Another great 5km run thanks to Dublin Airport Central. One of many events hosted by Dublin Airport Central for tenants of the campus.
#connectyourbusinesstotheworld
THERE has been a widespread welcome for news of a proposed development at Arthur’s Quay in which Marks and Spencer would be the anchor tenant.
Limerick’s Tiernan Properties has signed heads of agreement with the British retail giants to become the anchor tenant for a major €60 million development on the city’s Arthur’s Quay.
Chief executive Michael Tiernan told the Limerick Post that the plans are “at an early stage but we will now hopefully have a discussion with Limerick City and County Council and subject to a successful outcome to those discussions, we will move forward.”
The development will be dependent on other factors, mostly delivery of infrastructure outlined in the Limerick 2030 plan which has already been adopted and acted on by the local authority.
The new development will involve a site currently occupied by the former Limerick Tourism office at Arthur’s Quay, but public amenities in the park itself will not be affected.
The British chain has been linked to various sites in Limerick city and suburbs over several decades, but has no outlet in the area.
The clothing, food and homewares retailer has now agreed to be the main tenant in the proposed 18,580sq m (200,000sq ft) mixed-use development.
Tiernan Properties said there had been “significant interest” from other major brands in the project, which is expected to boost footfall in the centre of Limerick.
The developers said getting a “key target” like Marks & Spencer on board “validates the wider project” and would prove pivotal for Limerick.
“We have a lot of work to do but as this is a development in line with the aims of the 2030 plan, we believe it would support that plan,” Mr Tiernan said.
Limerick Chamber chief executive Dee Ryan said the announcement that the Arthur’s Quay development is to go ahead was another major boost for the city and region.
“This is more great news for Limerick and the wider city region. To have this and the Ryder Cup 2026 announced for Limerick on the same day is incredible. It shows where the city, county and region is headed.”
“This huge injection of private investment in retail is an important signal of market confidence and ongoing work to revitalise Limerick city centre. We are powering ahead in so many respects as we develop a thriving urban experience for people who live in, work and visit Limerick.
“The retail community, in particular, welcome a boost exactly like this to help attract more people from Limerick and neighbouring counties into the city,” she added
Mayor Michael Sheahan said that along with all the other plans for Limerick, the multi-million euro investment by Tiernan Properties would help revitalise the city centre.”
“Confirmation that Marks and Spencer is to be the anchor tenant will see the company open its very first store in the mid-west region. It has been a long time coming and I am delighted that such a sought after retailer is opening a store here,” Mayor Sheahan concluded.
(before and after)
We are very excited to announce that we have just completed stage 1 works to our existing car park as part of the Phase 2 development at Gateway Retail Park.
Scandinavian furniture and homeware chain JYSK opened their second Irish store this morning at Drogheda Retail Park as people queued up to get into the new JYSK store which was officially opened at 9.00 am.
Founded in Denmark in 1979, JYSK , (it’s pronounced “Yusk”), is a global retail chain with more than 2,700 stores worldwide selling everything for the home, it has a turnover of €3.6 billion a year and employs some 23,000 people.
The Drogheda JYSK store is the group’s second in Ireland, it opened its first branch in Naas in April and stores are also scheduled to open in Navan later this month and Portlaoise in August.
Intersport Elverys who proudly invested in Tipperary GAA, are delighted to announce they have officially opened their new store in Thurles Shopping Centre with the widest range of GAA, running and training gear for kids and adults.
Intersport Elverys, in partnership with Tipperary GAA invited fans young and old to meet the Inter County players and browse the new store. There was exclusive interviews, fun activities and exclusive discounts on the day.
They were joined by Tipperary players Seamie Callanan, Noel McGrath and Ronan Maher on the day who took pictures and signed autographs with fans.
Foreign Direct Investment in Ireland 2017, a thematic publication exploring the impact of FDI and globalisation, shows over 300,000 jobs are directly linked to foreign investment into Ireland.
Despite a decrease of €54bn in the stock of Foreign Direct Investment into Ireland between 2016 and 2017, at €744bn (253% of GDP) investment still remains high in comparison to other EU countries showing the highly globalised nature of the Irish economy.
Employment figures show growth across all sectors since 2012, with the largest growth (28%) recorded in the scientific and technical activities sector. In 2017 average wages in foreign-owned multinational enterprises (MNEs), at €50,000, were significantly higher than those paid by domestic firms (€33,000), but lower than those paid by Irish MNEs (€57,000). All sectors experienced wage growth, with the largest growth in the information and communications sector and the administration and support services sector, which experienced 26% growth and 20% growth respectively between 2012-2017.
This is the second time the CSO has published this experimental publication linking data across statistical domains. Foreign Direct Investment in Ireland 2017 looks at the role of investment into Ireland, its associated globalisation and its role in the Irish domestic economy. This publication brings together several different data sources designed to complement the annual and quarterly Foreign Direct Investment statistics presented in our International Accounts.
New to this year’s publication is a breakdown of gender balance in FDI firms and an analysis of the influence of Special Purpose Entities (SPEs), distinguishing between actual investment in firms operating in Ireland and funds passing through via SPEs.
Residential property prices increased by 3.1% nationally in the year to April. This compares with an increase of 3.8% in the year to March and an increase of 13.3% in the twelve months to April 2018.
In Dublin, residential property prices rose by 0.5% in the year to April, with no change in house prices and apartments rising by 2.2%. The highest house price growth in Dublin was in South Dublin at 4.0%, while Dun Laoghaire-Rathdown saw the greatest decline in house prices (1.5%).
Residential property prices in Ireland excluding Dublin were 5.6% higher in the year to April, with house prices up by 5.8% and apartments by 5.9%. The region outside of Dublin that saw the largest rise in property prices was the Border at 11.4%, while the smallest rise was recorded in the Mid-East at 1.5%.
Overall Decline
Overall, the national index is 18.5% lower than its highest level in 2007. Dublin residential property prices are 22.5% lower than their February 2007 peak, while residential property prices in the Rest of Ireland are 21.8% lower than their May 2007 peak.
Recovery
Property prices nationally have increased by 81.9% from their trough in early 2013. Dublin residential property prices have risen 91.9% from their February 2012 low, whilst residential property prices in the Rest of Ireland are 79.9% higher than at the trough, which was in May 2013.
Boots has become the latest major retailer to sign up at the landmark Gateway Retail Park in Galway.
The pharmacy-led health and beauty retailer has agreed to take a new 700 sq.m (7,500 sq.ft) premises at the scheme.
Boots are understood to be paying a rent in excess of €35 per sq.ft per annum for its new store which is under construction as part of the second phase of the retail park. Boots will be located immediately adjacent to the new branch of Harvey Norman.
Due for delivery in the first quarter of 2020, the second phase at Gateway will comprise an additional 11,148 sq.m (120,000 sq.ft) of retail space offering eight new retailers, three new food and beverage operators and a gym. Current tenants at the Gateway park include Dunnes Stores, Next, New Look, McSharry Pharmacy and B&Q.
Gateway’s asset manager, Paddy O’Connor of Sigma Retail Partners, believes Boots’ decision to locate at the scheme further underpins it as the destination of choice for retailers in Galway.
Darren Peavoy of Bannon who handled the letting on behalf of the landlord said the remaining units at the scheme are all under offer.
There was an annual increase in employment of 3.7% or 81,200 in the year to the first quarter of 2019, bringing total employment to 2,301,900. This compares with an annual increase of 2.3% or 50,500 in employment in the previous quarter and an increase of 2.9% or 62,400 in the year to Q1 2018.
Summary points for Q1 2019
The increase in total employment of 81,200 in the year to Q1 2019 was represented by an increase in full-time employment of 62,600 (+3.5%) and an increase in part-time employment of 18,600 (+4.1%).
On a seasonally adjusted basis, employment increased by 35,200 (+1.5%) over the previous quarter. This follows on from a seasonally adjusted increase in employment of 18,400 (+0.8%) in Q4 2018, an increase of 10,900 (+0.5%) in Q3 2018, an increase of 15,400 (+0.7%) in Q2 2018 and an increase of 7,400 (+0.3%) in Q1 2018.
Unemployment decreased by 18,600 (-14.0%) in the year to Q1 2019 bringing the total number of persons unemployed to 114,400. This is the twenty seventh quarter in succession where unemployment has declined on an annual basis.
The seasonally adjusted unemployment rate decreased from 5.6% in Q4 2018 to 5.0% in Q1 2019, while the seasonally adjusted number of persons unemployed decreased by 14,300 to 120,300.
The long-term unemployment rate decreased from 2.1% to 1.7% over the year to Q1 2019. Long-term unemployment accounted for 35.7% of total unemployment in Q1 2019.
The total number of persons in the labour force in the first quarter of 2019 was 2,416,300, representing an increase of 62,600 (+2.7%) over the year. This compares with an annual labour force increase of 31,900 (+1.4%) in Q1 2018. The number of persons not in the labour force in Q1 2019 was 1,480,200, an increase of 9,900 (+0.7%) over the year.
