In our latest Dublin Office Market Review and outlook, we examine activity in the sector over the last 12 months and look at some key predictions for 2022.
To read the full report, click here.
Snap Fitness has opened its doors in Waterford Retail Park today and, similar to all Snap Fitness gyms around the world, the new Waterford gym will open 24/7 around the clock and will have a list of comprehensive cardio and strength-training equipment that are the highest in industry standards.
Snap Fitness has a global network with more than 1,000 centres worldwide in over 20 countries, including Ireland, United Kingdom, the United States, Australia, Canada and Hong Kong. Founded in 2003, Snap Fitness allows people to work out at a time and in a way that works best for them whether it is doing cardio, lifting weights, personal training or group fitness. They also use the latest fitness technology to elevate the experience, from the equipment in the gym to tracking via Myzone and the new Snap App.
Paddy O’Connor from Sigma Retail Partners, the asset manager for Waterford Retail Park, said “Snap Fitness is especially exciting for us as it is a unique offering to Waterford Retail Park and we are very happy that they are joining our strong tenant line-up. As part of our long-term strategy, we identified health and fitness as a category that would be very beneficial for the retail park. We are very pleased with the arrival of Snap Fitness and I am sure they will do very well.”
Waterford Retail Park is easily accessed from Waterford City and is less than 10 minutes’ drive away. The retail park is located along one of the main access routes to Waterford City from the M8 and N25 (Cork Road) and benefits from free customer parking. It is also located close to the Waterford Greenway and the new Costa Coffee store will be a great pit-stop for visitors heading to and from the Greenway.
We are delighted to launch our new look Retail Pulse.
2021 had a challenging start for the majority of occupiers and investors as uncertainty on the back of Covid continued to take a hold on the sector. As the year progressed however retail sales improved across most of the sub-sectors which contributed to occupancy rates remaining high. We remain very confident for 2022.
Keep an eye out for our monthly bullets as we track movement and give our insight into the retail sector.
To view the full report, please click here.
We at Bannon are delighted to be taking part in The Mater Foundation 100-mile challenge. The aim is to walk/run/jog 100 miles in the month of February and help raise money for the Mater Public Hospital which provides national, specialist care for cancer, heart disease, transplants, spinal injuries, major physical trauma and infectious diseases.
It would be greatly appreciated if you could support our efforts by making a contribution, big or small, to help change patients lives for the better.
To donate, click here.
Despite month on month reductions, recently released CSO Retail Sales Index figures for December 2021 report a 3.6% increase in sales values and 2.2% reduction in sales volumes when compared to 12 months prior however these figures do not paint the full picture. When motor trades and bars are excluded, these figures rise to increases of 5.4% and 0.4% respectively. The true strength of the retail sector shows through when the data is compared to pre-pandemic levels which shows a 10.2% increase in sales values and 11.4% increase in sales values compared to December 2019.
Taking a deeper dive into the data it is evident the traditional festive rush was more subdued in December 2021 with a stronger November trade showing evidence of consumers forward planning.
Top performing sectors for December 2021 were bars following their recent reopening (value increase 39.8%, volume increase 36.5%) and pharmaceutical, medical and cosmetic articles (value increase 11.1%, volume increase 9.9%).
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.
Every rent review has its own peculiarities. It is essential to take account of such items as the hypothetical term, break clauses, headline rent versus net effective rent and the specification of the premises to be reviewed. It is also important to ascertain if any occupier improvements have been carried out and whether these are to be disregarded for rent review purposes.
Des Byrne, Director at Bannon, has over 30 years’ experience in rent reviews on all types of commercial property and is an experienced Arbitrator. Des answers some key questions about rent reviews.
1. What types of rent review exist?
2. Is the rent to be calculated by reference to the Consumer Price Index where the CPI is tracked?-
3. How would my Rent Review be instigated?
Leases may provide that the rent review may be agreed between the parties at any time, it may require that it be triggered by a rent review notice which may be issued by the owner or by either party.
4. How is my rent calculated?
The rent will be calculated by reference to the provisions of the rent review clause, taking into consideration certain assumptions and disregards.
5. Can I agree my rent by negotiation?
Yes, this is the normal practice and in the event of negotiations proving inconclusive. However if negotiation fails to result in agreement, there would normally be provision that the matter may be referred to an Arbitrator or to an Independent Expert.
6. What is involved in Third Party Adjudication (Arbitration / Independent Expert)? How is an Arbitrator or independent expert appointed?
The lease would normally advise as to how the third-party valuer may be appointed. There may be provision where the Arbitrator/Independent Expert can be agreed between the parties.
Failing agreement, there may be provision that the matter can be referred to an appointing body such as the Society of Chartered Surveyors Ireland or the Law Society for such an appointment. Once an appointment is made, the Arbitrator or Independent Expert will write to both sides indicating how the matter may proceed. It may proceed either by way of an Oral Hearing or by written documents i.e., the forwarding of Submissions and Counter-Submissions.
Each side will have to prove their case at Arbitration and offer their true opinion of rental value and they will attempt to prove this rental value by a reference to comparative transactions.
The parties themselves may agree in advance of the Arbitration as to how the costs can be split (perhaps each side agreeing to pay their own costs and half of the Arbitrators costs). When this is not possible the Arbitrator has power under the Arbitration Act to determine costs.
A party who wishes to limit their exposure to costs may decide to serve a Calderbank Offer on the other side which may have the effect of limiting their exposure to costs. A Calderbank Offer is an offer to settle the rent review at a particular figure without prejudice save as to costs.
7. Is it possible to Regear my Lease?
Sometimes this is possible particularly where occupiers have the benefit of break clauses or when a lease is due to expire within a short period of time.
In such circumstances, it may be possible to agree a lower rent in recognition of an occupier agreeing to forfeit their break option or agreeing to extend the lease by a particular period.
8. Other Considerations?
Particularly in relation to office rent reviews, it is important to determine the category of office with which one is dealing i.e., is it Grade A space or of a different quality. The specification of the building is also important particularly in relation to fitting out, mechanical systems and floor to ceiling heights.
In the current economic climate, comparisons may be viewed upon as pre-pandemic, during pandemic and post pandemic if we reach that point.
Retail rent reviews are tending to become contentious with the occupiers seeking lower rents in city centre locations affected by the pandemic. On the other hand owners are seeking higher rents in suburban shopping centres which are beginning to be rediscovered by employees who are now working on an agile basis.
For further information, contact Des Byrne, Director in the Professional Services and Valuation Team at Bannon (Email: dbyrne@bannon.ie).
Pan European investor and asset manager M7 Real Estate has paid just under €15 million for two office blocks in south Dublin.
Developed in the late 1980s as part of the wider Merrion Shopping Centre scheme, the Nutley and AIG buildings comprise an overall floor area of 4,016sq m (43,235sq ft) along with 83 undercroft car parking spaces. The subject property is currently generating total rental income of €1,439,932 a year.
The Nutley Building is let to a number of occupiers including Bonkers Money, the Japanese Embassy, the Austrian Embassy and Global Standards while the AIG Building is let to a single tenant with a number of sub leases in place.
While The Irish Times reported that the deal for the two offices was close to being finalised in October 2020, it is understood the proposed transaction was completed only in recent weeks. Commercial real estate consultants Bannon handled the sale.
Following its latest purchase, M7’s Irish portfolio now comprises 18 assets extending to just under 1,100,000sq ft, primarily in industrial and logistics space.
In October 2020, the company paid about €13.5 million for the long leasehold interest of five fully let units at the Sandyford Business Centre in south Dublin.
The purchase of the portfolio gave it control of five of the scheme’s 10 units along with an associated provision of 200 car parking spaces. The portfolio’s office accommodation covers a combined area of 4,532sq m (48,786sq ft) and is producing annual rental income of €1,192,578 with a weighted average unexpired lease term of 5.8 years, with breaks at 4.6 years.
In August 2020, the company paid €6.25 million for the former Kildare headquarter office and distribution facility of convenience store operator ADM Londis, while in January 2020 it acquired the Primeside Park industrial estate in Dublin for €6.75 million.
The group also controls the Century Business Park in Finglas, which it acquired for €4.47 million in September 2019, and the Westlink industrial estate in Dublin 10, which it bought for €13,870,000 in 2018.
Its first investment here came in 2017 when it bought Fumbally Lane, a combined office and residential development in Dublin 8 which was on the market for €24 million. M7 sold Fumbally Lane to BCP Asset Management in 2018 for €33.5 million, following the completion of a comprehensive asset management programme which enabled the property’s vacancy rate to plummet from 17 per cent to 2 per cent through the addition of 19 new tenants, and its annual rental income grow by €1.14 million.
M7 operates across 14 countries. It manages a portfolio of about 835 retail, office and industrial assets with a value of about €5.1 billion.
Take up for 2021 exceeded 1,700,000 sq.ft. There was a notable increase in market activity from H2, with Q4 attributing over 1,000,000 sq.ft. to the final years take up figure. This was largely boosted by 2 transactions in excess of 200,000 sq.ft. (representing 29% of total take up).
We are off to a strong start for 2022 with over 800,000 sq.ft. of accommodation currently reserved.
The Bannon snapshot shows an exceptional year for PRS with almost 42% of turnover (despite a weak Q4) and the wider market as a whole showing the second-highest annual turnover on record. 2022 likely to see the resurgence of retail and consolidation of sheds!
From all of us here at Bannon, we would like to wish you and your families a very happy and healthy Christmas with every success for 2022.
Since the retail sector emerged from lockdown in May 2021 we have worked with 20 retailers who have invested in store refits cross our portfolio of 31 shopping centres and 19 retail parks. Shop local this Christmas!
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.
Despite the uncertainty of COVID, it is great to see such optimism across our property management portfolio with over 40 new openings since we emerged from lockdown in May 2021. Shop Local this Christmas!
We are delighted to announce the winners of the Bannon “ESG Signage” Art competition run in conjunction with Loreto Junior School Stephens Green.
Congratulations to Amy He (Power Down), Sorcha Murray (Pause before you print) & Grace Yu (Recycle) for their fantastic artwork.
A big thank you to everyone who got involved! Amazing talent from such a young group!
Our chairman and head of Consultancy Neil Bannon was invited to present to Dublin City Council this morning on how to tackle retail vacancy in Dublin City Centre, really positive session with great sharing of ideas & initiatives.
