rogers, who have been appointed over the assets of John and Elaine Barry. The Irish Examiner, 10th December
Allsop’s Auction: The final Allsops auction of 2015 saw the sale of 178 properties for nearly €34m. One of the most expensive assets sold was Meakstown Shopping Centre in Finglas, Dublin 11, which sold for over €3m. There was also a number of multi-unit properties sold at the auction, with the most costly being a nine-unit residential building on Upper Rathmines Road, Dublin 6, which sold for €1.069m, €240k over reserve. The Sunday Business Post, 13th December
Bartra Capital: Former Treasury Holdings co-founder Richard Barrett has established a new €2bn investment fund, Bartra Capital. The fund is expected to target investment opportunities in the Irish property, healthcare and renewable energy sectors. Financing has been secured from a number of sovereign wealth, family wealth, insurance and pension funds, with Barrett also providing a substantial investment. The fund will operate under the new Irish Collective Asset-management Vehicle structure, which offers a favourable tax structure to certain overseas investors. The Sunday Business Post, 13th December
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
Project Clear: A joint bid of c. €503m from Cairn Homes and Lone Star has been chosen as the preferred bidder for Ulster Bank’s €2bn Project Clear loan portfolio. The loan portfolio consists of 1,694 acres of land across 31 sites suitable for residential development, with the majority of the sites located in Dublin. Cairn Homes and Lone Star have split the portfolio 75:25, with Carin contributing €378m and Lone Star paying €125m, respectively. The €503m sale price was well below Ulster Bank’s €650m asking price. Cairn Homes estimate that their share of the portfolio will allow them to develop 14,000 properties, with a gross development value of over €2bn. CoStar Finance, 7th December
Project Lanyon: Davidson Kempner has been chosen as the preferred bidder for Bank of Ireland’s Project Lanyon, which consists of 700 residential assets in Northern Ireland. Davidson Kempner bid over GBP£50m for the portfolio, for which Savills had set a price tag of £55m. With improving rental yields and capital values in the North, further large scale residential portfolios may be forthcoming to capitalise on increasing demand. CoStar Finance, 7th December
IPUT Development: The Irish investment fund IPUT has commenced demolishing the existing buildings the former passport office at 10 Molesworth Street, Dublin 2, to pave the way for a new €40m development. The buildings will be replaced by a seven storey, 115,000 sq. ft. grade A office block, for which the rent is expected to be in the region of €65 psf. In total IPUT intend to supply the Dublin market with 300,000 sq. ft. of office space over the next three years. The Irish Times, 2nd December
St Stephen’s Green: Online recruitment firm Indeed is to sub-let part of 124 / 127 St Stephen’s Green, Dublin 2 from Bank of Scotland Ireland. Indeed will occupy 60,000 sq. ft. of the 126,637 sq. ft. property on the third, fourth, fifth and sixth floors at a rent of €45 psf. Bank of Scotland Ireland signed a 25 year lease in 2005, for which there is a break in year 15. The property was developed by the daughters of the hotel operator PV Doyle in 2005. Once the Bank’s Irish operation was discontinued, the property was sublet to Certus. Certus has since commenced the winding down of its operations, paving the way for Indeed to take-up a section of the property. The overall rent roll of the property is c. €5.4m, with additional income from the property’s 46 parking spaces. The Irish Times, 2nd December
Radisson Sligo: Padraic Rhatigan and two of his business partners, Bernard Mullen and Thomas Porter, have reached an agreement with Goldman Sachs on debt secured by the Radisson Blu Hotel in Sligo. Rhatigan and his partners have paid €5m to settle the outstanding debt, with Bank of Ireland assisting in the refinance. The agreement forms part of Rhatigan’s overall settlement with Goldman, with the par value of his loans estimated at €80m. Goldman purchased Rhatigan’s loans as part of Ulster Bank’s €200m Project Nadal. The Sunday Times, 6th December
Tara Towers: Dalata has been chosen as the preferred bidder for the 111-bed Tara Towers hotel in Dublin 4. Dalata is believed to have bid €12m for the hotel, for which receivers Duff and Phelps had been guiding €9m. The hotel was developed in the 1970s by PV Doyle and was previously owned by Bernard McNamara and Jerry O’Reilly, who paid €14.2m in 2003. The Sunday Independent, 6th December
