Busy Second Half Anticipated In The Northern Ireland Commercial Property Market
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BI-MONTHLY RESEARCH REPORT
Northern Ireland Bi-Monthly Research Report, September 2015
Busy Second Half Anticipated
In The Northern Ireland
Commercial Property Market
Overview A busy Autumn season is now in prospect with strong
volumes of activity anticipated in all sectors of the
As anticipated, transactional activity in the Northern
Northern Ireland market.
Ireland commercial property market slowed during
the traditionally quieter months of July and August.
This is now set to change with the traditional Autumn
selling season officially kicking off. We expect to see THE BELFAST MARKET
a notable uplift in transactional activity in both the
occupier and investor sectors of the market during As is traditionally the case, the months of July
the second half of 2015, just as witnessed last year. and August were relatively quiet in the property
market in Northern Ireland although
Although there have been some concerns about the
negotiations continued on a number of
potential impact of recent stock market volatility and
transactions (both on and off market) over the
the uncertain macroeconomic and financial picture,
Summer which will boost transactional activity
as long as interest rates remain low, real estate
over the coming months.
remains an attractive proposition, with spreads in
Northern Ireland more favourable than in many Indeed, we expect a repeat of the pattern last year
other UK locations at this juncture. With a number of where the bulk of transactional activity in the
sizable office lettings in legals at present, there is region was recorded in the second half of the year
potential for the volume of office leasing activity in both the investment and occupier sectors of
achieved in H1 2015 to increase significantly over the market.
the next couple of quarters.
Less than 8,361m2 (90,000 sq. ft.) of office lettings
We have recently experienced a further increase in
signed in Belfast in the first half of the year but
prime office rents in Belfast and expect that this will
we expect this to be significantly surpassed in H2
continue until such time as there is a meaningful
2015, with a number of notable transactions in
improvement in Grade A stock in the region. The
retail sector of the market was relatively busy over
legals and due to sign later in the year.
the Summer months and in addition to some recent
store openings, we expect to see a number of new
Prime Rents | Belfast
announcements being made over the coming
months as consumer confidence strengthens further.
Zone A Retail £112.50 per sq. ft. £1,210 per m2
In the investment sector, prime yields remain stable
and we are continuing to witness steady volumes of
investor demand for good opportunities with new Secondary Retail £45.00 per sq. ft. £484.00 per m2
entrants continuing to emerge.
Prime Office £16.00 per sq. ft. £172.00 per m2
A number of good assets are expected to be formally
launched for sale over the coming months and we
anticipate good demand for these properties, from Secondary Office £8.00 per sq. ft. £86.00 per m2
both local and overseas buyers, with UK institutional
buyers likely to be most dominant. Against this Prime Industrial £3.00 per sq. ft. £32.50 per m2
backdrop, we expect to see increased focus on
planning and development across the region.
Source: CBRE Research
September 2015 CBRE Research © 2015 CBRE | 1
BI-MONTHLY RESEARCH REPORT
Prime office rents have increased again in recent now opened their new Belfast flagship and are
months and now stand at approximately £172 per actively seeking further stores in key locations
m2 (£16 per sq. ft.). Incentive packages for across the Province.
occupiers has also reduced over recent months.
Development is due to start imminently on the City
Quay 2 office building, which will improve the Some of the more notable investment
availability of much-needed Grade A office stock in transactions negotiated recently include:
Belfast.
• The sale to Lumina Real Estate Capital, Bywater
Although plans to cut corporation tax to 18% by Capital and Ashmour of a retail and office
2020 were announced in the recent UK budget, building at 35-47 Donegall Place for £14 million,
more radical plans to give Northern Ireland reflecting a yield of 8%;
autonomy to set its own rate of corporation tax are
• The sale of Valley Retail Park in Newtownabbey
now looking less likely to materialise, which is
to a UK REIT for £7.15 million, reflecting a yield
disappointing considering the extent to which this
of 11.7%;
could generate jobs and improve appetite for office
accommodation across the region. • The sale of Tesco Express and Urban Pharmacy,
Dublin Road, Belfast for £2.65 million, reflecting
The retail sector has been relatively busy over the
a yield of 6.18%
Summer months with a number of new entrants
looking at opportunities and a number of new store • The sale of the Lisburn Square mixed-use
openings taking place, which is helping to reduce scheme to UK buyer Marcol, which had been
vacancy rates. According to our research, the guiding £2.25 million
vacancy rate on Belfast’s prime pitch is now
approximately 8.8%. GAP recently launched their Prime Yields | Belfast Trending
new flagship outlet in Belfast on Donegall Place
after moving from CastleCourt Shopping Centre in Prime Retail 5.75% Stable
August.