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)
The winner of the Bannon “ESG Signage” Art competition run in conjunction with Loreto Junior School Stephens Green being adjudicated by today.. Keep an eye out on our page as we will be announcing the winners over the next few days!
We’re delighted to see the new Regatta Great Outdoors store open in Nutgrove Shopping Centre, Dublin 14.
This was our first acquisition on behalf of our new client Regatta Ltd.
The super smart looking store, which will also incorporate Craghoppers and Dare 2b products, will serve the catchment well and the strong customer base who are embracing the outdoors even more since the arrival of Covid.
It was a great team effort to get the store open and ready for Black Friday and the run into Christmas, working with Brian Fox and the Regatta Team and Andrew Johnston.
We are continuing to look for more opportunities countrywide.
Covid-19 has flipped the performance of retail assets on their head. The previously-held view was that the prime to tertiary hierarchy was – city high street, major town centre, retail park, grocery retail and local necessity centres. However, in terms of demand and performance from the occupiers on the ground, this traditional hierarchy has now been reversed and is resulting in differentiation within a sector previously considered by many investors as a homogeneous entity.
Footfall is a very effective barometer to highlight this shift. High street has undoubtedly been the most negatively impacted retail market sector with Covid-19 decimating footfall and in-shop spend. Bannon estimates that there are almost 40 shops either vacant or available on Grafton Street and Henry/Mary Street out of a total of 162. Similarly the hospitality sector, including food and beverage, like non-essential retail, has been severely impacted during Covid-19. Despite a strong recovery city centre footfall counts for Q3 2021 were still 30 per cent below 2019 levels. According to the IPD Index year-on-year total returns within the sector are showing minus 12.5 per cent.
In stark contrast the necessity retail sector (being grocery, medical and service-related offers) as well the retail parks have proved to be exceptionally resilient through Covid and continue to perform very strongly. Car counts in many retail parks for Q2 and Q3 2021 exceeded 2019 levels with retailers reporting considerable turnover growth. Provincially convenience-focused shopping centres have remained resilient with limited vacancy as shoppers choose convenience and to shop locally. We are seeing footfall levels return by up to 90 per cent of their 2019 equivalents.
In the latter half of 2021 the ‘money’ began to follow the data into retail parks as is evidenced by the position taken by AM Alpha in Nutgove Retail Park (€66.3 million) and M&G Investments through the acquisition of the Parks Collection Portfolio (€74.5 million) and the agreed acquisition of Manor West (€56 million). We estimate retail parks transactions will represent more than two thirds of all retail transactions in 2021 and will be the only retail sector within the IPD showing positive total returns for 2021 (currently running at plus 6.3 per cent).
Supported largely by the threat of inflation, the resurgence in the retail grocery sector had already commenced pre-Covid in the UK and Europe, with long-let standalone grocery often trading at yield levels of between 4 and 5 per cent. This demand is beginning to emerge in the Irish market, with a shrinking gap between what the sector is trading at in the UK and the perceived value in Ireland. More recently we have seen a number of transactions which are at materially stronger yield levels than market expectation and these are due to sign before the end of the year.
Due to the structural limitations in scalability in the “grocery market” sector in Ireland (where most anchor stores are owner occupied) and the large delta which is developing between “pure grocery retail” and “necessity retail” (being service, health, medical and food-related occupiers) this sub-sector may come into more mainstream investment focus in 2022. The disconnect between the emerging grocery yields (5 per cent to 5.5 per cent) and those in the supporting “necessity retail” (9 to 10 per cent plus) seem irrationally high, especially as the necessity retail operator’s turnover is derived from the same customer base as their high-value grocery anchor neighbours. These centres along with retail parks serve to highlight opportunity within the sector where the negative narrative in the overall retail sector is keeping yields high despite resilient trading.
Rod Nowlan is an executive director at Bannon
It’s beginning to look a lot like Christmas here in Bannon!
Background
The Property Management team at Bannon currently manage over 70 commercial sites across Ireland. The portfolio is made up of Shopping Centres, Retail Parks, Business Parks and Office Parks.
In recent years there has been an unquestionable shift in weather patterns, and this is particularly noticeable in the colder winter months. One such example was the severe weather experienced in February 2018 when Storm Emma hit Ireland. During the course of the storm, we saw significant accumulations of snow across our sites and temperatures as low as –11.0°C.
In any given year we see c.100 million visits to Bannon managed sites across the country and maintaining safe access to these sites is a crucial part of our role as Property Managers. We manage this risk by appointing contractors to carry out gritting services during periods of cold weather and snow clearance when required.
A number of years ago we recognised the obvious synergies associated with managing our winter maintenance services on a portfolio basis. For that reason, we have split our portfolio into three distinct zones (see below) and we tender the contract every 3 years.
