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Acquisition of Unit 2B South West Business Park

22nd February 2023/in Development, Land, News

Following the recent practical completion of Phase 1, South West Business Park by Rohan Holdings, Bannon is pleased to announce the acquisition of Unit 2B on behalf of a client in the healthcare sector.  South West Business Park is located just off the Kingswood interchange on the M7 and adjoins the Cheeverstown Luas stop in Citywest.  When completed the Business Park will comprise five units extending to approximately 323,000 sq ft.  Unit 2B is a state-of-the-art facility extending to just over 20,000 sq ft and has 12m clear internal eaves height, dedicated yards, electric-vehicle charging facilities and LEED Silver sustainability credentials.  We are particularly pleased to have secured this facility for our Client given the ongoing shortage of prime warehouse/logistics space within the Greater Dublin Area.

Niall Brereton, Director of Bannon represented the occupier.

https://bannon.ie/wp-content/uploads/niall-B-1.jpg 449 574 Bannon Webpage Admin https://bannon.ie/wp-content/uploads/bannon-logo-trans.png Bannon Webpage Admin2023-02-22 14:15:482023-02-22 14:16:30Acquisition of Unit 2B South West Business Park

What exactly is Croí Cónaithe?

11th October 2022/in Development, News, Reports

The Croí Cónaithe scheme, which has had €450m earmarked for it over the next three years, is designed for the State to plug the gap between the cost of construction and the market value of apartments. It relates to certain areas where the sales price achievable is less than the costs of development.

Funding will be provided solely for build-to-sell developments with apartments to be sold to individual owner-occupiers rather than build-to-rent schemes.  It is hoped that the initiative will kick-start apartment developments in unviable locations particularly for first-time buyers, single people etc.

A report titled ‘The Real Costs of New Apartment Delivery’ by the Society of Chartered Surveyors in January 2021 found that a typical urban apartment block of between five to eight storeys, could cost between €380,000 and €451,000 to build. The variance should largely consist of site value depending on location.  Build costs at these levels are generally above the sales prices achievable for most locations throughout Ireland outside of prime Dublin residential addresses.  These construction costs will have also risen significantly in the intervening period.

Such a scheme which would invariably increase supply and the mix of new residential units being supplied to the market should be welcomed by all stakeholders.  However, the perception that developers will somehow benefit from the public purse will be a key criticism to counteract.  An open book analysis of input costs for each participating scheme and a cap on developers’ profit may be one way to ensure a satisfactory outcome for the return on investment by the State.

 

Niall Brereton BSc MRCIS MSCI is a Registered Valuer and Director of Professional Services at Bannon

Croí Cónaithe (Cities)

 

https://bannon.ie/wp-content/uploads/CASE-STUDY-IMAGE-AdamstownStationF_WEB-1.jpg 899 1600 Bannon Webpage Admin https://bannon.ie/wp-content/uploads/bannon-logo-trans.png Bannon Webpage Admin2022-10-11 10:09:582022-10-11 10:09:58What exactly is Croí Cónaithe?

The Large-Scale Residential Development (LRD) Process explained

13th June 2022/in Development, News, Reports

The new Large-Scale Residential Development (LRD) Process came into effect on the 17th December 2021 bringing to an end its much-debated predecessor the Strategic Housing Development (SHD) scheme which commenced in 2016. The primary aim of the SHD process was to fast-track planning applications for developments of over 100 residential units or 200 student bed spaces.  While the primary aim of the LRD process remains the same as the SHD process, the major difference is that such applications will now be considered by the relevant Local Authority first rather than SHD applications which were lodged directly to An Bord Pleanála.

 

The LRD process can be broken into four distinct steps as follows:

I. Pre-Application (Section 247) Consultation with Planning Authority

8-week period of consultation with the relevant council.

II. LRD meeting with the Planning Authority and LRD Opinion

After the pre-application consultation, an LRD Meeting which is required to obtain an “LRD Opinion” concludes if “the proposal constitutes a reasonable basis for submitting an LRD planning application”.