Prime Office 6.0% Stable
The next few months will see a raft of new store
openings at CastleCourt , including new entrants to
Prime Industrial 7.0% Stable
Northern Ireland Schuh Kids and Yours Clothing.
Skechers recently opened two new stores in
Secondary Retail 9.0% Stable
Northern Ireland at Donegall Place in Belfast and
Rushmere in Craigavon with further new openings
Source: CBRE Research
planned for early 2016. Meanwhile, DW Sports have
Several other investment transactions have been
negotiated recently including a number of off-
market transactions while a firm associated with
Bernard Eastwood has reportedly purchased a
portfolio from Cerberus, which includes the B&Q
store on Boucher Road, Murray’s Exchange in
Belfast and a number of residential development
sites.
A number of investment opportunities are
currently being marketed across the region
including;
• Junction One & The Outlet at Banbridge, Co.
Down, which is guiding between £58 million
and £62 million;
Skechers, Donegall Place, Belfast
September 2015 CBRE Research © 2015 CBRE | 2
BI-MONTHLY RESEARCH REPORT
Lough Erne Hotel, Co. Fermanagh
THE OFFICE MARKET
• Bloomfield Shopping Centre in Bangor, Co, Following a very strong first half to the year in
Down, which has just been launched for sale which a number of large transactions were signed,
guiding £50 million activity in the Dublin office market slowed during
the traditional Summer season. However, a number
The recent announcement that The Belfast
of new requirements have been activated recently
Telegraph are to cease printing operations in the
which will see renewed activity over the course of
North is expected to see their headquarters building
the coming months.
being released for sale imminently.
During the Summer, the Fitzwilliam Hotel, Belfast
Recent transactions include:
changed hands while the sale of the Lough Erne
Hotel in Fermanagh completed. Meanwhile, • A letting to Willis Insurance of 4,181m2 at The
Beannchor lodged a planning application for a new Quartz building at Elm Park, Dublin 4;
hotel at the junction of Ann Street and Victoria
• A letting of 1,382m2 to Currency Fair at Colm
Street in Belfast while planning permission was
House, Ballsbridge, Dublin 4;
granted for a 24 bedroom extension to Benedict’s
Hotel in the city. • A letting to Mars Ireland of 1,250m2 at The
Chase building in Sandyford, Dublin 18;
There are reportedly up to 12 new student
accommodation schemes in the planning process • A letting to Mastercard of 938m2 at Block C,
with plans recently lodged for a 380 unit student Central Park in Sandyford, Dublin 18;
accommodation scheme at Little Patrick Street • Two lettings at Cookstown Court in Tallaght,
beside the University of Ulster campus.
Dublin 24 –1,440m2 in Block D to Cabot
According to the Northern Ireland Statistical & Financial and 570m2 in Block B to Fleetmatics;
Research Agency (NISRA), average house prices in
• A letting of 448m2 to Leargas at Kings Inns
Northern Ireland increased by 3.0% in Q2 2015 and
House, Dublin 1
are up 6.0% year-on-year, standing at £113,425 at
the mid-year point. Many of the requirements in the market at present
are relatively small with particularly strong demand
A busy Autumn season is now in prospect with
for accommodation of between 465m2 and 1,395m2
strong volumes of activity anticipated in all sectors (5,000 sq. ft. and 15,000 sq. ft.).
of the market.