Hotel Sales: The latest figures from CBRE on the hotel market in Ireland show that the number of hotels sold in the Republic continue to outweigh the number sold in the North. In the first nine months of 2015 there were 54 hotels sold in the Republic for c. €650m, compared to the nine hotels sold in the North for c. GBP£67m. What is positive for the market in the North is that the figures are a significant improvement on 2014, when the only sale was Tower Hotel Derry at £4.4m. The Irish Times, 2nd December
St Stephen’s Green Shopping Centre: The US fund Madison International Realty has acquired a 35.4% stake in St Stephen’s Green Shopping Centre. The fund paid Irish Life €60m for the stake, more than 30% above JLL’s guide price of €45.6m. Irish Life remain the largest shareholder of the shopping centre with a 37.6% stake, while Pierce Molony owns the remaining 27%. It is believed that a €30m refurbishment of the shopping centre may be forthcoming now that the sale has been completed. The 320,000 sq. ft. shopping centre generates annual rental income of c. €6.2m from 90 retail units and c. €2.2m from a 1,200 space car park. The Irish Times, 5th December
NAMA Residential Development: Following NAMA’s recent announcement that they aim to develop 20,000 new homes by 2020, five developers have lodged a complaint with the European Commission in an attempt to block NAMA’s project. The complaint centres around NAMA’s cost of funding, with NAMA able to obtain favourable rates as it has a state guarantee. NAMA is able to provide its debtors with funding at c. 5% – 6%, while development finance obtained outside NAMA is currently c. 14 – 15%. The developers who lodged the complaint are David Daly, Paddy McKillen, Michael O’Flynn, New Generation Homes and MKN Properties. The Irish Times, 7th December
Drumcondra Scheme: Greg and Lisa Gallagher, through their investment company Grelis Limited, have submitted a planning application for the development of 101 homes and a 69-bed nursing home in Drumcondra, Dublin 9. The 101 homes are to be split across 59 houses and 42 apartments. The proposed development will take place on the site of the old Carmelite Convent on Gracepark Road, and will require the demolition of some of the current buildings on the site. NAMA Wine Lake, 6th December
Dublin Schemes: The latest survey from the SCSI on planning applications for residential developments in Dublin of 25 or more units shows a significant decrease in the number of units approved in Q3 2015. In total there were 852 units approved for development across thirteen schemes in the quarter, a 59% drop on the 2,062 units approved in Q2 2015. With an estimated 7,000 new units required annually in Dublin each year to satisfy demand and only 2,735 under construction, the number of units completed this year looks set to fall well below the required level. A key factor hindering construction is the cost of development finance, with affordable financing proving extremely difficult to source. The Irish Times, 3rd December
Carnalea: The off market sale of Carnalea on Thormanby Road in Howth, north Dublin for €5m has seen the property become the most expensive residential property sold in north Dublin since 2010. Carnalea is a 5,250 sq. ft. property which boasts fantastic views of Dublin Bay. The property was previously owned by a couple involved in property development, who purchased it in 2003. The purchase price represents the third highest paid for a residential property in Dublin this year, behind Sorrento House in Dalkey (€10m) and Strathmore in Killiney (€7.5m). The Irish Times, 3rd December
NAMA Development: NAMA has announced plans to spend €7.5bn developing 4m sq. ft. of commercial space in the Dublin docklands and 20,000 new homes in Dublin and other in-demand areas. As its first project under this proposal, NAMA will fully fund the €170m redevelopment of Boland’s Mill in Dublin Docklands. The redevelopment will take over two years to complete and will see the development of 274,000 sq. ft. of office space, 41 apartments, retail units and cafes. The development will be carried out under the instruction of the Savills, who were appointed as receivers by NAMA. The Irish Times, 3rd December
Tougher Business Park: The US fund York Investment Corporation has completed the purchase of Tougher Business Park in Naas, Co. Kildare for over €17m. The purchase price represents a premium of €3m over the guide price of the business park. The business park has 56 buildings with a floor area of 753,446 sq. ft., spread over 125 acres. The key tenant is the transport and logistics company DSV, who pay €1.12m of the €1.8m annual rent roll for 370,000 sq. ft. of industrial buildings. Joint agents DTZ Sherry Fitzgerald and Savills handled the sale, under the instructions of the receivers NAMA and Bank of Scotland Ireland. The Irish Times, 2nd December