III. LRD Application is Lodged

This must be done within 6 months of receiving the LRD Opinion.

IV. Decision

After the application is lodged the relevant Local Authority has 8 weeks to make a decision.

 

Following the decision of the Local Authority a right of appeal to An Bord Pleanála is available.

It is hoped that the reintroduction of the initial observation to the Local Authority and the subsequent appeal stage to An Bord Pleanála will help to reduce the large number of Judicial Review cases which have become prevalent in recent years.  Furthermore, the initial consultations at local level should tease out contentious issues early in the application process.  However, it remains to be seen at this early stage of the LRD scheme whether or not the revised process will result in lower levels of Judicial Reviews and assist with the delivery of much needed residential developments.

 

Author:                Ronan Lavelle, Surveyor, Bannon

Date:                    13th June 2022

https://bannon.ie/wp-content/uploads/marmalade-lane.jpg 640 1280 Bannon Webpage Admin https://bannon.ie/wp-content/uploads/bannon-logo-trans.png Bannon Webpage Admin2022-06-13 11:22:382022-06-13 11:23:16The Large-Scale Residential Development (LRD) Process explained

Enhanced PART V Obligations

4th May 2022/in Development, Land, News, Reports

The Affordable Housing Act 2021 brought about changes to the Part V process.  The most significant change is the requirement for new housing developments granted planning permission after 3rd September 2021, to have a 20% rather than 10% Part V (social and affordable) provision.  Of the increased 20% provision, at least half must be allocated for social housing support.  The remainder can be used for affordable housing which can be in the form of either a purchase or cost rental (or a combination of both).

The over-arching aim of Part V provisions is for the State to capture a portion of the increase in land value resulting from the granting of planning permission for qualifying residential developments. According to the Government’s Housing Agency, the preferred option which should be pursed by local authorities is the acquisition of completed units on the development site, by means of a transfer to the local authority or to an Approved Housing Body (AHB). The net monetary value (NMV) obtained by the local authority must be the equivalent of 20% of the difference between the market value of the land on the date on which planning was granted and the existing use value.

For a development site with planning permission and a market value (MV) of €3 million and an existing use value (EUV) of €500,000, the NMV due to the Local Authority will have increased from €250,000 at a 10% obligation to €500,000 at a 20% obligation. Therefore the determination of an appropriate market value has considerably greater significance to the overall costs associated with any proposed scheme of development. Importantly, Section 96(7) of the Planning and Development Act provides that either party can refer the matter of NMV for determination by a Property Arbitrator in the event of disagreement with the Local Authority or their representative. However, any reference to Arbitration needs to be done in a timely manner as the conveyance of completed residential units will be contingent on the Part V issue being resolved.

Niall Brereton BSc MRCIS MSCI is a Registered Valuer and has considerable experience in preparing Part V Valuations on behalf of landowners and developers and negotiating agreements with Local Authorities.

https://bannon.ie/wp-content/uploads/Resdential-Scheme-Stock-Aerial-1.jpg 2970 5280 Bannon Webpage Admin https://bannon.ie/wp-content/uploads/bannon-logo-trans.png Bannon Webpage Admin2022-05-04 09:22:102022-05-04 10:15:57Enhanced PART V Obligations

Draft Dublin City Development Plan 2022 – Proposed Changes to Z15 Zoning Submission Deadline 14th February

8th February 2022/in Development, News, Reports

The planning system in Ireland is currently undergoing a raft of proposed changes with more changes likely to come in the coming years as the Government seeks to implement its ‘Housing for All’ strategy.  While these changes will seek to address the constraints being experienced by the planning system, and which in turn impacts on housing output, new Development Plans being put forward by some Local Authorities are likely to have a detrimental impact on housing delivery.

The recently published Draft Dublin City Development Plan 2022-2028 proposes significant changes to lands which are zoned ‘Z15 – Institutional and Community’.  Lands with this use designation typically relate to properties such as colleges, residential institutions, and healthcare facilities such as hospitals.  Within the previous Development Plan, residential uses were open for consideration on Z15 lands subject to certain criteria such as the provision of 25% public open space and the preparation of an overall masterplan.

