Bannon have been appointed management agents for the Gorey shopping centre.
The centre is anchored by Dunnes Stores in the South-East, who are joined by some of the leading Irish and international retail names such as the Carphone Warehouse, Elverys Sports and Gamestop.
Gorey has over 30 stores spanning more than 150,000 square feet, is open 7 days a week, and have over 400 FREE parking spaces.
Bannon & