Dublin Office Market 2020 – in Review. Full market report to follow.
Last minute residential deal tips market over €3bn.
Despite the challenges facing the north-east this year due to impending Brexit and stricter lockdowns than their counterparts on either side of the border, it’s great to have some positive news and see Harry Corry open their latest store in Cavan Retail Park. Harry Corry are an international retailer specialising in home furnishings and this letting brings the park to full occupancy, further re-affirming the resilience of the retail park market.
It’s difficult to imagine things getting any worse for the retail sector than they did in 2020. But the chief driving force behind the decline of investor interest began long before Covid-19 arrived. There has been growing concern in relation to the impact of online retail and changing consumer trends on the long-term supply-demand dynamic for the bricks-and-mortar format. Much of this has been imported from the US where retail supply is five times that of Ireland, and the UK where it is 25 per cent higher and undergoing a sustainability crisis.
While the relative performances of these markets may already have been up for debate, the impact of Covid has ended the discussion. By mid-March the sector became virtually un-investable due to Covid-related uncertainties attaching to rental payments being added to those longer-term occupational concerns. The consequence of this is manifest in year-end investment turnover figures where retail will represent a record low 2.5 per cent of an anticipated total investment market turnover of € 3 billion. This from a sector that represented 24 per cent of investment turnover for the last decade (to 2019), but descending rapidly from a high of 53 per cent in 2016 to a previous record low in 2019 of 9 per cent.
Unsurprisingly for 2020 High Street retail has been worst affected with Grafton Street top of the list experiencing a 66 per cent reduction in footfall for March to October. While the street’s footfall figures had been holding steady at 25 million for the last two years, the 2020 outcome will be closer to 13 million.
No surprise then that almost a quarter of the units on the street are effectively available. Henry Street performed a little better as did some of the other city’s high streets, but the tone is similar. Next in line were the “comparison led” shopping centres which, as a general rule, saw footfall collapse during the first lockdown and rent collections plummet below 35 per cent. However, they did improve quickly and were less affected by the second lockdown. The burden of the service charge costs of running these mall-based schemes was exposed during these periods and will be a key factor in assessing the risk of ownership of these asset types in the future.
The resilience of the grocery sector shone through. No surprise therefore that 65 per cent of the limited 2020 retail investment transactions were grocery deals. Similarly, smaller grocery-led schemes performed better and recovered quicker than major town centres but weaker covenant strength and holding costs affected net rental collections.
Low holding costs
The retail sector’s star performers, however, have been the retail parks. Indeed, in the case of the 15 retail parks under Bannon management (between nationwide lockdowns) car throughput actually increased year on year for the period with rent collection rates approaching 100 per cent and impressive turnover increases. Even where tenants were adversely affected, low holding costs relative to shopping centres maximised the net income return to landlords.
If this crisis has accelerated the sector’s movement to the “retail endgame”, then retail parks and their occupiers have risen to the challenge. In this regard we envisage this asset type, along with grocery, to be the most liquid and popular sector for the year ahead.
Outside of this and following both Brexit and an anticipated mid-January lockdown we foresee a post-vaccine period of rebuilding balance sheets and filling occupational voids. While this period could take 12 to 24 months, there is little doubt that the rebasing of the sector generally will attract new investors wishing to get ahead of the recovery. This will probably manifest as loan trades first with a focus on fundamentally-sustainable schemes and high streets at attractive yields with occupiers who have embraced the omnichannel experience.
More sophisticated investors will recognise the buying opportunity that Covid-19 presents, especially if valuers fail to acknowledge the vast differences in performance across the sector.
Rod Nowlan is investment director at Bannon
Gateway Shopping Park will soon have an exciting and state of the art gym opening. The Warehouse Gym has just signed a lease with the shopping park and is due to open in the second quarter of 2021. It will be one of the biggest gyms in the west of Ireland at 18,000 sq. ft and it will be their third location in Galway.
The Warehouse Gym was founded in County Galway in 2013 and has exploded in popularity due to its large selection of strength equipment, free weights, machines and cardio equipment. As their community grew, they expanded out of the city centre to Oranmore in the outskirts of Galway, where they continue to serve their loyal members. The new gym in Gateway Shopping Park will host Galway’s largest selection of free weights, squat racks, cardio equipment and resistance machines. Services offered include personal training, InBody scans, virtual coaching software and nutritional consultations which are all bookable through a mobile application.
Michael Shortall, the General Manager of The Warehouse Gym, said “As a local business, The Warehouse Gym is super excited to be opening the largest gym in the west of Ireland right here in the heart of Galway. Gateway Shopping Park is the perfect location for serving the health and fitness needs of the Knocknacarra and surrounding communities. It’s our mission to fulfil that need by providing a welcoming, clean and modern health club for all ages and interests.”
Sigma Retail Partners are the asset management company for Gateway Shopping Park. Paddy O’Connor, Asset Manager for the park, said: “Finding the right fitness offering for our park was a key strategy for us. We wanted to ensure that we selected the right gym operator to provide the local community and the surrounding areas with a state of the art and well-run fitness centre. We are so pleased that a well-established gym in Galway will be joining our newly extended shopping park. The Warehouse Gym will be the eighth new addition to the Phase 2 extension and we look forward to welcoming them into our shopping park next year.”
The new shopping park extension is the first provision of retail space outside of Dublin since 2008 and the first in Galway in more than two decades. The development provided over 150 jobs during construction phase and is expected to create over 300 jobs in Knocknacarra and Galway when fully occupied. It will have open-use retail units and food and beverage units.
Gateway Shopping Park already has an impressive line-up of retailers including Dunnes Stores, B&Q, New Look, Next and McSharry Pharmacy, with new tenants recently opened in the Phase 2 extension, Harvey Norman, Boots, Carraig Donn, Petstop and Sonas Childcare. With the inclusion of The Warehouse Gym, the Phase 2 extension will be over 90% let.
Bannon are delighted to welcome Bag City to Marshes Shopping Centre, Dundalk in the lead up to Christmas despite a turbulent 2020. Jennifer Mulholland, Divisional Director, comments that the addition of Bag City to the Tenant mix at Marshes is another positive testament for the scheme which continues to be the North East’s most dominant retail scheme.
Great to welcome Name It to The Square Town Centre, Tallaght! Fantastic news to start off the Christmas season.
As we exit level 5 restrictions, there is cause for double celebrations yesterday in Swords Pavilions Shopping Centre with the opening of 2 new stores. Great to see both Golden Discs & Catch open their doors in the lead up to Christmas.
We are delighted to be part of the team to deliver the new Aldi store in Blanchardstown. This will be a fantastic addition to the scheme which continues to grow and improve with new tenants and mall improvements.