September 2015 CBRE Research © 2015 CBRE | 3
BI-MONTHLY RESEARCH REPORT
Project Wave, Dublin Docklands
Landlords are now placing greater emphasis on • Ballymore and Oxley have applied for planning
covenant strength. This will invariably prove permission for the first of 3 phases of the Project
challenging for some occupiers, particularly ‘high Wave office development in Dublin Docklands;
growth’ companies such as some of those in the
technology sector. • Hibernia REIT plc have entered into a 50:50 joint
venture with Starwood Capital on the Windmill
Although there are now a total of 19 office schemes Lane site in Dublin 2, which will accommodate
under construction in Dublin, the new 11,174m2 of new office accommodation
accommodation these schemes will provide
amounts to just over one years annual average take-
up and approximately 45% of this new Prime Headline Office Rents
accommodation is already committed.
City Centre €565.00 per m2
There has been considerable activity in the
development sector over recent months with several South Suburbs €269.00 per m2
new schemes entering the planning process and
others commencing construction. North Suburbs €161.00 per m2
• Green REIT plc have recently started demolition
on Molesworth Street in Dublin 2 to make way West Suburbs €151.00 per m2
for a new office building, which is due for
completion in 2017; Source: CBRE Research
• The German Fund Union has agreed to forward-
fund Burlington House on Burlington Road in Prime rents in Dublin city centre now stand at
Dublin 4 where construction is now underway; approximately €565 per sq.m (€52.50 per sq. ft).
• Dublin City Council has granted planning Although there is an increased focus on office
permission on the Boland’s Mills site on Grand development, it will be 2017 before there is a
Canal Dock in Dublin Docklands for 36,759m2 of meaningful improvement in supply and rents will
new office accommodation with construction inevitably continue to rise in the interim.
due to commence shortly;
September 2015 CBRE Research © 2015 CBRE | 4
BI-MONTHLY RESEARCH REPORT
Lands at Airlink, M2, North Dublin
THE INDUSTRIAL & LOGISTICS MARKET
Transactional activity in the industrial and logistics months as demonstrated by the appetite for lands
sector paused for breath to some extent during July at Airlink near Dublin Airport, where two separate
and August following a bumper first half of the year parcels of 20 acres and 55 acres respectively have
during which more than 185,000m2 of take-up was recently been sold.
recorded in the Dublin market.
Demand for prime industrial sites is fuelled by an
However, negotiations are continuing on a number increase in demand for greenfield design-and-build
of significant transactions including a large solutions from occupiers that are frustrated by the
transaction with a logistics operator at Dublin scarcity of supply of modern accommodation along
Docklands, which is expected to sign imminently primary road networks.
and prove a significant boost to Q3 take-up in this
With a large proportion of available stock now
sector.
reserved and no new stock expected to be developed
A sale has now been agreed on the Tougher anytime soon, there is potential for a notable spike
Business Park portfolio in Naas, Co. Kildare, while in prime rental values over the coming quarters as
the sale of a 8,000m2 distribution facility at new market evidence materialises.
Ballycoolin, Dublin 15 has also recently been
Demand for new industrial and logistics stock
agreed.
continues to strengthen although we do not expect
There was considerable activity in the data centre to see any speculative development until well into
sector of the market during the Summer with 2016.
Facebook having been granted planning permission
for a data centre on the M3 motorway at Clonee,
County Meath and Google announcing plans to
develop a second data centre alongside their Prime Headline Industrial Rents
existing facility at Profile Park off the M7 motorway.
Prime Dublin €70 per m2
One of the most significant transactions in this
sector over recent months was the acquisition by
Secondary Dublin €45 per m2
Tetrarch Capital of 336 acres at Millennium Park in
Naas, Co. Kildare for more than €35 million.