Employment
The annual increase of 81,200 (+3.7%) in employment was represented by an increase of 30,800 (+2.5%) in male employment and an increase of 50,400 (+5.0%) in female employment over the year.
Employment increased in 12 of the 14 economic sectors over the year (excluding Not stated). The largest rates of increase were recorded in the Transportation and storage (+11.4% or +10,800) and the Administrative and support service activities (+10.6% or 10,500) sectors.
The overall employment rate among persons aged 15-64 was 69.3% in Q1 2019 compared to 67.9% in Q1 2018.
The number of employees in Q1 2019 was 1,966,800, up 99,300 (+5.3%) over the year. The number of self-employed persons decreased by 14,500 (-4.3%) over the year to 323,900.
Unemployment
Male unemployment decreased by 7,800 (-10.6%) to 65,900 over the year to Q1 2019, while female unemployment decreased by 10,700 (-18.1%) to 48,400 over the same period.
The overall unadjusted unemployment rate decreased from 5.7% to 4.8% over the year to Q1 2019.
In the year to Q1 2019, the number of persons classified as long-term unemployed decreased by 9,300 (-18.5%), bringing total long-term unemployment to 40,900. Short-term unemployment decreased by 9,500 (-11.9%) over the year to 70,300.
The unemployment rate for 15-24 year olds (youth unemployment rate) decreased from 12.5% to 10.9% over the year to Q1 2019.
A series of Monthly Unemployment statistics was first issued by the CSO in 2015. The most recent publication was issued in May 2019 for reference month April 2019. The Monthly Unemployment release contains a series of monthly unemployment rates and volumes. These series are based primarily on the LFS and are compiled in accordance with agreed international practice. Data for more recent periods for which no LFS benchmark is available is adjusted for trends in the Live Register. These statistics are the definitive measure of Monthly Unemployment and replaced the SUR (which has been discontinued).
The previously published seasonally adjusted monthly unemployment figures are now revised with the availability of new LFS benchmark unemployment estimates for Q1 2019. The seasonally adjusted monthly unemployment rate for March 2019 is now revised from 5.4% to 4.7%, while the seasonally adjusted number of persons unemployed is revised from 131,400 to 114,400.
The provisional estimate for April 2019 has also been revised with the seasonally adjusted unemployment rate for April 2019 revised from 5.4% to 4.6%, while the seasonally adjusted number of persons unemployed is revised from 129,700 to 112,500.
Labour force
As with employment, the number of persons in the labour force is also influenced by changes in the size of the working age population (demographic effect). Up to the start of 2008 this demographic effect had been adding at least 30,000 to the labour force on an annual basis, primarily driven by net inward migration. This demographic effect peaked at over 90,500 in the second quarter of 2007.
With the decline in inward migration the positive demographic effect started to fall in the second half of 2007 and continued to decline throughout 2008 and 2009 before becoming negative in Q3 2009. The negative demographic effect continued for each quarter until Q1 2014. The demographic effect has been positive since Q2 2014 and in Q1 2019 a positive demographic effect contributed an increase of 36,000 to the overall change in the labour force.
In addition to the demographic effect, the change in the size of the labour force is influenced by changes in participation. While the overall participation rate increased by 0.5 percentage points to 62.0% over the year, the net result of changes in individual age groups for the same period was a positive participation effect of 26,600.
Of those persons not in the labour force, the number classified as being in the potential additional labour force was 108,200 in the first quarter of 2019.
International Comparisons
The employment rate in Ireland increased by 0.8 percentage points to 69.1% over the year to Q4 2018. The employment rate in the EU-28 in Q4 2018 was 68.9%.
The unadjusted unemployment rate among the EU-28 countries in the fourth quarter of 2018 was 6.6%, while the comparable rate in Ireland was 5.4%. The highest unemployment rates among the EU-28 countries in Q4 2018 were recorded in Greece and Spain (18.7% and 14.5% respectively), while the lowest rates of 2.0% and 3.2% were recorded in the Czech Republic and Germany respectively.
The latest figures available at the time of finalising this release indicate that the seasonally adjusted unemployment rate for the EU-28 for March 2019 was 6.4% compared to the revised seasonally adjusted monthly unemployment rate of 4.7% for Ireland for the same period.
Insurance giant Irish Life intends to double the size of its retail investment business over the next five years to €10bn. It also plans to acquire a number of residential developments, investing “hundreds of millions” in residential properties.
Irish Life acquired the sought-after Fernbank development in Dundrum, south Dublin, last year for €100m.
In an interview with the Sunday Independent, CEO David Harney said the company intends to conclude similar deals shortly. “I doubt we will be doing two deals like Fernbank every year, but if we’re doing one deal like it annually we would be pretty happy,” he said.
Harney also confirmed that the company lost out to Brewin Dolphin in its bid to purchase the wealth-management arm of Investec.
“We do think that in Ireland too many people have too much on deposit rather than in broad-based investments.
“We’ve grown our multi-asset portfolios into a €5bn business over the last five years and we’d love to double that over the next five,” he said.
Harney, who was speaking after the launch of the company’s new MyLife health improvement app, also signalled the company’s intention to acquire more wealth management businesses.
Residential property prices increased by 3.9% nationally in the year to March. This compares with an increase of 4.3% in the year to February and an increase of 12.6% in the twelve months to March 2018.
In Dublin, residential property prices rose by 1.2% in the year to March, with house prices rising by 0.7% and apartments by 2.5%. The highest house price growth in Dublin was in South Dublin at 3.4%, while the lowest growth was in Dun Laoghaire-Rathdown at 0.4%.
Residential property prices in Ireland excluding Dublin were 6.8% higher in the year to March, with house prices up by 6.7% and apartments by 8.6%. The region outside of Dublin that saw the largest rise in property prices was the Mid-West at 11.9%, while the smallest rise was recorded in the Mid-East at 1.6%.
Overall Decline
Overall, the national index is 18.6% lower than its highest level in 2007. Dublin residential property prices are 22.3% lower than their February 2007 peak, while residential property prices in the Rest of Ireland are 22.3% lower than their May 2007 peak.
Recovery
Property prices nationally have increased by 81.6% from their trough in early 2013. Dublin residential property prices have risen 92.5% from their February 2012 low, whilst residential property prices in the Rest of Ireland are 78.8% higher than at the trough, which was in May 2013.
Irish retail sales values grew by 4.7% in the first quarter of the year when compared with the same period in 2018, aided by a ‘mild late winter’ and ‘early spring’, research showed.
While these figures are robust, it must be highlighted that in this period last year, Ireland found itself under a blanket of snow and was suffering the disruptive effects of Storm Emma, according to Retail Ireland latest Retail Monitor which the group published today.
“After a rocky fourth quarter of 2018, in which trade ebbed and flow almost by the day, retailers will be hoping that a level of consistency to trade can be found in 2019,” Thomas Burke, director of Retail Ireland, said.
“It is clear that retail sales patterns in the second half of 2018 were heavily impacted by Brexit related commentary.”
Brexit Extension
The Ibec group that represents the sector, highlighted in its report that an extension to the Brexit negotiating period until October seems to ‘have calmed nerves somewhat’.
“The daily game of brinkmanship is no longer leading news bulletins, and for hard-pressed Irish retailers this is good news. On the back of this we have seen an uptick in consumer sentiment as people’s worst fears of a crash out Brexit, have been allayed, at least for the moment.” Burke added.
There has also been a modest uptick in consumer confidence this quarter coming off the back of some respite from Brexit uncertainty which is reflected in the sales data.
Supermarkets and Convenience Stores
The report showed, that primary driver for volume over value growth continues to be ‘competitive action’ for supermarkets, with the battle for market share between multiples ‘very intense’ and the ‘slower but inexorable’ continuing growth of discounters also contributing to downward pressures.
A buoyant economy has been good news for the convenience sector, which is also in growth, the research indicated.
The Monitor also shows that while sales are up across almost all categories of retail, the ever-present trends of discounting and the continuing shift to online are also evident, particularly in retail categories such as computers and electrical goods and department stores.
In terms of the outlook for the remainder of the year, Burke highlighted that many businesses will have budgeted against the performance of Summer 2018.
“For those categories that are particularly reliant on good weather to drive footfall and sales, clearly this will prove challenging. With no guarantee of a similar prolonged spell of fine weather retailers will have to be creative if they are to achieve such heights once more.” he concluded.
Construction activity rose sharply in April while purchasing inventory also ratcheted up as companies seek to avoid Brexit-related supply disruptions, according to a survey from Ulster Bank.
The bank’s construction purchasing managers index (PMI) showed that business levels continue to rise underpinned by ongoing increases in the demand for construction work.
But Brexit still weighed on confidence and some companies surveyed noted lower demand while others said they would brought forward purchases to mitigate potential supply issues.