Great to see local menswear brand Walker & Hunt going from strength to strength and gradually making the shift from online to bricks and mortar, taking space in Athlone Town Centre for the second year in a row, opening soon.
The Ireland-based commercial property practice will drive efficiencies in their property management portfolio and tenant management with the Yardi platform
DUBLIN, Ireland (16, November 20) – Bannon Commercial Property Consultants Ltd. (Bannon) will manage over 7 million square feet of real estate on Yardi® Voyager, a cloud-based property management and accounting platform. The firm will also adopt Yardi® Lease Manager for a comprehensive view of tenant activities and portfolio performance.
Lease Manager, part of the Yardi® Elevate Suite, offers extensive data and oversight options. Finance and asset management teams can visualise total number of deferrals and abatements and aging accounts receivable. Property management teams can oversee rent collection and tenant communications.
Bannon will also adopt the Yardi® Procure to Pay Suite, an end-to-end procurement solution that includes Yardi PAYScan® for paperless invoicing and VendorCafe® for centralised vendor management. CommercialCafe®, an easy-to-use, self-service tenant portal will digitalise tenant communication for Bannon. CommercialCafe enables tenants to make online payments, access lease records and manage service requests.
“We are looking forward to the benefits of a cloud-based property management solution. We provide a ‘best-in-class’ approach to outsourced property management with quality at the core and we see synergies in Yardi’s offering. The Voyager platform will ensure consistency and modernisation in the way we report and manage our clients’ assets,” said Richard Muldowney, director and head of finance at Bannon.
“Yardi continues to expand its presence in Ireland, one of the fastest-growing real estate markets in Europe. We’re excited to support Bannon with technology that will facilitate strategic growth,” said Neal Gemassmer, vice president of international at Yardi.
Learn more about how Yardi is supporting real estate and investment clients in the UK and across Europe.
About Bannon Commercial Property Consultants Ltd.
Bannon is the leading indigenous commercial property practice in Ireland with a particular emphasis and track record in the retail space. The firm currently has 75 assets under management. For more information on Bannon, please visit bannon.ie.
About Yardi
Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide from offices in Australia, Asia, the Middle East, Europe and North America. For more information, visit yardi.co.uk.
In general the footfall across our portfolio is remarkably consistent every year, however 2020 is very different. We remain hopeful that people will shop with purpose when the restrictions are eased at the start of December.
Businesses across the country need a strong finish to the year and we can all help to make it happen.
Currently in the final stages of construction, Fitzwilliam 28 has been entirely pre-let to Slack Technologies upon completion of the building. The global tech giant is moving out of its current property on Hatch Street and into Fitzwilliam 28, which will act as their new EMEA headquarters.
Located between Merrion & Fitzwilliam Squares in Dublin’s CBD, the location is one of the most sought after in the City and once complete, Fitzwilliam 28 will comprise c. 12,600 sq m of prime Grade-A office accommodation over 8 floors and will be one of the most prestigious office buildings in the Dublin market.
ESB, Ireland’s largest utilities company, is developing the asset alongside its own headquarters at Fitzwilliam 27, which is also under development.
Sustainability and energy efficiency have been a key focus and as such, Fitzwilliam 28 will benefit from BREEAM Excellent accreditation, A3 BER Rating and will be one of Dublin’s first NZEB (Near Zero Energy Building) compliant developments.
On completion, the acquisition will represent Amundi Real Estate’s first deal in the Irish market in a bid to expand the presence of their flagship fund in key European jurisdictions.
Savills and Bannon advised ESB on this transaction. Knight Frank advised Amundi Real Estate.
Ronan Sheehy ESB Head of Property and Security commented:
“We are delighted to confirm the exchange of Fitzwilliam 28 with Amundi Real Estate. This flagship development by ESB has been built with the highest standards of sustainability in mind. A tireless amount of work has gone into ensuring the delivery of what we believe is the finest office development to complete in recent times, and we look forward to completing this deal with Amundi Real Estate in the coming weeks.”
Rod Nowlan, Director at Bannon, commented:
“This is an important transaction for the Dublin market, representing a deal which both underpins values and illustrates continued international demand with this new market entrant.”
Fergus O’Farrell, Director of Investments at Savills, commented:
“The quality of the asset was reflected in the strong demand for the investment. This investment by Amundi Real Estate is further endorsement of Dublin as location for international investment.”
Harvey Norman has just opened their brand new 45,000 sq. ft store in Sligo Retail Park on Thursday, 5th November. It is Harvey Norman’s first store in County Sligo and the 16th store in Ireland. The store is opening under the Government guidelines on a restricted basis due to level 5 lockdown with only essential goods and click and collect available.
It is also the fifth Harvey Norman store in Sigma Retail Partners’ portfolio, with other Harvey Norman stores in Naas Retail Park, Drogheda Retail Park, Waterford Retail Park and Gateway Shopping Park.
With over 290 stores worldwide and currently 16 in the Republic of Ireland, Harvey Norman is the leading retailer of furniture, bedding, computer and electrical goods. The first Harvey Norman store opened in Swords in Dublin in August 2003. Its stores have over 750,000 square feet of retail space and boast a massive range of goods. Harvey Norman has a worldwide presence with stores in eight countries across the globe, including Singapore, Malaysia, Slovenia, New Zealand, Croatia and of course Ireland.
Paddy O’Connor, Asset Manager from Sigma Retail Partners, said “We are very pleased that one of the biggest and most well-known global retailers in household and electrical goods has joined Sligo Retail Park. It is the completion of a lengthy asset management strategy with a focus to bring Harvey Norman to Sligo and the wider North West catchment. We are very confident that Harvey Norman will perform extremely well in Sligo and they are a great addition to our other fantastic retail partners in Sligo 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, Homestore & More, EZ Living, McDonalds, Costa and KFC, with 1,000 free car parking spaces.
The inconsistent and illogical nature of the imposition of essential goods only sales in retail across the country is causing serious damage to the sector.
We have reports from across the portfolio of local Jewellers who are operating on a Click & Collect basis being told to pull their shutter, a news agency being advised that can sell cigarettes and lotto tickets but not books or magazines, a florist being told to close who traded during the last (and more severe) lockdown.
The government needs to think about where this spend will go. A customer told they cannot buy a magazine or a book in a shop that is already open is one click away from redirecting spend from a small local business to Jeff Bezos
September Retail Sales indicate that at least one part of the economy is definitely experiencing a K shaped recovery. The stellar numbers that continue to come out of the DIY sector (YOY: Hardware +27.6% YOY, Electrical +21.1% & Furniture +11.9%) contrast sharply with Bars which are predictably down 48%.