However residential uses will no longer be open for consideration under the new Draft Plan and will only be considered in “highly exceptional circumstances”.  It is estimated that there are some 1,833 acres within the Dublin City Council administrative area with a Z15 land use zoning.  While a large proportion comprise schools and educational facilities there is a significant portion occupied by religious institutions and bodies.  With the decline in vocations over the past number of decades and the ageing profile of the members of most religious orders, a number of them have taken the decision to rationalise their property footprints and release their lands for residential development.  This trend is likely to continue over the coming years.  High profile examples of residential developments on Z15 lands include Marinella in Rathgar, Ardilaun Court in Raheny, Hampton and Grace Park Wood both in Drumcondra.

If Local Authorities are serious about delivering on the Government’s ‘Housing for All’ plan then all potential options for the delivery of housing should be maintained, including on Z15 lands, particularly when this zoning has successfully delivered quality housing projects in the past.

Submissions on the Draft Development Plan are being invited on or before next Monday, 14th February 2022.

 

Author:                 Niall Brereton, Director of Professional Services, Bannon

Date:                     8th February 2022

 

https://bannon.ie/wp-content/uploads/DCC-1.jpg 600 1200 Bannon Webpage Admin https://bannon.ie/wp-content/uploads/bannon-logo-trans.png Bannon Webpage Admin2022-02-08 15:12:362022-02-08 15:21:38Draft Dublin City Development Plan 2022 – Proposed Changes to Z15 Zoning Submission Deadline 14th February

‘Mixed Use’ lands with significant potential for development sold in Drogheda.

25th January 2022/in Development, Land, News

Bannon were delighted to act on behalf of client, Belgard Estates Ltd (a subsidiary of CRH plc), in the sale of their lands at Slane Road.  It is a substantial landholding on the outskirts of Drogheda which extends to a gross area of approximately 18.6 ha (45.6 acres).  

The entire site is zoned ‘Mixed Use’ in the Louth County Development Plan 2021-2027 and presents an excellent opportunity to advance a mixed-use scheme with residential and commercial uses, subject to planning permission.  M1 Retail Park, which is occupied by Woodies, Smyths, Sports Direct and Dealz is situated less than 500 metres to the north-west.  Drogheda is earmarked to further expand on its status as the largest town in Ireland with a target population of 50,000 by 2031.  The town has been designated a self-sustaining employment centre on the Dublin-Belfast (M1) Economic Corridor. 

The property garnered significant interest from a range of parties.  Following a tender process, a local property speculator secured the property.  The guide price was €3.75m. 

 

 

https://bannon.ie/wp-content/uploads/drogheda.jpg 925 1384 Bannon Webpage Admin https://bannon.ie/wp-content/uploads/bannon-logo-trans.png Bannon Webpage Admin2022-01-25 16:14:062022-01-25 16:14:06‘Mixed Use’ lands with significant potential for development sold in Drogheda.

Changes Planned for Dublin’s City Retail Core in Draft DDC Development Plan.

16th December 2021/in Development, News, Reports

Revised street categorisation reflects retail shift to focus on shopper experience.

The recently published Draft Dublin City Development Plan 2022-2028 proposes changes to Dublin City Council’s approach to retail in the City Retail Core (Henry and Grafton Street environs).  The revised categorisation of some streets aims to support a more diverse retail experience while preserving the role of Grafton and Henry Street at the top of the retail hierarchy.

Street categorisation involves recognising key shopping streets within the Core as suitable for specific use, protecting them as shopping destinations. The changes were informed in part by the ‘Role and Function of Retail in the Dublin City Centre’ retail study carried out by Bannon for Dublin City Council in early 2021.