Zone 1 – Greater Dublin Area
Zone 2 – South & South East
Zone 3 – Midlands, West & North West
Tender
A sub-team of Property Managers were appointed to oversee the tendering of the Winter Maintenance contract for the portfolio. The following tender process occurred;
Phase 1 – Review of portfolio geography and creation of 3 distinct zones
Phase 2 – Preparation of Request for Tender (RFT) document
Phase 3 – Shortlisting of suitable contractors including a visit to contractors’ facilities
Phase 4 – Issue RFT to shortlisted parties
Phase 5 – Review & analysis of tenders
Phase 6 – Selection & contract award to winning tenderers
In total the RFT was issued to 10 contractors and we received 6 complete tender submissions. The submissions were assessed and ranked based on pre-set criteria. All but one tenderer submitted a proposal for all three zones. The sub-team assessed the proposals and made a recommendation to the directors of the department to appoint three separate contractors (one per zone). This recommendation was followed and the contracts were awarded to the following parties;
Zone 1 – Greater Dublin Area – SAP Landscapes
Zone 2 – South & South East – O’Brien Facilities
Zone 3 – Midlands, West & North West – Ken Fitzsimons Landscaping
Benefits
The benefits of carrying out a procurement process of this nature are far reaching, to include;
Overall, we have seen significant benefits in procuring our Winter Maintenance services on a portfolio wide basis. Our retail clients can enjoy consistency of service across all sites. With a proactive and data driven approach, we ensure that footfall does not drop and visitor health and safety is managed.
With works now complete, we are pleased to welcome Greenlight Reinsurance as the first occupier of #50CityQuay, the latest company to join the #WindmillQTR. With two further floors currently reserved, we have one ‘own door’ office floor available to lease (1,313sq.ft). Please contact Lucy Connolly or Ros Tierney for further information on 01 647 7900.
Bannon recently welcomed a number of new colleagues to the team. Our Managing Director Paul Doyle commented, ‘We are delighted to be expanding our team across the business, to provide a greater depth of expertise to our wide client base. We wish our new colleagues every success and enjoyment in Bannon’.
No post-pandemic separation anxiety for Lily. Her Bannon colleagues are happy to have her socially distance with them in the office.
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.
Yesterday the CSO released a version of Ireland’s national accounts. It shows that Irish Households now have more savings than ever before (€139bn up €50bn since 2016) & the debt to income ratio has fallen by half in the last decade. We have gone from being the most personally indebted consumers in Europe to being in line with the EU average, despite a younger population and a higher propensity to own our own homes. In real money that’s €70bn less debt. Added together that’s a €120bn (€24k per capita) turnaround in the nett position before you factor any impact from the increase in the value of housing.
The current strength in spending we are witnessing in our retail management portfolio is therefore not surprising but it’s hard to find much coverage of this benign backdrop in press commentary which is drawing comparisons with 2006. Irish consumers couldn’t be in a more different place than in 2006.
The Bannon office team are pleased to present a number of high quality Georgian floorplates. Located in prestigious locations in Dublin’s Central Business District, we can cater for leasing requirements from 590 sq.ft. to 2,135 sq.ft. Contact Ros Tierney or Lucy Connolly today for further information.
A 27-villa holiday resort in Donegal has been sold for in excess of the asking price of €3.8 million.
The Donegal Boardwalk Resort, situated on the Wild Atlantic Way, has been purchased by Melcorpo, a property group.
Overlooking Sheephaven Bay, the resort was brought to the market in June by Bartra, and comprises 27 holiday villas, a fully licensed seafront bar, restaurant and function room. The property includes 45 acres, much of which is still undeveloped.
The resort adjoins the spectacular 1km-long boardwalk which links it to Tramore Beach. The renowned four-star Rosapenna Hotel & Golf Resort is a neighbouring property.
With so many people holidaying at home in 2021, Donegal Boardwalk had “an exceptionally busy summer” with full occupancy in July and August and is expecting a very strong shoulder season ahead.
The bar, restaurant and function room building is leased. The bar and eatery trades as “Hooked” and is a sister operation to the nearby Old Glen Bar and Restaurant where Ciaran Sweeney, former head chef at Dublin restaurant Forest & Marcy, is now heading up the kitchen.
A spokesperson from Melcorpo said: “We are delighted to be involved with such a great holiday facility in a beautifully stunning part of the country. We are looking forward to working in partnership with the local team leader George Scott and Cormac Walsh of Hooked to develop the resort further to its full potential as a premier holiday destination on the island of Ireland”.
Donegal Boardwalk is located within a short distance of the popular north Donegal tourist villages of Carrigart and Downings and sits just 30km from Letterkenny.
It is within a three-hour drive from both Dublin Airport and Galway and a two-hour drive from Belfast.
Bartra, who purchased the resort in 2017, when it was guiding €2.6 million, upgraded all 27 holiday villas, which are in turn-key condition, fully fitted and presented to a very high standard. Each villa benefits from a private deck.
Paul Doyle of selling agent Bannon said there was “strong interest” in the property, demonstrating the demand for quality tourist assets in Donegal.
Niamh Walsh of TDL Horizons, who advised on the sale said: “The level of interest shown from investors and operators gives us great confidence in the tourism sector.
Following one of the most uncertain 18 months for the tourism sector this successful transaction highlights the level of demand for well located hospitality assets that can easily pivot to the staycation market”.
Bannon are delighted to announce the opening of Costa Coffee at The Retail Park Liffey Valley in their new bespoke coffee pod.
Some of the Bannon team inspecting Fitzwilliam 28 this week which is nearing PC. The new ESB Headquarters raises the bar for sustainable office development in Ireland. Proud to have been part of the team to bring this exciting development to fruition since 2011.