What’s interesting is that total value of retail sales was up 7.2% year on year which means Irish consumers spent a lot more this September than last year.
This was all before the lockdowns started again which if recent experience is anything to go by will exacerbate the K shaped nature of the market performance.
Gateway Shopping Park in Galway has opened a Sonas Early Learning Centre that offers childcare to children from 6 months up to 12 years. It is the fifth unit to open in the shopping park’s newly completed extension in the last three months.
Sonas Early Learning Centre offers quality childcare to babies, toddlers, pre-school and after school children, in a caring, comfortable, and child-led environment. The centre has large, secure outdoor play areas equipped with infant-friendly surfaces, climbing equipment, play equipment and sports and exercise equipment. Sonas is part of the Spraoi Early Learning Centre group and this is Spraoi’s sixth centre in Galway and its eighth centre in Ireland.
Theresa Murphy from Spraoi said “We are delighted to announce that our newest early years service is now open, delivering excellence in childcare in our state of the art, purpose designed, spacious 5 playroom service. Our services focus on the delivery of a child led early years experience, implementing a curriculum under the Aistear Curriculum framework. Our service has recently undergone a TUSLA inspection and achieved full compliance with all the regulatory requirements. Our on site chef delivers delicious and nutritious meals prepared with the nutritional needs of your child in mind. We look forward to welcoming you.”
Sigma Retail Partners are the asset management company for Gateway Shopping Park. Paddy O’Connor, Asset Manager for the park, said: “There are many young families in and around the surrounding areas of Gateway Shopping Park and coupled with a school right next door, we knew that a crèche would be a wonderful addition to the development. We are therefore very pleased that Sonas has joined our newly extended park and we wish them all the best.”
The new shopping park extension is the first provision of retail space outside of Dublin since 2008 and the first in Galway in more than two decades. The development provided over 150 jobs during construction phase and is expected to create over 300 jobs in Knocknacarra and Galway when fully occupied. It will have open-use retail units, food and beverage units and a gym.
Gateway Shopping Park already has an impressive line-up of retailers including Dunnes Stores, B&Q, New Look, Next and McSharry Pharmacy, with four new stores recently opened in the Phase 2 extension, Harvey Norman, Boots, Carraig Donn and Petstop.
David Carroll, Investment Director – “Q3 2020 turnover of €681m continued to illustrate the domination of PRS investment versus other asset classes with circa. 70% of value attributed to the sector. Covid-19 impacts continue to effect the supply and demand factors of traditional investment sectors. There is now close to €2bn of office product being marketed publicly and privately thus Q4 should provide some clarity on where investor appetite is at”.
In a matter of weeks the newly extended Gateway Shopping Park in Galway has opened its fourth new store, Petstop. The new store has a floor area of 6,500 sq. ft and brings the total number of Petstop stores in Ireland to eight, which include The Park Carrickmines and Limerick One Shopping Park.
Petstop is a chain of pet shops in Ireland stocking pet foods, pet supplies and pet accessories. They are a one-stop-shop for all petcare needs with over 7,000 products in their stores. Established 25 years ago in 1995, they are one of the leading pet store chains in Ireland.
Anthony Gallagher, the Managing Director of Petstop said “Petstop are delighted to have opened our latest store at Gateway Shopping Park in Galway. The reaction so far from pets and their parents has been fantastic. I hope we can welcome many more pet families to visit us at Knocknacarra. I would like to send my warmest congratulations to all my colleagues at Petstop in Galway and my friends at Sigma Retail Partners for making our opening such a success.”
Sigma Retail Partners are the asset management company for Gateway Shopping Park. Paddy O’Connor, Asset Manager for the park, said: “On behalf of Sigma, we are absolutely delighted to welcome Petstop to Gateway Shopping Park and feel they are a great addition to the existing line-up of retailers. Petstop will join top quality retailers including the recently opened Harvey Norman, Boots and Carraig Donn, as well as the impressive list of existing retailers. We wish them all the best in their new store.”
The new shopping park extension is the first provision of retail space outside of Dublin since 2008 and the first in Galway in more than two decades. The development provided over 150 jobs during construction phase and is expected to create over 300 jobs in Knocknacarra and Galway when fully occupied. It will have open-use retail units, food and beverage units, a creche and a gym.
Gateway Shopping Park already has an impressive line-up of retailers including Dunnes Stores, B&Q, New Look, Next and McSharry Pharmacy, with three new stores recently opened in the Phase 2 extension, Harvey Norman, Boots and Carraig Donn.
As per the Retail Sales figures released by the CSO and our own experience across our retail park portfolio DIY & Household goods sales have been the stand out performer of the Retail sector since March.
Retail Parks continue to perform well with rolling restrictions on other retail outlets redirecting spend into home improvements.
Interestingly this is a sector with very low levels on pure online penetration although we have been actively engaging with a number of occupiers about facilitating their client and collect offer.
Bannon are delighted to have concluded the deal that sees Ray-Ban now trading from 32 Grafton Street. Congratulations to Ray-Ban for carrying out an amazing fitout.
Carraig Donn will open a new store in Gateway Shopping Park in Galway on Friday 11th September. The new store will be the largest of all their retail stores with a floor area of 4,700 sq. ft and it will bring the total number of Carraig Donn stores in Ireland to 42.
Carraig Donn is Ireland’s premier retailer of fashion, jewellery and giftware products. Carraig Donn was established 55 years ago in 1965 and has its head office in Westport, County Mayo. It is 100% Irish owned and currently employs over 500 people nationally.
Pat Hughes is the Managing Director of Carraig Donn and the company was founded by his parents, Padraig and Maire Hughes. Pat Hughes said “We’re delighted to announce the opening of our new flagship store, and our third store in Galway. Despite the challenges that exist in our industry as a result of Covid-19, we are committed to our growth and expansion plan. We have a loyal customer base in Galway, and we are delighted to bring the very best of Irish fashion, jewellery and homeware to Knocknacarra”.
Sigma Retail Partners are the asset management company for Gateway Shopping Park. Paddy O Connor, Asset Manager for the park, said: “On behalf of Sigma and indeed the wider design team and the owners, we are thrilled to welcome Carraig Donn to our newly extended and re-branded Gateway Shopping Park. Carraig Donn will join top quality retailers including Boots and Harvey Norman who also opened their fantastic new stores within the last few weeks, and will join existing tenants Dunnes, B&Q, Next, New Look and McSharry Pharmacy.”
The Phase 2 extension is the first provision of new retail space outside of Dublin since 2008 and the first in Galway in more than two decades. The development provided over 150 jobs during construction phase and is expected to create over 300 jobs in Knocknacarra and Galway when fully occupied. The new extension will have open-use retail units, food and beverage units, a creche and a gym.