“Nevertheless, the April PMI indicate that construction remains the fast growing major sector of the economy, with growth continuing to outpace that reported in both manufacturing and services where international risks and headwinds, including those linked to Brexit, represent more of a challenge,” said Simon Barry, Ulster Bank’s chief economist in the Republic.
Housing, as opposed to commercial or civil engineering activity, recorded the fastest rise in activity for the fourth successive month during April. Commercial activity also increased, though at the slowest pace in six months while civil engineering activity declined.
Extra staff
Meanwhile, while job creation was quicker than the series average, employment growth eased slightly during April despite the fast rise in new business. “Anecdotal evidence from panellists indicated that extra staff had been hired in order to keep up with customer demand,” the survey said.
On pricing, the rate of input cost inflation slowed to a four-month low although there were reports of greater prices paid for steel, insulation and transport while left cost burdens high.
Overall, Irish construction companies picked up from a 68-month low during April, with just over 40% of those surveyed expecting activity to increase over the coming year. The relative positivity was linked to forecasts of increased sales activity, new capital investments and subsidence of Brexit uncertainty over the next 12 months.
The PMI rose to 56.6 in April, up from 55.9 in March.
Costa Coffee will open a brand new store in Waterford Retail Park on the Outer Ring Road this summer. The new coffee pod will take up a floor area of approximately 2,600 sq. ft and will result in a bright and spacious high-spec coffee offering with outdoor seating. It joins other big-name retailers in the retail park including anchor tenant Harvey Norman, Homestore & More, Curry PC World, Halfords, Home Focus, EZ Living Interiors and Maxi Zoo.
Costa Coffee is a multinational coffee house company and is the second largest coffee house in the world. Costa Coffee is present in 31 countries across the globe and it opened its first store in Ireland in 2005. Its number of stores have been growing ever since and it has multiple stores all over Ireland.
The asset manager for Waterford Retail Park, Jenna Culligan from Sigma Retail Partners, said “We are delighted that Costa Coffee is joining our very strong tenant line-up in Waterford Retail Park. As part of our strategy for this park we identified that food and beverage was missing for the park and we sought to provide this for the retail park. As everyone knows Costa Coffee are one of the biggest coffee chains in the UK and Ireland and we are absolutely delighted to have them on board.”
Waterford Retail Park is easily accessed from Waterford City and is less than a 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. Waterford Retail Park is also located close to Waterford Greenway and the new Costa Coffee store will be a great pit-stop for visitors heading to and from the Greenway.
Bannon are the letting agents for Waterford Retail Park.
Agent Bannon is seeking offers in excess of €6.6 million for a landmark building on Cork city’s most sought-after thoroughfare, St Patrick’s Street.
No 113-115 St Patrick’s Street has been occupied by the well-known bookseller and stationer, Eason & Son, for more than 33 years. The company is taking a new 25-year lease of the premises subject to a market rent of €500,000 per annum. This promises the building’s prospective purchaser an immediate return of 7% net of costs.
Located immediately opposite Merchants Quay Shopping Centre, Marks & Spencer and Debenhams, the subject property extends to 2,045.3 sq.m (22,017 sq.ft) over four storeys. The building incorporates 1,282.1 sq.m (13,801 sq.ft) of retail area across its ground and first-floor levels.
Internally the ground and first-floor retail areas are open-plan and underwent a complete refurbishment in 2013.
St Patrick’s Street has long been recognised as Cork’s foremost shopping district. Eason’s neighbours include a number of premium high street brands such as Brown Thomas, Tommy Hilfiger and Pandora, together with a wide array of local, national and international retailers including Penneys, Dunnes Stores and Lifestyle Sports.
Alexandra Patterson, who is handling the sale on behalf of Bannon, said: “This investment opportunity is likely to appeal to a range of local, national and international investors given its prime position on St Patrick’s Street, large retail floor plates and established tenant.”
The data from business and credit risk analyst, CRIF Vision-net, show an average of almost 71 new companies were formed every day in the first quarter of 2019, while the number of insolvencies remained consistent for the same period.
In total, 6,413 new companies were formed in Ireland in the first quarter of 2019, the best Q1 figures in the past 13 years, up almost 14% on the previously record-breaking Q1, 2018.
Professional services was the biggest contributor to new start-ups in the quarter which saw 1,448 new start-ups representing a 22% increase on this time last year.
Social and personal services grew by 50% with 945 new companies, while the third largest sector was financial services which, however, fell by 1% to 708 new start-up companies (compared to 715 in Q1 2018).
Construction saw a modest 1% growth during this time.
In total, 12 counties recorded double-digit growth in start-ups in Quarter One with Dublin recording the highest number, 3,089, amounting to almost 50% of the total number of start-ups established.
Cork followed with 690 new companies in the first quarter, up 13.3%, with Galway coming in third with 236 new start-ups, down by just 1.2% on the first quarter of 2018. Limerick saw 210 new start-ups created, representing a 7.7% increase on the same period last year.
The growth in company start-ups wasn’t limited to the counties with the largest urban populations. Louth (up 21%), Donegal (up 16.5%), Kerry (up 7%), Wicklow (up 14%) and Wexford (up 38%) all saw significant increases in new company start-ups.
2018 saw an almost 26% year-on-year drop in insolvencies when compared to 2017 and in the first quarter of this year, insolvencies have remained relatively low at 192, equating to an average of two a day.
It compares to a total of 186 in the same period for 2018.
Wholesale and retail was the most insolvent sector in the first three months of 2019 with 31 recorded insolvencies, up 34.8% on the Q1 figures for 2018. It was equalled by professional services also with 31 recorded insolvencies, up 10.7% on the first quarter of 2018 and was followed by the construction sector with 25 recorded insolvencies, down by 13.8% on Q1 2018.
Dublin was the most insolvent county for the period (84, up 9%), followed by Galway (14, up 133%) and Cork (13, down 43.5%).
However, counties Clare, Carlow, Mayo, Westmeath, Waterford, Kilkenny, Tipperary and Laois all recorded fewer than five insolvencies in the first quarter of this year and the number of insolvencies in counties Sligo and Offaly went down by 100% when compared to the same period in 2018.
Hibernia Reit has sold a south docklands office block for €6.9 million more than it paid for it 14 months ago.
The sale, in which Bannon acted for the vendor and Knight Frank for the purchaser, is to a German pension fund which has secured an initial yield of 4.65%. This off-market transaction underlines the considerable weight of international capital competing for exposure to the Dublin market.
Hibernia bought the mid-sized office building at 77 Sir John Rogerson’s Quay last February for €28.7 million.
Its sale for €35.6 million, after deducting €200,000 on improvement works, marks a 24% rise in value.
After buying the building, Hibernia quickly agreed to let it to Regus on a 25-year lease from mid-2018 at an initial rent of €1.8 million and a nine-month, rent-free period. This letting was also handled by Bannon.
Built in 2004
The six-storey building was built in 2004 and includes 3,196 sq.m (34,400 sq.ft) of office space and 20 basement car-parking spaces. Individual floor plates extend to 540 sq.m (4,812 sq.ft).
Prior to its sale last year, it had been used as serviced offices by Fitzwilliam Properties since 2006. A number of high-profile foreign direct investment companies – including LinkedIn, PTC Bio, Indeed, Zendesk and Future Finance – got their first taste of the south docklands through short-term rental arrangements at No 77.
The area around the building is one of the most vibrant hubs in the docklands, with the tenant line-up including Accenture, Airbnb, BOI, Facebook, Google, State Street, TripAdvisor, Matheson, LogMein and BNY Mellon.
It will be interesting to see if the sale of 77 will renew interest in the nearby Reflector office block on Hanover Quay which went on the market in February through Savills and CBRE with a guide price of €155 million.
This prime block is probably the standout Dublin asset on the market at the moment. It will produce an annual rent roll of about €7 million and, given its asking price, would suggest a net initial yield of 4.2%.
No 77 is within 10 minutes’ walk of Luas and Dart services and is close to the Bord Gáis Energy Theatre and the 3 Arena.
Bannon are delighted to have secured Petstop for the former Maplin unit in Limerick One Shopping Park.
At a rent of €24 per sq.ft for the 7,500 sq.ft unit, this letting further illustrates Limerick One’s regional importance as a premier retail trading destination.
The upgrade of the Luas Green line to a metro service will not be needed “for 20 years or so” the National Transport Authority (NTA) has said.
The NTA has today confirmed the MetroLink line, which had been due to run from Swords to Sandyford, will terminate at Charlemont north of Ranelagh, where it meets the Luas Green line.
Last March, the NTA announced plans for the line which would connect Dublin Airport to the city by rail, with the construction of new track from Swords to Charlemont, and an upgrade of the Luas Green line between Charlemont and Sandyford.
Minister for Transport Shane Ross last month said he would “not countenance” significant disruption to the Luas line and any plan which “requires an unacceptable level of shutdowns” to the Luas service would “not be tolerated”.
The NTA said it will tunnel past the Charlemont stop to allow the conversion of the Luas to metro “to occur at an appropriate point in the future” but the upgrade would not be required “for some time – perhaps twenty years or so”.