Roderick Nowlan and Neil Bannon back on the conference circuit again. Great to be back at EXPO REAL meeting people in person.
Called The Crossings, Quintain’s first phase of development at the new urban centre in Adamstown will include 279 apartments and more than 91,000sq ft/8,500sq m of space to house two major supermarkets, 20 retail units and five restaurant outlets, along with a multi-storey car park.
Quintain is the housebuilding unit of US private equity giant Lone Star, which has accumulated a massive Irish landbank.
Construction of the apartments has a completion date of mid-2023. Planning permission for a second phase of 185 apartments has been granted and further phases are planned for submission in late 2021 and early 2022.
Quintain has a buyer lined up for the first tranche of its buy-to-rent scheme but Eddie Byrne, joint managing partner with the developer, says “it’s too early to say who it is”.
Getting this forward funding is key to the construction of such a developments, he says. “You really need to be able to have a buyer lined up in advance.” The Crossings will form an integral part of a new urban centre at Adamstown, which, over the next four to five years, will see the construction by Quintain of almost 1,000 residential units, mostly apartments/duplexes, with a “very small number of houses”.
On the retail side, Tesco has signed a lease for a 40,000sq ft/3,700sq m store, which is set to open in January 2023, with a second leading supermarket anchor store set to open a
Bannon has been retained as agents for the leasing of the retail units, which will serve an estimated potential shopping population of more than 100,000 people drawn from Adamstown, and the neighbouring suburbs of Lucan, Celbridge and Leixlip.t the same time.
To date, Quintain and its affiliates have built 1,000 homes in Adamstown, with over 85 per cent occupied by first-time buyers, launching developments such as Tandy’s Lane and Somerton.
Earlier this year it received planning permission to construct 235 new homes at Aderrig in Adamstown, to include 159 houses and 76 apartments. The scale of its total investment in the area is expected to be north of about €3 billion.
In June, Quintain completed and transferred ownership to South Dublin County Council of Tandy’s Lane Park, which will provide local residents with easy access to green open space. Another 27-acre green open space – Airlie Park – is set to open by the end of the year and will include a cricket pitch and Astroturf pitches, while a two-acre village green will provide a centre piece for The Crossings development.
Michael Hynes, joint managing partner with Quintain Ireland, said, “This investment will contribute to the social fabric of the area, and is supported by the handover of Tandy’s Lane Park to South Dublin County Council. We are very confident in the strong level of demand there is to live in the area, which will be boosted by the new amenities we are delivering.”
Quintain owns 220 acres in the Adamstown/Lucan area, where it plans to develop up to 5,000 new homes and 250,000sq ft of commercial space. The company’s broader land portfolio covers 460 acres of prime assets in Ireland at Adamstown, Clonburris, Portmarnock, and Cherrywood.
Adamstown was launched in 2005 as Ireland’s first new planned town since Shannon, Co Clare, in the 1960s.
The Bannon Capital Markets snapshot highlights that the Retail Sector has finally emerged from the shadows at 14% of Q3 turnover of €794m …..but PRS remains the dominant player @ 50%. While Q3 was always going to struggle to match the pent up demand that emerged in Q2 @ €1.5bn, the outlook remains very strong. There is approx. €1.3bn on the market or at agreed stage which leaves our projection of €4.5bn for 2021 intact, an annual out-turn that will only have been surpassed once (in 2019)!
The retail industry in Ireland employs c285,000 people. That is 12.5% of the working population. As leaders in the sector, we are very proud at Bannon to manage over 50 shopping destinations across the country. These destinations are home to over 1,100 businesses who in turn employ 10’s of thousands of local people. Supporting trade locally is supporting your local community. As we reset after COVID, make the right choice, shop local.
Take up for Q3 has exceeded 460,000 sq.ft. across 53 transactions. This represents a 92% increase on Q3 2020 but more importantly a 26% increase on Q3 2019 (pre covid).
This quarter has seen a significant jump in activity in the suburbs, particularly in the South Suburbs which accounted for 41% of all transactions.
As we enter Q4 there is over 1,000,000 sq.ft. reserved, this coupled with an increase in active requirements and the continuation of a phased return to the office should bode well for the office market for the remainder of the year.
Great to get back to Munich for Expo (11-13th Oct) for Roderick Nowlan and Neil Bannon.
Get in touch for a chat on Irish Real Estate Opportunities and the impact of ESG on the Irish market.
The ‘Office’ has featured heavily in the press over the past 18 months and indeed in everyday conversation, as working from home became a necessity for most office-based employees. Countless articles and blogs have been published with sensationalised headlines such as “What will the office market look like after the great remote working experiment?” to “Productivity of remote workers could determine the fate of the office market”.
Our view is that the office will now assume a wider function with a more consolidated, improved, and focussed environment to manage the challenges of hybrid working and employee engagement going forward.