Clarendon Inn: The Clarendon Inn bar and restaurant on Clarendon Street, Dublin 2 has been purchased by James and Edward Dunne. The brothers paid over €2.4m for the property, for which CBRE set an asking price of €1.6m. In total there were 15 bidders for the 4,068 sq. ft. property, who would have been eager to acquire an established bar and restaurant in one of Dublin’s most vibrant areas. The Irish Times, 2nd December
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie
NAMA Loan Sales: Sources close to NAMA have revealed that the agency is preparing to sell a further two loan portfolios, with each one set to have a par value of c. €3bn. The news comes one month after NAMA chose Cerberus as its preferred bidder for the €6.3bn Project Arrow, its largest loan sale to date. NAMA has already repaid 73% of its initial €30.2bn of senior bonds from loan sales, rental and interest income. The Irish Independent, 26th November
Bishops Square: Hines has sought planning permission from Dublin City Council for a 35,000 sq. ft. extension to the six storey Bishops Square office building near Kevin Street in Dublin 2. Under the application, Hines is looking to extend two floors and add a seventh, which would result in 35,000 sq. ft. of new office space. Hines purchased the building for €93m from King Street Capital in January 2015, who had only purchased the building themselves in 2013 for €65m. NAMA Wine Lake, 29th November
One Ballsbridge: Joint agents DTZ Sherry Fitzgerald and JLL are guiding in excess of €55 psf for the office space in the first phase of One Ballsbridge, a new mixed-use development being undertaken by The Comer Group on the site of the old Veterinary College in Dublin 4. The Comer Group purchased the 2.02 acre site for €22.5m in 2014, a c. 87% discount on the €171.5m paid by Ray Grehan in 2005. One Ballsbridge will have a total net office area of 135,000 sq. ft., while also accommodating 88 apartments, ground floor retail units, a 20,000 sq. ft. leisure centre and 225 car spaces. The Irish Times, 25th November
South Docklands: Blackstone is set to make a profit of €43m on two Dublin properties it purchased from NAMA in late 2013 for €80m. The German fund Real I.S. has agreed to pay €123m for the Bloodstone Building and Riverside IV on Britain Quay in Dublin’s south docklands, which represents a gross return of c. 54% on Blackstone’s investment. The Bloodstone Building is 84% occupied and has a floor area of 83,100 sq. ft., with annual rental income of c. €2.1m. Riverside IV has a floor area of 59,091 sq. ft., annual rental income of c. €2.4m. The properties were completed in 2008 and were largely vacant when Blackstone acquired them. The Irish Times, 25th November
Georgian Properties: The Irish Times analyses the current condition of the Georgian office market. The bottom of the market was in 2011, when values dropped to between €250 and €350 psf, a fraction of 2007’s peak of €1,500 psf. Prime Georgians now command a price between €455 and €492 psf, according to Brian Gaffney of Murphy Mulhall. The rental market for Georgians has also improved, with Conor Whelan of QRE identifying a range of €30 – €40 psf for high quality Georgians. With the vacancy rate for grade A office space in Dublin 2 at just 1.25%, the recovery looks set to continue. The Irish Times, 25th November
Blackpitts Hotel: Denis O’Brien has been revealed as one of the key individuals behind the proposed development of a new 202-bed, eight storey hotel in Blackpitts, Dublin 8. The total cost of the development is estimated at €40m, with construction group BAM Ireland overseeing the project. BAM have recently resubmitted plans for the hotel, which proposes that the reception will be on the eight floor and the bedrooms situated underneath. Should the development proceed it would represent O’Brien’s second hotel in Ireland, as he already owns the Ballynahinch Castle Hotel in Galway. The Sunday Times, 29th November
Stauntons on the Green: An unnamed American investor is set to purchase Stauntons on the Green in Dublin 2. The four star, 51-bed hotel had been on the market via JLL who were guiding in excess of €12m for the property. The townhouse hotel has been trading under its owner, Jim Staunton, since 1989, however it is now being sold with vacant possession. Average room rates for the hotel are €90 per night, compared to €250 per night charged by the Shelbourne hotel, which lies opposite Stauntons. The Irish Times, 25th November
Supermac’s: The founder of Supermac’s, Pat McDonagh, has completed a deal to transfer ownership of 18 Supermac’s restaurants from his personal name to Supermac’s Holdings. The transaction will net McDonagh under €26m once all the debt related to the restaurants has been repaid. McDonagh still owns a further twelve restaurants, which may be sold to Supermac’s at the end of 2015. There are over 100 Supermac’s outlets in total, and the company made a net profit of c. €5.7m in 2014. The Irish Times, 28th November
Whitewater Shopping Centre: German property fund Deka Immobilien is understood to have been chosen as the preferred bidder for the 320,640 sq. ft. Whitewater Shopping Centre in Newbridge, Co. Kildare. Joint agents Savills and Coady Supple had set an asking price of over €150m on the shopping centre, with Deka believed to have bid in excess of €170m. The existing ownership of Whitewater is split between Sean Mulryan and the estate of Liam Maye, who each own 50%. The current net income of Whitewater is c. €11.7m, with Debenhams paying the highest annual rent at €1.575m. Approximately 87% of the income comes from the shopping centre tenants, with the balance coming from the 1,700 car spaces and 84 apartments included with the property. The Irish Times, 26th November
Monaghan Shopping Centre: Melcorpo Commercial Properties has completed the purchase of Monaghan Shopping Centre for €11.85m, which was well in excess of DTZ’s €10.1m guide price. The 96,408 sq. ft. shopping centre, which is nearly twenty years old, is producing annual rental income of c. €1.05m, offering Melcorpo an initial net yield of c. 8.53%. Tesco are the anchor of the shopping centre, and own their own store. The key tenants are Boots and McDonalds, who pay a combined annual rent of €266k. Melcorpo also own Drogheda Town Centre, Kilkenny High Street Mall and Castle Street Shopping Centre in Bray, Co Wicklow. The Irish Times, 25th November
Cairn Homes: Cairn Homes has obtained a €150m senior debt facility from AIB which will be used to fund site acquisitions and the continued growth of the company. The facility has been provided on a four year term and will be secured by a corporate level debenture. It also represents the first senior debt facility obtained by Cairn Homes and comes just six months after the company’s IPO on the London Stock Exchange. The Irish Independent, 1st December
Hines Development: US developer Hines is set to submit the first planning application for their 400 acre site in Cherrywood, south county Dublin. Overall Hines seeks to develop a new town in the area which would see the development of 3,800 homes for c. 30,000 people. The first planning application from Hines will seek the development of 5.4km of roads to accommodate the development. Should this application be successful, Hines intends to submit a subsequent application in mid-2016 for the first 1,400 apartments and retail facilities. The Irish Independent, 30th November
Howth Road: MKN Property Group, which is owned by the McKeon family, is set to construct 16 family houses on Howth Road, Dublin 5. The proposed development will see the construction of 7 five bed houses (2,077 sq. ft. to 2,250 sq. ft.) and nine terraced houses (1,679 sq. ft.) on a c. 1.6 acre site. MKN purchased the site in two transactions; the first saw the purchase of the 0.6 acre, 726 Howth Road for €2m in December 2007, with the adjacent one acre, 728 Howth Road site purchased in 2014 for €1.4m. The Irish Times, 26th November
Property Yields: A new report from Daft.ie on the Irish residential rental market highlights the contrasting fortunes between yields inside and outside of the capital. The average gross yield for a three bed property in Dublin has risen to 5.7%, whereas yields for the rest of the country have fallen to 6.8%. Key factors behind the changes in yields are (i) the continued increase in rents in Dublin while prices have stabilised and (ii) increasing prices outside the capital. The introduction of the Central Bank’s mortgage lending criteria has also made it more difficult for first time buyers in Dublin. The Sunday Business Post, 29th November
Property Prices: The latest figures released by the CSO show that house prices in the Republic rose by 1.6% in October. This increase means that prices have now risen by 7.6% over the past twelve months. House prices in Dublin increased by 1% while houses outside the capital rose by 2.1%. Overall, residential property prices in Dublin remain 34.9% below their peak, with properties outside of Dublin still 36.3% below their peak. The Irish Times, 26th November
If you have an article which you would like to have considered for inclusion in our next weekly report, please contact us at info@origincapital.ie