Davy Real Estate A fund controlled by property investor Davy Real Estate has completed two deals totalling €103.5m to acquire seven of Ireland’s regional shopping centres. The fund has snapped up Kennedy Wilson’s Marshes Shopping Centre in Dundalk for €29.5m. The investor has also just clinched a collection of six regional shopping centres from Pat Doherty’s Harcourt Developments for €75m. Dubbed the Hexagon portfolio, the deal comprises Donaghmede Shopping Centre in Dublin; Letterkenny Shopping Centre in Donegal; Laois Shopping Centre in Portlaoise; Galway Shopping Centre; Parkway Shopping Centre in Limerick and the Longwalk Centre in Dundalk, Co Louth. The price Davy paid for the properties represent a 26% discount on the €100m guiding price set by JLL, under the instructions of receivers KPMG. React News, 24th July
Dundrum, Dublin 14 Dunnes Stores is to open a new store at Dundrum Town Centre in Dublin later this year. Hammerson, the real estate developer that operates the shopping centre, said the retailer will take up 200,000 sq. ft of space at Dundrum Town Centre to mark its debut at the shopping centre in October. Hammerson said that Superdrug will also change 8,000 sq. ft of retail space into a new cosmetics store, while Western Union, the financial services company, also plans to open a new workspace there. The Business Post, 25th July
Limerick and Navan Realty Income Corporation, a US investment giant, has entered the Irish market with the purchase of two retail parks. It has paid €45.9m for CityEast retail park in Limerick and Blackwater retail park in Navan, Co Meath. Eden Capital was the vendor of both properties. It purchased the retail parks in 2020 and 2021. Retailers at CityEast include B&Q and Harvey Norman, while Blackwater has Woodie’s and Currys among its tenants. The Sunday Times, 22nd July
Retail Sector Bricks and mortar retail has seen a rebound in Dublin city centre with increased occupancy levels on the two high streets and this is reflected in increased rents. Mary St, College Green, Duke St and South Anne St have also seen new letting deals in the last six months. That’s according to the latest CBRE survey of the retail property market. At the end of June, the vacancy rate in Grafton St was 13.2% with 12 units vacant. Henry St vacancy was 11.9% with five units vacant. According to CBRE, prime rents have risen on both streets with prime Zone A rents on Grafton St up 8% to €515 per sq. ft. This renewed confidence in retail was also seen in Q2 investment deals with €128m worth of deals accounting for 40% of the total investment which was the highest proportion of spend for the first time since Q4 2016. The Irish Independent, 20th July
George’s Quay, Dublin 2 Corum Asset Management, the active Paris-based investor, has concluded two Dublin office purchases totalling over €110m. Henderson Park has sold a portion of its huge George’s Quay office complex to Corum. The French group is understood to have paid approx. €80m (NIY approx. 6%). Last week, Corum paid Spear Street Capital €33.4m (NIY 6.15%) for a 69,000 sq. ft building on the Cherrywood campus in south Dublin. Henderson Park attempted to sell George’s Quay, the largest single asset picked up by Nick Weber’s firm in the Green REIT portfolio it acquired in 2019 for €1.34bn, in September 2020 when it was launched to market with a €400m price tag. The complex – George’s Quay Plaza, George’s Quay House and George’s Court – totals close to 350,000 sq. ft. React News, 25th July
Dundalk, Co Louth The Tifco Hotel Group has secured approx. €11m from the sale of the Crowne Plaza Dundalk to East Coast Catering Ireland Ltd. The Crowne Plaza Dundalk briefly comprises 129 guest bedrooms and suites along with nine meeting rooms, conference facilities, a gym, a rooftop restaurant on its 13th floor, a bar/restaurant and coffee bar at ground-floor level, and a 160-space surface car park. The Crowne Plaza is East Coast Catering’s second hotel acquisition in Dundalk in recent years. Following its sale of the Crowne Plaza Dundalk, Tifco’s Irish portfolio now comprises 11 Travelodge hotels, the Crowne Plaza Dublin Airport, Crowne Plaza Blanchardstown, Hard Rock Dublin, the Holiday Inn Express Hotel at Dublin Airport, and the private label hotel Arthaus Hotel Dublin. The Irish Times, 19th July
St Stephens Green, Dublin 2 Eamon Waters’s Sretaw Hotel Group is seeking to build a 61-bedroom hotel opposite its existing Grafton Hotel close to St Stephen’s Green in Dublin. In the planning application, the group said it was not “speculative” and pointed to the need for more hotel rooms in the capital and the benefits this could bring to the housing market by freeing up Airbnb rentals. The proposed hotel would rise to eight storeys on a site known as Textile House on Johnson’s Place and Clarendon Market. It would represent an extension to the Grafton Hotel’s 127 bedrooms. Mr. Waters bought Textile House last year after it was put on the market for €6.5m. The Irish Times, 19th July
Cushman & Wakefield Report Hotel operators across the UK and Ireland consider Dublin city and Cork city to be attractive locations. Dublin was ranked the third most attractive location of the 20 UK and Irish markets surveyed as part of the report, with only London and Edinburgh ahead of Dublin. Cork was ranked joint 12th alongside Liverpool. The survey was conducted by Cushman & Wakefield among 33 international and regional hotel operators either currently operating in the UK and Irish markets or looking to move into these markets. The Irish Independent, 20th July
Tralee, Co Kerry Locals have objected to plans by Michael Healy-Rae, the Kerry TD, to add 15 bedrooms to a guest house he owns in Tralee that is accommodating Ukrainian refugees. A decision on Mr. Healy-Rae’s planning application, which would also add extra kitchen and dining space to Rosemont on Oakpark Road, Tralee, has been postponed by Kerry County Council, which is seeking additional information on the politician’s plans before making its decision. The proposed development would add five additional guest bedrooms on the ground floor, eight additional guest bedrooms on the first floor, and two additional guest bedrooms within the attic structure. The Irish Times, 23rd July
Ballycoolin, Dublin 15 Harvey has been instructed as the sole letting agent of Unit 200 Northwest Business Park in Ballycoolin, Dublin 15. The facility consists of two separate warehouse and office buildings, totalling 70,266 sq. ft on a site measuring 5.34 acres. Building 1 has a total size of approx. 58,340 sq. ft with an extensive profile to Mitchelstown Road. Building 2 makes up the remainder of the total area (approx. 12,000 sq. ft). The property is being offered to let in a single lot only, on a new medium to long-term lease. Harvey is quoting rent of €800k pa. The Business Post, 22nd July
Clondalkin, Dublin 22 Harvey has completed a sale and leaseback deal for €8.75m for Unit AF40 in the Cloverhill Industrial Estate, Clondalkin, Dublin 22 to French investor Iroko Zen who was represented by Colliers. The detached industrial and office facility, extending to 85,939 sq. ft on a site of 5.6 acres, was sold with the benefit of a 15-year lease to Alucraft Limited, with a guarantee from the Clarison Group. The lease incorporates a tenant-only break option at the end of year ten, and stepped rents over the term of the lease to include fixed uplifts and CPI-linked cap and collar reviews. The Business Post, 22nd July
House Prices The rise in the average price paid for a house has slowed for a 14th consecutive month, with house prices increasing by 2.4% nationally in the year to May. This is down from an increase of 3.4% nationwide recorded for April 2023, according to the most recent Residential Property Price Index (RPPI), with some housing experts suggesting the figures point to a stabilisation of prices in the property market. The cost of a home outside the capital increased by 4.5% in the 12 months to May, with the west of the country seeing the largest increase in prices at 5.7%. Meanwhile, prices in Dublin decreased by 0.2%. The Business Post, 18th July
Apartment Sales Taoiseach Leo Varadkar has said local authorities should be empowered to block the sale of apartment complexes to investment funds. In 2021, following controversy over the sale of a several housing estates in the Greater Dublin Area to investment funds, local authorities were granted powers to ring fence houses and duplexes in new housing estates for individual purchasers. The new laws, which do not currently cover apartments, mean that councils can essentially forbid the sale of homes in an estate to property investors and funds. Earlier this month, Darragh O’Brien, the Minister for Housing, told the cabinet that the measures introduced in May 2021 have ring fenced more than 31,000 houses and duplexes for individual buyers over the past two years. The Business Post, 22nd July
Housing Starts A fall in new housing starts this year is indicated by a new report despite recent Government figures on increased commencements. The new report, Construction Industry Forecast 2023-2025, expects the overall value of residential project starts to fall 5% this year to €3.96bn, after declining by 15% last year to €4.27bn. On the plus side, the value of residential project starts is expected to increase by 15% next year to approx. €4.55bn and rise a further 10% the following year to over €5bn. In contrast only last month the Government reported that 12,987 new homes commenced in the first five months of this year, a 7.4% increase on the similar period last year and the highest level in eight years. The €3.96bn investment in residential this year will account for more than half of all the €7.7bn invested in overall construction industry starts. The strongest growth this year is expected to be in the construction of industrial and logistics buildings with 15% growth to approx. €1.4bn. The Irish Independent, 19th July
Residential Construction Commencements Developers started construction on more than 15,000 homes in the first half of the year, new data from the Department of Housing has shown. Compared the first six months of 2022, the rate of new home commencements was up 10% this year. The Department of Housing said this rate of homebuilding in the first half of the year was a record when compared to similar periods since it started to collect the data in 2015. Last month, 2,574 units were commenced in Ireland by developers and people building one-off homes, up 25% on the same month last year. The Business Post, 20th July
Housing Assistance Payment (HAP) Only 50 properties in 16 areas were available to rent under the discretionary rate of the HAP Scheme if local authorities provided the maximum level of support, a report by a housing charity has found. The Simon Communities of Ireland’s quarterly Locked Out of the Market report, shows 50 properties were available to rent within a discretionary rate of the HAP Scheme over three dates in June. The report found 934 properties were available to rent at any price within the 16 areas over the three dates surveyed last month. This represents a 39% (262 properties) increase from the 672 properties that were available in the March 2023 Locked Out report. 74% of properties available to rent were located within the three Dublin areas studied. Just 5.4% of all properties available to rent in the study were available within the HAP rate. The Irish Times, 23rd July
The Land Development Agency, the State body charged with delivering affordable homes and social housing on public land, is to begin a programme of purchasing privately owned sites that can be utilised for quick delivery of public housing. The programme of land acquisitions will be open to all landowners, but will focus initially on large sites, with existing planning permission for 200-plus homes, near the five main cities of Dublin, Cork, Limerick, Galway and Waterford. It is expected to be of particular interest to developers sitting on large sites, either in anticipation of increasing value, or because they lack the finance or capacity to build them out. The agency has planning permission for more than 3,500 homes on State-owned lands with many projects already under construction. The Irish Times, 21st July
Blackrock, Co Dublin Having offered Rockbrook, the 91-unit high-end scheme Seabren Developments is developing in the south Dublin suburb of Blackrock to the market at a guide price of €59m last February, joint agents Cushman & Wakefield and Sherry FitzGerald are understood to have received several offers in and around the €54m mark for the portfolio. Seabren Developments is said to be weighing up its options in advance of the development’s practical completion in the final quarter of this year. Seabren acquired the 1.23-acre Rockpoint site for its part from Marlet Property Group in 2020 for approx. €7.5m. At the time of that sale the former Europa Garage lands had planning permission in place for a smaller development of 42 apartments and nine houses. Seabren went on to secure planning permission for the present scheme from An Bord Pleanála in 2021 in the face of objections from a number of parties. Aimed towards the upper end of the private rented sector market, the development will, upon completion, consist of a mix of one-bedroom apartments, two-bedroom apartments and three-bedroom units distributed across two blocks, along with 71 underground car-parking spaces. The Irish Times, 20th July
House Prices Dublin has seen the largest increase in house prices of any county in the Republic in the last 12 years, as the average price of a home in the capital has increased by 80%. A study conducted by self-storage company Storage World Self Storage has analysed data from the Property Services Regulatory Authority (PRSA) to track changes in average house prices between 2010 and 2022. The latest Residential Property Price Index released by the CSO earlier this week noted that property prices have increased by 2.4% in the 12 months to May 2023, although there was a small contraction of the Dublin market where house prices fell by 0.2% over the same period. The Irish Times, 19th July
VAT Reduction Government officials are weighing a VAT cut for home-building in a move that could boost supply and cut house prices, according to a new report. Builders have frequently called on Government to cut VAT on new home-building to 9% from 13.5% currently, arguing that this would reduce costs and spark an increase in residential construction. The Government’s Tax Strategy Group is considering the reduction and calculates that it could cost the State €400m a year, a report from the group published by the Department of Finance shows. However, officials question whether builders would pass on the reduction to home-buyers as tax law does not oblige them to do so. “There is a reasonable possibility that it would be used by contractors to improve their cash flow,” says the report. The Irish Times, 19th July
Terenure, Dublin 6W Planning delays have set back Lioncor’s plans for a 208 residential unit worth more than €100m for Terenure in Dublin by more than two years, the Dublin construction company has said. Lioncor welcomed An Bord Pleanála’s grant of permission for the 208-unit five block scheme rising up to six storeys on the ‘Carlisle’ site located to the north and east of the Ben Dunne Gym, at Kimmage Road West, Terenure in Dublin 6w. The LRD application – made up of 104 one-bed units and 104 two-bed units – by 1 Terenure Land Ltd was Lioncor’s second attempt to secure planning permission for the site. Lioncor secured planning permission for the scheme in 2022, which also contained 208 units for the same site, under An Bord Pleanála’s so-called fast-track process. However, that permission was challenged in the High Court by way of Judicial Review by the Kimmage Dublin Residents Alliance CLG. The Irish Times, 24th July
Newtownmountkennedy, Co Wicklow An Bord Pleanála has conceded in a challenge to its grant of permission for the construction of 179 homes in Co Wicklow. The High Court was informed that the board will not contest the application brought by two residents, seeking to quash the approval given to Dublin building firm Dwyer Nolan for 121 houses and 58 apartments at Newtownmountkennedy. The board accepted it referred to a local area plan that had expired by the time the planning permission was granted, the court heard. The Irish Times, 24th July
Holiday Homes for Refugees A Government scheme to encourage people to offer their holiday homes to Ukrainian refugees has fallen well short of its target. It had set a target of 20,000 holiday homes, or otherwise unoccupied houses and apartments, being pledged by individuals. The scheme was launched in November 2022 by Minister for Housing Darragh O’Brien and Minister for Children and Integration Roderic O’Gorman and backed up by an extensive media campaign. The Department said that as of the beginning of this week, 1,263 properties had been allocated, providing accommodation for approx. 4,000 Ukrainians who are beneficiaries of temporary protection in Ireland. In the run-up to the launch of the scheme an internal briefing document said there were more than 65,000 holiday homes in Ireland but most were being run commercially. The Irish Times, 20th July
Dundrum, South Dublin More than 200 Dundrum residents have attended a community meeting opposing Dun Laoghaire-Rathdown County Council’s redevelopment plans for the village and surrounding areas. The proposed changes in the Local Area Plan (LAP), will “kill off the village”, according to a group of local business owners. The plans will see restrictions on car access to the village, the introduction of new one-way systems and the extension of existing one-way routes, and a reduction in the number of access points to the Main Street. The Irish Times, 21st July
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Carlow, Co Carlow Just under five years on from its acquisition by Friends First for €16.75m, Carlow Retail Park has been sold in an off-market transaction to a private Irish investor for €15.4m (NIY 7.5%). Aviva had assumed ownership of the development on foot of its acquisition of Friends First in 2018. Located on Hanover Road and approx. 500 metres from Carlow town centre, Carlow Retail Park comprises nine warehouse units with a combined footprint of 100,000 sq. ft along with 600 car-parking spaces. Developed originally in 2003, the scheme is anchored by DIY giant Woodie’s along with seven other tenants, namely Harry Corry, Halfords, Homestore, Pet Mania, Electro City, Right Price Tiles and KFC. The letting of the ninth and final unit – unit 6 (7,642 sq. ft) is understood to be the subject of advanced negotiations with a prospective occupier at present. The anchor tenant, Woodie’s, pays a rent of €577.5k for a store extending to 37,000 sq. ft and a garden centre with a further 22,000 sq. ft. The scheme is understood to be generating a total annual rental income of €1.25m. The Irish Times, 12th July
Vantage Business Park, Dublin 11 A consortium of South African private investors has paid approx. €13m (NIY 5%) for Unit 2 at Vantage Business Park in Dublin. The property comprises a 67,146 sq. ft detached industrial/warehouse and office building. The property, built in 2020, includes 10,092 sq. ft of office accommodation over two storeys together with 68 car-parking spaces. Unit 2 Vantage Business Park will provide its new owners with an immediate income stream of €720k pa based on a new 20-year FRI lease to NPP, incorporating five-yearly rent reviews. The tenant has the benefit of a 10-year break option. The Irish Times, 12th July
Docklands, Dublin Staff at Google will have to wait at least another year before moving into the company’s landmark triplet towers in the Dublin docklands. According to market sources, the company will not move to its €300m Bolands Mills development until mid to late 2024. The company bought the development from Nama in 2018 for a reported €170m. The scheme comprises three striking towers and various restored listed buildings. It will have approx. 301,390 sq. ft of offices, 46 apartments, and retail and restaurant units. There were delays in the construction process when remediation works had to be carried out on the buildings in 2019. The development was originally intended to house up to 2,500 workers, but in 2020 Google applied for planning permission to reduce the amount of office space and to increase the amount of restaurant and retail space. The Sunday Times, 16th July
Merrion Road, Dublin 4 Pan-European investor and asset manager M7 Real Estate has achieved 100% occupancy at the Nutley Building in the Merrion Centre on Merrion Road, Dublin 4. St Vincent’s Hospital has signed a new 10-year lease on 4,160 sq. ft of space. The fund portfolio is now 97% let while its WAULT has been extended to over four years. The rental income across M7′s suburban Dublin office portfolio, meanwhile, has been increased by approx. 12%. The Irish Times, 12th July
Dublin Airport Logistics Park, Dublin Holland & Barrett has sublet Unit 5 Dublin Airport Logistics Park to DHL Global Forwarding (Ireland) Limited. Savills brokered the deal which will see DHL take a sub-lease from June 2023 until January 2032 at an annual rent equating to €10.75 per sq. ft incorporating a three-month rent-free period. With a gross external floor area of 65,369 sq. ft, including 8,654 sq. ft of offices, the detached logistics facility was built by Rohan Holdings in 2017. According to a report at the time, Holland was paying €9.44 per sq. ft pa for the premises that year. That indicates a 13.9% increase since 2017 levels. The Irish Independent, 13th July
Ballycoolin, Dublin 15 Harvey is quoting a rent of €800k pa for Unit 200 at Northwest Business Park in Ballycoolin, Dublin 15. The subject property comprises two separate warehouse and office buildings extending to a total area of 70,267 sq. ft on a 5.34-acre site, representing a site density of just 30% within a prime distribution location. Building 1 extends to 58,329 sq. ft and has extensive profile to Mitchelstown Road. Building 2 makes up the remainder of the total size. The Irish Times, 12th July
CBRE Report In Q2 2023, the take-up of industrial and logistics space in Dublin was 652,852 sq. ft, representing a nearly 30% decline from the previous quarter and 25% below the 10-year quarterly average. The total take-up for H1 2023 reached 1,572,962 sq. ft, similar to the same period in 2022. The vacancy rate at the top 36 industrial and logistics parks in Dublin was 1.4% at the end of Q2. Prime rents rose by over 4% to €12.50 per sq. ft. The investment activity amounted to just under €50m, accounting for 15% of the overall Irish investment spend. The South West (N7) Dublin road corridor accounted for 43% of the total take-up in Q2. Build-to-suit and pre-let agreements comprised 32% of the deals. New buildings reached practical completion, and approx. 1,237,849 sq. ft of new stock were under construction. Prime Dublin rents increased by 11% over the past 12 months. The investment yields remained unchanged at 4.75% for prime assets and 6.00% for secondary assets in Q2. In summary, the Q2 2023 figures for Dublin’s industrial and logistics market show a decline in take-up, low vacancy rates, rising prime rents, and steady investment activity. CBRE Dublin Industrial & Logistics Q2 2023, 17th July
Kenmare, Co Kerry Hoteliers Francis Brennan and John Brennan are this week considering offers for their two Kenmare Co Kerry hotels in the €25.3m ‘Project Halo’ sale, via agents CBRE. The duo put the 46-bed Park Hotel Kenmare and the 28-bed Lansdowne Hotel on the market in May with a combined €20.5m price guide. Interest has been shown in the two together, and in lots, it’s understood: The Park being the more valuable at €17m, and the more recently acquired Lansdowne was guided at €3.5m, bought out of receivership in 2020. The Irish Examiner, 13th July
Irish Hotel Market Report The Irish hotel sector is undergoing a strong recovery following the challenges posed by the COVID-19 pandemic. The outlook for the sector is positive due to several factors. The Irish economy is growing rapidly, with low unemployment and solid wage growth, providing support for domestic leisure spending. Households in Ireland have accumulated over €150bn in savings, which accounts for approx. 30% of Irish GDP, further bolstering consumer spending and leisure demand. Inbound traveller numbers are approaching pre-pandemic levels, and forecasts indicate an average annual growth of 11% in visitor numbers until 2025. Occupancy rates and room rates have largely returned to pre-pandemic levels, with Dublin catching up to regional markets. Despite the recovery, challenges remain, including energy costs, staffing issues, VAT rate changes, and repurposed hotel properties. Construction and financial costs limit further development, although the improved trading environment should help absorb new capacity, especially in Dublin. The hotel market has seen positive transactional activity in 2023, with approx. €130m transacted across nine deals, along with ongoing sale agreements for hotels and sites. Cushman & Wakefield Report, 13th July
Project Tosaigh The LDA is preparing to pay private residential developers more than €2bn to build 5,000 homes. The agency will go to tender as it gathers a panel of ten or more developers to build the homes under the government’s Project Tosaigh initiative. The LDA published a prior information notice earlier this month, informing developers that it would publish the tender on July 24. According to the notice, the agency will forward fund residential schemes — comprising apartments and houses — by buying land from developers or landowners and then making staged payments during the construction process. It will also look to team up with developers in a joint venture or partnering arrangement. The agency has said it expects to build 5,000 homes over four years. It will focus on cost-rental homes but will also provide affordable housing for purchase. The developments will be located in Dublin and its surrounding counties, and in Cork, Galway, Limerick and Waterford. The Sunday Times, 16th July
The National Asset Management Agency (Nama) gave a 97.5% discount when selling loans related to a portfolio of residential units to a relative of the borrowers, because it believed it would never be able to dispose of the land due to a campaign of intimidation. Nama booked a loss of approx. €6m on loans – backed by collateral on 14 occupied rental homes, 28 unfinished units and seven plots of land – in an “exceptional” case that has been highlighted in a new report from the Comptroller and Auditor General (C&AG). The C&AG’s report said Nama had in 2021 sold loans related to two companies – which had a face value of €10.46m – for €265k to a newly incorporated company that was funded by a family relative of the debtors involved in the case. Nama had previously acquired the loans for €4.37m – a 49% discount on the initial price of €8.58m – so it did not lose out on a full €10m. But because €1.9m in unpaid interest was added to the loans, it did ultimately lose approx. €6m. The reason for the major discount, the report shows, was that Nama believed it would be unable to sell the assets involved – which it valued at €1.3m – because of “threats and intimidation”. The Business Post, 12th July
Planning Permissions A recent Department of Finance study reveals that at the end of last year, there were over 100k dormant or non-activated planning permissions for homes in Ireland, with more than 50k of them concentrated in Dublin. This represents a significant increase from the estimated 70k-80k non-activated permissions at the time the government announced its Housing for All strategy in late 2021. In Dublin alone, approx. 50,776 uncommenced units were identified, with a staggering 90% of them planned as apartments. The report highlights that these uncommenced units were primarily located on sites owned by a relatively small number of developers. The study further breaks down the data for Dublin, indicating that there were 108 sites with planning permission for high-density developments of 100 units or more. Out of these, 31 sites were subject to ongoing judicial reviews, two had their permission quashed, and four were related to sites where the judicial review had either been withdrawn or the planning decision upheld. Moreover, the report identifies 75 actionable sites in Dublin, with permissions in place to build a total of 23,526 units. Additionally, it reveals that 44 of these sites have had no activity for up to two years since obtaining planning permission, 22 sites have been dormant for two to four years, and nine sites have remained inactive for over four years. The Irish Times, 13th July
Donnybrook, Dublin 4 An Bord Pleanála has granted planning permission to Cairn Homes for a €345m, 608-unit apartment scheme on former RTÉ lands at Donnybrook in Dublin 4. However, in a split decision the appeals board has refused permission for the 16-storey tower component of the scheme that was to include a 192-bedroom hotel and 80 apartments. The scheme is to be built across the remaining nine blocks ranging from two to 10 storeys in height. The original scheme comprised 416 built-to-rent apartments and 272 build-to-sell units. The grant of the 10-year planning permission comes six years after Cairn Homes purchased the lands from RTÉ for €107.5m in 2017. The application made under the Large Scale Residential Development (LRD) scheme was Cairn Homes’s second attempt to build on the lands. The Irish Times, 13th July
Balbriggan, North Co Dublin Plans have been lodged for a €251.5m 564-unit residential scheme for a site off Flemington Lane near Balbriggan in North Co Dublin. In the Large Scale Residential Development (LRD) scheme application lodged with Fingal County Council, Dean Swift Property Holdings is seeking a 10-year planning permission for 378 houses, 102 apartments and 84 duplex units. The proposal also includes the provision of nine commercial units and six communal units and the 56-acre greenfield site 2.4km from Balbriggan town centre is currently used for agriculture including crop-growing. As part of its Part V social housing obligations, the firm has put an indicative price tag of €50m on 114 units to be sold to Fingal County Council for social housing. The units will have an average indicative price tag of €439k and a final price will be agreed if and when planning permission is secured. A decision is due on the application in September. The Irish Times, 17th July
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Grafton Street, Dublin 2 The official kit supplier to both the Irish women’s and men’s football teams, and to Leinster rugby, is to open a new flagship retail outlet on Grafton Street in Dublin city centre. Premium sportswear brand Castore’s new shop will be in the Grafton Buildings at 34 Grafton Street. Other tenants in the block include fashion retailer Jigsaw and athleisure brand Sweaty Betty. Castore’s new Dublin shop will occupy a high-profile corner location at the junction of South Anne Street. The premises extends to 2,150 sq. ft and Castore is set to pay an annual rent of approx. €300k and is believed to have seen off competition from a number of other international retailers who were seeking to secure the space. The Irish Times, 5th July
Wicklow Street, Dublin 2 Lisney is quoting a price of €1.95m (NIY 6.53%) for a prime retail investment in one of Dublin city centre’s most sought-after locations. No. 19 Wicklow Street is a high-profile mixed-use building with long-term income and reversionary potential. The property, just 130m from Grafton Street, comprises a four-storey over-basement building, occupied by well-established tenants: the vegetarian and vegan restaurant Cornucopia, and tailor Louis Copeland, who have both been trading from the building since 1992. The building extends to approx. 3,115 sq. ft and is generating a combined passing rent of €140k pa. The WAULT is 9.3 years to the break option and 9.9 years to expiry. The Irish Times, 5th July
Stephen’s Green, Dublin 2 Eamon Waters, the Co Meath entrepreneur, is planning to build a hotel in the centre of Dublin. The Grafton Residence, a company owned by Waters, has applied to Dublin city council for permission to build a 61-bedroom hotel at Textile House beside Peter’s Pub, near Stephen’s Green shopping centre. Waters bought the two-storey Textile House last year after it was put on the market for €6.5m. Waters wants to knock down the buildings at 3-5 Johnson’s Place and 2-5 Clarendon Market and replace them with an eight-storey building. If given the go-ahead, the hotel bedrooms would be located over the first to fifth floors, and would be used as an extension to, and managed by, the nearby Grafton hotel, which Waters also owns. The upper floors would include six apartments, while a restaurant, bar and retail unit would be located at the ground floor and basement levels. The Sunday Times, 9th July
Ormond Quay, Dublin 7 Dublin City Council has granted planning permission to the owners of the five-star Morrison Hotel in Dublin for an extension that will bring the total number of hotel rooms to 161. Zetland Capital, a London-based private equity firm, bought the Morrison in 2021 for an undisclosed sum though it was reported at the time that the deal was worth more than €65m. In the extension plan, four of the 16 new rooms are to be provided at basement level, while eight bedrooms are to be provided at ground floor in lieu of three meeting rooms. On the fourth floor, four bedrooms are to be provided. The Irish Times, 4th July
Hospitality Industry Dublin hotel prices rose to a new record in May, CBRE Ireland has said. Hotels in the capital saw an average daily rate of €209 in May, 3.5% ahead of a previous record in September 2022. On a YTD basis, the average daily rate across all Dublin hotels was €170. Occupancy rates across all Irish cities, including Dublin, remain strong, CBRE said in its second quarter hotel market report. Occupancy in Dublin averaged 78% to the end of May, “relatively in line” with the same period in 2019, CBRE said, predicting occupancy rates are set to grow in the busy summer period. The CBRE report shows deals picked up in the three months to June after a slower first quarter, with a total of €91m of transactions closed across six deals, including the sale of the Imperial Hotel and Spa in Cork city for approx. €25m to a private investor. A total of €135m of capital was deployed on Irish hotels in the first half of the year. The Irish Independent, 7th July
Tallaght, Dublin 24 Harvey has secured the sale and separate lettings of two adjoining units to the same occupier at Belgard Road Industrial Estate, a small scheme of just five units in Tallaght, Dublin 24. Having secured the sale of Unit 5, a mid-terrace industrial and office property of 3,132 sq. ft, to Limerick-headquartered electrical wholesaler Trade Electric Group (TEG) for over €400k, Harvey subsequently agreed the long-term letting off-market of the neighbouring Unit 6 to the same company. Unit 6 comprises an end-of-terrace industrial and office property of 2,885 sq. ft which had benefited from an extensive refurbishment. The Irish Times, 5th July
Sir John Rogerson’s Quay, Dublin 2 Marlet Property Group has secured a €102m refinancing facility with Cheyne Capital Real Estate for its Shipping Office scheme on Sir John Rogerson’s Quay in Dublin’s south docklands. The Shipping Office, developed on the site formerly occupied by the British and Irish Steam Packet Company, comprises 182,158 sq. ft of office accommodation over eight storeys, a 12,755 sq. ft roof garden, five terraces, 27 showers, changing facilities, 16 basement car-parking spaces with two electric-vehicle (EV) charging points and 234 bike spaces. The Irish Times, 5th July
St. Stephen’s Green, Dublin 2 A property development company has claimed in the Commercial Court that significantly understrength concrete was supplied for use in basement and ground floors of what it says will be an iconic office building near St. Stephen’s Green in Dublin. KC Capital Property Group Ltd says the defective concrete has been removed and the eventual cost of remediation will be at least €9m. The firm is behind what is to be known as the Greenside Building on Cuffe Street which, when complete, is expected to be worth €51m. The Irish Times, 10th July
MyHome Report Asking prices for Irish homes picked up in the three months to the end of June following three QoQ declines in a row, as the market showed signs of stabilising even as interest rates continued to climb, according to MyHome.ie. The average asking price for a home increased by 4.3% in the second quarter compared with the first three months of 2023, and are now 2.2% higher than the same time last year, at €325k, according to MyHome. That compared to a 0.4% QoQ drop in the first three months of the year. Dublin prices rose 3.3% in the period to the end of June and at an annual rate of 0.6%, according to the latest data. Homes outside the capital increased by 4.6% on the quarter and by 3.5% YoY. The Irish Times, 10th July
Residential Zoned Land Tax (RZLT) Hundreds of property owners lodged planning appeals in one week in May against a new tax designed to spur building on vacant land, an Oireachtas committee heard. The 600 appeals have added to the already high workload of An Bord Pleanála as it tries to overcome a major backload of planning files with a “blitz” of decision-making on smaller cases. In the face of the housing crisis the RZLT takes force next year as part of the Government’s effort to unlock vacant sites. The aim is to discourage hoarding by imposing costs on property owners, thereby boosting the supply of new homes. But appeals against the new tax now comprise “approx. 16%” of An Bord Pleanála’s workload. The Irish Times, 6th July
Fairview, North Dublin Residents are looking to overturn planning approval for 785 apartments on the grounds of St. Vincent’s Hospital in Fairview, Co Dublin. Five appeals on behalf of residents in the north Dublin suburb and the Ierne Social and Sports Club have been lodged with An Bord Pleanála. Dublin City Council granted permission for the €300m scheme after reducing the number of units from 811 to 785, a move that involved losing the top two storeys on the tallest 13-storey block. The applicants, St Vincent’s Hospital Fairview, have also lodged an appeal against three conditions attached to the planning permission. The large-scale residential development scheme comprises 303 build-to-rent units at Richmond Road and Convent Avenue. The scheme on the 23.4-acre site is being developed by Royalton Group, a British property development firm, in partnership with the board of St. Vincent’s Hospital Fairview. Under the terms of the deal, Royalton will build a new 73-bedroom mental health facility for St Vincent’s, which is currently located in a listed building that is more than 100 years old. The Irish Times, 6th July
Delgany, Co Wicklow The High Court has rejected a challenge to permission for the development of more than 200 homes on former monastery lands in Co Wicklow. Mr. Justice Richard Humphreys refused to quash An Bord Pleanála’s fast-track approval of the scheme proposed for Delgany by developer Drumakilla Limited. An Bord Pleanála granted permission in February 2021 for the construction of 232 homes on a 15.3-acre site sold by an order of Carmelite nuns for €15m in 2019. Located between Convent Road and Bellevue Hill, the proposed development would include 96 houses, 136 apartments over two four-storey blocks, and five three-storey duplex blocks. The Irish Times, 5th July
Housing Construction The transfer of State lands that could hold more than 3,000 homes to the Land Development Agency has been delayed, the Government has been told. Minister for Housing Darragh O’Brien updated Cabinet about the process of transferring land from various state bodies to the LDA, which was set up to streamline the process of building homes on the land. According to the update, three sites are now classified as “high priority, transfer delayed”, where progress has been held up “due to ongoing negotiations with the relevant landowners, despite the sites being largely unconstrained for delivery”. The sites are – lands adjacent to the Leopardstown Racecourse, owned by Horse Racing Ireland, with an estimated capacity of between 1,550 and 2,080 homes; ESB lands at Wilton Cork that could hold 300 units; and HSE lands at Colbert Quarter in Limerick, with an estimated yield of 700 homes. The Irish Times, 5th July
Residential Developments Strategy The residential property investment market in Dublin has seen a decline in deals, leading developers to find alternative ways to recover their investments. Rising interest rates, construction costs, and uncertainty in the office investment market have caused prices to increase and made investors cautious. As a result, developers are hesitant to sell apartment complexes to private rental or public purchasers. Instead, some developers are retaining and managing the complexes as rental properties. For example, Ronan Group Real Estate’s Libra Living has decided not to sell apartments at Spencer Place and is targeting long-term institutional investors. Another developer, Marlet, has already brought over 600 units to the rental market and is retaining the rest for investment. Other players like Richmond Homes and Hammerson are also entering the rental market with their completed or upcoming apartment developments. This shift reflects the demand for high-quality rental properties and the challenges in the investment market. The Business Post, 8th July
Ireland’s commercial property market slowed sharply in the first half of the year, as the value and volume of deals dropped significantly. The €954m invested in the sector in the first half of 2023 was down approx. 48% when compared with the 10-year average. Only 51 deals took place in the period, down more than a third on the average. The data was revealed in JLL research tracking the investment market. Retail was the strongest performing. Retail parks were a particular draw for investors, with an off-market retail park deal accounting for the second-largest investment in the quarter, at €46m. The B&Q retail warehouse in Dublin’s Liffey Valley was bought for approx. €27m. The largest investment was a private rented sector investment for €55m. The research did point to some more positive signs, including the prospect of the end of interest rate hikes and the move by some businesses to a return to the office long-term. The Irish Times, 5th July
BNP Paribas Real Estate PMI The Irish construction sector rebounded in Q2, with increased new orders and employment at the fastest pace since March. Input costs rose at a slower rate, but supply chain delays worsened. While overall activity grew, some indicators were less positive, with reduced input buying and weakened business sentiment. Commercial activity drove the wider growth, while housing activity declined, though at a softer pace. The sector experienced a favorable demand environment, reflected in a fifth consecutive monthly expansion in new orders. Workforce numbers expanded for the sixth month, but input purchasing decreased slightly due to sufficient stock holdings and concerns about a potential market slowdown. Despite growth prospects, confidence remains historically subdued, partly due to concerns about inflation. BNP Paribas Real Estate Report, 10th July
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Molesworth Street, Dublin 2 International law firm DLA Piper has signed a 16-year lease for a 6-storey office block on Molesworth Street in Dublin that was previously home to the EU’s mission in Ireland. DLA Piper will lease the 30,000 sq. ft city centre office space at the corner of Molesworth Street and Dawson Street, close to the Dáil and with neighbours including Barclays Bank, AIB and Davy Stockbrokers. The lease runs until 2037 and allows space for the significant growth of the practice.
The property at 40 Molesworth Street was extensively renovated in 2017 by former owner IPUT, which had pre-leased the building to Walmart owned Jet.com at an annual rent of €1.8m. The property was subsequently sold by IPUT to international investor State Street as part of a wider property deal. Irish Independent, 3rd August
Glasnevin, Dublin 11 With no industrial and logistics developer delivering units of less than 20,000sq ft in Dublin at present, agent Harvey expects to see strong interest in a property it is bringing to the market in Glasnevin. Extending to a total area of 929sq m (10,000sq ft), Units 107A and 107B Lagan Road occupy a self-contained and gated site of 0.42 acres in the long-established Dublin Industrial Estate. The property is being offered for sale at a guide price of €1.25 million (exclusive). A long-term lease of at least 10 years will also be considered by the vendor with a quoting rent of €100,000 per annum (exclusive). The Irish Times, 28th July
James Street, Dublin 8 St Patrick’s Mental Health Services (SPMHS) is considering relocating its Dublin city centre hospital in a move that would free up a residential property development site worth at least €100 million.
It is understood that SPMHS is looking at the feasibility of relocating the Hospital, which has 241 inpatient beds, from James Street in Dublin 8 to St Edmundsbury in Lucan, where it also owns land.
Relocation is one of a range of options under consideration as the organisation grapples with the need to modernise and expand its facilities.
The proceeds from the sale of most of the land at James Street would be used to fund the construction of a new 200-bed hospital at St Edmundsbury, where SPMHS already has a 52-bed facility. It is understood that preliminary meetings have been held with South Dublin County Council on the suitability of the Lucan site for a new hospital. The relocation is being considered because building a new hospital on the James Street site would be extremely costly and logistically difficult. The cost of a modern 200-bed hospital there would be close to €150 million, and building works would cause serious disruption to services for a number of years. The Sunday Times, 1st August
Monaghan Road, Cork A half-acre strategic development site in Cork city’s south docks campus is for sale with an unconfirmed price of up to €2m, equivalent to €4m per acre. The zoned development site, on sale through agents Sean McCarthy and Gerard White of ERA Downey McCarthy, is 1.3kms from the city centre, with Monahan Road identified as a key Bus Connects route with cycle lanes to serve the future docks’ brownfield redevelopment impetus for thousands of homes and jobs. The cleared site is adjacent to the likes of Phoenix House, the CORE building, Cleve Quarter & Business Park, Monahan Road Business Park, Tellengana House and Lawley House. ERA say the site may suit for a variety of uses including offices, residential, healthcare etc, and that the surrounding public realm is also getting significant upgrades. The Irish Examiner, 28th July
North Docklands, Dublin UK-headquartered property investor Round Hill Capital is closing in on the purchase of 349 apartments and a 100-bed aparthotel being developed by Johnny Ronan’s Ronan Group Real Estate (RGRE) in Dublin’s north docklands. Although the transaction has yet to be concluded, the parties are understood to be finalising the terms of a deal which would see the Spencer Place portfolio change hands for around €220 million. While the proposed price isn’t insignificant, it is substantially less than the €315 million RGRE had been in line to secure from the forward sale to US real estate investor Cortland of the larger scheme of 550 apartments and co-living spaces it had proposed for the Spencer Place site. While RGRE will no doubt be happy to have secured Round Hill Capital as purchaser for the Spencer Place portfolio, the limitations imposed on the scheme’s height and number of units have proved to be frustrating and costly for the developer. The Irish Times, 27th July
Carrickmines, Dublin 18 Agent Finnegan Menton is guiding a price of €1.5 million for a residential development site in the south Dublin suburb of Carrickmines. Located just off the Glenamuck Road on Golf Lane, the subject property extends to 0.50 acres and has potential, according to the feasibility study drawn up in advance of the sale, to accommodate a scheme of 44 apartments. The proposal, which was prepared by C+W O’Brien Architects, suggests the site would be suitable, subject to planning permission, for the development of a four- to six-storey scheme comprising a mix of 22 one-bed units (50sq m/538sq ft) and 22 two-bed units (80sq m/861sq ft). The site is well located within an established residential area and within 600m of the Carrickmines Park retail scheme and within a short distance of the Luas green line stop at Ballyogan and junction 15 (Cornelscourt/Kilternan) of the M50 motorway. The Irish Times, 28th July
Castlemartyr, Cork Cork’s Castlemartyr Resort has been purchased by the owners of the five-star Sheen Falls Lodge in Kenmare, Co Kerry. Castlemartyr Resort is the third Irish hotel acquired by Singapore-based Dubliners Dr Stanley Quek and Peng Loh. The purchase price is not being disclosed by the purchaser or vendor but is understood to be in the region of €20m. The Castlemartyr Resort had been acquired for close to €14m in 2015 by British businessman and hotelier Martin Shaw. Included in the purchase of Castlemartyr Resort and within the grounds are 38 self-catering cottages and lodges, a mix of two and three-bedroom properties which are popular with families and golfers. Developed by the Supple family, Castlemartyr opened in 2007/08 as a luxury 109-bedroom property. It currently employs 250 full and part-time staff in high season. The Irish Examiner, 27th July
Rathmines, Dublin 6 Three months on from the €15 million sale of the city’s oldest pub the Brazen Head to London-based Attestor Capital and entrepreneurs Ray Byrne and Eoin Doyle, the famous Slattery’s pub in Rathmines has changed hands in an off-market transaction brokered by John Ryan of commercial real estate advisors, Bagnall Doyle MacMahon. The pub was sold by Roddy Slattery whose family have traded from the premises for two generations and has been acquired by Tim and Wendy O’Connor who also own O’Connor’s pub and guest house on Mount Street, Dublin 2. While Mr Ryan declined to comment on the price paid by the O’Connors, it is understood the property sold for close to €3 million following competitive bidding involving several parties. The Dublin 6 premises comprises a two-storey over-basement building of 343sq m (3,690sq ft) consisting of a ground-floor bar with a mahogany interior and snug areas. The first floor there has another traditional-style bar which has over the years played host to traditional and other music sessions. The Irish Times, 29th July
Patrick Street, Cork Plans have been lodged for the revamp of the Easons building on Cork’s busiest shopping street. Number 113-115 Patrick Street is the subject of a planning application lodged by Heatons Unlimited Company, owned now by Sports Direct founder Mike Ashley and which is set to move into the premises later this year. The plans, lodged with city planners in recent days, include proposals for a new shopfront on the eastern elevation of the property, including a new entrance, lighting and glazing. In 2020, Heatons Unlimited Company received conditional planning permission to change the second floor of the Easons building from storage to retail as part of its planned takeover of the iconic premises located close to the northern end of Cork’s main thoroughfare. The Irish Examiner, 28th July
Occupier Activity A report from BNP Paribas Real Estate confirms that there have been 7 new retail warehouse lettings across the 13 Dublin retail parks. 4 are Discount Stores, 2 fall into the Lifestyle, Furniture & Home Furnishings category, and 1 is a Health & Beauty brand. In terms of occupier origin, there are 2 brands from Ireland, 2 from Mainland Europe, 2 from the UK and 1 from Australia.
BNP are also aware of an 8th letting currently in progress at one of the retail parks which once complete will see vacancy reduce to 3% by units or 3.3% in terms of overall retail warehousing space.
In total, these new occupiers have taken up 5,964 sqm of retail warehousing and 673 sqm of ancillary space across the parks, with the majority of these lettings involving units that were previously leased by a different occupier. In terms of new vacancies since their last report, just 2 of the 5 units currently vacant have become vacant, with the remaining 3 having been vacant since before 2019 for various reasons.
While many UK brands are leaving the market, BNP note that they are seeing a notable increase in demand from European brands in particular seeking to open stores in Ireland. Eye on Dublin Retail Parks Report, BNP Paribas Real Estate, 30th July
Newmarket Square, Dublin 8 BAM Ireland has been appointed as the main contractor for the construction of a mixed-use scheme on the site of the former IDA Ireland Small Business Centre at Newmarket Square in Dublin 8. Due for completion in 2023, the development will comprise of 413 rental apartments and a 151-bedroom hotel to be operated by the UK-headquartered Whitbread’s Premier Inn brand. Extending across 29,570sq m (318,289sq ft) the Dublin 8 scheme will cost an estimated €100 million to deliver. The residential element of the development will be concierge-serviced and aimed at the upper end of the city’s private rented sector market. The apartments will be complemented by a gym, cafe/lounge, a cinema, multipurpose rooms, an artists’ studio and retail space at street level, as well as bike and car parking spaces at basement level. The design also includes 1,925sq m (20,720sq ft) of landscaped spaces, including a biodiversity terrace, spa terrace, communal courtyard and new public walkway through the site from Newmarket Square to St Luke’s Avenue. The Irish Times, 28th July
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City Quay, Dublin 2 David Kennan’s KC Capital Property Group is closing in on the purchase of the former City Arts Centre on Dublin’s City Quay for around €40 million. The developer was selected as preferred bidder for the property in the face of competing bids from a number of parties including Simon Kelly’s RQTwo, Johnny Ronan’s Ronan Group Real Estate (RGRE), Pat Crean’s Marlet Property Group, and US real estate giant Hines. While the City Quay site has lain dormant for the past 18 years, the combination of its zoning for a broad range of commercial uses and its status as the last remaining waterfront site in the Dublin docklands saw a number of offers that were well in excess of the €35 million price John Swarbrigg of Savills had been guiding when he brought the property to the market in April. KC Capital is understood to have been advised on its bid by Mark Smyth of MSP Consulting. A feasibility study drawn up by RKD Architects in preparation for the site’s sale by Savills suggests it could accommodate a 145,000sq ft (net) office development, subject to planning permission. The Irish Times, 21st July
Hatch Street, Dublin 2 Social media group LinkedIn is considering taking up to another 90,000 sq ft of office space in Dublin, a further sign momentum has started to return to the city’s leasing market. The US tech firm is understood to be exploring additional options with space at Aviva’s former One Park Place office on Hatch Street under review, according to several market sources. The building, located in the heart of Dublin’s traditional business district, is owned by Clancourt Group. Two current occupiers in the building – Aviva and San Francisco-based Dropbox – had over 110,000 sq ft of space listed as available to sublease. Should LinkedIn commit to additional office space ahead of the opening of its EMEA headquarters in 2023, it will be a positive signal US tech firms are already placing an importance on their office networks as the world feels its way out of the pandemic. Iput is in the process of delivering LinkedIn’s new 430,000 sq ft EMEA head office at Wilton Park, where the social media group signed up on a 25-year lease. The building is expected to be ready for occupation in 2023. React News, 23rd July
M7 Real Estate Pan-European investor and asset manager M7 Real Estate has secured four new lettings across three schemes within its Dublin portfolio of industrial and logistics properties. In the first instance, M7 has agreed a deal on behalf of a major financial institution with the HSE for 12,800sq ft of warehouse and office space at unit 8 North Park. The subject property has been acquired on behalf of the ambulance service on a new 10-year lease at a rent of €10.50 per sq ft following a full refurbishment. The second deal sees Clevamama, the baby products and nursery brand retailer founded by sisters and mothers Martina Craine and Suzanne Browne, taking 11,400sq ft of newly refurbished warehouse space at €10.75 per sq ft on a 10-year lease at B3A Airport Business Park, which is located close to Dublin Airport. The third transaction, meanwhile, sees Screwfix Ireland leasing unit 3 at Westlink Industrial Estate. The subject property comprises 5,850sq ft and will be occupied by Screwfix on a 10-year lease at a rent of €10 per sq ft.The building underwent an extensive refurbishment in the second half of 2020 on a speculative basis and terms were agreed with Screwfix in advance of its practical completion. The fourth and final letting sees Commercial Interior Supplies (CIS) expanding its existing footprint at Westlink Industrial Estate with an agreement for unit 27 (5,808sq ft) at a rent of €9.50 per sq ft. The Irish Times, 21st July
Northwest Logistic Park Park Developments has agreed the sale of a portfolio of prime logistics units at Northwest Logistics Park to a fund managed by Savills Investment Management (Savills IM) for a price in the region of €47.9 million. The portfolio comprises four modern, high-spec buildings extending to over 242,005 sq ft in total and let on long-term leases. Northwest Logistics Park is one of Dublin’s premier logistics locations, ideally positioned convenient to the M50, Dublin International Airport, Port Tunnel and all of the main arterial routes from Dublin city. The park has a strong track record of attracting high-calibre occupiers. Also, further opportunities are available with 80 acres of undeveloped land and planning permission in place for three new industrial and logistics facilities, ranging in size from 39,987 to 120,007 sq ft, two of which are currently under construction. The portfolio will be acquired by Savills IM’s European Commercial Fund – a pan-European, multi-sector fund focusing on office, retail and logistics assets. Savills IM has more than €21.2 billion assets under management globally. The Irish Times, 22nd July
Kilcock, Kildare Savills has launched lands for sale at Branganstown in Kilcock, Co Kildare on the instructions of Ken Fennell, the statutory receiver of certain assets of construction firm Chesford Developments Ltd. The site is being offered for sale at a guide price of €4 million (c.€500k per acre) subject to contract. Located beside the well-established residential developments of Oughterany Village (Phase 1), Royal Meadows and Chambers Park, these greenfield lands, which extend to about 7.97 acres, have the benefit of a full grant of planning permission for 66 dwellings (12 detached and 54 semi-detached). The lands are located along the proposed route of the Royal Canal Greenway, which is due to be extended by 2023. The Business Post, 25th July
Ballincollig, Cork A proposed residential development in the centre of Ballincollig has been rejected. Kway Developments Limited had sought planning for the demolition of an existing house at East Gate, Main Street in Ballincollig. In its place, the developer wanted to build 16 residential units: eight two-bed detached homes and eight two-bed townhouses. Access to the site would have been via an upgraded entrance off Main Street. However, city planners rejected this on the basis that the East Gate junction is already busy and experiences delays. Planners said the proposed new development would “severely impact” the efficiency of the junction and exacerbate the traffic problems in the area. The Irish Examiner, 22nd July
Killiney, Co. Dublin Plans have been approved for a €55 million residential development on Church Road in Killiney, Co Dublin for the Marlet Property Group. The project comprises the construction of six apartment blocks providing a total of 255 units, comprising one studio apartment, 98 one-bed apartments, 137 two-bed apartments, 12 three-bed apartments and seven three-bed houses. A creche is also proposed for the project. Site clearance works have been carried out to prepare the site for construction. The Business Post, 25th July
Grangegorman, Dublin 7 An Bord Pleanála has issued a decision to grant planning permission with conditions to The Park Shopping Centre Limited to build a €48 million mixed-use district centre, student residential housing, and build-to-rent housing development in two buildings, a South Building and a North Building, separated by a new pedestrian and bicycle street connecting Prussia Street with the emerging Grangegorman SDZ campus. The buildings will range in height from three to five storeys on Prussia Street to six-storeys (South Building) to eight-storeys (North Building) towards the Grangegorman campus. The Jameson Gate Projects will see the creation of 30 apartment units and almost 600 student bed spaces. The Business Post, 25th July
Planning Submissions, Dublin Plans for more than 2,200 apartments across three sites in Dublin are due to be submitted to the planners this week. The largest development is in north Dublin, where a company owned by investment group Avestus Capital Partners will seek to fast-track plans for 1,221 apartments in Baldoyle though An Bord Pleanala. In Ringsend, the consortium behind the former Irish Glass Bottle site will submit plans for the first phase of 600 apartments to Dublin city council tomorrow. And on the southside of the city, Lioncor Developments is set to apply for planning permission to Dun Laoghaire Rathdown county council for 404 apartments in Carrickmines. The most long-awaited of the developments is that of the former Irish Glass Bottle site on the Poolbeg peninsula. The property has been earmarked for development since 2006 when developer Bernard McNamara and the Dublin Docklands Development Authority, a state body, purchased it for €412 million. The Sunday Times, 25th July
Ballycureen, Cork A new residential and commercial development could be developed at Ballycureen on the southside of Cork city. Denis McBarron, leading a consortium, has lodged plans with Cork City Council for the construction of more than 130 residential units in a mixed-use residential and commercial development on the Kinsale Road, Ballycureen. The project includes proposals for 13 blocks, totalling some 134 residential units, as well as a restaurant, convenience retail outlet, gym, dentist, physio and hairdressers. The plan also includes a roof-top outdoor amenity and a creche. As part of the scheme, it is also proposed to build a 158-bed hotel, which would range in height from six to nine storeys, and include a swimming pool, gym, bar, cafe, restaurant and function room. The Irish Examiner, 22nd July
Stillorgan, Co. Dublin Following the completion of demolition works, main work is now under way on the construction of a €54 million, mixed-use development at the former Leisureplex site in Stillorgan, Co Dublin. The project, for Kennedy Wilson, will have a total of 232 build-to-rent apartment units, consisting of 109 two-bed units, 113 one-bed units and 10 studio units and will also provide for two retail shop units and four restaurant/café units. The Business Post, 25th July
Ennis, Clare Planning has been lodged for a €1.2 billion data centre development on the outskirts of Ennis at Toreen, Cahernalough, Co Clare. The proposed development by Art Centre Data Centre Limited will include six data centre buildings, office space and associated works and will measure over 1.35m sq ft. The project is expected to create 250 data centre jobs and 1,200 jobs during the project’s construction phase and it is seen by Clare County Council as a key pillar of the Ennis 2040 Economic Plan for the area. Construction work is expected to commence in late 2022 and will be carried out over a phased six-year period. The Business Post, 25th July
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Point Square Sale Point Square has been put on the market. Developed originally by Harry Crosbie, the scheme known formerly as Point Village, is being offered for sale by Savills on behalf of joint statutory receivers Stephen Tennant and Paul McCann of Grant Thornton, at a guide price of €75 million. The Point Square scheme comprises some 103,000sq ft of office space, a 242,000sq ft shopping centre which incorporates a 95,000sq ft anchor store under third party ownership, over 61,000sq ft of space with planning permission for retail and/or leisure use, a six-screen cinema let to Odeon, 756 car parking spaces and 24,000sq ft of permitted café/restaurant space – home to various food and beverage operators including Starbucks, Eddie Rockets, Ruby’s, Salad Box and Freshii. In addition, Crossfit 353 have opened a gym in the scheme. While Savills say they consider Point Square to be one of the best asset management and value-add opportunities to come to the market in Dublin in recent years, the scheme is already generating rental income of €4.9 million. The majority of this – 80% – is being derived from the offices occupied by Oath (Yahoo!) and Voxpro. These offices are let at an average passing rent of €36 per sq ft, offering reversionary potential, and have a weighted average unexpired lease term of 2.7 years. The Irish Times, 14th July
Hammerson, Dublin Dundrum Town Centre co-owner Hammerson says it does not anticipate granting future rent concessions to retailers. The company went on to warn that “all avenues to collect rents due are being pursued.” Hammerson operates in seven different countries, with a number of flagship retail centres including the Bullring in Birmingham, UK. It co-owns Dundrum Town Centre with German insurer Allianz. The group also owns half of the Pavilions shopping centre in Swords, the Ilac Centre in Dublin city centre and 40% of the Kildare Village premium outlet mall. In a trading update Hammerson said it expects all rent collections to continue to improve as remaining Covid-related restrictions are lifted. The company has collected 89% of billable rents in respect of last year. The Dublin and London-listed group has collected 68% of rent for the first half of this year, according to the brief update. Initial third quarter rent collection at 47% is ahead of quarter one and quarter two at the same point in time, and year-to-date rent collection now stands at 62%. Irish Independent, 15th July
Stepaside, Dublin 18 An Bord Pleanála has given the green light to a 445-unit build-to-rent apartment scheme at Stepaside in south Dublin. The board granted planning to Ironborn Real Estate for the scheme comprising nine blocks rising from two to eight storeys in height despite more than 150 objections lodged against the fast-track Strategic Housing Development (SHD) scheme. Dún Laoghaire-Rathdown County Council recommended to the board that planning be refused across a number of headings for the scheme on a 3.39-hectare site at Aiken’s Village. The council recommended refusal after concluding that the scheme would seriously impact on existing and future residential amenities and depreciate the value of those properties. In planning documents lodged on behalf of the applicant, Ironborn is to provide 44 units to the council for lease, with an indicative cost of €79,900 per month. This works out an average lease cost per month of €1,815. In his report, An Bord Pleanála senior planning inspector Rónán O’Connor found that the site is suitable for a build-to-rent scheme as it is an accessible urban location that is zoned for residential development. The Irish Times, 19th July
Drumcondra, Dublin 3 US property group Hines Real Estate is to lodge fast-track plans to construct 1,614 apartments on the grounds of Clonliffe College, Drumcondra, on Dublin’s northside. The company’s Irish arm last year entered into pre-planning consultation with An Bord Pleanála on the scheme. The scheme then comprised of 1,635 apartments that included 1,308 build-to-rent units. However, in the Strategic Housing Development (SHD) plans to be formally lodged with the appeals board in the coming days, the development is now entirely made up of 1,614 build-to-rent apartments on the 22-acre site. Hines has already committed to allocating 20% of the apartments for both social and affordable housing. The GAA sold the land to Hines in 2019 after it had purchased the 31.8 acres of Clonliffe College for €95 million. The Irish Times, 14th July
Oysterhaven, Cork An entire block of holiday homes on the south coast of Ireland is for sale for €2m. Oysterhaven Holiday Cottages, a purpose-built eight-cottage holiday rental complex, adjacent to Oysterhaven Activity Centre, is available for sale as an entire lot, or in two blocks of four, or as individual cottages, priced from €260,000 apiece. The activity centre is not for sale. As previously reported in the Irish Examiner, the owners, Oliver and Kate Hart, built the cottages in the late 1980s as part of a plan to ensure continued business throughout the summer months at their adjacent watersports centre – so that families had the option of staying in the area, rather than day trips, to take part in the numerous watersports on offer. Each of the cottages has three double bedrooms, a shower room and separate WC. The main living area is open plan, kitchen/living/dining room, with views down over Oysterhaven Bay, which is 9kms from Kinsale. The cottages have two parking spaces apiece and a boat trailer/storage gear space. To the rear of each cottage is a small garden. The energy rating is D2. The Irish Examiner, 15th July
Killiney, South Dublin Planning permission has been granted for a 255 residential unit SHD in south Dublin, which will include the Victorian-era Kylemore House. An Bord Pleanala has approved the plan by Atlas GP Ltd to build six apartment blocks ranging in height from two to six storeys, as well as seven houses across the 2.5-acre site in Killiney. A total of 248 apartments will be built, including one studio apartment, 98 one-bedroom apartments, 137 two-bedroom apartments and 12 three-bedroom apartments. Of the seven houses, five will be two storey, three-bedroom terraces. There will also be a three-storey and a single-storey home, both with three bedrooms. Kylemore House, which operated as Kylemore Clinic care centre from 1947 to 2009, is listed as a protected structure in the draft Dún Laoghaire County Development Plan 2022. Its accompanying gate house will be renovated into one of the seven houses. Four houses on Watson Road will be demolished as part of the development. The site will also incorporate 2,557 sq m of public open space. This will include two outdoor play areas totalling 118 sq m as well as two outdoor exercise areas and a resident’s courtyard. Each of the houses will have a private garden and the apartments will be provided with either a terrace, balcony or garden. The Times, 19th July
Irish Housing Chartbook Irish house prices rose for the 5th consecutive month in May to 5.5% yoy according to official CSO data released last week. This is the fastest rate of growth since December 2018 and house prices now sit just 14% below their 2007 peak. Prices grew 0.9% mom both in and outside of Dublin, with annual house price growth reaching 4.9% and 6.2%, respectively. There has, however, been a recent increase in price momentum in the Dublin market, with annualised growth in the past three months rising to c.12%. Housing transactions continued their post-lockdown surge in May following the full resumption of construction. Off a low base in the midst of the first lockdown in May 2020, transactions grew by 73% yoy. This took the year-to-date gain to 10%. Relative to 2019, transactions were down 3% in April, but ahead by 4% in the year to date. Goodbodys, 19th July
Finglas, North Dublin An investment fund, which bought 128 apartments in north Dublin for €40 million three years ago, is to lease the entire complex to housing organisation Tuath for 25 years. Ires Reit bought the apartments at Hampton Wood near the Ikea furniture store in Ballymun from developer Dwyer Nolan in 2018. Ires began renting out the complex itself and in May 2018 marketed the unfurnished apartments at €1,500 for a one-bed apartment and €1,850, for two beds. Almost all the current tenants in the complex are in receipt of Housing Assistance Payments. Tenants received letters from Ires in recent days informing them a lease had been agreed with Tuath, who would be taking over the tenancies. Tuath said the 25-year lease for the complex would ensure “affordable rents” for tenants. The Times, 13th July
Eastpoint Business Park, Dublin 3 Investment funds looking for immediate rental income from a strong tenant covenant in a prime location will be interested in the sale of a modern office building at Eastpoint Business Park in Dublin. Block P2 comes to the market fully let to Virgin Media on a 25-year full repairing and insuring lease from December 2000. Guiding at a price of €15.25 million through agent Knight Frank, the investment’s rental income of €1,247,000 (€23.25 per sq ft and €1,400 per car space) offers the prospective purchaser the opportunity to secure a net initial yield of 7.35%. The subject property extends to 49,366sq ft (4,586sq m), and is finished to grade-A standard, with raised access floors, suspended ceilings and recessed lighting. The property has a generous car parking provision with 71 on-site parking spaces. The Irish Times, 14th July
Sandyford, Dublin 18 As the threat posed by Covid-19 continues to recede in parallel with the rollout of the HSE’s vaccine programme, BNP Paribas Bank and US medical devices giant ResMed Inc have executed their respective long-term leases on a combined 60,000sq ft of office accommodation at the newly-developed Termini building. The quoting rent for the two transactions was €35 per sq ft, and both deals are understood to have transacted at close to this level with a combined commitment for a term certain in excess of 10 years. Europe’s largest bank, BNP Paribas, have signed up to a long lease on the fourth floor extending to more than 40,000sq ft. ResMed Inc have signed up to a long lease of just over 20,000sq ft on part of the fifth floor. Completed by Aldgate Developments in December 2020, the A3 BER-rated Termini building comprises 224,000sq ft of LEED ‘Gold’ V4-accredited space. Designed by Reddy Architecture & Urbanism, the property has finishes that joint letting agents Cushman & Wakefield and Knight Frank say surpass those available in Dublin city centre. The Irish Times, 14th July
Knight Frank Report Knight Frank state that this year is set to be 12 months of remarkable recovery for Ireland and other economies, as pent-up demand across all sectors is activated. This will boost office market activity, particularly as companies determine their evolving office requirements. Take-up in Q2 reached 15,700 square metres, which while low compared with quarterly take-up achieved pre Covid-19, is a relatively strong performance given the extended lockdown. Almost 186,000 square metres of space is expected to complete in 2021, 92% of which is in city centre locations. A total 69% of that space is pre-let, which includes the largest three buildings. The vacancy rate has edged up further to 10.6%. Space coming to the grey market remained flat in Q2, compared with Q1, having increased considerably over the last year. Normal turnover of space in the market and new space that has not yet been pre-let are the main drivers of vacancy in the market. Rents are holding firm at €608.90 per sqm, (€57.50 per sq. ft), as occupier preference for new or best available space is providing a floor for rents. The Business Post, 18th July
Model Farm Road, Cork A sale is close to being finalised for a partly let office investment, Building A, at Cork Business & Technology Park. Joint agents Lisney and BidX1 had been guiding €1.9m and the price is understood to have been agreed at over €2m. A detached two-storey building, its total floor area extends to 16,070 sq. ft. S3 ASIC Semiconductors is the main tenant with 7,262 sq. ft at the ground floor on a 10-year lease from 2020 with a rent of €116,480 per annum, and a break option in year six. The agents say the first floor, also of 7,262 sq ft, has potential to increase the total income from the property to €232,480 pa once a tenant is secured. Occupiers in the park include Boston Scientific, HSE, Alcon, Abtran and Pilz. Irish Independent, 15th July
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North City Business Park Rohan Holdings has pre-let a 25,000sq ft warehouse at its North City Business Park development to global pharma and life sciences company Bio-Techne Corporation. The tenant, established more than 40 years and headquartered in Minnesota, is an acknowledged leader in the provision of life science tools and diagnostic re-agents with annual revenues of about $740 million. The company will use the new facility, which is due for completion later this year, as the primary distribution hub for its European customer base. Rohan Holdings is currently also building an adjoining 20,000sq ft unit at North City Business Park which it intends to make available for occupation from November at a rent of €11 per sq ft. The developer expects to commence work shortly on the next phase of the scheme, with a view to offering some 45,000sq ft of space to the letting market by the end of the first half in 2022. The Irish Times, 7th July
Hospitality Sales The Hill 16 pub together with six overhead apartments in Dublin City centre is among a number of hospitality venues which are being offered separately for sale by Bagnall Doyle MacMahon this week. The Hill 16 pub and apartments comprise the entire of 28/30 Middle Gardiner Street, Dublin 1 and have a €2.25m plus guide price. All seven units are currently vacant but John Ryan, of Bagnall Doyle MacMahon, says the overhead apartments have potential to generate €130,000 per annum and the pub could generate €70,000 per annum. Also in Dublin 1, Bar Italia is an investment property which will be auctioned through the Offr platform on July 29 with a €750,000 guide price. It comprises a restaurant premises which extends to 2,300 sq ft over ground and basement levels. Its tenant, Acrobat Catering has a 25-year lease from August 2004. The passing rent is €91,224 per annum. Irish Independent, 8th July
Dublin Airport DAA is seeking interest from retailers to operate a health and beauty store which may generate an estimated €25m in sales over the contract’s lifetime in Terminal 2 of Dublin Airport after the previous occupant left due to the pandemic. According to tender documents, the owner of both Cork and Dublin airports is looking for expressions of interest to manage and operate a health and beauty unit in Dublin Airport Terminal 2 on a concession basis. On the Government’s e-tender website, DAA has estimated the concession may generate €25m in sales for the operator during the contract’s lifetime, which could run for five-seven years. In 2019, the unit generated around €5.5m in sales. Sunday Independent, 11th July
Marino, Dublin 3 US-headquartered property giant Greystar is closing in on the purchase of 342 homes being developed by Cairn Homes on a site at Griffith Avenue in Marino, Dublin 3. While the terms of the transaction have yet to be fully agreed, the parties are understood to be in the advanced stages of discussions with a view to completing a deal at just under €180 million for the Griffith Wood portfolio. The proposed price tag equates to an approximate average of €523,391 per unit. The scheme, which is currently under construction, is set to accommodate a total of 385 units, comprising a mix of 377 apartments and eight houses. The apartments will be distributed across seven blocks ranging in height from four to eight storeys, and will be complemented by the provision of 367 car parking spaces, 682 bicycle parking spaces, as well as a creche and a gym for residents. The 35 apartments and eight houses not included in the Greystar deal meanwhile will be acquired by Dublin City Council for social and affordable housing under the terms of Part V of the Planning and Development Act. The Irish Times, 7th July
Project Haven The prospect of immediate rental income copper-fastened by the security of a 25-year government lease is understood to have seen strong interest in the sale of Project Haven, a portfolio of approximately 60 social housing units across Dublin’s north, south and west suburbs. Following the receipt of offers from a number of parties, UK-headquartered investment manager Alpha Real Capital is understood to have been selected as the preferred bidder for the portfolio at a figure, which sources said is “just ahead of the guide” of €21 million set by agent CBRE on behalf of Allied Irish Property and the Topland Group. Each property within the portfolio has been fully refurbished and let by way of a standard lease for a term of 25 years, directly to the relevant local authority in each area. Index-linked rent reviews are provided for in every third year. The portfolio is generating gross rental income of €952,000 per annum currently. The Irish Times, 7th July
Social Housing The government’s plan to lease 2,400 homes from institutional funds this year will cost close to €1 billion in total over the 25-year term of the deals. New figures provided to the Business Post by the Department of Housing have shown that the state will spend nearly €1 billion in rent on the 2,400 homes due to be leased this year. Once the 25-year lease period is over, they will ultimately not own the homes at the end of the tenure. In the first quarter of this year, the state entered deals to lease 284 homes on a long-term basis from investors at an average rent of €15,073 per unit annually for 25 years. These 284 homes will cost more than €107 million, or €376,825 per unit, over the lifetime of the lease deal. As similar deals are likely to be involved in the case of the other 2,100 homes, the full amount in leasing cost will be about €1 billion. The Business Post, 11th July
Colony Portfolio The withdrawal of US investor Colony Capital from the Irish property market continues apace with no less than four sales currently nearing completion or concluded. Having already received €292 million last April from the sale to Blackstone of its 74% controlling interests in the Burlington Plaza office complex on Burlington Road and the headquarters of Three Ireland on Sir John Rogerson’s Quay, Colony is now eyeing an additional €120 million from asset disposals in Dublin 4 and the city’s south docklands. While the respective sales of Carrisbrook House, Donnybrook House and the former City Arts Centre site continue to advance, The Irish Times understands that real estate investor Mel Sutcliffe’s Quanta Capital has acquired 23 Shelbourne Road in an off-market deal. Colony and its joint venture partners, the British property group U + I, offered the property to the market quietly last year at a guide price of €25 million, and are understood to have secured in the region of that figure. In the case of Donnybrook House meanwhile, it is understood that the Irish property investment and development group, MM Capital, has secured preferred bidder status with an offer of about €25 million. The Irish Times, 7th July
Lisney Office Market Research Second quarter analysis conducted by Lisney has revealed that the Dublin office market began to operate more freely in Q2, albeit coming from a very low base. “While transactions remained relatively low, the amount of accommodation reserved grew over the quarter and is a positive indicator for activity in the second half of the year and into 2022,” said Lisney director and head of research Aoife Brennan. The vacancy rate has increased by 3.7% annually as grey space and newly completed buildings add to supply. Rents generally remained stable in Q2 and for Dublin overall are down by just 4% annually. According to Lisney, the third lockdown continued to have an impact on the market in Q2 with transactional levels remaining light at just 15,100 square metres; albeit this was a significant improvement on the 1,870 square metres taken up the previous quarter. The list of reserved deals grew in the three months to stand at approximately 86,100 square metres at the end of June with almost two thirds of that being in the city centre. Domestic occupiers took the majority of space, at 54% of the total. In spite of the international travel restrictions, there were 13 deals done by overseas companies including eight from the US. The Business Post, 7th July
Savills Office Market Research Enough office space to accommodate 30,000 people will be completed in Dublin this year, according to estate agency Savills. The 196,000 sq m of space across 33 office buildings represents a 35% increase on the amount of space that came to the capital’s market last year. The extra space comes despite the likelihood that many office-based workplaces are likely to adopt hybrid employment models after the pandemic, with staff splitting their working time between their homes and offices. Savills said that 77% of the new offices coming on stream this year in Dublin have already been pre-let. And of the 198,000 sq m of office space due to be delivered in 2022 in the capital, 50% has already been pre-let, according to the property firm. Irish Independent, 9th July
Ronan Group Johnny Ronan has a new business partner to deal with in his long-running quest to build two large towers in central Dublin. Colony Capital, the US firm, has struck a deal to sell its real estate portfolio in Ireland to Fortress Investment Group, a US-based investment firm, including its stake in the planned 45-storey tower as part of Project Waterfront and 22-storey Aqua Vetro tower on Tara Street. Fortress, which is ultimately owned by the Japanese investment giant SoftBank, controls $53.1 billion in assets worldwide. Fortress has announced that it has entered into a “definitive agreement” with Colony Capital to take control of approximately $2.7 billion in combined assets. As part of the agreement, Fortress will acquire Colony Capital positions in non-digital real estate, which includes positions related to a portfolio of approximately 40 positions encompassing over 100 properties in Europe and the US. The Business Post, 11th July
West Waterford Some two years after initially hitting the market priced at €1.5 million, the West Waterford Golf Club has returned to market as a receivership sale guiding €1.2 million. The 148-acre course in Dungarvan is on offer with full vacant possession through Colliers Ireland, on the instruction of Ken Tyrrell of PWC. The property will be auctioned online on Thursday, July 29. The course was converted from farmland in 1991 with little alteration to the natural topography, leaving a new buyer with two options: maintain it as a golf course, or revert the land to farm land use. Of the 148 acres on offer, only about two acres have been used as the clubhouse, car park and access avenue. Of the remaining 146 acres, some 25 acres comprise various strips of valuable woodland (for which a valuation is available), made up of mainly spruce close to maturity fringed by hardwoods. The balance of land is currently in use as a golf course which would readily revert to farmland, having only been treated with environmentally-friendly fertilisers. The business is profitable and can be sold as a going concern, according to Colliers director Marcus Magnier. The Business Post, 11th July
Clondalkin, Dublin 22 TikTok, the Chinese social media giant, has selected Echelon’s campus in Clondalkin in Dublin as the site for its €420 million Irish data centre. The Echelon data centre campus, which is set on a 35-acre site in Dublin 10, is due to be operational by the end of this year when the first data halls are opened. A number of industry sources have confirmed to the Business Post that TikTok will house its European data centre at the campus when it opens later this year. The firm announced plans in August last year to locate a data centre in Ireland to store videos, messages and other data generated by its European users. Echelon, which is led by chief executive Niall Molloy, secured an investment of €1 billion from Pioneer Point Partners and Davidson Kempner in 2019 to build its hyper-scale data centre campus in Clondalkin as well as a second campus in Avoca, Co Wicklow. The Business Post, 11th July
VHI Portfolio VHI has taken a €4.5 million hit on its property portfolio, blaming the pandemic and the trend towards working from home for depressing office valuations. Much of the write-down is believed to relate to the health insurer’s headquarters on Abbey Street in Dublin, which were recently refurbished and extended to incorporate a 150-year-old former church, encasing it in a glass structure. VHI had valued its property assets at €72 million before the write-down. The property impairment comes just weeks after An Post wrote down the value of its GPO head office on nearby O’Connell Street to zero, with the historic building left largely vacant as staff work from home. The Sunday Times, 11th July
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Grafton St, Dublin 2 Lululemon Athletica, a yoga and sports clothing chain, is to open a standalone store on Grafton Street in a welcome boost for Dublin’s premier shopping street and the beleaguered retail sector. The Canadian company has settled on the former Pamela Scott store at No 84, according to property sources. Lululemon already operates a concession outlet in Brown Thomas on the street, where management has been impressed by sales. The latest accounts for its Irish operations showed that it clocked up sales of €2.6 million in the year to the end of January 2020, up from €1.93 million in 2018. The company reported a pre-tax profit of just over €57,000. Lululemon has previously indicated it was “actively looking” for further business opportunities in Ireland. The Sunday Times, 4th July
Ardstone, Dublin Ardstone Capital, the investment firm founded by former Friends First senior executives, has paid around €180 million to acquire 398 apartments (€453k per apartment) being delivered by Dwyer Nolan Developments across three sites in Dublin. The agreement of the forward purchase deal will see Ardstone secure ownership of a mix of units across the developer’s schemes at Santry Place in north Dublin, Hampton Wood in Finglas and at Windermere in Clongriffin. The Irish Times understands the transaction was finalised last week. The off-market deal, which was brokered by joint agents CBRE and Dillon Marshall, represents the latest in a series of significant sales for Dublin’s private rented sector (PRS) market. The apartments at Santry Place account for the largest portion of the Dwyer Nolan portfolio sale with some 205 units across three blocks due for practical completion in the third quarter of this year. The 125 units at Hampton Wood and the 68 units at Windermere in Clongriffin are scheduled for delivery in 2022. The Irish Times, 30th June
Finglas, Dublin 11 Investors involved in Dublin’s thriving private rented sector (PRS) market will be interested in an apartment portfolio in Finglas, Dublin 11 which has been brought to the market on behalf of NAMA. Guiding at a price of €14.5 million, the sale of 54 units equates to €269k per apt. Built in 2005, Prospect Hill comprises a total of 479 apartments across nine blocks, ranging in height from three to eight storeys, above basement car parking. Distributed across six blocks within the scheme, the 54 apartments in the subject portfolio consist of 49 two-beds, 30 of which are duplex, and five one-bed units. The subject portfolio is currently under-rented with just 26 of the units fully-occupied at an average monthly rent of €1,200, which is relatively-low when compared to the rents being achieved across the capital at present. The remaining 28 units are vacant and ready for occupancy, and 26 of these can be let at full-market rent, as they have not been let previously. Market rents are in the region of €1,700 a month for a two-bed and €1,500 for a one-bed. Colliers estimates the portfolio will have a market rental value of about €1.092 million once it is fully let. The Irish Times, 30th June
Oliver Plunkett St, Cork Plans have been lodged for the major redevelopment of the Hickey’s hardware store in the centre of Cork City that will include a six-storey apartment complex. The site between Oliver Plunkett St and Maylor St is located on the centre island in the heart of the city’s retail core and will see the development of 32 new apartments if permission is granted. The proposed development will see the existing building and five upper floor apartments on Oliver Plunkett St retained, with the warehouse and office buildings on the Maylor St side being demolished. This is to facilitate the construction of a new six-storey building that will accommodate the apartments made up of 11 one-bed units, 12 two-bed, and nine studio units, all facing on to Maylor St. The Irish Examiner, 1st July
Marlet Portfolio Three investors are still in the frame for Marlet Property Group’s €1 billion Castle private rented sector (PRS) portfolio as talks on the sale this week enter a critical stage. Kennedy Wilson, an American real estate investor and one of Ireland’s biggest private landlords, has joined forces with rival bidder Blackstone, the world’s biggest equity firm, to bid for the portfolio, according to sources. Union Investment, a German asset manager, is also believed to be still in the process. Talks are said to be delicately poised, with external factors playing a part. Marlet, which is backed by UK fund M&G Investments, is said to be willing to take the massive portfolio off the market if its value expectations are not met. The portfolio, which will deliver 2,000 homes, is spread across six sites in Dublin and includes apartments and duplexes. The Sunday Times, 4th July
Hatch St, Dublin 2 One Park Place has secured a new tenant for the sixth floor space that Dropbox vacated. US-headquartered video games publisher 2K Games has committed to a 10-year lease by way of sub-lease from Dropbox for the entire sixth floor at a rent of €60 per sq ft. At 2,322sq m (25,000sq ft), the transaction represents the biggest letting to have been agreed in the Dublin office market in the second quarter. Agent CBRE represented Dropbox while Cushman & Wakefield acted for 2K Games. CBRE is now marketing the fourth and fifth floors extending to a total of 5,388sq m (58,000sq ft) by way of sub-lease from Dropbox at a guide of €60 per sq ft. Developed by the Kenny family’s Clancourt Group, One Park Place occupies a prominent location overlooking the Iveagh Gardens within Dublin’s central business district. The Irish Times, 30th June
Sandyford, Dublin 18 Joint agents QRE Real Estate Advisers and Investi are guiding a rent of €25 per sq ft for offices on the first floor of Arena House at Sandyford in south Dublin. Located on Arena Road and at the heart of the Sandyford Business District (SBD), Arena House comprises a four-storey over-basement detached office building of 4,125.4sq m (44,405sq ft). The space being offered to the market is available on a new long-term lease, and extends to 1,108sq m (11,930sq ft). The subject accommodation has undergone substantial refurbishment to CAT A specification, and includes suspended ceilings with new PIR and LED lighting, carpeted, raised-access floors, a new three-pipe VRF air-conditioning system, and double glazing throughout. The first-floor space is open plan, and has the benefit of a balcony. Arena House has a manned reception area and 50 basement and surface car-parking spaces, which are being made available to rent for €1,500 per annum per space. The Irish Times, 30th June
Willow Road, Dublin 12 QRE Real Estate Advisers have been appointed to handle the sale of Westland House, a multi-let office investment in Westland Business Park, Willow Road in Dublin 12. The building is let to four tenants: Electroplus Group Ireland, Scope Ophthalmics, GVD, and Total Care Pharmaceuticals. Westland House is a third-generation office building of c21,700 sq. ft, finished to a modern specification. The spec includes raised access floors, suspended ceilings with a mix of fluorescent strip and LED lighting, VRV air conditioning, an 8-person passenger lift and a central feature stairwell. The agent is quoting a guide price of €2.8 million, which reflects a net initial yield of 8.52 per cent (allowing for standard purchaser’s costs of 9.96 per cent) based off a contracted rent of €262,082 per annum. The guide price reflects an attractive capital value of €129 per square foot. The Business Post, 4th July
Kilkenny City The first phase of development in Kilkenny city’s urban regeneration scheme the Abbey Quarter is on track for completion in October. The Brewhouse, as it will be known, is set to be the flagship element of the development and will comprise over 50,000sq ft of grade-A office accommodation. The building has been redeveloped from the historic brewery that Smithwicks operated on the site from 1710 to 2014. Aoife O’Neill of Lisney says the estate agent has seen “good interest” in the Brewhouse from potential occupiers seeking high-quality office accommodation. A design team has been appointed for the next office block at the scheme which will also comprise 50,000sq ft. A planning application for the building is expected to be submitted this September. The Brewhouse is being developed by Abbey Quarter Developments, which is a partnership between Kilkenny County Council and the National Treasury Management Agency (NTMA) in its capacity as controller and manager of the Ireland Strategic Investment Fund (ISIF). The partnership has plans to develop six more building plots as part of the new urban quarter providing a mix of uses including office, residential, education and retail. The Irish Times, 30th June
South King Street, Dublin 2 Hines has formally acquired the second phase of Chatham & King, a new high-profile mixed-use scheme next to the Gaiety Theatre on South King Street in Dublin city centre. Hines’s acquisition of the 3,950sq m (42,500sq ft) portfolio marks the culmination of the €165 million deal it agreed with US private equity giant Lone Star for the wider Chatham & King development in 2018. The second phase, which has now been completed by Lone Star, comprises six residential units, five retail units totalling 1,486sq m (16,000sq ft) and 2,461sq m (26,500sq ft) of office space which will be occupied by Qualtrics. The €40 million cost of developing the new building on Chatham Street and Clarendon Row was included as part of the €165 million deal agreed on behalf of Hines European Core Fund (HECF) in 2018. Hines says that negotiations are at an advanced stage on each of the five new retail units, which range in size from 46sq m (495sq ft) to 1,178sq m (12,680sq ft). The incoming tenants will sit alongside the existing tenants, which include Zara, H&M and Apple-reseller CompuB, which recently signed a new lease for a 315sq m (3,400sq ft) retail unit on South King Street. The Irish Times, 30th June
Rathfarnham, Dublin 14 An investment property with development potential on Nutgrove Avenue, Rathfarnham, Dublin 14, sold for almost double its €1m guide price at a BidX1 auction last Friday. Known as Ely House, it includes an office building and warehouses and sold for €1,953,000. Its long, narrow site of 0.205 hectares stretches along Nutgrove Avenue, close to the Grange Road junction. Annually it generates €105,000 in rents from 14 tenants. The rent includes €30,000 from a car wash. The Irish Independent, 1st July
Malahide, Co. Dublin A multi-family unit of 22 apartments plus a crèche has come to the market in the coastal town of Malahide, north county Dublin, guiding €9.4 million through agent TWM. Abington Wood, just off the Swords Road, is situated at the entrance to Abington, the up-market development of substantial detached homes. Built in 2008, Abington Wood comprises 22 two-bed apartments distributed across two three-storey over-basement blocks, a ground-floor crèche, and 49 underground car parking spaces. The total annual gross income from both the apartments and crèche is €555,140, with Links Creche & Montessori paying an annual rent of €110,000 until lease expiry in May 2025. The average gross monthly rent for each of the apartments is €1,686, with rental agent Boland Hyland reporting strong rental demand, with vacancies taking no longer than about two weeks to re-let (outside of Covid-related lockdowns). The sale of the development at the guide price of €9.4 million would give its new owner a net initial yield of 5.61% and a net operating income yield of 4.58 %. The property last came to market in 2014, seeking €4.95 million. It was subsequently acquired for €6.2 million by the Israeli businessman Igal Ahouvi, whose investments in Ireland have included a number of high-profile supermarket properties, as well as the Skechers shoe shop building on Henry Street. The Irish Times, 30th June
Ringaskiddy, Cork A price in excess of €16 million is being sought by vendors Port of Cork for a very large building of 170,000 sq ft they took over next to their expanding port facility at Ringaskiddy, which was originally occupied by hygiene products company Buckeye. On 6.68 ha/16.5 acre site, next to Janssen Sciences and Novartis, the key, strategic property is for sale with estate agent Sean Healy of Cushman & Wakefield who emphasises the proximity to the port’s already extended quays and container facility and the anticipated M28. The building was first developed by Canadian hygienic products firm Merfin Europe Ltd, on a 16-acre site they had acquired in 1995 from the then Cork Harbour Commissioners, now Port of Cork Company. Initially built as a 140,000 sq ft manufacturing facility, it has most recently been used for logistics, storage and distribution. With a market-friendly 12m eaves and nine dock levellers on a very extensive site it’s offered with vacant possession. The Irish Examiner, 1st July
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Stillorgan, South Dublin Knight Frank is guiding €2.5 million for a prime development site at Stillorgan in south Dublin. The site was previously occupied by Beaufield Mews restaurant and antique shop for more than 70 years. Extending to 0.73 acres, a feasibility study prepared by Ferreira Architects in advance of the property’s sale suggests it could now accommodate the development of 34 apartments arranged between two blocks of three and five storeys, or alternatively the construction of seven terraced houses and nine apartments with surface car parking. The Irish Times, 22nd July
Ashtown, Dublin 7 Ruirside Developments, a subsidiary of Chartered Land, has applied to An Bord Pleanála under the fast- track strategic housing development planning system, to build a total of 725 apartments across six blocks on a site in Ashtown. The units will range from two to fourteen storeys high. The plans also include a crèche, discount retail store and cafe. Facilities would also include an amenity space and up to 400 car parking spaces and 800 bicycle parking spaces. The development is planned for a site bordered by the canal and close to Ashtown railway station. The Sunday Times, 26th July
Ringsend, Dublin 4 Nama confirmed that Ronan Group Real Estate and US investment firm Colony Capital have been chosen as preferred bidders for an 80% stake in the former Irish Glass Bottle site in Ringsend that is earmarked to deliver more than 3,500 homes. The Irish Times understands that the winning bid for the site exceeded €130 million. Nama will retain the remaining 20%. The preferred bidders have 30 days to complete the deal. The Irish Times, 22nd July
Purpose Built Student Accommodation Approximately 2,070 bed spaces have completed construction in Dublin over the past twelve months, bringing standing stock to approximately 16,300. A further 3,250 beds were under construction as of June 2020. Cork and Galway are continuing to see an increase in development activity for PBSA, and have a combined 1,728 bed spaces under construction at present, with many more in the planning stages. Over the past 12 months, the PBSA market has seen a healthy pipeline of new schemes opening. However, from 2021 onwards the delivery of new bed spaces will reduce significantly. This is a combination of the slowdown already visible in the volume of new starts, while also the growing question of whether those in the pipeline will be considered for alternative uses. Cushman & Wakefield Report, Q2 2020
Phibsborough, Dublin 7 Knight Frank is guiding €5 million for a significant redevelopment opportunity in Phibsborough village in Dublin 7. Extending to an area of 0.43 acres, the site currently comprises of the former Des Kelly Interiors furniture showroom and a number of retail units on the North Circular Road. The site is zoned “Objective Z4” which provides for mixed-services facilities within the area identified as “Key District Centre 8 – Phibsboro”. The subject site is positioned within a short walk of numerous major employers and amenities, including the Mater hospital and TU Dublin’s (formerly DIT) Grangegorman Campus. The Irish Times, 22nd July
East Wall, Dublin 3 The Sunday Times are reporting that MKN Property intends to demolish two car showrooms on the junction of East Wall Road and Alfie Byrne Road to make way for a mixed-use scheme which will be developed in three blocks. The first building will consist of a 15-storey hotel with 195 bedrooms and conference facilities. The second block will be an eight-storey, mixed-use building with residential amenity space, six office units on the first to third floors and 28 build-to-rent apartments on the fourth to seventh floors. The third building will provide 60 build-to-rent apartments consisting of mostly one- and two-bedroom units with balconies. The proposed development will also feature a basement serving the three blocks for car and bike parking. The Sunday Times, 26th July
Naas, Co Kildare The Irish Times understands that Aldi has agreed to rent Birch House at the Millennium Park in Naas, Co Kildare in its entirety. The German-headquartered company will occupy its new offices on a 10-year lease at a rent of €16.50 psf. The deal also includes an agreement to rent all 156 of the building’s car parking spaces for an annual payment of €200 per space. The Millennium Park campus is well located just a 15-minute drive from the M50 motorway, providing ease of access to both the north and south Dublin suburbs and Dublin airport. The new M7/N7 interchange offers direct motorway access from the park to Galway, Cork, Limerick and Belfast. The Irish Times, 22nd July
George’s Quay, Dublin 2 Irish Life has secured the Office of Public Works (OPW) as tenants for its 1GQ waterfront office scheme at George’s Quay in Dublin 2. The Irish Times understands the State agency has entered into a 20-year lease with a break option in year 15 on 42,000 sq.ft. of space at a rent of €53 psf. The complex, which served previously as Ulster Bank’s headquarters, was stripped out, modernised, extended and renamed by Irish Life in 2017. There was a five-storey glazed extension, increasing the overall floor area by more than 21,000 sq.ft. to 131,333 sq.ft. The Irish Times, 22nd July
Galway City Joint agents QRE and BidX1 are guiding €1.95 million (€443 psf) for Number 1 Shop Street in Galway City. It is currently let in its entirety to Three Ireland, on a 10 year lease from May 2016 at a contracted rent of €160,000 per annum (€36.38 psf). The property extends to five storeys over basement and its total floor area extends to a gross internal area of c.4,398 sq.ft. It is listed as a protected structure. The Irish Independent, 23rd July
Nama recorded a loss of €49 million for the first 3 months of 2020 compared to a €41 million profit over the same period last year, according to figures published by the State Agency. However, the report also highlighted that Nama earned €226 million in cash over the three months ended March 31st from selling loans, property and repayments from its borrowers. The Irish Times, 22nd July
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Ropemaker Place, Dublin 2 Marlet Group has closed the sale of its residential scheme, Ropemaker Place, to German fund Real IS for c.€46 million. The deal was agreed in October 2019. The scheme consists of 56 apartments (€821k per unit), set over seven floors with 28 parking spaces, and is located on Cardiff Lane adjacent to Grand Canal Dock. The portfolio consists of 10 one-bed apartments, 29 two-bed apartments, six two-bed duplexes and 11 three-bed apartments. The Sunday Business Post, 19th July
Dublin 12 Seabren Developments has completed the sale of 12 three-bedroom houses in Dublin 12 to the registered charity, Acorn Housing. The Irish Times understands the deal carried a value of between €5.5 million and €5.7 million (€458k to €475k per house). Seabren Developments has, to date, completed seven residential schemes within the south inner city and west Dublin suburbs. The Irish Times, 15th July
Dublin 6 Knight Frank are guiding €2.5 million for a prime residential infill site in Rathgar, Dublin 6. Situated to the rear of Rathgar Villas, and off Rathgar Avenue, the site extends to 0.44 of an acre and is capable of accommodating a scheme of up to 31 apartments and duplexes. It would also be suitable for a townhouse scheme, according to the feasibility study prepared in advance of the sale by Ferreira Architects. The subject site currently comprises two warehouse buildings of c.3,000 sq.ft. and c.5,400 sq.ft. respectively and an enclosed yard. The entire property is zoned objective Z1, which provides for the development of ‘sustainable residential neighbourhoods.’ The Irish Times, 15th July
Lucan, County Dublin Quintain, a UK-based property developer, has received planning permission to build 244 new homes in Lucan, County Dublin. The homes, which are all build-to-sell, are made up of 213 houses, 16 duplexes and 15 apartments. The Irish Independent understands that the GDV is c.€82 million with work due to begin at the end of the year and the first homes coming onto the market in the middle of next year. The Irish Independent, 17th July
Cherrywood, South Dublin A legal challenge to planning permission for 367 new homes in Dún Laoghaire Rathdown is to be fast-tracked in the Commercial Court. The action concerns the decision to grant Tudor Homes permission to build apartments, four-bedroom houses, a childcare facility, and duplex and triple units at a 6.57 hectare site within the Cherrywood Strategic Development Zone. The action has been brought on grounds including that the council’s decision breaches EU directives on habitats and on environmental impact assessment. Tudor estimates the value of the proposed housing at €130 million. The Irish Times, 20th July
Baggot St, Dublin 2 50 Upper Baggot Street has been purchased for c.€1.75 million. The property comprises a mid-terrace mixed-use investment property divided between commercial use on the ground floor and three floors of residential accommodation. The total floor area of the property is 2,631 sq.ft. (€665 psf) comprising Miller’s Pizza Kitchen on the ground floor and three apartments on the upper floors. The total annual rent receivable of the entire property is €127,000 per annum (€48.27 psf). The Irish Times, 15th July
Waterford City Falcon Real Estate Development Ireland has just received planning permission from Waterford City and County Council for its joint €500 million Waterford North Quays venture. The project comprises an eight-hectare real estate mixed-use scheme. It will be built over five years using a mix of private and public investment. The project will include a seven-storey twin block comprising more than 161,000 sq.ft. of prime office space. There will be five residential buildings ranging in height from seven to 17 storeys, with 298 riverside apartments. A 15-storey 200-room four-star hotel and conference centre is also planned, as well as open and green community public space and a riverside promenade. Other features include a mixed-use commercial building that will include tourism, retail, food & beverage marketplace, cinema and crèche. The Sunday Business Post, 19th July
Old Naas Road, Dublin 12 Dublin City Council has given the green light to plans for 1,102 residential units made up of 992 build-to-rent apartments and 110 apartments at the Royal Liver Assurance Retail Park on the Old Naas Rd, Dublin 12. The full plans comprise of nine buildings ranging in height from seven storeys to an 18-storey building that will accommodate offices on the site. The plan also includes a 203 unit build-to-rent shared accommodation scheme. The Irish Independent, 15th July
Dublin 2 An application has been lodged for a major new development that consists of the reconfiguration, partial sundry demolition, and expansion of the Central Hotel into a new 70,546 sq.ft. five storey hotel with 125 bedrooms and a rooftop extension. The planned development includes an extensive refurbishment and reconfiguration of the Central Hotel and associated premises at 11-16 South Great George’s Street. The Irish Times, 19th July
Dublin Office Market Take-up of office space in Dublin has fallen to a level not seen since 2013, according to data from Cushman & Wakefield. Just under 646,000 sq.ft. of office space has been newly occupied so far this year. The report highlights that in an average year, there would be c.990,000 sq.ft. of space occupied by this point. Between April and May, c.158,000 sq.ft. of space was occupied, significantly lower than the long-run quarter average of c.497,000 sq.ft. The second quarter figures show that take up fell to under a third of what it ordinarily would be under normal circumstances. The volume of space signed in the quarter was in line with the opening quarter of this year at c.923,000 sq.ft. with an additional 2.85 millon sq.ft. of space signed under construction. The Irish Times, 16th July
IFSC, Dublin 1 Agent TWM is quoting a rent of €45 psf for a well-located office suite at the IFSC in Dublin city centre. Located on level four in Custom House Plaza 2 the subject property is being made available on a five-year lease with a break option at year three. The prospective tenant will benefit from an initial rent-free period of three months. In its current layout the 4,883 sq.ft. floor can accommodate around 35 employees, exclusive of meeting rooms. An alternative layout could accommodate up to 50 desks. The Irish Times, 15th July
City West, Dublin Singapore headquartered developer K2 Data Centres has paid just over €3 million for a 4.6-acre site at Citywest Business Campus in Dublin (c.€652k per acre). The site already has planning permission for a data centre. The acquisition further enhances the schemes status as a hub for data centres with BT, Equinix, Keppel and Eir all having major facilities there already. The Irish Times, 15th July
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