Over the last 6 years, Irish office developments have evolved considerably with numerous exceptional schemes being delivered. These buildings have attracted leading global firms to Dublin in particular and the expansion of many more as they continue to increase their presence and EMEA HQs. Due to the new standards set by these firms, occupier expectation has increased which has resulted in developers placing more emphasis on emulating what the tech sector has traditionally offered to their employees: amenity, a perk, a perceived life work balance. They have achieved this through the accumulation of amenity-based facilities such as: high end shower and bicycle facilities, concierge services, tenant events, better reception areas, coffee docks and townhall spaces. This together with improved building standards and environmental and sustainability credentials coming more to the fore has given rise to the creation of world class and award-winning office buildings in Ireland.
However, the office sector is about to enter a new phase. Traditionally offices required a centralised location which has been challenged by technology. Prime offices were traditionally clustered around transport infrastructure in a central business district where multiple advantages of proximity to transport, telecommunication infrastructure and labour combined to attract a premium from occupiers, but technology is challenging the need for multiple office functions to take place in a centralised location. This need must be replaced with desire. The user of the building now places more focus on it being a positive environment for their business and their teams.
Like the revolution that has taken place in the retail market where the ability to shop online challenged traditional assumptions on the functionality of real estate, investors in the office sector must adopt an experience focussed strategy. The nascent breakthroughs the sector has made recently to enhance user experience must be expanded upon, implemented at an early stage in the development process and maintained through a proactive management regime.
As real estate’s function evolves, how do we deliver a successful solution for this next phase in the evolution of the office? As mentioned previously User experience is key and this can be achieved through many innovations. These changes do not have to be seen as challenges but as opportunities to be proactive and differentiate a proposition from that of their competitors.
Through Bannon’s extensive property management portfolio and experience in working as design consultants on several large new schemes, our role in working with investors and developers on identifying and enhancing the user experience for office occupiers and their teams has come into sharp focus.
For the investor the asset cannot be just about place making or achieving optimal rental outcome. An investor must consider it as a longer-term play by exploring tenant optimisation i.e. perhaps leasing a portion of the scheme at lower rents to amenity-based occupiers to carefully coordinate a desired aspirational environment. Correct implementation of property and asset management functions is fundamental, they are key to ensuring the functionality for their occupiers from both a corporate and personnel perspective. Communication with occupiers is essential as creating positive experiences for users of the buildings will in turn lead to greater loyalty and enhanced values.
As we move closer to a return to the office in whatever form, recruitment and retention will continue to be the driving force in office acquisitions. Therefore, to adapt to a hybrid model, promote productivity and engage with the ‘new employee’, the office needs to evolve to reflect what people want to use every day. The era of passive office investment is over.
Lucy Connolly is a Divisional Director at Bannon. She has 15 years’ experience acting for a wide variety of private clients and companies in relation to commercial property, office acquisitions, sales and lettings. Contact Lucy by email on lconnolly@bannon.ie
South William Street is getting a blast of colour with the new Oliver Dunne restaurant Pink, which opened its doors yesterday.
This deal started as we entered lockdown 2021 and it showed the belief that a seasoned and experienced operator has in Dublin City Centre trade.
It was a pleasure negotiating the deal on behalf of the landlord and wishing the team in Pink all the best of success for the future.
The function of all forms of real estate and the specific requirements of its users continues to change at pace. The most significant factors driving this evolution are non-financial – Environmental, Social and Governance (ESG) requirements.
At Bannon, we are seeing a profound shift from clients towards more sustainable practices. With environmental issues coming to the fore globally and a particular focus of the impact on the real estate sector, Bannon has been proactive in applying innovative and market leading initiatives across assets within our portfolio.
In simple terms sustainability means meeting our own current needs without compromising the ability of future generations to meet their own needs. This encompasses the economy, society and the environment and is often referred to as profits, planet and people.
We know that ESG and sustainability related innovations need to be adopted into every aspect of the management of real estate. Given the scale and variety of assets under our management we are acutely aware of the positive impact changes we implement will have on, the environment and the users of our clients’ buildings.
In partnership with our clients, we have implemented over 40 specific sustainability initiatives in the last 5 years. These initiatives will remove a cumulative 500,000 kg of carbon dioxide annually.
A small sample of the sustainability innovations implemented across our portfolio include:
The focus on sustainability has numerous benefits to all stakeholders and wider society. This ranges from lowering carbon emissions into the atmosphere to a reduction in costs for users of assets. Simultaneously sustainability initiatives provide added value to the assets for investors.
It is very easy to pay lip service to the latest trends in the industry and not take action to back these up. In order to achieve meaningful change, sustainability has to now be at the fore of real estate management. Bannon has recognised this and will continue to work in partnership with all stakeholders to make sure we continue the progress already made.
William Lambe is a Divisional Director with the Property Management team at Bannon.
The Property Management team in Bannon oversees a portfolio of 75 assets for a range of institutional, private equity and private clients.
Another first for Blanchardstown Centre and part of a run of some exciting announcements for the scheme. Having the first Sky Store in Ireland will bring some interesting animation and events to the centre.
We are delighted to have advised Falcon AM and Blanchardstown Centre on this letting working with Eoin Feeney on the successful deal.
After a highly anticipated wait, coffee lovers in the Naas and surrounding areas finally get to see Starbucks open in Naas Retail Park. It is a state-of-the-art 2,500 sq. ft coffee pod with in-store seating as well as a customer collection drive-thru lane for customers who want to grab a coffee on the go. There are also three e-charging car park spaces located at the front of the store for the charging of electric vehicles.
Arguably the most famous coffee company in the world, Starbucks was founded in 1971 in Seattle and currently has more than 15,000 stores in over 50 countries. This will be Starbucks 105th store in Ireland and their third store in County Kildare.
The new opening of Starbucks is a wonderful addition to the strong line-up of retailers currently in Naas Retail Park. At present the retail park is home to Harvey Norman, B&Q, JYSK, Carpet Right, Choice, Currys PC World, Halfords and Right Price Tiles.
Paddy O’Connor from Sigma Retail Partners is the Asset Manager for Naas Retail Park, said “From the outset we have always seen the requirement for a coffee offering at the retail park, therefore we are more than delighted to have such a strong brand like Starbucks joining our tenants in the park. There has been a lot of excitement about Starbucks opening ever since construction begun and we are so pleased to finally see it materialise.”
Naas Retail Park is located off junction 10 of the N7 and is just ten minutes from Naas Town Centre. The retail park offers ample free customer car parking too. It also has a GoCargo van for hire on-site that can be booked by the hour or day via the GoCar app or website, to conveniently transport bulkier purchases home.
Penneys will bring its ‘Amazing Fashion at Amazing Prices’ to The Square Town Centre as the much-loved iconic Irish retailer announces that a new Penneys store will open at the centre, marking the continued expansion of the brand in Ireland. The new store will provide a huge boost to the local economy and create 300 new jobs for the community, with doors opening to customers next year.
The new store will be located on the ground floor of The Square Town Centre and will boast 43,000 sq ft of retail space which will feature Penneys’ famous affordable fashion favourites, including the latest seasonal trends along with everyday must-haves for everyone. The much-anticipated arrival of Penneys to The Square Town Centre will mark the retailer’s 37th store in Ireland; a significant milestone for the company that operates in over 395 locations across Europe and North America.
Damien O’Neill, Head of Sales, Penneys ROI, said; “We are really excited to confirm the opening of our new store in Tallaght next year. Penneys is iconic in Ireland; we have a strong presence in Dublin and across Ireland, and it’s really important to us when opening any new store, that we do so in the right location. We couldn’t wish for a better location for our next store in our home market than in The Square Town Centre. In the coming months, our teams will be working hard to bring Penneys’ unique in-store design and customer experience offering to life and we are looking forward to opening our doors to customers later next year.”
Jack Martin, Head of Retail for The Square Town Centre, said; “We are absolutely delighted with this announcement as it has been long overdue for Tallaght. Penneys is a fantastic retailer that will add a great offering to the Centre. For many years, the people of Tallaght have been very vocal in their desire to have Penneys in The Square and I have no doubt they will celebrate this news with us and make this opening a very successful and memorable one. This will bring jobs and prosperity to Tallaght and we are very excited to be partnering with such a great brand.”
Freda O’Donnell, The Square Town Centre’s asset manager from Sigma Retail Partners, said; “We are so pleased to announce that Penneys will be opening in The Square; a huge refit of the space is underway, and we are very excited with Penneys’ plans for their new store. Since we were appointed asset managers of the Square Town Centre in 2018, securing Penneys as a tenant has been a priority for Sigma Retail Partners and we are thrilled that they are joining our tenant line-up. They will no doubt be very successful, and we wish them all the best for now and the many years to come.”
Cushman and Wakefield and Bannon are joint letting agents for the owners of The Square while Penneys were advised by Savills.
The Square Town Centre was acquired by US private equity giant Oaktree Capital in 2018 and it is asset managed by Sigma Retail Partners. It currently has 160 retail units and more than 2,400 car spaces. The Square Town Centre consists of 577,500 sq. ft located on a site of 27 acres. Hugely popular with shoppers, the centre attracts footfall of over 15 million people each year.
Maxi Zoo will open their first ever store in Sligo on 9th September at Sligo Retail Park. Their new store is over 7,000 sq. ft and stocks an extensive range of pet products. This store is Maxi Zoo’s 21st store in Ireland and it will create 15 new jobs.
As one of Ireland’s largest pet retailer with 21 stores in the Republic of Ireland, Maxi Zoo opened its first store in Cor
k in 2006 and currently employs over 170 staff. It is part of the Fressnapf Group with over 1,700 stores across Europe, with more than 8,000 products in their extensive range and offers personal consultations for pet owners.
Maxi Zoo is celebrating the opening of their new store with a ‘Spend and Save Incentive’ from 9th – 12th September, with fun and exciting in-store and outdoor activities including a photo booth, in-store DJ, balloon modeller, magician and hourly raffle prizes planned for Saturday 11th September.
“This is a really exciting new store opening for Maxi Zoo as our first step to realising our ambition to extend our offering, first-class customer service and vast product range to pet owners in the West of Ireland,” said Enrico De Luca, Country Manager for Maxi Zoo Ireland. “This marks a new chapter for the business and signals our strategy for continued growth. Over the last 18 months, we have seen our business and sales boosted dramatically with more new pet owners and existing pet owners having a greater desire and disposable income to treat their pets. It’s been wonderful to see the bond that owners have with their pets become even stronger throughout the challenges and uncertainty we’ve faced. Choosing the dynamic region of Sligo in the heart of the North West was a natural first choice of location. Our new store in Sligo will be closely followed with another large store opening in the South West with further plans for expanding Maxi Zoo’s retail network over the coming 12 months.”