The new route will also see a station construction site in Glasnevin moved from lands owned by Na Fianna GAA club on St Mobhi Road to an adjacent training pitch belonging to Home Farm Football Club, following complaints by the GAA which were backed by Mr Varadkar. A tunnel boring machine, due to enter the ground at this site, will be moved to Ballymun.
The NTA today said the Home Farm station would be “more compact” than previously planned which would reduce the construction time from seven years to three years. There will be “no impact” on the Na Fianna pitches it said.
The revised route will also see reduced disruption to traffic in the city centre, the NTA said. The proposed station at St Stephen’s Green East will be moved slightly south and west to avoid the closure of Hume Street during construction However, St Stephen’s Green park itself “will be impacted to a small extent as a result”.
At O’Connell Street the proposed station will be moved to underneath the old Carlton cinema and the vacant plot beside it, where a shopping centre is planned stretching from O’Connell Street to Moore Street. The previous station location in the middle of the street, “would have presented a significant challenge to Luas services, bus services, and vehicular traffic on O’Connell Street” the NTA said.
However, the NTA still plans to go ahead with plans to demolish the College Gate apartment block and Markievicz leisure centre on Townsend Street to facilitate an underground station at Tara Street.
It said it did investigate alternatives, including locating the station under the Hawkins House development site, but “reluctantly concluded” demolishing the block of 70 apartments and the swimming pool, remained “the most feasible option”. It has however, reversed plans to demolish the smaller Court apartment building at Dalcassian Downs in Glasnevin.
The new route will be available for public consultation from today. The NTA expects to make an application to An Bord Pleanála for MetroLink next year, with construction expected to take six to seven years.
One of the best shops in Galway city centre is on the market for more than €8 million through agent Bannon. It is being sold on a sale-and-leaseback basis by books and stationary retailer Eason, which has occupied the building at 33 Shop Street for the past 30 years.
Eason is to take a 25-year lease on the premises at a rent of €525,000 per annum, and, given the guide price, this would reflect a net initial return of 6%. A guarantee from Eason Operations Ltd will cover 10 years of the lease (but any payment in relation to this will be limited to two years’ rent).
The retailer announced last year that it was to sell 13 properties in the Republic which could generate a €60 million windfall. Some €20 million of this would be transferred to its retail business, and the rest divided among its 220 shareholders. This disposal process will also include the sale of its flagship store on O’Connell Street in Dublin.
In January the retailer agreed to sell its 17,176 sq.m (184,886 sq.ft) St Margaret’s warehouse on 8.4 acres in north Dublin to Irish property fund Iput for €19 million. This marked the start of its property sales programme, which is now moving on to its retail assets.
The Galway sale – a prime asset – is very much about testing the appetite among investors for its retail portfolio. Further sales of its provincial stores are expected to follow shortly.
No 33, on a prime stretch of pedestrianised Shop Street, is a part two-storey and part three-storey building extending to 1,042.9 sq.m (11,226 sq.ft) with 834.1 sq.m (8,978 sq.ft) of retail space over ground and first-floor levels. This is considerably larger than most other stores on the street, and of a scale sought after by many modern retailers.
The open-plan retail area underwent complete refurbishment in 2013. It includes books, news and magazines at ground floor, and stationary and gifts on the first floor.
Nearby retailers include River Island, Tommy Hilfiger, Schuh, Lifestyle Sports, Holland & Barrett and Boots.
Brown Thomas and Edwards Square shopping centre are close by on William Street.
Contact Alex Patterson or Rod Nowlan of Capital Markets Team today on 01 647 7900 for further information.
A majority stake in Navan town Centre, which was on the market in 2016 for €62 million, has just been bought for about €43 million.
However, the off-market sale, which was handled by Rod Nowlan of Bannon and has just received clearance from competition authorities, did not include a residential element valued at less than €5 million that formed part of the 2016 offering.
The stake was sold to a fund controlled by Davy at an attractive yield of about 9-9.5%. This is undoubtedly a strong return for an asset of this scale in the Irish market at this time. However, the fall in value of the stake since 2016 is reflective of a softening market for provincial retail assets at a time when traditional retailing faces a significant challenge from eCommerce.
‘Stampede’
Declan Stone pointed to some notable retail transactions recently – principally Kilkenny, Carlow and Globe retail parks (all acquired by Friends First) – but suggested that retail as a sub-sector of the overall Irish investment market had its heyday in 2016 when retail transactions accounted for some 50% of a €4.4 billion market.
“In 2017 it fell to 28% of a €2.28 billion market and up to the third quarter of 2018 only accounted for about 11% of the total €2.53 billion spend,” says Stone.
“For me, the charge into retail in 2016 was somewhat surprising and seemed far more driven by the weight of capital than by underlying occupier demand. Put simply, retail yields tumbled – driving up capital values – but in the background there was little tenant demand to underpin this, and in fact in the intervening 24 months the occupational market has worsened.”
The 65% majority stake in Navan Town Centre came on the market in September 2016 through Savills and Cushman & Wakefield. CarVal Investors had bought loans underpinning the centre during the crash.
A number of deals were reportedly agreed for the stake at a price of about €54 million, but the major international investor concerned did not proceed with a transaction.
Driving force
The 65% shareholding was generating a rent roll of about €4.7 million as recently as 2017.
The balance of the shares in the centre are held by Irish Life.
Iput is to invest about €3 million refurbishing a large logistics facility it has just acquired for €19 million beside Dublin Airport. The acquisition is sizeable and significant in terms of the industrial market, which has been experiencing renewed interest from investors due to growth in online retailing.
Refurbishment works are already under way at Unit 1 in the Dublin Airport Logistics Park and the building should be ready for occupation this summer.
Industrial specialist William Harvey has been appointed sole letting agent. The going rate for letting similar space in the area is about €96.8-€102.25 per square metre (€9-€9.50 per square foot).
Unit 1 extends to 17,176 sq.m (184,886 sq.ft) and sits on a site of 8.4 acres. It was bought with vacant possession in an off-market deal. The building has a clear internal height of 9.5m with extensive loading access from 15 dock levellers and five grade-level loading doors.
Dublin Airport Logistics Park is close to the M1, M2, M50 and Dublin Airport.
Michael Clarke, head of investment at Iput, said the property fund was continuing to “strategically increase” its exposure to the logistics sector and now owns and manages more than 222,96 7sq.m (2.4 million sq.ft) of high-quality logistics space in Dublin.
“This acquisition reflects our strategy of acquiring large-scale logistics buildings in strategic locations which can be repositioned to provide enhanced income returns for shareholders,” he said.
Last year Iput acquired two significant logistics facilities in Dublin 15. It paid €12.3 million for 103 Northwest Business Park – a 10,904 sq.m (117,380 sq.ft) warehouse with 1,589 sq.m (17,104 sq.ft) of offices – and immediately embarked on a €2 million upgrade. Another logistics facility, extending to 9,800 sq.m (105,500 sq.ft), was acquired in the same park. “Both of these were pre-let on long-term leases,” said Mr Clarke.
Philip Harvey of William Harvey advised Iput on its latest acquisition at Dublin Airport Logistics Park and Rod Nowlan of Bannon represented the vendors.
The construction industry is expanding rapidly, with commercial building leading the way, and although the pace of gains in house-building slowed slightly from November it is at levels seen before the crash, according to Ulster Bank’s Construction Purchasing Managers’ Index (PMI).
The overall index hit 56.3 in December, up from 55.5 in November, a four-month high.
“Overall, the December survey results round off another strong year for Irish construction firms, with the PMI pointing to ongoing very healthy expansion throughout 2018,” said Simon Barry, chief economist Republic of Ireland at Ulster Bank.
“Moreover, momentum behind the sector’s recovery continues to look solid, with new orders continuing to rise solidly in December indicating that activity trends look set to remain positive in early 2019.”
The commercial construction activity index hit 58.5 in December, up sharply from 57.5 in November.
Housing activity growth moderated somewhat to a reading of 56 from 58.2.
A reading above 50 indicates expanding activity.
Civil engineering activity, however, bucked the stronger trend seen in commercial and housing construction, with the sector reading coming in at 45.5.
The rising levels of activity were mirrored in stronger employment in the sector, and the survey showed that the number of jobs in the sector rose for the 64th successive month.
Irish consumers spent €995m on groceries in December
Shoppers spent an average of €694 on groceries in December (€151 more than the typical month).
“Irish shoppers showed a willingness to splash out over the festive break,”
“Branded and premium private label ranges grew by 3.8% and 11.2% respectively as shoppers spoiled themselves and their families over Christmas.”
Danish global home retail brand, JYSK, will open 15 stores across Ireland in the next two years, creating more than 200 jobs.
Founded in Denmark in 1979 by Lars Larsen, over the past four decades JYSK has expanded to 51 countries with more than 2,700 stores worldwide employing 23,000 people.
The first Irish store will open in Naas, Kildare in April, with two further stores opening in Drogheda, Louth and Navan, Meath in May, and a fourth store opening in Portlaoise, Laois opening during the summer.
Roni Tuominen, head of retail, said Ireland is a very important market for JYSK, given the prominent position the retail industry holds in the country for employment and the economy. “As a company, we focus on entering a new market each year, and we are excited that 2019 is the year we bring our brand to Ireland. We will open here with our latest concept stores and deliver exceptional quality products at great prices to Irish consumers,” he said.
JYSK offers a range of products for the home, from the bedroom to the garden. The brand has also enjoyed a world-wide reputation for expertise and knowledge in sleeping culture, which continues to this day, offering everything from mattresses to frames and bases.
Costa Coffee is the latest tenant to join the line-up at Malahide Road Retail Centre in north Dublin. Costa is trading out of a 2,000 sq.ft coffee pod that also has the use of outdoor seating. The letting comes just as the landlord, Irish Life, has resurfaced the car park and upgraded signage, lighting and landscaping.
The centre benefits from its location on the Malahide Road dual carriageway, attracting more than 25,000 customers most weeks. It is anchored by Woodies and Lidl, and other tenants include Halfords, Equipet, Right Price and Tiles.
Joint letting agents Bannon and Lisney are currently marketing two available units ranging in size from 4,950 to 9,895 sq.ft.
Giant retailer Harvey Norman is to open a substantial new store now under construction as part of the second phase of the Gateway Retail Park in Knocknacarra, Galway.
Australia’s leading retailer, specialising in computers, technology, electrical goods, furniture and bedroom fittings, is to rent the 5,574 sq.m (60,000 sq.ft) flagship store in the thriving park, which was acquired in 2016 by Sigma Retail Partners on behalf of Oaktree Capital.
The new store will form part of a 11,612 sq.m (125,000 sq.ft) extension, bringing the overall retail space to more than 30,192 sq.m (325,000 sq.ft).
The planned extension will be the first large-scale retail space to be completed outside Dublin since 2008 and the first in Galway for more than two decades. When completed, the new retail facilities will provide more than 300 permanent and part-time jobs in Galway.
Harvey Norman plans to trade over two levels after agreeing an annual rent believed to be about €900,000.
Tenant mix
Gateway’s line-up of tenants also includes Dunnes Stores, B&Q, New Look and Next. According to letting agent Bannon, signing Harvey Norman as anchor tenant highlights the undoubted appeal of the centre and its mix of tenants. Bannon is also due to announce the identity of a second international trader, which has agreed rental terms on another store extending to 650 sq.m (7,000 sq.ft).
In addition to Harvey Norman, the second phase of the retail park will have up to six new open-use retail units and four food and beverage outlets,
Darren Peavoy of Bannon said the interest in the available shops was hardly surprising given the absence of new trading facilities in Galway and the fact that new outlets in Gateway Park could be used for fashion and other choices.
Blaine Callard, Harvey Norman’s Irish chief executive, said the Irish business had great momentum right now and the addition of the huge showcase store in Galway would be an exciting addition to the network.
“We see from our online business that there is a huge pent-up demand from Galway customers to shop physically in Harvey Norman . . . it has taken a few years but we have finally found a home in the west.”
Marcus Wren of Sigma said a huge amount of work had been put into planning the new extension to the retail park. He added that Galway City Council had been extremely proactive in bringing this long-awaited development to reality.
Canadian restaurant chain Pita Pit and Japanese eatery Musashi are to join Krispy Kreme in trading out of a newly redeveloped block at Ireland’s largest retail and leisure destination, the Blanchardstown Centre in north Dublin.
Both of the new units will extend to around 170 sq.m (1,829 sq.ft) and will include outdoor seating and dining areas, according to management company Multi Ireland. The expansion of the dining facilities comes after the recent opening of the first Krispy Kreme store in Ireland, which has attracted continuous queues for its own brand of doughnuts.
Pita Pit’s new outlet will be its first in Ireland. Founded in 1995 as a healthy alternative to fast food, the company has more than 500 outlets worldwide, mainly in the US and Canada.
The final unit in the block will be occupied by sushi and noodle bar Musashi, which already has five existing restaurants in Dublin. The new Blanchardstown outlet is the first in a shopping centre environment. Already open at the same block is Esquires, the international coffee house chain.
Multi Ireland has spent the past 12 months redeveloping the block, which had been vacant for several years. Putting this space back into productive use is expected to broaden the appeal of the Blanchardstown offering and add around €800,000 to the rent roll.
Simon Cooper, head of leasing, said Multi Ireland was particularly pleased that Krispy Kreme had selected Blanchardstown for their “debut Irish outlet”.
Bannon has added to its expanding office agency team with the appointment of Patrick Sammon, who has joined the company as Associate Director.
Patrick has spent the last seven years working in the office and industrial agency departments of CBRE in Australia and more recently New Zealand. He has returned to Ireland bringing a wealth of experience from his work in different markets representing some of Australia and New Zealand’s largest listed institutional owners and private investors. Patrick had a previous spell with Bannon back in 2007 when he worked in their retail agency department.
Paul Doyle, Managing Director of Bannon, commented “Patrick’s wealth of experience in other busy markets gives him a unique insight and understanding into occupier’s requirements which he can now share with our own clients. With our expanding portfolio including a number of large-scale letting instructions Patrick’s appointment provides further strength to our already established office team.”
Musgrave, the owner of SuperValu, has agreed a deal to buy the Donnybrook Fair chain of upscale supermarkets in the greater Dublin area.
The Cork-headquartered retailing and wholesaling group finalised a deal to buy the chain this morning for an undisclosed sum from husband and wife team, Joe and Mary Doyle, who founded and control Donnybrook Fair.
Joe Doyle says he will remain involved with the business, to grow the brand in partnership with its new owners. Both sides also suggested the Donnybrook Fair brand will remain intact following the deal.
The transaction includes four stores in Dublin – in Donnybrook, Stillorgan, Malahide and Baggot Street – and one in Greystones in Wicklow. It also includes Donnybrook Fair’s food production facility.
Donnybrook Fair employs about 250 staff.
Dunnes Stores had been close to completing a deal for Donnybrook Fair earlier in the summer, but were ultimately overtaken in negotiations by Musgrave.
The deal strengthens Musgrave’s position in the booming Dublin grocery market, where SuperValu’s base is built mainly around the since-rebranded Superquinn outlets that Musgrave purchased in 2011.
As consumer trends within the Irish grocery market shifts further towards quality Irish foods, the deal also strengthens Musgrave and SuperValu’s offering in that segment of the market, given Donnybrook Fair’s association for epicurean goods.
“Donnybrook Fair increases our penetration of the Dublin food market and our intention is to maintain and grow the brand for the long term. We are looking forward to taking it to the next stage of development,” said Chris Martin, chief executive of Donnybrook Fair.
“Musgrave is as passionate as we are about the heritage and future of Irish food. I look forward to working in partnership with the Musgrave team to grow the Donnybrook Fair brand,” said Mr Doyle.
A Georgian building with a seven-day publican’s licence and a restaurant near the top of Dublin’s Grafton Street is expected to attract considerable interest when it goes on sale at a guide price of €4.25 million.
The building at 10 St Stephen’s Green will be available with full vacant possession from early next year. Daniel McLaughlin of selling agent Bannon said No 10 would suit a variety of uses, and not just a bar and restaurant. The vendors have already carried out some feasibility studies to improve the internal layout of the Georgian property.
The three-storey over-basement building extends to more than 483 sq.m (5,202 sq.ft) and adjoins the renowned Hibernian Club. The ground and upper floors are currently trading as the No 10 cocktail bar and the Mamma Mia restaurant. The basement is vacant but previously traded as the Il Posto restaurant.
No 10 was previously owned by Markland Holdings, which sold it in 2014 for more than €2.5 million.
Bannon says the prestige associated with St Stephen’s Green should ensure an early sale.
In the year to July, residential property prices at national level increased by 10.4%. This compares with an increase of 11.9% in the year to June and an increase of 11.6% in the twelve months to July 2017.
In Dublin, residential property prices increased by 7.2% in the year to July. Dublin house prices increased 6.5%. Apartments in Dublin increased 11.0% in the same period. The highest house price growth was in Dún Laoghaire-Rathdown, at 9.8%. In contrast, the lowest growth was in South Dublin, where house prices increased 5.2%.
Residential property prices in the Rest of Ireland (i.e. excluding Dublin) were 13.7% higher in the year to July. House prices in the Rest of Ireland increased 13.1% over the period. The Mid-West region showed the greatest price growth, with house prices increasing 23.7%. The Border region showed the least price growth, with house prices increasing 6.0%. Apartment prices in the Rest of Ireland increased 18.7% in the same period.
Overall Decline
Overall, the national index is 18.8% lower than its highest level in 2007. Dublin residential property prices are 21.8% lower than their February 2007 peak, while residential property prices in the Rest of Ireland are 23.1% lower than their May 2007 peak.
Recovery
From the trough in early 2013, prices nationally have increased by 81.3%. Dublin residential property prices have increased 93.8% from their February 2012 low, whilst residential property prices in the Rest of Ireland are 76.9% higher than the trough, which was in May 2013.
More than 800 participants and 70 teams took part in this year’s Dragons at the Docks property industry fund raising event at Grand Canal Dock in Dublin on Thursday.
The dragon boat-racing competition raised €250,000 for charity with two-thirds of the proceeds going to the Dublin Simon Community and the balance to be distributed to local charities.
“Working together, we have the ability to deliver many more permanent homes, ensuring that people never have to face the uncertainty and anxiety of homelessness again,” said Sam Guinness, chief executive of the Dublin Simon Community.
Dalata, Glenveagh Property and Hines joined the original six companies who launched the event last year: Cairn Homes, Green Reit, Hammerson, Hibernia Reit, Ires Reit and Kennedy Wilson Europe Real Estate.
Second year
“It’s great to be part of the second year of the Dragons at the Docks for what is an even bigger and better event than last year,” said Pat Gunne, chief executive of Green Reit.
“With over 700 people taking part and ma
ny more coming down to enjoy the event, it is fantastic that there has been so much support to help us raise money for important causes like the Dublin Simon Community.”
(L-R back row) Stephen Fawcett, Rod Nowlan, Paul Doyle, Kathryn O’Leary, Evelyn Finegan, Rebecca Jones and Aisling Woods. (L-R front row) Richard Muldowney, Ciaran Curley, Luke Kelly and Barry Gorham.
Dublin Airport Central, a major new office development in the heart of the airport campus, has landed a high-profile anchor tenant for the first of two headquarter-style buildings now under construction.
US multinational food company Kellogg is to relocate its 220 Irish and European office staff to Three Dublin Airport Central, where the six-storey block will be located close to Terminal 2.
Kellogg will take 3,600 sq.m (38,750 sq.ft) of the 8,500 sq.m (91,494 sq.ft) in the first block at a rent of €363 per sq.m (€33.75/sq.ft). Car parking spaces will cost an additional €1,750 per space.
Kellogg is currently based at Airside Business Park on the outskirts of Swords and expects to begin the fit-out of its new headquarters by the second quarter of 2019. The company will have the use of 2½ floors and around 65 car-parking spaces in the block, which is being built to international standards.
Construction is also well advanced on a second block, Two Dublin Airport Central, which will extend to about 11,500 sq.m (123,786 sq.ft).
The Dublin Airport Authority has planning permission for four corporate buildings, with 41,700 sq.m (448,854 sq.ft) of offices and associated facilities. DAA chief executive Dalton Philips said he was delighted to have secured Kellogg as the first tenant.
“We can’t wait to welcome Kellogg and its employees to their new home. Ireland is well recognised as a world-class location for business and Dublin Airport Central can accommodate the requirements of major multinationals such as Kellogg and also Irish firms seeking a modern, flexible location with unmatched connectivity.”
The two office buildings under way are the first newly constructed blocks at the airport and follow the redevelopment of the 1960s former Aer Lingus headquarters, which is now known as One Dublin Airport Central and accommodates about 500 ESB international staff.
With construction of the two new office building well under way there has been “very strong interest in Dublin Airport Central from a range of potential tenants,” according to Brian Coppinger, head of Dublin Airport Central.
He said the business park appealed to internationally-focused firms due to its unrivalled location, the high quality of the buildings, the amenities available on site and the flexibility for future growth.
The Dublin Airport campus is home to more than 200 businesses, which together employ more than 19,000 people. It has more than 30 restaurants and cafes, a range of retail outlets, and leisure facilities including a gym and swimming pool.
Last year Dublin Airport handled 30 million passengers and so far this year the numbers are 6% higher.
Handling the letting along with agent Bannon is BNP Paribas Real Estate. Cushman & Wakefield acted for Kellogg.
Seasonally adjusted, the volume of retail sales increased by 6.5% in the month of July, with an annual increase of 5.5%. If Motor Trades are excluded, there was a decrease of 0.5% in the volume of retail sales in July 2018 when compared with June 2018 and there was an increase of 2.9% in the annual figure.
The sectors with the largest monthly volume increases were Electrical Goods (+5.8%) and Books, Newspapers & Stationery (+4.4%). The sectors with the largest month on month volume decreases were Other Retail Sales (-6.0%) and Hardware, Paints & Glass (-5.9%).
There was an increase of 1.6% in the value of retail sales in July 2018 when compared with June 2018 and there was an annual increase of 5.1% when compared with July 2017. If Motor Trades are excluded there was a decrease of 0.6% in the month and an increase of 2.6% in the annual figure.
The newly formed Westmeath Dublin Business Network (WDBN) is to hold its inaugural event on Thursday September 13 at 6.30pm.
The WDBN was set up earlier this year by a committee made up of the following Westmeath natives; Ray Geraghty of Bannon, John Brennan of ORS, Andrew Maslin of ODREM, Paul Shine of Diageo, Catherine Bennett of Glenveagh, James Keane of KPMG, Hugo Slevin of EY, Rowena McCormack of DAC Beachcroft and Aideen Ginnell of Hanover Communications.
Chairman Ray Geraghty said: “We are delighted to have launched the WBDN and to be holding our first event in the coming weeks.
“The idea behind the WDBN came from similar organisations established to unite business people from counties such as Donegal and Limerick and, which I know first-hand, are proving useful for all those involved.
“Networking and building connections are important for many businesses and an integral part of day to day operations.
“So much business is passed on through connections and through people you know – that is why we want to help make it easier and more accessible for Westmeath people in Dublin, by bringing us all together through a membership platform and quarterly events.
“It is a form of keeping our business local in Dublin.”
“Our launch event on September 13 in House on Lesson Street, run by Westmeath native Alan Clancy of NolaClan Group, is open to anyone who is working in Dublin or does a large percentage of their work in Dublin and has genuine ties to Westmeath.”
To register to attend the WDBN launch event, email westmeathdublinbn@gmail.com by September 7.
Businessman Eamon Watters, owner of Panda Waste, one of Ireland’s largest waste collection and recycling companies, has acquired a substantial stake in Charlestown Shopping Centre at junction five of the M50 in north Dublin. The acquisition was made through an investment vehicle called Garristown Venture Holdings.
The large-scale shopping centre and an adjoining site with planning permission for 247 apartments and further retail space have been sold for slightly over €42 million, well ahead of the €35.5 million quoted by selling agents.
David Carroll and Rod Nowlan of Bannon’s Capital Markets team handled the sale on behalf of the vendors.
Garristown Venture Holdings is owned and controlled by Ronan Barrett, a Dublin-based businessman who is originally from Co Tyrone. Mr Barrett confirmed that it is funding the acquisition through a combination of equity capital from Citadel’s institutional and private clients and senior and mezzanine debt funding from AIB and Cardinal Capital. Mr Watters is thought to be the primary client in the Citadel entity.
Charlestown is a well-established district shopping centre developed by brothers Michael and Tom Bailey and now under the control of the National Asset Management Agency.
Michael Bailey is a near neighbour of Mr Watters close to the village of Beauparc in Co Meath.
Panda is the largest exporter of recycled materials in Ireland and employs more than 650 people.
Garristown has confirmed that it is at an advanced stage of discussions with a number of prospective tenants for Charlestown, which will see the delivery of new letting and services including a TGI restaurant, a creche and a gym – which will bring the centre to 100% occupancy.
Planning permission
The centre has the benefit of a current grant of planning permission for 247 apartments on adjoining lands.
The new owners are in advanced discussions with John Paul Construction about the commencement of residential development on the site in the fourth quarter of this year.
Garristown says the adjoining land has the capacity to accommodation more than 400 apartments based on the revised density and height guidelines.
The shopping centre and leisure facilities – a rented nine-screen Omniplex cinema and Leisureplex facility – are producing a combined operational income of €2,835,738 – with the shopping centre accounting for €1,935,000 and the cinemas and Leisureplex block yielding €900,000.
More than 75% of the rental income comes from 10 tenants in a scheme which has an occupancy rate of 91%. Charlestown is anchored by Dunnes Stores, which owns its supermarket extending to 6,500 sq.m (70,000 sq.ft).
The other main tenants are Heatons, which pays a rent of €450,000 followed by Boots (€400,000), Leisureplex (€225,000), Carphone Warehouse (€105,000) and Lifestyle (€70,000).
A good proportion of the weekly average footfall of 54,000 is generated by the free access to a 1,350-space underground car park.
The economy is in a strong position and has moved into a post-recovery stage, with households clearly benefiting from rising incomes – according to the latest quarterly economic outlook from business group Ibec.
It forecasts growth of 5.7% this year and a buoyant consumer economy growing by 2.9% in volume terms.
It added there is little sign of this consumption being driven by the excess credit of the boom years and as the economy approaches full employment, the biggest challenge facing the Irish labour market will be finding workers to fill vacancies.
