AGENTS PICK MOST SIGNIFICANT DEALS (SIX MONTHS TO END OF FEBRUARY)
Kings Building, Smithfield, Dublin 7
Type of deal: Leasing
Developer: John Byrne
Tenant: Workday
Size: 85,000 sq ft
Terms: Estimated €25 per sq ft (£17.70 per sq ft)
Chosen by: Declan O’Reilly, director of office agency, Knight Frank
This transaction, which will see the Californian software company relocate from Dublin 8, is a welcome move in the Dublin market and a great vote of confidence in the historic Smithfield area, which has struggled to attract occupiers outside government and state bodies. We expect it to bring significant life into the area and assist in putting that part of the city on the map for like-minded occupiers, particularly with city centre office accommodation now at a premium.
Developers such as the Linders of Smithfield, which has a number of office development sites in the area, will welcome the move and see it as a further step towards the regeneration of Smithfield market.
I believe the move by Workday, which will be supported by the development of the Grangegorman site as a major educational hub, augurs really well for the further development of this exciting part of the city.
Project Cherry, Cherrywood, Dublin 18
Type of deal: Investment/development Land
Vendor: Grant Thornton
Purchaser: Hines
Size: 400 acres
Price: In excess of €280m (£198m)
Chosen by: Domhnaill O’Sullivan, director, Savills
The sale of “Project Cherry” was for me the most significant commercial property transaction in Ireland in the past year. It comprises a prime 400-acre site to the south of Dublin city, in addition to just over 50,000 sq m (538,000 sq ft) of built accommodation in Cherrywood Business Park.
It was the most prominent undeveloped landbank to come to the market here and is now expected to become a focal point for development following the recent adoption of the Cherrywood Strategic Development Zone.
The SDZ, which provides fast-track planning, stipulates the land must be used for the construction of a town centre, surrounded by substantial residential, office and retail space. Therefore, it is of strategic importance to the Irish economy. The acquisition by Hines also enables it to undertake this significant development, while having the benefit of collecting an annual rent roll in excess of €7.5m (£5.3m).
Abbeycentre, Belfast
Type of deal: Retail leasing
Landlord: NewRiver Retail
Tenant: Next
Size: 45,000 sq ft
Price: Undisclosed
Chosen by: Criona Collins, head of retail, Lambert Smith Hampton, Belfast
Abbeycentre, Newtownabbey, was chosen as the location of Next’s first Shoreham concept department store in Northern Ireland. I believe this deal demonstrates both NewRiver’s commitment to invest more than £6m in a centre it purchased last August and Next’s confidence in the catchment and spending power of the customers.
The new 45,000 sq ft flagship store will see Next’s floorspace increase by more than 25,000 sq ft and will include an increased fashion offer, expanded homewares and a café. The increased product range will cement Next’s place as anchor tenant and increase its visibility on Longwood Road, the main access road for Newtownabbey’s shopping district.
Other retailers in Abbeycentre are expecting to benefit, as footfall data confirms Next customers shop across the wider retail offer at Abbeycentre, boosting the scheme at a time when consumer spending in Northern Ireland is still subdued, but competition among retail destinations is increasing.
People, planning and peculiarities
Planning heads to the districts
Everything comes to those who wait. So some eight years after the process began, a new regime sees planning responsibilities for Northern Ireland devolved to a new structure of district councils from 1 April this year.
Former school seeks classmates
Micro-breweries, retailers and industrial incubator businesses could soon be among those vying to buy a former school in Cork, once attended by Eamon de Valera – dominant political figure and one-time Irish president for 14 years. It has been delisted as a protected structure to allow its redevelopment. Local agent PJ O’Gorman puts a €300,000 (£212,000) price tag on the 8,000 sq ft opportunity.
Shock and success for Titanic Quarter
This year has delivered mixed headlines for Belfast’s Titanic Quarter. Shockwaves reverberated in February with the announcement that chief executive David Gavaghan and two senior staff would be departing amid cost-cutting measures. Less than a month later, however, its Titanic Belfast museum won an award as best visitor attraction in Europe.
JLL a great place to work – official
JLL has happy staff in Ireland – so says the 2015 Best Workplaces in Ireland rankings. Firms only get a ranking if a “clear majority” of employees consider they have a great workplace. JLL was fifth out of 20 in the small company category.
Microsoft finds home for 1,200 staff
Microsoft, which 30 years ago began in life in Ireland with fewer than 100 staff, has announced plans for a huge new campus at South County Business Park, near Dublin, where it will install all of its 1,200-strong workforce.
CBRE beefs up its teams
CBRE has been positioning itself to take advantage of improving market sentiment on both sides of the border.
In Dublin, it has beefed up its retail team with two senior directors – both lured from Savills – while in Belfast, four directors have been appointed, three from Osborne King.
Wetherspoon’s is on the pull
Wtherspoon’s looks set to roll out the barrel for quite some time as it cranks up a big push into Ireland, where it wants to open 30 pubs.
The National Asset Management Agency has named Singapore-based developer Oxley Holdings as preferred bidder for a slice of land in Dublin’s Docklands. The company proposes 645,000 sq ft (59,900 sq m) of offices and 200 apartments on the six-acre site in North Wall Quay.
Hibernia strikes twice
Hibernia REIT was involved in two major purchases in Dublin. Weeks after buying the regional police HQ at Harcourt Square for €70m (£50m) it also bought office block Cumberland House for €49m.
An application has been submitted to Dublin city council for a €450m (£356m) office and residential scheme in Dublin’s Docklands by Oaktree, Bennett Group and Nama.
Apple plans to spend €1.7bn (£1.3bn) on two new European data centres – one to be based near Athenry, County Galway.
Belfast Harbour Commissioners obtained planning permission for a 20-acre redevelopment of former port land. City Quays comprises residential, office, hotel, café and retail units.
JLL reported Dublin industrial take-up at 1.7m sq ft was 14% lower than in 2013 – still in line with five-year averages.
Some pubs and bars in Northern Ireland are expecting to see business rates rise by more than 600% following a 2014 revaluation.