Maxi Zoo Sligo store manager Rory Farrell added: “We are so excited to open the doors and to welcome pet owners and their pets in our store. We are always on hand to offer advice on food, as well as coat and harness fitting and a free weight check for your dog. We really do have everything a pet parent might need – after all, happier pets, happier people.”
Paddy O’Connor from Sigma Retail Partners is the Asset Manager for Sligo Retail Park. He said “Maxi Zoo is a very well-known and strong brand in Ireland and Europe and we are delighted that they have chosen Sligo Retail Park as their first store location in Sligo. Their new store’s fit-out looks fantastic and we are confident that pet owners and animal lovers will enjoy their presence immensely. We look forward to them performing very well in the retail park.”
Sligo Retail Park is the primary retail park destination in the North West catchment area with stores catering to a wide variety of customers and accommodates diverse retail use. It has a total of 14 retailers that include JYSK, Currys PC World, Smyths Toys, Homebase, Castle Davitt, Right Price Tiles, Pet Stop Discount, Homestore & More, EZ Living, McDonalds, Costa and KFC, with 1,000 free car parking spaces.
Krispy Kreme has chosen Swords Pavilions shopping centre in North County Dublin for the site of its second store in Ireland.
The new Swords shop is due to open this winter and will be located in the former KFC unit, beside Elverys Sports and Penneys in the shopping centre.
Krispy Kreme opened its first store in Ireland – in Dublin’s Blanachardstown – in 2018.
Hammerson and Irish Life are joint owners of the Swords Pavilions shopping centre.
With over 100 retail, dining and entertainment brands at Swords Pavilions, Krispy Kreme joins The Gift Shed, a new pop-up concept by the Kilkenny Group, fashion brand Catch and music store Golden Discs as recent openings in the shopping centre.
Ciara Connolly, Head of Leasing, Ireland at Hammerson, said it was a real vote of confidence in Swords Pavilions that a household name such as Krispy Kreme has chosen to join the centre in the early stages of its Irish expansion.
Retail is back and it’s here to stay, says Christine Dolan of Quayside Shopping centre in Sligo Town.
The centre manager believes that the majority of Irish consumers prefer the social experience of a trip to the shops over the convenience of e-tail.
She told the All-Ireland Business Times that Quayside is busier than ever.
“I think people have missed coming into the shops”, she said. “It’s a totally different experience to shopping online.”
“People love the social aspect of a day out shopping and I think most people are sick of the virtual experiences – there are a lot of people who have been quite lonely through the pandemic and you can’t beat meeting up with friends for a lunch date while having a browse through the shops.”
“There’s a great buzz around at the moment and people are starting to mix again and enjoy themselves.”
A 2020 report by Deloitte found that retail is Ireland’s largest industry and the largest private sector employer, employing almost 300,000 workers – with three in four of those employed based outside of Dublin.
Quayside Shopping Centre opened its doors in 2005 as the largest shopping centre in the northwest of Ireland.
With 130,000 feet of floor space the centre boasts 43 retailers including TK Maxx, Lifestyle Sports and Next.
Quayside lost two retailers over the pandemic, one of them was a Carphone Warehouse store which was a casualty of the Group’s decision to close 80 stores in Ireland last year.
Christine revealed that units have since been filled by two new tenants with more set to come on board.
While Christine admits that competing against online retailers will be a tough challenge in the years to come, she is not worried about the long term future of her industry.
“What we’ve proven here time and time again is that we are resilient.”
“We’ve been through a recession and we’ve come out stronger on the other end so I have no doubt that we will get back to where we were pre-pandemic.”
“In fact, I think we’ll be in a better place.”
According to the Central Statistics Office’s Retail Sales Index retail sales increased by 3.3% in June this year compared to May on a seasonally adjusted basis. On an annual basis, retail volumes were 10.6 per cent higher than in June last year.
Interestingly the retail sales figure for June this year was 13.4% higher when compared to two years earlier, before the Covid-19 pandemic.
Quayside Shopping Centre recently landed its third Business All-Star Accreditation in recognition of its contribution to retail in Ireland.
Reacting to the news, Christine said: “I am delighted to be part of an ambitious All-Star Business. To be accredited for the third year in a row is a huge honour and I see it as recognition of the hard work that goes on behind the scenes.”
Quayside’s focus over the next few months is to promote the “shopping centre experience” and Christine revealed that the centre will be introducing an initiative to help local craftspeople and creators.
She said: “We have plans to relaunch our very successful Christmas markets and hope to do this a little bit early this year. The markets provide a wonderful opportunity for local traders who may have been out of work the last while and want the chance to set up a pop up shop or trading stall.”
“We really want to celebrate with our customers and give something back to the local community this year.”
To learn more about Quayside Shopping Centre Sligo, visit their All-Star showcase page here.
Five Lamps Spar store guiding at €900,000.
Ros Tierney of Bannon says: “We expect to see significant interest from pension investors. This is a high-profile, resilient property with a tenant who has performed strongly throughout the Covid-19 pandemic. The investment offers the purchaser an attractive yield and a long lease term.”
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