Prime Provincial €40 per m2
In general, we have experienced an increase in
demand for prime industrial land over recent Source: CBRE Research
September 2015 CBRE Research © 2015 CBRE | 5
BI-MONTHLY RESEARCH REPORT
THE RETAIL MARKET
Irish consumer confidence is now at its highest A number of retailers are now investing in
level since 2006 on the back of the prospect of tax refurbishment and upgrade works on their stores
cuts and public spending increases before next including Eason’s who are due to revamp their
year’s General Election. According to the Central flagship store on Dublin’s O’Connell Street and
Statistics Office (CSO), Irish retail sales rose by Brown Thomas who are currently upgrading the
9.9% in the year to July 2015. The recovery in façade of their Grafton Street store. The sale of
consumer spending and retail sales appears to have Arnott’s department store in Dublin city centre to
strengthened further over the Summer months with Fitzwilliam Capital Partners was formally
bad weather having actually boosted footfall and announced in recent weeks.
trading patterns in many locations around the
country. Prime Headline Zone A Rents
In the property sector, there was a seasonal
slowdown in transactional activity during July and Grafton St €5,500 per m2 The Square €1,500 per m2
August, just as witnessed in the office and
industrial occupier markets. Nonetheless, retail Dundrum €4,000 per m2 Secondary City €1,000 per m2
property specialists were busy over the summer Centre
months, completing due diligence on the many Henry St €3,500 per m2 Prime Retail €296 per m2
retail investment portfolios being offered for sale, W/house (Dublin)
including Project Jewel; the National Portfolio and
an interest in St. Stephen’s Green Shopping Centre Blanchardstown €2,500 per m2 Secondary Retail €135 per m2
W/house (Dublin)
in Dublin.
Liffey Valley €2,250 per m2 Prime Retail €100 per m2
As the traditional Autumn selling season kicks off,
W/house
the biggest challenge facing the retail sector of the (Provincial)
market is a scarcity of properties in the locations
and schemes that retailers are specifically targeting, Source: CBRE Research
with many prime high streets and shopping centres
now boasting full occupancy. This will force some In other news in the retail sector;
pop-up or temporary retailers (who normally start to
look for Christmas premises at this stage in the • Pandora have relocated to the former 02 store on
year) to opt for secondary streets and schemes this Grafton Street;
year. • Freshii have commenced trading at the CHQ
building in Dublin Docklands;
• Gucci have announced plans to open their first
standalone Irish store at Kildare Village Outlet
Centre in County Kildare;
• Lettings have been negotiated with Tiger and
H&M at The Marshes Shopping Centre in
Dundalk;
• Vodafone have commenced trading at the
Skycourt Shopping Centre in Shannon, Co.
Clare;
• Toys R’Us have agreed to lease units at Westend
Retail Park, Blanchardstown, Dublin 15 and
Parkway Retail Park in Limerick;
• Skechers have recently opened a new store at
Whitewater Shopping Centre in Newbridge, Co.
Pandora, Grafton St Kildare;
September 2015 CBRE Research © 2015 CBRE | 6
BI-MONTHLY RESEARCH REPORT
We continue to see new entrants to the market with
Baskin Robbins Ice Cream reportedly looking for up
to five stores in the Irish market; British home,
garden and leisure chain The Range looking at
opportunities around the country and Scandinavian
retailer Sostrene Grene also seeking premises.
With a large number of transactions in legals at
present, the focus for the foreseeable future will be
to get these transactions across the line before
retailers begin to focus attention on the looming
Christmas trading season.
THE IRISH INVESTMENT MARKET
Freshii, CHQ Building, Dublin 1
Prime Yields Trending
• The Brow Bar Lounge has commenced trading in
the former 3 store in Westend Retail Park in Retail (High Street) 3.50% Stable
Blanchardstown, Dublin 15;
Office 4.65% Stable
• The Art & Hobby shop have commenced trading
at Cruises Street in Limerick;
Retail (Super Prime Shopping Centre) 4.50% Stronger
• Starbucks, Mao@Home and Base Pizza have
commenced trading at Lucan Shopping Centre
Retail (Prime Shopping Centre) 5.25% Stronger
in west Dublin;
• The National Roads Authority (NRA) awarded Retail Warehouse 5.25% Stronger
three new service station contracts to the Topaz
Group (which is now being appealed by Industrial 6.50% Stronger
Applegreen);
• Claddagh Jewellers are fitting out a new store on Source: CBRE Research
Dublin’s Nassau Street;
• Aeropostale are fitting out a new store at Liffey Unlike the occupier sectors of the property market
Valley Shopping Centre in west Dublin; which paused for breath during July and August,
• DFS are now trading from the former Curry’s there was no let-up in the investment sector of the
market with activity continuing at pace throughout
unit at Carrickmines in Dublin 18;
the Summer.
• Homestore & More have agreed to lease a new
The activity primarily comprised the completion of
store at Axis Retail Park in Longford
detailed due diligence on assets being marketed,
In planning news, Dun Laoghaire Rathdown County preparatory work on assets that will be formally
Council recently granted planning permission for launched for sale in the Autumn as well as pitching
the redevelopment of Stillorgan Shopping Centre in for new mandates on assets that have yet to be
south Dublin while the new owners of the nearby offered for sale.
Frascati Shopping Centre in Blackrock, Co. Dublin
The most recent performance data for the Irish
are expected to proceed with plans to extend and
refurbish the scheme in due course. Cork City commercial property market produced by MSCI
shows that a total return of 6.4% was achieved in Q2
Council recently granted planning for the
redevelopment of the former Capitol Cinema site in 2015 with annualised returns of 33.7% being
achieved to the mid-year point.
Cork city centre.
September 2015 CBRE Research © 2015 CBRE | 7
BI-MONTHLY RESEARCH REPORT
Block R, Spencer Dock, Dublin 1 Premier Inn Hotel, Airside Business Park, Swords, Co. Dublin
Although bond yields fluctuated a little in light of • Frascati Shopping Centre in Blackrock, Co.
the Greek crisis and recent stock market shocks, Dublin for c.€68 million;
spreads remain significant across Europe. Irish
• 4 regional shopping centres in the Harvest
spreads have actually increased recently, meaning
portfolio for c.€40 million;
Irish commercial real estate remains an attractive
proposition for a range of different types of • The Georges Dock 2 office building in the IFSC
investors, particularly when rental growth prospects for €33 million;
are factored in.
• A retail unit at 57/58 Grafton Street, Dublin 2 for
There is particularly strong demand for large assets more than €18 million;
as investors look to get money into the market
• Premier Inn Hotel, Airside Business Park,
quickly, as demonstrated by the appetite for assets
Swords, Co. Dublin for €11 million
such as Dundrum Town Centre, which forms part of
the Project Jewel portfolio that is expected to
conclude shortly. This appetite for large assets will Negotiations are continuing on a number of other
become even more pronounced over the coming transactions at present including a number of off-
months as investors seek to deploy capital before market deals, which will boost 2015 investment
year-end. spend if these transactions close before year-end.
The sale of Project Trinity to Chartered Land and A busy Autumn selling season is now in prospect.
new entrant ADIA during the Summer was In addition to continued loan sale activity, we
particularly significant in that it represented the estimate that a large volume of commercial real
first significant deployment of Middle Eastern estate assets will be offered for sale over the coming
capital in the Irish market. Similarly, the decision months.
by German investor Union to forward-fund the
Indeed, we estimate that retail properties with a
Burlington House office building in Dublin 4 was
combined value of more than €400 million will be
also noteworthy.
. launched for sale over the coming months with a
further €400 million of office properties also
Other recent transactions include the sale of; expected to be formally offered to the market.
• Block R office building, Spencer Dock, Dublin
Docklands for more than the guide price of €90 We also expect to see some additional multifamily
million; investment opportunities emerging although
investors will invariably tread cautiously until there
• The Nassau House office/retail building which is more clarity on proposed Government plans to
was sold off-market for more than €90 million; introduce rent controls in the residential sector.
September 2015 CBRE Research © 2015 CBRE | 8
BI-MONTHLY RESEARCH REPORT
Lands at Ashtown House, Navan Road, Dublin 15
THE DEVELOPMENT LAND MARKET
Summer 2015 saw the release of a raft of new The need to tackle supply shortages is now
reports and announcements which have relevance becoming increasingly urgent particularly as
for the development sector of the market. Most housing shortages were identified as one of the key
notably, ‘The Urban Regeneration & Housing Bill’ risks facing Ireland in the Government’s ‘National
changing rules on social and affordable housing Risk Assessment 2015’ which was published
provision and introducing a vacant sites levy was recently.
passed by the Oireachtas. The Housing Agency The €276 million of development land sales that
produced their first report giving a comprehensive transacted in the first half of the year is set to be
synopsis of supply and demand in the housing significantly surpassed in H2 considering some of
sector. South Dublin County Council published the larger transactions that were announced over
their draft Development Plan 2016-2022. the last couple of months, not least the sale of the
Meanwhile, it was announced that Dublin City Project Trinity 6.8 acre development site in
Council are proposing to relax unworkable Ballsbridge, Dublin 4 for more than €170 million
minimum apartments standards as part of their and the sale of 3.7 acres and 4 empty office
new 2016-2022 development plan. This would be buildings at AIB Bankcentre, Ballsbridge, Dublin 4
broadly welcomed as it would improve the viability for €67.5 million. With the exception of these large
of apartment development in the city and should transactions, most land sales remain relatively
unlock some much-needed supply. Proposals to small in size, which in itself is hampering efforts to
grant developers incentives to build more student increase residential supply.
housing were also announced following the Higher
Education Authority identifying severe shortages in
this sector. Other land sales agreed recently include the sale
of;
Against this backdrop, the pace of house price
inflation eased during the Summer with the latest • The 0.33 acre CIE site at George’s Quay, Dublin
Residential Property Price Index (RPPI) index 2;
showing that house prices rose nationally by 9.4% • A 17 acre site at Grace Park Road, Drumcondra,
in July compared to 10.7% the previous month. Dublin 9 for €19 million;
Confirmation from the Department of the • A 1.8 acre redevelopment site in Sandyford,
Environment that only 5,625 new housing units Dublin 18 for €6 million;
were provided nationally in the first half of 2015
• A 1 acre site at Mount Merrion, Dublin for €5.9
was greeted with huge frustration in the industry.
million;
September 2015 CBRE Research © 2015 CBRE | 9
BI-MONTHLY RESEARCH REPORT
• A 2 acre site in Stillorgan, Co. Dublin for €5.45
million;
• A 1.86 acre student accommodation site at
Grangegorman, Dublin 7 for €5 million;
• A 0.88 acre site at Clontarf Road, Dublin 3 for €4
million;
• A 12.5 acre site at Balbriggan, North Dublin for
more than €4 million;
• A 7.6 acre site at Maynooth, Co. Kildare for more
than €3.5 million;
• A 6 acre residential site at Blackwood Road, Cork
for c. €3 million;
Glenroyal Hotel, Maynooth, Co. Kildare
• A 6.4 acre site near The Showgrounds in Cork for
c €1.6 million
THE HOTELS & LICENCED MARKET
Following an extremely busy first half to the year in
Opportunities that are currently on the market which 39 hotel properties (totalling €575 million)
include; changed hands in the Irish market, the months of
July and August were the busiest on record in terms
• A 0.67 acre site at the junction of Townsend
of hotel transactional activity.
Street and Moss Street, Dublin 2, which is
guiding €8 million; In total, more than 12 Irish hotel transactions
closed during the Summer months. This coincided
• 21 acres at Newbridge, Co. Kildare, which is
with one of the busiest tourist seasons experienced
guiding €5 million;
in the Irish market for many years, which in turn
• 28 acres at Ashtown House, Navan Road, Dublin boosted hotel performance around the country
15, which is guiding €2.8 million; (despite the weather!).
• A residential site at Western Road, Cork, which
is guiding €2.5 million;
Recent transactions include the sale of:
• 66.7 acres of residential land at Drogheda, which
• The Dawson Hotel & former La Stampa
is guiding €2.3 million;
restaurant in Dublin city centre for more than
• 11 acres of residential land at Rathnew, Co. €17 million;
Wicklow, which is guiding €1.75 million;
• The Grafton Capital Hotel, Dublin 2 for a
• An infill 0.1 acre site at Percy Place, Dublin 4, reported €12 million;
which is guiding €1.6 million
• The Glenroyal Hotel, Maynooth, Co. Kildare,
which had been guiding €10.5 million;
As the traditional Autumn selling season
• The IBIS Hotel, Naas Road, Dublin 22 in an off-
commences, we expect to see an increase in the
market transaction;
volume of land being offered for sale as pressures to
increase housing supply intensify even further. • The Westlodge Hotel, Bantry, Co. Cork for c.€1.5
million
September 2015 CBRE Research © 2015 CBRE | 10BI-MONTHLY RESEARCH REPORT
Hotel properties that are currently being
Hotel Performance - Year To July 2015 vs. July 2014
marketed include:
OCC % OCC % ARR ARR RevPAR Revpar
2015 2014 2015 2014 2015 2014
• The 4 star Clarion Hotel in Cork, which is
guiding €30 million as an investment sale;
Cork 76.22% 75.52% €75.71 €71.77 €57.71 €54.2
• The 3 star Waterford Marina Hotel, which is
guiding €3.2 million;
Limerick 66.09% 60.31% €58.78 €52.57 €38.85 €31.70
• The Glenoaks Hotel, Galway, which is guiding
Galway 74.23% 70.92% €86.71 €80.49 €64.36 €57.08 €1.5 million;
• The Racket Hall Hotel in Roscrea, Co. Tipperary,
Dublin* 82.8% 78.4% €135.9 €116.8 €112.6 €91.6 which is guiding €800,000;
• Cedars Hotel in Rosslare, Co. Wexford, which is
Regional 79.79% 76.59% €88.42 €77.42 €70.55 €59.30 guiding €700,000
Works to extend the 5 star Merrion Hotel in Dublin
Source: Trending.ie, *Hotstats
2 and The K Club in County Kildare are currently
underway while building work is continuing on the
Meanwhile, sales have now been agreed on the Citi development of a new 195 bed 3 star Holiday Inn
Hotel on Dublin’s Dame Street; The Derrynane Express on O’Connell Street in the capital.
Hotel in Kerry; The Cashel Palace Hotel in
A decision to grant permission for a new 107 bed
Tipperary; Hotel Ballina in Mayo; Waterville Lake
budget hotel at nearby Moore Street has now been
Hotel & Golf Course in Kerry and Tallaght Cross
referred to An Bord Pleanala. Meanwhile, a decision
Hotel in Dublin 24 while Tifco/Goldman Sachs
to grant planning permission for an extension to
have reportedly acquired the Hilton Hotel in
the Red Cow Hotel on Dublin’s M50/Naas Road
Kilmainham, Dublin 8.
junction has also recently been appealed to the
It has been reported that a transaction has been planning board. It was recently reported that
concluded in recent weeks to operate Conference planning is to be lodged to upgrade and extend the
Centre Dublin. In another significant summer 74 bed Grafton Capital Hotel in Dublin 2, which is
transaction, Chartered Land and ADIA emerged as expected to spell the demise of the well-known
the successful bidders on the Project Trinity sale of ‘Break for the Border’ nightclub and bar at this
6.8 acres in Ballsbridge, Dublin 4, which included location.
both the Clyde Court and the Ballsbridge Hotel. It
remains to be seen what impact, if any, this
noteworthy sale will have for hotel availability in the
capital over the coming years with developments
expected to be closely monitored by hoteliers and
industry observers alike.
Prime Hotel Yields Trending
5 Star Dublin – Vacant Possession 6.00% Stronger
4 Star Dublin - Vacant Possession 6.75% Stronger
3 Star Dublin - Vacant Possession 7.00% Stronger
Source: CBRE Research Citi Hotel, Dame St, Dublin 2
September 2015 CBRE Research © 2015 CBRE | 11BI-MONTHLY RESEARCH REPORT
O’Dwyers, Killmacud, South Dublin
Planning was recently granted to add 52 new rooms Properties that have recently been launched for
to North Star Hotel in Dublin 1 while a planning sale include
application was lodged for 44 hotel bedrooms at the
• The Arc Café Bar at Liffey Valley in West Dublin,
former Guiney’s building on Talbot Street, Dublin
which is guiding €3.25 million;
1.