Street Category Changes

Category 1 designation focuses on a predominately higher order retail user mix at street level, aiming to promote premium retail within the city centre. Under Category 1 low-order retail services are not permitted and non-retail services may be provided for, on merit, providing they do not undermine the primary retail function. The revised plan has allocated the Category 1 designation to Henry/Mary Street (O’Connell to Jervis Street) and Grafton Street only. O’Connell Street, Middle Abbey Street, Liffey Street Lower, Wicklow Street, South Anne Street, Duke Street and South King Street have all been moved from Category 1 to Category 2 streets.

Category 2 applies to streets where there is an existing mix of operators, such as retail, food and beverage, cultural and entertainment, or where there is the opportunity for increased diversity of retail character on the street. The objective is to allow for a retail mix that is complimentary to the Category 1 street while enhancing the vibrancy of the shopping experience within the City Centre.

This plan underscores Henry and Grafton Street as the City’s premier retail destinations whilst the re-categorisation shall be supportive of a more diverse and vibrant retail offer within the broader retail core. The changes will allow the City Centre to better reflect what is happening in the global retail market with a shift to Omni Channel Retailing and a greater focus on the experience that retail destinations offer rather than just the products they sell. This approach strengthens the City Retail Core’s ability to attract spend from the workers, students and tourists that have been so sorely missed.

South Anne Street (pictured) has changed from a Category 1 to a Category 2 Street. This will be supportive of the burgeoning F&B activity in the area.

George Colyer is a member of Bannon’s Consultancy Team. It provides strategic solutions for stake holders in the Property Market.

https://bannon.ie/wp-content/uploads/DCC.jpg 928 1379 Bannon Webpage Admin https://bannon.ie/wp-content/uploads/bannon-logo-trans.png Bannon Webpage Admin2021-12-16 14:37:582022-01-25 17:08:58Changes Planned for Dublin’s City Retail Core in Draft DDC Development Plan.

Retail giant Penneys finds distribution home in Kildare.

9th December 2021/in Development, News, Reports

Bannon is pleased to have assisted Penneys in sourcing a 15.3 hectare (38 acre) site at Great Connell, Newbridge, Co. Kildare to facilitate the development of a state of the art logistics hub/distribution centre for the retailing giant.

Kildare County Council granted planning permission for the 55,277 sq m (595,000 sq ft) facility which will be accessed off the Newbridge South Orbital Relief Road.  When constructed the building will serve all 36 Penneys stores across Ireland.  The warehouse will feature 20 metres clear eaves height, 34 HGV dock leveller loading doors and an extensive automated goods handling system.

The area is home to several other high profile companies including Pfizer, Lidl (Regional Distribution Centre), Murphy Group and KDP Ireland (Keurig Dr. Pepper). It is also situated close to Junction 10 (Newhall) on the M7 motorway.

The site was sourced on an off-market basis following an extensive selection process.  Niall Brereton who handled the transaction commented “We are delighted to have been able to acquire such an extensive and highly accessible site for Penneys.  It will play a huge role to ensure the company’s continued growth as Ireland’s most popular retailer”.

CGI of Proposed Scheme (Model Works)

https://bannon.ie/wp-content/uploads/article.png 321 603 Bannon Webpage Admin https://bannon.ie/wp-content/uploads/bannon-logo-trans.png Bannon Webpage Admin2021-12-09 11:13:522021-12-09 11:13:52Retail giant Penneys finds distribution home in Kildare.

Lands at Main Street, Dunboyne, Co. Meath

5th November 2021/in Development, Land, News, Reports

Client: St. Finian’s Diocesan Trust

The Brief: The Parish of Dunboyne identified lands adjoining St. Peter and Paul’s Church as being surplus to their requirements and as a potential means of raising funds for the Parish, particularly in the face of the financial challenges posed by Covid-19. Bannon, as joint agent, were approached to provide advice on the optimum method of disposal and how to maximise the potential of the lands, given our previous experience and expertise with the disposal of lands owned by religious institutions. The surplus land, extending to 3.54 acres, included a surface car park which was used by parishioners and church goers and needed to be replaced/relocated.