Gateway Shopping Park already has an impressive line-up of retailers, including Dunnes Stores, B&Q, New Look, Next and McSharry Pharmacy, with two new stores recently opened, Harvey Norman and Boots, and Petstop opening soon in the upcoming weeks.
On the face of it the recovery in the retail sector is astounding. Excluding Cars the value of retail sales in Ireland in July was 5.9% higher than in July 2019. These are boom type numbers. Dig deeper and the continued polarisation of the Retail sector’s recovery is laid bare.
Bars, Books, Fuel & Department stores (Debenhams closure might be a large part of this) are still way down on last year meaning that the increase in sales in other sectors is stratospheric. Electrical up 26.5%, Furniture & Hardware up 20%, Food & Beverage up 16% and this is in comparison to 2019 not the lock down period. Bodes very well for Retail Parks.
Also positive to see 3.6% annual growth in the value of Clothing & Footwear. A note of caution, the natural rhythm of the retail sector has been greatly disrupted by COVID & lockdowns so we will be monitoring how sales in different sub-sectors balance out over the months ahead.
FunTech is now open on Level 1 in Blanchardstown Centre. Phones, gadgets and accessories all available.
Liverpool FC have launched a brand new pop-up store in the Swords Pavilions Shopping Centre, making it the second official club store in Dublin.
International homeware retailer JYSK will open a new store in Sligo Retail Park on Thursday, 27th August. The store will have a floor area of 10,000 sq. ft and it will be JYSK’s eighth store in Ireland. It will also be the fifth store in Sigma Retail Partners’ portfolio, the other JYSK stores in its portfolio are Naas Retail Park, Drogheda Retail Park, Navan Retail Park and Parkway Retail Park (Limerick).
JYSK is an international retail chain from Denmark that sells household goods such as mattresses, bedding, sofas, furniture, curtains, dining sets and soft furnishings. JYSK is the largest Danish retailer operating internationally with close to 2,800 stores in 52 different countries, and many more stores will follow with its worldwide expansion plans. It was the founder and Chairman of the board Lars Larsen’s goal from the beginning to open and grow more and more stores and the aim to expand is a central part of JYSK’s plans. JYSK’s first entry into Ireland was in April 2019 with a store in Naas Retail Park.
Roni Tuominen, Country Manager at JYSK UK & Ireland, said: “The appetite for JYSK’s offering is there amongst Irish consumers. As a result we want to find new JYSK locations in towns and cities all over Ireland so we can contribute to the local economy, especially in smaller communities where our job creation will be extremely valuable.”
“We’re very excited to open the first JYSK store in Sligo which will be the centre of our operations in the West of Ireland going forward. We look forward to delivering exceptional quality products at great prices to our Sligo based consumers”, he added.
Patrick O’Connor, Asset Manager from Sigma Retail Partners, said “New retailers always bring a fresh new feeling and a sense of excitement into a retail park. The fact that JYSK is relatively new to Ireland adds even more to this excitement. We are delighted to have JYSK on board in Sligo Retail Park and we wish them the best of luck with their upcoming store openings.”
In addition to JYSK, Harvey Norman is also due to open a 40,000 sq. ft store in October. 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 twelve retailers that include Currys PC World, Smyths Toys, Homebase, Castle Davitt, Right Price Tiles, Homestore & More, EZ Living, McDonalds, Costa and KFC, with 1,000 free car parking spaces.
Yours Clothing, a plus-size retailer, is now open in the Ilac Shopping Centre.
The Phase 2 development provided over 150 jobs during the construction phase and is expected to create over 300 jobs in Knocknacarra and Galway when fully occupied. It is also the first provision of new retail space outside of Dublin since 2008.
After the absence of any retail construction activity in Galway for more than 10 years, the brand new Gateway Shopping Park Phase 2 expansion has just been completed, with the first two retailers, Harvey Norman and Boots opening their stores this month. Boots opened their store early July with Harvey Norman opening their new flagship store of 60,000 sq. ft on 22nd July.
The newly completed Phase 2 extension will have open-use retail units, food and beverage units, a creche and also a gym. It will include over 320,000 sq. ft of retail and leisure space and will make it one of Ireland’s largest shopping destinations. Aside from Harvey Norman and Boots, Carraig Donn, Spraoi Early Learning and Evergreen, Esquires are also included in the line-up of new retailers in the expansion.
Gateway Shopping Park already has an impressive list of current retailers, including Dunnes Stores, B&Q, New Look, Next and McSharry Pharmacy. The asset management company Sigma Retail Partners, on behalf of the owners Targeted Investment Opportunities ICAV, worked extensively on the project and the newly expanded retail asset will reinforce the shopping park as a primary shopping destination.
Gateway Shopping Park is located in Knocknacarra on Western Distributor Road, just across from the new gaelscoil that was built last year, Gaelscoil Mhic Amhlaigh. Gateway Shopping Park is also just a 10-minute drive from Galway city centre.
Harvey Norman are set to open their premium store in the new Phase 2 development at Gateway Shopping Park, Knocknacarra, Galway on Wednesday the 22nd July. Harvey Norman will anchor the recently completed Phase 2 extension with the existing Phase 1 anchored by Dunnes Stores and B&Q.
The largest retailer of appliances, technology and interiors in Ireland, Harvey Norman, will open a new premium 60,000 sq. ft. store which will trade over 2 levels and will include furniture, bedding, homewares, technology and appliances. There is also a Synge & Byrne café located upstairs. Harvey Norman will be an exciting addition to the already impressive line-up which includes Dunnes Stores, B&Q, Boots, New Look and Next.
Commenting on the store opening, Harvey Norman CEO Peter Hearn said, “We are very excited to open the doors to our Galway store. Our team has created THE key shopping destination in Galway for furniture, bedding, appliances and technology. We are proud to showcase our large range of the latest Irish-made furniture and bedding, we’ve installed a huge kitchen display area, a games hub, a Wonder Photo Shop and more. The biggest global brands highlighted by the latest store fit design plus safe shopping measures are all in place for our Galway customers.” There have been 47 jobs created within the store and warehouse.
Paddy O’Connor of Sigma Retail Partners, the asset managers for Gateway Shopping Park, said “we are absolutely delighted with the opening of Harvey Norman in our shopping park. We are excited to finally be able to welcome Harvey Norman to Galway and wish the Harvey Norman team all the best in their impressive new store. This is the first large scale retail development in the country for a number of years and the confidence shown in the scheme, Galway and also traditional retail can be seen with the quality of the international and national renowned retailers we are partnering with. Harvey Norman and the new Phase 2 tenants will solidify Gateway Shopping Park as a leading retail destination in the Galway catchment”.
The new Phase 2 extension is the first provision of new retail space outside of Dublin since 2008 and the first in Galway in more than two decades. The development provided over 150 jobs during construction phase and is expected to create over 300 jobs in Knocknacarra and Galway when fully occupied.
The Phase 2 extension will have open-use retail units, food and beverage units, a creche and a gym. Gateway Shopping Park will include over 320,000 sq. ft of retail and leisure space and will make it one of Ireland largest shopping destinations.
Gateway Shopping Park already has an impressive line-up of retailers, including Dunnes Stores, B&Q, Boots, New Look, Next and McSharry Pharmacy.
More exciting retailers will be announced in the coming weeks.
Lucy Connolly – Divisional Director – “The anticipated impact of covid-19 on the Dublin office market translated to a take up figure of 75,000 sq.ft. this quarter. We do expect to see a busier Q3 with over 700,000 sq.ft. of accommodation reserved, with some large transactions close to completing in the coming weeks. We commenced the quarter on a positive note with the recent announcement that Gilead are to create 140 new jobs following their letting of over 30,000 sq.ft. at North Dock”.
David Carroll, Investment Director – “Q2 turnover of €430m reflected the impact of C-19 on the commercial market. 20 deals were completed with 78% of turnover attributable to just four transactions”.
Another exciting addition soon to Manor Mills Shopping Centre in Maynooth, Sasta by the River restaurant, offering healthy food & drinks, including a great selection of vegetarian, vegan and gluten-free options, homemade cakes and pastries.
This new eatery is exactly what Maynooth has been looking for. It is great news to have new local businesses emerging in what has been very difficult times for the retail sector. Keep an eye on Sasta by the River social media pages where they will be documenting their fit-out towards their opening.
Boots is set to be the first store to open in the new Phase 2 development at Gateway Shopping Park, Knocknacarra, Galway on Wednesday 1st July. Boots will come as an excellent addition to the existing park, currently anchored by Dunnes Stores and B&Q.
Boots will occupy a large store of over 7,500 sq.ft and will come as wonderful news to customers of Gateway Shopping Park and the loyal shoppers in Knocknacarra and the wider catchment.
Boots Ireland is a leading pharmacy-led health and beauty retailer with 89 stores in Ireland and over 2,000 employees. Boots is at the heart of the communities it serves and is a staple health and beauty retailer for many people in Ireland. Customers visiting the new store will have access to a wide range of pharmacy services, including prescription service, blood pressure monitor, vaccinations, healthy heart support and hearing care service.
Commenting on the store opening, Store Manager David Boyce said: “We are delighted to open the doors to our new Boots Ireland store in Knocknacarra. The new store will provide local residents with access to our wide range of pharmacy, health and beauty products and services. Our new store has created 16 new jobs in the locality and both myself and the team are looking forward to welcoming customers over the coming days.”
Paddy O’Connor of Sigma Retail Partners, the asset managers for Gateway Shopping Park, said “we are absolutely delighted with the opening of Boots in our shopping park and feel they are a great addition to the existing line-up of retailers. Boots and the new Phase 2 tenants will solidify Gateway Shopping Park as a leading retail destination in the Knocknacarra and wider Galway catchment”.
The new Phase 2 extension is the first provision of new retail space outside of Dublin since 2008 and the first in Galway in more than two decades. The development provided over 150 jobs during construction phase and is expected to create over 300 jobs in Knocknacarra and Galway when fully occupied.
The Phase 2 extension will have open-use retail units, food and beverage units, a creche and a gym. Harvey Norman is also scheduled to open a new flagship 60,000 sq.ft store in July. Gateway Shopping Park will include over 320,000 sq. ft of retail and leisure space and will make it one of Ireland largest shopping destinations.
Gateway Shopping Park already has an impressive line-up of retailers, including Dunnes Stores, B&Q, New Look, Next and McSharry Pharmacy.
More exciting retailers will be announced in the coming weeks.
Since the introduction of the Local Government Reform Act 2014, Local Authorities have been given autonomy to vary the level of rates relief granted to owners of vacant properties. As a result, the level of refunds on commercial rates available to Landlords of vacant properties varies significantly between Local Authorities. In Dublin City Council for example the owner of a vacant property is responsible for 75% of the annual rates bill (with 25% relief granted by DCC) where a property remains vacant and unlet.
| Local Authority | Vacancy Relief 2020 |
| Dublin City Council | 25% |
| Dun Laoghaire Rathdown County Council | 35% |
| Fingal County Council | 50% |
| South Dublin County Council | 50% |
These levels of vacancy relief will come under increased scrutiny later in the year as Council’s prepare Budgets for 2021 and beyond. Owners of unoccupied properties should carefully consider options on how to mitigate against increased vacancy voids.
Businesses across Ireland contribute approximately €1.5 billion in commercial rates to Local Authorities across the country each year. This is a critical source of income for each of the 31 Local Authorities in the State and typically accounts for between 16% and 53% of their revenue stream with the national average standing at 33%. According to the latest available statistics collection rates averaged 86% nationwide in 2017, significantly less that the corresponding LPT collection rate which stood at 97%.
Within the Dublin City Council administrative area commercial rates income of €353.5m has been budgeted for the 2020 financial year. Of the 21,000 commercial properties within the city it is estimated that some 34% are classified as retail properties following the last Revaluation process. Therefore, the total annual rates income from retail properties alone in Dublin City is in the order of €120m, representing almost 12% of the Council’s total annual revenue for 2020.
The reliance on rates income from retail properties is even more pronounced in Dun Laoghaire-Rathdown which is home to the country’s largest retail scheme. Dundrum Town Centre alone contributes €9.2m in annual rates income representing just over 10% of the Council’s budgeted rates income for 2020.
In the midst of the current Coronavirus pandemic most businesses, particularly those considered non-essential and which have been forced to shut their doors, are intensively considering cash-flow and how to eventually get their businesses re-open for trade, if at all. It’s likely that overheads such as wages, rent and payments to Revenue will take precedence over commercial rates.
For its part the Government has recognized that ratepayers, particularly small and medium retailers, hospitality, leisure and childcare operators are likely to be the businesses that are most adversely affected. However, they have stopped short of issuing an exemption from commercial rates unlike the U.K Government which announced that all retail and hospitality firms will be exempt from business rates for 12 months. In the absence of such tangible Government intervention on the issue Local Authorities will be facing major funding difficulties and hard choices over which of their services to cut as additional revenue raising measures will not be palatable.
It is likely that the Government may introduce Emergency Legislation to extend/suspend the statutory timeframes which apply to planning applications and appeals. Currently a planning application which is not adjudicated upon within the 8 week timeframe (barring an F.I. & assuming no 3rd party appeal) receives a grant of permission by default. The current planning process timeframe is as follows:
| 3rd Party Observation Period: | 5 weeks from receipt of application |
| Planning Authority Decision: | 8 weeks from application validation |
| Further Information Receipt: | 6 months from request |
| Appeals to ABP: | 4 weeks from L.A decision |
| ABP Decision: | 18 weeks (but can be unilaterally extended) |
Any ongoing reviews of Local Area Plans or Development Plans are likely to be postponed as the requirements for Public Consultations cannot be adhered-to due to COVID-19. The Oral Hearing for the N6 Galway City Ring Road has also been postponed by ABP until the end of March at the earliest.
There has been a lot of talk about the future of the bricks & mortar of Irish retail and flagging local retail performances – most of which has been framed through the arrival of online sales.
But is it all as worrying as we’re led to believe?
Neil Bannon, Executive Chairman of Commercial Property Consultancy firm Bannon joined Bobby to discuss how retail is faring in Ireland and ask if all the doom and gloom is actually warranted?
When designing a campus for a new University of Engineering and Technology in Lima, Peru, the Dublin-based architects Yvonne Farrell and Shelley McNamara thought deeply about how to integrate the wind and the rain.
It is because of that sensitivity to the natural elements, as well as qualities like their emphasis on collaboration, that the pair was selected to receive the 2020 Pritzker Prize, making them the first two women to share the profession’s highest honor. The award was announced on Tuesday.
“Their approach to architecture is always honest, revealing an understanding of the processes of design and construction from large-scale structures to the smallest details,” the jury’s citation said. “It is often in these details, especially in buildings with modest budgets, where a big impact can be felt……continue reading full article.
“Great to see Fitzwilliam28 architects, Shelley & Yvonne, win the Pritzker. Their end-user lead approach to design with an environmental focus was an education.” Rod Nowlan of Bannon
Hibernia REIT has let the remaining space in its 2WML building to online fashion platform Zalando Ireland.
The 47,500 sq.ft has been rented on a 15-year lease, with term certain of seven years, at initial rent of €2.9 million per annum – almost €60 per square foot.
The building is now let to Zalando, Udemy and gym firm Perpetua, at a contracted rent of €3.9 million per annum.
The news follows Hibernia Reit’s statement earlier this month that negotiations over leases on the majority of its vacant office space were “advanced” following an active fourth quarter in the Dublin office market.
“Following this letting the Quarter’s circa 400,000 sq.ft of office accommodation is fully occupied, marking the completion of a six-year programme to transform the Windmill Lane area in Dublin’s South Docks and the creation of our first cluster of office buildings,” said Justin Dowling, Hibernia’s director of property.
Hibernia REIT has made two acquisitions in recent months as it bought assets next to properties it already owns.
In a trading update covering the period from October to today, the commercial property firm said it spent €2.5m on the two acquisitions.
Hibernia REIT also said it was in negotiations with tenants to take 56,000 square foot of space in its redeveloped property on Cumberland Place in Dublin city centre.
In today’s trading update, Hibernia said the Dublin office letting market saw another highly active fourth quarter, following two relatively quiet quarters.
It noted that take-up exceeded 3.3 million square feet in 2019 as a whole.
While this was lower than 2018, when a record 3.9 million square feet was leased, a number of deals were outstanding at the end of the year, with over 1.3 million square feet of space reserved.
“In addition, active demand at year end stood at 3.8 million square feet, which should be supportive for the occupational market in 2020,” Hibernia REIT said.
Hibernia said the vacancy rate in its in-place office portfolio remains at 12% and is mainly across its 2WML, Central Quay and the Forum developments.
It said it has made good progress in lease negotiations for the majority of the space available, adding that it expects these to start concluding shortly.
Kevin Nowlan, chief executive of Hibernia, said that the Dublin office letting market ended 2019 strongly, with a pick-up in demand from tenants of all sizes, after a quieter period in the middle of the year, particularly for smaller occupiers.
“Levels of active tenant demand remain high and 2020 has started positively,” he said.
“Property investment market volumes set a new record in 2019 though it remains to be seen how the market reacts to the tax changes introduced in the recent Budget,” he added.
Mr Nowlan said Hibernia REIT had made good progress with the lease negotiations that are ongoing over much of the available space in the office portfolio.
“We continue to work on advancing our development pipeline and have made two small property acquisitions to enhance the future value of the assets we already own,” he said.
“Hibernia remains well-positioned with an extensive development pipeline, low financial leverage and a talented team,” he concluded.
Specsavers have now joined the tenant line up in Manor Mills Shopping Centre. The store is equipped with the latest eye and ear testing technology. Maynooth is the only Specsavers store in North Kildare.
Specsavers now have over 1,980 stores worldwide including 79 in Ireland. The chain offers optician services for eyesight testing and sells glasses, sunglasses, contact lenses and hearing aids. Founded in 1983, Doug and Mary Perkins started the business with their first store opening in UK and through the years, Specsavers have partnered with international celebrities such as Kylie Minogue and Will.I.Am in their exclusive eyewear range with Specsavers.
Jenna Culligan, from Sigma Retail Partners, asset managers for Manor Mills Shopping Centre, said “One of our asset management strategies from the outset for the shopping centre has been to bring in a wide variety of retailers to cover all aspects of the needs for our shoppers and residents alike.”
Built in 2005, Manor Mills Shopping Centre is centrally located within Maynooth town itself and is located adjacent to Maynooth University. The shopping centre is home to 30 retailers including Dunnes Stores, Costa Coffee, Carraig Donn, Eason and Hickeys Pharmacy. There are over 500 free car parking spaces in a covered car park. A significant amount has already been invested into the rebranding of Manor Mills Shopping Centre and plans for further investment are set to continue.
Harvey Norman is to open its new store in Knocknacarra in April with the creation of over 60 jobs.
The major retail outlet will be located at the Gateway Retail Park, on the Western Distributor Road beside Dunnes Stores and others such as B&Q.
Recruitment is ongoing for cashiers, sales, administration, and technical support staff.
Manager of the new outlet, Michael Sloane says the Galway store will be one of the best in the country.
The Central Statistics Office has today issued results from the Household Finance and Consumption Survey (HFCS) for 2018 and comparable data for 2013, the previous year this survey was run.
Commenting on the report, Stephen Lee, Statistician, said: “The HFCS is the only household survey that collects combined information on asset, income and debt levels of Irish households.
The results show that in Ireland, the wealthiest 10% of all households have a net wealth greater than €835,000 while the bottom 10% have a net wealth of less than €1,000. Net wealth is calculated as the value of all assets minus debt.