• The Homestead in Cabra, Dublin 7, which is
Following a very active Summer season, there is
guiding €950,000
now a scarcity of hotels to satisfy inherent volumes
of demand from hoteliers and investors. The need • The Top House in Howth, Co. Dublin, which is
to release more hotel assets for sale during the guiding €800,000.
Autumn to cater for this demand is becoming
increasingly apparent.
Activity was brisk in the Dublin pub market during
the Summer with a number of pub sales negotiated
including the sale of;
• The Clarendon Inn, Dublin 2 for excess €2.3
million;
• The Botanic House, Dublin 9 for €1.6 million;
• The Half Way House in Walkinstown, Dublin 12
for more than €1.5 million;
• O’Dwyer’s in Kilamacud, South Dublin for c.€1
million;
• The Roundabout in Artane, Dublin 5 for
€750,000
September 2015 CBRE Research © 2015 CBRE | 12BI-MONTHLY RESEARCH REPORT
CONTACTS - RESEARCH CONTACTS - CAPITAL MARKETS CONTACTS - VALUATION
Marie Hunt Robert Ditty Ciaran Donnelly
Executive Director, Ireland Research Senior Director, Capital Markets Director, Valuation
+353 1 618 5543 +44 (0)28 9043 6917 +44 (0)28 9043 6749
marie.hunt@cbre.com robert.ditty@cbre.com ciaran.donnelly@cbre.com
Suzanne Barrett Gavin Elliott Deborah Cromie
Associate Director, Ireland Research Director, Capital Markets Associate Director, Valuation
+353 1 618 5738 +44 (0)28 9043 6750 +44 (0)28 9043 6742
suzanne.barrett@cbre.com gavin.elliott@cbre.com eborah.cromie@cbre.com
Tim Reid Steven Conwell
CONTACTS – MD’S OFFICE Director, Capital Markets Senior Surveyor, Valuation
+44 (0)28 9043 6752 +44 (0)28 9043 6748
Brian Lavery tim.reid@cbre.com steven.conwell@cbre.com
Managing Director CBRE Belfast
+44 (0)28 9043 6741 Andrew Coggins
brian.lavery@cbre.com Director, Capital Markets
+44 (0)28 9043 6915 CONTACTS - HOTEL & LICENSED
andrew.coggins@cbre.com Paul Collins
CONTACTS - AGENCY Executive Director, CBRE Hotels
David Wright +353 1 618 5592
CONTACTS – PROFESSIONAL SERVICES paul.collins@cbrehotels.com
Director, Office Agency
+44 (0)28 9043 6745 Chris Callan
david.wright@cbre.com Alex Speers
Senior Director, Professional Services
Surveyor, CBRE Hotels Valuation
+44 (0)28 9043 6751
Lisa McAteer +44 (0)28 9043 6765
chris.callan@cbre.com
Associate Director, Industrial Agency alex.speers@cbrehotels.com
+44 (0)28 9043 6753 Julie McClelland
lisa.mcateer@cbre.com Senior Surveyor, Professional Services
+44 (0)28 9043 6758 CONTACTS – ASSET SERVICES
Colin Mathewson julie.mcclelland@cbre.com
Senior Director, Retail Agency Gerard McCann
+44 (0)28 9043 6919 Director, Asset Services
colin.mathewson@cbre.com CONTACTS – BUILDING CONSULTANCY +44 (0)28 9043 6759
gerard.mccann@cbre.com
Caren Leon Sean Doherty
Senior Director, Retail Agency Senior Surveyor, Building Consultancy Paddy Henry
+44 (20) 7182 2627 +44 (0)28 9043 6928 Senior Surveyor, Asset Services
caren.leon@cbre.com sean.doherty@cbre.com +44 (0)28 9043 6744
paddy.henry@cbre.com
Alana Coyle Fiona Martyn
Associate Director, Retail Agency Project Manager, Building Consultancy
+44 (0)28 9043 6927 +44 (0)28 9043 6905
alana.coyle@cbre.com fiona.martyn@cbre.com
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Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not
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