However, in its assessment of the economy, Ibec also warns against complacency on the competitiveness front “at a time when external threats are increasingly likely to materially impact on our growth.
“As the economy comes close to capacity and navigates significant challenges to our external environment over the coming years it is important we make the right decisions to protect our indigenous industry”.
Ibec Head of Tax and Fiscal Policy Gerard Brady said “the economy is growing, trade remains robust despite Brexit, and households are clearly benefitting through incomes which are increasing at the fastest rate in Europe.
“Last year, 19% of Ireland’s workforce either changed job or started working. This is up from 13.4% in 2010 and is a sign of the health of the labour market.
“As a result, Q1 2018 saw the fastest wage growth in the economy since the crisis with average wage growth reaching 2.5% year-on-year. Our view that the economy is now firmly in a ‘post-recovery’ phase is supported by all these factors,” he added.
Buoyed by a long spell of fine weather, sales in the Irish retail sector grew by 3.4% in the second quarter of 2018, according to a new report from Retail Ireland, the Ibec group that represents the sector.
In its latest Retail Monitor, published today (see attached), the group said sales in the first half of the year have grown steadily with some categories such as grocery, DIY and hardware, and fuel benefiting strongly from the sustained spell of warm weather during June. Following disruptions to trade and loses which ran into the tens of millions arising from Storm Emma earlier this year, this boost will be welcomed by the sector.
Retail Ireland Director Thomas Burke said: “From the prolonged cold snap and heavy snow of March, to the drought conditions of June, weather has had a huge impact on Irish retailers in the first half of this year. With the recent fine spell of weather, our members have reported strong demand for seasonal products such a fans, ice cream, BBQs and patio furniture, amongst other things. This spike in demand pushed retailers supply chains to the limit during June particularly.
“Other once-off events such as the football World Cup and the royal wedding in the UK provided a welcome boost to trade for retailers in the period, with sales of soft drinks, alcohol, and magazines benefiting most. This trend reflects a broader move towards event led retail in recent years as retailers seek to leverage such events to help promote consumer spend.”
Retail Ireland noted however that the fine weather was not good news for all sectors of retail, with some reporting declining footfall and falling sales in the period.
Mr. Burke said: “While many retail categories have been boosted by the long dry spell, other sectors such as department stores, fashion and footwear and hairdressing have reported lower than normal footfall and declining sales in the period, with consumers opting for a trip to the beach or park rather than a day’s shopping or pampering in the warm weather.”
Key retail trends set out in the Retail Ireland Monitor include:
Supermarkets and convenience stores:
Strong figures in June for supermarkets and convenience stores shows that retail sales in this area are finally establishing a sustained pattern of growth. Volume and value are moving together in recent months and the positive impact of June’s good weather on treats and ‘little and often’ shopping is also coming through. Off trade alcohol sales and soft drinks consumption grew as a result of the good weather and the keen interest in the World Cup.
Department stores:
The busy pre-Easter week fell into Q1 this year, making comparatives with the same quarter last year difficult. Nevertheless, total sales values increased by 0.7% compared to Q2-2017, and total sales volumes increased by 4.1%, when compared to the same period last year. Consistently cold weather during April and May weighed on women’s summer clothing sales, whilst record high temperatures at the end of the quarter adversely impacted footfall. Despite these challenges online continues to deliver strong growth within this category of retail.
Fuel stations:
Consumption remained strong in quarter two despite the sharp increases in oil prices from late March 2018. Total sales values grew by 5.9% in Q2-2018, with sales volumes increasing by 1.5% versus Q2-2017. In the non-fuel business, Q2-2018 was very positive. Favourable weather conditions disrupted normal consumer buying patterns in fuel stations. Convenience and ‘food-to-go’ offerings performed well in May and June, with a slight impact on anticipated hot beverage sales. The most significant year-on-year increase was in car wash sales, as improvements in weather conditions drove strong demand for car wash services.
Pharmacies:
Warm weather drove strong seasonal healthcare (hay fever) and sun care performance, coupled with a healthy performance on core toiletries in the second quarter of the year. Beauty related categories performance slowed during the quarter due to the exceptional hot weather in June. On an annualised basis, total sales values increased by 1.9% and total sales volumes grew by 6.8% compared to June 2017.
Fashion, footwear and textile stores:
There was no growth in total sales values in the first six months of 2018, while total sales volumes posted growth of 2.5% during the same period. Fashion retailers report that accessories and menswear were the strongest performers during the quarter. Regardless of the bad start to 2018, in the past 18 months there has been an increased focus on retail development across Dublin and the regions. Larger retail units, redevelopments and extensions have attracted new quality fashion brands to the country’s well know shopping streets and centres.
DIY and hardware stores:
Performance in the DIY and hardware category was dominated by the fine weather conditions with a significant increase in demand for gardening and outdoor categories reported. Initial strong demand for garden furniture, wood care and BBQ products were further augmented in the quarter by a surge in watering related categories, as it became clear that the fine weather would persist. Outside of gardening, the sector saw steady growth in interior, DIY and home products categories, reflective of ongoing positive consumer sentiment and a willingness to invest in home projects.
Books, News & Stationery:
Overall, the category was up 7.0% in value terms and up 5.9% in volume terms, versus Q2 last year. April’s sales were boosted by an initial clawback from the widespread weather disruption in March. Throughout the quarter, the book market continued its positive performance trend year-to-date, while the British royal wedding and the FIFA World Cup provided a temporary relief to the long-term decline in magazine sales performance. Stationery sales were more challenged, particularly in June, with a slow start to the key back to school season, due to the hot weather.
Ireland Consumer Confidence was reported at 107.6 in July from 102.1 in the previous period. It was expected at 101.5.
Consumer Confidence in Ireland increased to 107.60 Index Points in July from 102.10 Index Points in June of 2018. Consumer Confidence in Ireland averaged 87.92 Index Points from 1996 until 2018, reaching an all time high of 130.90 Index Points in January of 2000 and a record low of 39.60 Index Points in July of 2008.
In Ireland, the Consumer Sentiment Index survey covers a minimum of 1,100 households across all regions of the country. The questionnaire assesses respondents’ perceptions on the general economy in the previous 12 months as well as expectations for next 12 months; perceptions of recent trends in unemployment and inflation; recent trends and likely future evolution in the household’s financial situation as well as savings and major purchases intentions. The Consumer Sentiment Index is calculated as the percentage of favourable replies minus the percentage of unfavourable replies, plus 100. The indicator varies on a scale of 0 to 200; a value of 0 indicates extreme lack of confidence, 100 neutrality and 200 extreme confidence. This page provides the latest reported value for – Ireland Consumer Confidence – plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Ireland Consumer Confidence – actual data, historical chart and calendar of releases – was last updated on August of 2018.
source: tradingeconomics.com
Retail Excellence is today (4 July) calling for targeted solutions for retailers in Budget 2019.
“In an increasingly boundary-less retail environment the representative body are seeking additional online supports and tax fairness measures to protect retailers from the onslaught of cheap, non-European imports,” the retail organisation said in a statement.
“Despite record numbers back at work Irish retail remains vulnerable. Traditionally, a booming economy would mean increased spend in retail outlets but consumer habits have changed and we must react accordingly. This is precisely why Budget 2019 demands retail focused solutions,” Lorraine Higgins, Chief Executive of Retail Excellence said.
In their Budget 2019 submission titled “Retail: Sustaining and Growing an Economy”, Retail Excellence are also seeking a general cut in consumption taxes, a reduction in the cost of doing business, increased funding to get retailers online, increased infrastructural investment, Garda resources, town renewal funding, investment in the Home Renewal Scheme, introduction of measures to increase our competitiveness and improved access to finance.
“One of the single biggest threats to bricks and mortar stores in Ireland and, consequently the retail mix and vibrancy of our town centres, is the glut of cheap, non-European imports being bought by Irish consumers online. The prices of these goods and products are generally distorted as many distance sellers are not registered for VAT in Ireland and therefore do not apply same or duties to the product price which leaves our retailers at a competitive disadvantage. Consequentially, this is a tax fairness issue”.
Further signs of fast growing property values in Dublin’s Dawson Street emerged this week with the sale of the Trailfinders building for a full 60% above the guide price.
David Carroll of Bannon is delighted to have advised Trailfinders on their acquisition.
Agent Cushman & Wakefield initially invited offers of more than €7.75 million for the holiday booking premises at 4/5 Dawson Street. But with five different parties pitching for the site, it took a full four months to complete the sale at a figure around €12.4 million.
The opening bid matched the quoted price of €7.75 million, but thereafter it was a long drawn-out procedure, with most of the bids fixed at €100,000.
The successful bidder was none other than the sitting tenant, Trailfinders, which was challenged in the final rounds by a wealthy private investor.