In 2018, the median net wealth value of Irish households was €184,900, representing an increase of 80.2% on the 2013 value of €102,600.
The median value is obtained by arranging all households in ascending order from the smallest to the largest value and then selecting the middle value. In terms of wealth, the median provides a truer reflection of the average household as it is not influenced by extreme values.
The value of the household’s main residence is a key component of wealth. In Ireland, 69.5% of households own their own residence. In 2018, the median value for households’ main residence was €250,000, up from €150,000 in 2013.
The median net wealth of households that own their own home is €287,300 while for renters it is considerably less at €5,900.
We see that wealth is more concentrated in the ‘Eastern and Midlands’ region with a median net wealth of €212,700, compared to €189,700 in the ‘Southern’ region and €146,900 in the ‘Northern and Western’ region.
Almost one third of households (32.7%) reported that they received an inheritance or a substantial gift at some time in the past. However, this varies depending on how wealthy a household is. Over two thirds (67.6%) of the wealthiest 10% of households received a substantial inheritance or gift but this drops to just over one tenth (10.3%) for the 10% of households with the lowest net wealth.
More than nine out of every ten households (94.3%) own some form of financial asset including savings, shares, bonds, investments and voluntary pensions. For households that own financial assets the median value is €7,900 up from €6,300 in 2013.
Over half (51.5%) of all households have some form of debt including mortgages, loans, credit cards and overdrafts, down from 56.8% in 2013. Overall, the median value of debt, for those households that have debt, has dropped by over €20,000 since 2013, from €63,000 to €42,300.
For households that have a mortgage on their home, the median loan to value (ltv), the ratio of the outstanding amount of the mortgage to the current value of the property, is 45.3%, down from 73.5% in 2013.
In 2013, 31.9% of all homes owned with a mortgage were in negative equity, whereas the 2018 rate is 3.9%.”
The first drive-thru Starbucks on Ireland’s east coast has opened at Marshes Shopping Centre and coffee lovers should keep an eye out for promotions throughout the week.
The move has been hailed by centre management at Marshes as “another vote of confidence in the north east’s most popular retail destination”.
Starbucks operates over 20,000 outlets globally, but this is only the second drive-thru in the Republic of Ireland.
The first Starbucks drive-thru in Ireland opened in 2018 at Shannon.
The new drive-thru is located at the Dunnes Stores entrance to the centre, beside an An Bóthar Iarainn and the link road to the Avenue Road/Tom Bellew Avenue.
“We are delighted with this wonderful development at Marshes,” said centre manager Seán Farrell.
“Marshes continues to enjoy great success and the opening of the Starbucks drive-thru is another vote of confidence as the centre experiences more growth and renewal.”
This is the second Starbucks outlet in the centre, the coffee chain has had a store in Marshes since 2014.
The volume of retail sales increased by 3.6% in December when compared to November on a seasonally adjusted basis and increased by 5.8% on an annual basis.
Note: ‘Black Friday’ is included in the December reporting period for the RSI, which covers the 5 weeks 24/11/2019 – 28/12/2019. In 2018 ‘Black Friday’ was covered in the November reporting period.
When Motor Trades are excluded, the volume of retail sales increased by 2.8% in December 2019 and rose by 5.0% when compared with December 2018.
The sectors with the largest month on month volume increases were Food, Beverages & Tobacco (11.7%) and Motor Trades (5.3%). The sectors with the largest monthly volume decreases were Other Retail Sales (-10.0%) and Books, Newspapers & Stationery (-3.0%).
There was an increase of 3.4% in the value of retail sales in December 2019 when compared with November 2019 and there was an annual increase of 4.6% when compared with December 2018. If Motor Trades are excluded, there was an increase of 2.9% in the value of retail sales in the month and an increase of 3.0% in the annual figure.
Unadjusted indices are available on CSO Statbank.
Online Sales
The sector with the highest share of its sales online in December 2019 was Online & Mail Order at 87.5%. This sector accounted for 1.0% of turnover in the 2017 Annual Services Inquiry. For Electrical Goods the online share was 13% and for Clothing, Footwear & Textiles it was 7.3%.
One of only a handful of independently-owned retail units at the highly successful Blanchardstown Centre has been brought to the market by agent Bannon at a guide price of €16 million.
The property, which is being offered as a sale-and-leaseback opportunity, will be the subject of a new 25-year lease to its current owner, the leading book and stationery retailer,Eason, at a market rent of €1.1 million per annum, reflecting an initial return of 6.25% for the prospective purchaser.
The subject property comprises a large double unit extending to 1,125 sq.m (12,104 sq.ft) over two floors and is centrally located within the Blanchardstown Centre, enjoying frontage on to both level 1 and level 2 malls.
At level 1, the unit is located opposite the new flagship 12,500 sq.ft JD Sports which is under construction and due to open later in the year. At level 2 the unit is situated directly opposite the Hollister flagship store, which is due to open in the third quarter of this year. This is in addition to a number of other new developments within the scheme including a new Aldi at level 1 and nine new restaurants at level 2. Other high-profile occupiers in the retail scheme include Dunnes, Penneys, M&S, BT2 , Boots, H&M and Zara.
Blanchardstown Shopping Centre scheme is Ireland’s largest shopping and leisure destination and is majority owned by Multi/Blackstone, who acquired their interest from Green Property in 2016 for close to €950 million implying a yield level for mall units in the region of 4.75%.
New units
In terms of the subject property, Bannon say there is scope in the long term to increase the rental income by dividing its existing space at levels 1 and 2 into two or even four units. Were these new units to be let independently of each other, the selling agent believes the estimated rental value grow to as much as €1.28 million.
The lessee of the current combined unit will be Eason Limited. This entity is the lessee on all the major Eason’s units in Ireland including the four other M50 shopping centres being Dundrum Town Centre, Liffey Valley Shopping Centre, The Square Tallaght and The Pavilions Swords.
Eason Limited had a turnover of €109 million in the year ended January 2018, with a profit after tax and restructuring costs (€3.3m) of €700,000. The profit after tax for the year ending January 2019 is expected to be approximately €3 million bringing the balance sheet value to around €6 million. Full accounts for 2018 and 2019 are available on request.
Quite apart from securing an attractive initial yield of 6.25%, the purchaser of Eason’s Blanchardstown unit will have the benefit of a 10-year parent company guarantee from Eason Operations Limited (EOL). This guarantee will be limited in terms of financial exposure to three years’ rent. Full draft accounts for EOL will be made available to prospective purchasers of the Blanchardstown unit on request.