Our Solution: An alternative car park location was identified in conjunction with the design team on the lands to be retained by the Trust.  Potential purchasers were provided with the specification of the proposed car park and were requested to incorporate the provision of the new car park on behalf of the Trust as part of their bid proposals.

The outcome: Following a competitive bidding process the property was transacted at a price substantially higher than the guide of €2.5m. Furthermore, the purchaser has contractually undertaken to complete the proposed new car park, subject to planning permission, on behalf of the vendor to the required specification. This means that the responsibility, and more importantly the substantial costs of project managing and overseeing a substantial works programme, has been removed from the Trust.

Testimonial: “St. Finian’s Diocesan Trust engaged Bannon as a joint selling agent in respect of the lands at main Street, Dunboyne, Co. Meath. We found Bannon to be thoroughly professional in their approach, and their market knowledge in this sector contributed greatly to achieving a successful sale.”

Fr. Patrick O’Connor.

 

https://bannon.ie/wp-content/uploads/Niall-B.jpg 816 1238 Bannon Webpage Admin https://bannon.ie/wp-content/uploads/bannon-logo-trans.png Bannon Webpage Admin2021-11-05 09:23:312021-11-05 10:20:22Lands at Main Street, Dunboyne, Co. Meath

CPOs – TWO SIDES OF THE COIN

4th August 2021/in Development, Land, News, Reports

In Irish history, there have been numerous examples of the presiding Government instigating a Compulsory Purchase Order (CPO) to implement national projects.  Intentions being for the future development of the country and public interest.  A Government Minister or Acquiring Authority is required to seek a CPO from An Bord Pleanála and in contentious cases such an order can be expedited to provide a clear pathway and certainty around the delivery of a project of national importance.

The rules for the assessment of compensation for land taken on foot of a compulsory acquisition, generally provide that the value of land shall be taken to be the amount, which the land if sold in the open market by a willing seller, might be expected to realise.  Compensation will also deal with issues such as severance and disturbance to remaining landholdings.  The characteristics and attributes of the property are considered as part of any assessment of compensation payable to the landowner.  If zoning is in place for residential development for example, the potential of that development and the requirement for much needed housing will be reflected in the compensation payable.

But CPOs are not just about money.  The decisions and process involved can be emotive.  There are many stakeholders to consider and objectives to be met.  In some cases there is merit in considering a CPO for the successful delivery of projects of importance.  However, for every project that needs to be realised, there are landowners who need to be accommodated.  Many have a long history with their property, and they hold sentimental attachment in addition to financial value to them.  It is never a simple choice to sell that asset or be forced to sell it.

Depending on the project, such compensation sums for land acquisition may be considered relatively modest given the overall cost of the project.  However the personal cost to landowners may be significant as they can be dealing with the compulsory acquisition process for years before reaching a conclusion.

Acquiring authorities must carefully navigate the legal process, taking the obligatory steps with fairness and consideration. Landowners must equip themselves with the knowledge and understanding of the process and the impact on their livelihood. Specialist advice is essential on both sides to understand the true value of the property, both as a single property and as part of a wider scheme.

Our small island will continue on its path of growth and development.  Our challenge is to balance how we use the land we have for the good of our people, both users and owners.

Niall Brereton BSc MRCIS MSCI is a Registered Valuer and experienced Compulsory Acquisition Practitioner with Bannon Chartered Surveyors and Property Consultants.  Niall has advised on multiple CPOs, acting primarily for individual claimants and corporate landowners.  

 Bannon is currently advising landowners in respect of the following CPO projects:

 https://www.corkrdo.ie/major-schemes/m28-cork-to-ringaskiddy-project/

 https://busconnects.ie/

 http://www.donegal-ten-t.ie/

 https://www.foyneslimerick.ie/

 

https://bannon.ie/wp-content/uploads/Niall-Headshot.jpg 2400 1600 Bannon Webpage Admin https://bannon.ie/wp-content/uploads/bannon-logo-trans.png Bannon Webpage Admin2021-08-04 09:22:192021-08-04 17:20:22CPOs – TWO SIDES OF THE COIN
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