Earlier in the marketing campaign it looked like the property might fall to BCP International and Meyer Bergman, which spent around €100 million assembling a large property portfolio centred mainly on Nassau Street and Dawson Street. The replacement buildings will have Grafton Street-style shopping facilities.
Jane Dolan of Cushman & Wakefield, who handled the sale of the Trailfinders building, said the operation’s success was down to the fact that she could sell the building by private treaty rather than inviting “best bids”.
The €12.4 million selling price is more than double the €6 million paid for the building some 20 years ago by property developer Gerry Gannon.
Trailfinders’ strong desire to hold on to the Dawson Street premises has been evident for some time. It originally agreed a 20-year lease of the ground floor and basement but has been over-holding the premises since the lease ran out in 2016.
The five-storey over-basement building has an overall floor area of 994 sq.m (10,709 sq.ft) and a rent roll of €399,360. Trailfinders has been contributing a rent of €278,500. Two other office tenants on the top floor have signed deeds of renunciation limiting their rental of the two premises to short-term leases.
The line-up of tenancies also includes a two-bedroom penthouse at the top of the building that attracts a top rent. Trailfinders will continue to have the use of five car parking spaces accessed from Dawson Lane.
The change of ownership comes around a month after Paddy McKillen jnr’s purchase of the headquarters of New Ireland Assurance a few doors away.The Press Up hospitality group will handle the reuse of the block, which is likely to end up with around 929 sq.m (10,000 sq.ft) of retail space on the ground floor.
Green Reit has already transformed part of the Dawson Street area by developing a two-dimensional landmark block at the junction of Dawson and Molesworth streets. Anchor tenants will include a branch of the London-based Ivy Collection of restaurants as well as Barclays Bank and the New York headquartered-Le Pan Quotidien bakery-restaurant.
Vue, the chain which owns a 3,800 seater cinema at Liffey Valley in Dublin, has acquired the cinemas of Irish rival Showtime for an undisclosed sum.
Showtime operates cinemas in Limerick and Ashbourne with 13 screens and more than 2,200 seats between them.
Recently filed accounts for the holding company of these cinemas, Showtime Cinemas Limited, show it incurred a €1.08 million loss for the 12 months to the end of April 2018.
Deals
Vue, which is the third largest cinema chain in the UK, said the acquisition was financed via existing resources.
The transaction came as Vue also announced it had also acquired another company, Cinema3D in Poland.
The deals mean the group, which operates in 10 countries, now has cinemas at 228 sites offering 1,989 screens across Europe.
Currys PC World is coming to Waterford Retail Park. The 13,000 sq.ft. fit-out has commenced and it is due to open the end of August.
Waterford Retail Park is a premier retail park with a high profile location along one of the main access routes to Waterford City from the M8 and N25 (Cork Road). Anchored by Harvey Norman. The other retailers are Homestore & More, Halfords, Home Focus, EZ Living Interiors and Maxi Zoo. Waterford Retail Park celebrates its 10th year anniversary this year.
James Quinlan of Bannon, who is the letting agent for Waterford Retail Park, said “We are delighted that Currys PC World have decided to join the strong tenant line-up in the retail park. Costa have also agreed a deal in the park which will give customers the food and beverage offer that will improve the overall shopping experience at the park”
For further letting opportunities contact Bannon today on 01 647 7900
Dublin is now the most popular post Brexit location for UK firms over its European peers (Frankfurt, Luxembourg and Paris) in terms of company moves (not staff numbers) according to the latest EY Brexit Tracker. This is despite the perception that the city has lost out to its competitors due to the erosion of competitiveness, lack of residential rental supply, a cautious regulator and limited infrastructure.
The EY Brexit Tracker found that 21 firms (we have broadened the definition and have identified 23 firms) have confirmed they will shift some or all of their operations to Dublin. This places Dublin ahead of Frankfurt, with 12 firms, Luxembourg with 11 and Paris with 8 firms.
Breakdown of Goodbody Data Analysis:
Sector Breakdown (Re-locations):
– 57% are within the financial services sector
– 27% are within the legal sector
– 9% are within the insurance sector
– 4% are within the fintech sector
– 4% are within the services sector
– 100% of announcements have been for the Dublin region.
A further 17 firms are noted as planning to increase their presence within Ireland due to Brexit adding at least 1,000 employees to their Irish operations. Such expansions are likely to create demand for a further 200,000 sq ft of office space.
Sector Breakdown (Expansions):
– 82% are within the financial services sector
– 6% are within the legal sector
– 6% are within the insurance sector
– 6% are within the fintech sector
County Breakdown (Expansions):
– 77% are expanding their presence within Dublin
– 12% are expanding their presence in Cork
– 6% are expanding their presence in Limerick
The emerging consensus is that Brexit will not play a significant role in driving office rental growth in Dublin, with existing take-up patterns (Tech dominated) continuing to dominate. Nonetheless, the city has sufficient office space capacity and developments in the pipeline to deal with this additional channel of demand. Furthermore, such moves are welcome in diversifying the occupier base of the Dublin office market and add to an already strong demand base. This is evident in our analysis on estimated office space requirements for the publicly announced moves over the last two years.
Dublin Office Market reported by Goodbody
Manor Mills Shopping Centre has just opened a brand new Costa Coffee store and its arrival has generated a lot of excitement in the centre. Costa Coffee has invested heavily in its 1,600 sq. ft new store fit-out which has resulted in a bright, high spec coffee offering.
Costa Coffee is a multinational coffee house company and is the second largest coffee house in the world. Costa Coffee is present in 31 countries across the globe and it opened its first store in Ireland in 2005. Its number of stores have been growing ever since and it has multiple stores all over Ireland.
Sigma Retail Partners are the asset managers for Manor Mills Shopping Centre. Jenna Culligan from Sigma, said “We acquired Manor Mills just over a year ago and one of our asset management strategies from the outset was to bring in additional reputable brands and enhance the food and beverage offer to raise the profile and increase footfall and dwell time into the centre. We just had The Natural Bakery open last week and now we have Costa Coffee, and the feedback we have received from both customers and retailers alike have been very encouraging. We wish Costa Coffee all the best and we are delighted to welcome them into Manor Mills Shopping Centre.”
A significant amount has already been invested into the rebranding of Manor Mills Shopping Centre and plans for further investment are set to continue. The centre has recently installed free Wi-Fi throughout the mall adding further to its appeal to shoppers.
Manor Mills Shopping Centre is centrally located within Maynooth town itself and is located adjacent to Maynooth University. The shopping centre itself is home to 30 retailers including Dunnes Stores, Carraig Donn, Eason and Hickeys Pharmacy. There are over 500 free car parking spaces in a covered car park.
Manor Mills Shopping Centre in Maynooth has just opened a new store ‘The Natural Bakery’, an Irish company that offers a wide variety of breads, cakes, sandwiches, donuts and pastries, made fresh daily from scratch. They opened their first bakery in Kilmainham in 2013 when their owner Luke Ceighan realised there is a demand for more authentic, artisan baked goods. The concept was soon a success and by 2014, The Natural Bakery opened shops in Donnybrook, Rathmines, Ranelagh and Stillorgan. In 2015, Dun Laoghaire, Clarehall, Baggot Street, IFSC and Naas followed. They now have 13 stores in Ireland.
Jenna Culligan from Sigma Retail Partners, asset managers for Manor Mills Shopping Centre, said “We acquired Manor Mills just over a year ago and one of our asset management strategies from the outset was to bring in reputable brands and enhance the food and beverage offering to raise the profile and increase traffic, footfall and dwell time into the shopping centre. We identified the need for a popular bakery that offers a wide range of tasty pastries, cakes and treats for our shoppers. We wish The Natural Bakery all the best and we are delighted to have them added to our centre.”
A significant amount has already been invested in the rebranding of Manor Mills Shopping Centre and plans for further investment are set to continue. The centre has recently installed free Wi-Fi throughout the mall adding further to its appeal to shoppers.
Manor Mills Shopping Centre is centrally located within Maynooth town itself and is located adjacent to Maynooth University. The shopping centre itself is home to 30 retailers including Dunnes Stores, Carraig Donn, Eason and Hickeys Pharmacy. There are over 500 free car parking spaces in a covered car park.
For letting opportunities contact Bannon today on 01 647 7900.
Seasonally adjusted, the volume of retail sales increased by 1.5% in the month of April, with an annual increase of 4.8%. If Motor Trades are excluded, there was an increase of 1.0% in the volume of retail sales in April 2018 when compared with March 2018 and there was an increase of 3.8% in the annual figure.
The sectors with the largest monthly volume increases were Furniture & Lighting (13.2%) and Fuel (5.6%). The sectors with the largest month on month volume decreases were Electrical Goods (-3.0%) and Department Stores (-1.0%).
There was an increase of 6.8% in the value of retail sales in April 2018 when compared with March 2018 and there was an annual increase of 3.8% when compared with April 2017. If Motor Trades are excluded there was an increase of 1.0% in the month and an increase of 1.8% in the annual figure.
Unadjusted indices are available on CSO Statbank.
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