Eason’s sale of the Blanchardstown unit forms part of a wider disposal of 13 of its properties which it announced in 2018. The company estimated at the time that the sale of this property portfolio could generate a windfall of about €60 million. Some €20 million of these proceeds are set to be transferred to Eason’s retail business with the remainder divided among its 220 shareholders.
Warehouse
The first and most significant transaction in the process saw Eason secure €19 million from the sale in January 2019 of its 17,176 sq.m (184,886 sq.ft) St Margaret’s warehouse on 8.4 acres in north Dublin to Irish property company Iput. Eason’s flagship store on O’Connell Street remains on the market on a sale-and leaseback basis at a guide price of €24.5 million.
Commenting on the sale of Eason’s Blanchardstown unit, Rod Nowlan, director at Bannon, says: “This is an opportunity for smaller institutional funds and private investment houses to gain access to an asset quality usually reserved for super funds.”
Real estate investor Mel Sutcliffe of Quanta Capital has acquired No 10 St Stephen’s Green for around €4 million. Located immediately adjacent to the historic Hibernian Club and dating from the 19th century, the high-profile Georgian building extends to 465 sq.m (5,000 sq.ft) over four floors and was formerly the home, in part, to the Il Posto Italian restaurant which ceased trading in 2018 after more than 20 years in business. Separately, the ground and upper floors had been operating as a licensed premises since 2014 but these were vacated prior to the sale.
The subject property was offered to the market last September by selling agent Bannon on behalf of Antoine Xavier’s Xestra Asset Management. Xestra had, for its part, acquired the property in 2017 from developer Sean Mulryan’s Markland Holdings for around €2.5 million albeit subject to its existing tenancies. David Carroll of Bannon brought the property for sale with full vacant possession and with the further benefit of a seven-day publican’s licence.
Number 10 enjoys a prime location directly opposite St Stephen’s Green itself and just 100m east of Grafton Street.
News of Sutcliffe’s acquisition of the property comes just six weeks after The Irish Times reported on his company’s €40 million off-market purchase of the landmark Shelbourne House in Ballsbridge.
The Shelbourne House purchase is understood to have been supported with funding from Fairfield Real Estate Finance and its US-headquartered backers, Oaktree Capital Management.
Shelbourne House previously formed part of the portfolio of O’Malley Homes and Development, and has for years served as the location for its headquarters.
The combination of Dublin’s status as a location to deploy international capital and its standing as the city favoured by global tech giants for their European headquarters is expected to spur significant interest from European and international investors in the sale of Fitzwilliam 28.
Located on Fitzwilliam Street and at the heart of the traditional central business district in Dublin 2, the building, which has just been leased in its entirety to workplace collaboration tech giant Slack Technologies, is being offered to the market by joint agents Savills Ireland and Bannon at a guide price of €168 million.
Fitzwilliam 28 is one of two adjoining but independent blocks both being developed by Ireland’s largest utilities company, the ESB. The sister block to 28, Fitzwilliam 27 will be owner-occupied by the ESB.
Upon completion in the second quarter of this year, Fitzwilliam 28 will comprise 12,599.2 sq.m (135,617 sq.ft) of prime grade-A accommodation over eight floors with 50 car-parking spaces.
Slack Technologies have taken a new long-term lease of the entire building from practical completion. The rent roll will be in excess of €7.7 million per annum, reflecting an initial yield of about 4.2 per cent. Colliers International represented Slack Inc in the recent letting, while Savills Ireland and Bannon represented the landlord.
Slack’s decision to rent all 135,617 sq.ft of space at Fitzwilliam 28 will give it the capacity to add as many as 1,100 jobs in Dublin. The company currently employs about 180 people at its existing European headquarter operations at One Park Place on nearby Hatch Street.
In terms of specification, Fitzwilliam 28 will feature extensive landscaping and sunken gardens, a double-height reception with marble walls and natural stone floored area leading to a centralised core offering the occupier maximum flexibility. The A3 BER-rated building will also feature more than 1,759 sq.m (18,933 sq.ft) of rooftop, courtyard and terrace gardens, providing extensive views of Dublin, in particular Merrion Square.
The building is designed by internationally acclaimed Grafton Architects and O’Mahony Pike Architects. PJ Hegarty & Sons, who are the leading design and build contractors in Ireland, are the contractors. They have a strong track record of developing high-profile offices. Recent experience includes No 10 Molesworth Street, AIB’s new corporate headquarters, and No 40 Molesworth Street, Jet. com’s headquarters.
The Fitzwilliam scheme enjoys a prime location within close proximity to Government Buildings, the traditional retail core of Grafton Street and St Stephen’s Green and the city’s south docklands. The immediate area is well serviced by Dublin’s public transport network with both the Luas and Dart, and numerous Dublin Bus routes located within a short walk.
Fergus O’Farrell, director of investment at Savills Ireland, says: “Interest remains strong in the office sector. Dublin’s strong occupier market and economy, coupled with the quality of this asset and its central business district location, will attract interest from global investors.”
Rod Nowlan, investment director at Bannon adds: “As proven by recent lettings to the likes of LinkedIn, Twitter and Stripe, modern offices of scale situated in the traditional city core represent the focus of the current and likely future wave of occupiers. This reflects an increased emphasis by companies on “employee experience”, and there are few modern buildings that can deliver on this aspiration more than Fitzwilliam 28.
Stockbrokers Davy have revised upwards their GDP growth forecast for 2020 to 5.5% from 4.1% previously.
Davy said the upgrade came on the back of strong foreign direct investment, expansion in the multinational sector and an exceptional export performance.
The new forecasts puts Davy well above official projections including the Central Bank’s estimate of 4.3% and the Department of Finance’s forecast of 3.9%.
The stockbrokers also revised upwards their forecast for Irish GDP growth in 2019 to 6.2% from 5% previously.
In its latest Irish Economist forecast, Davy said that exports are set to grow by 11% in 2019 and 7% in 2020, due to continued strong foreign direct investment levels.
Davy also said it expects consumer spending to grow by 3.2% in 2020 and employment by 2.5%, with the unemployment rate falling to 4.4% and the Budget surplus growing to 0.8% of GDP.
On Brexit, Davy said that the UK’s planned departure from the European Union uncertainty depressed the Irish indigenous economy in 2019.
The stockbrokers noted that about 50% of SMEs postponed investment plans and the pick-up in liquidity in the housing market was delayed.
It also said that non-residential construction slowed sharply last year, with output in the distribution, transport and tourism sectors flat on the year.
“Now that a no-deal Brexit cannot occur in 2020, we expect output in indigenous sectors to grow by 3.5% in 2020, slightly faster than the 3% in 2019,” Davy said.
It also said it expected house price inflation to rise slightly to 2% during 2020 from 1% in 2019.
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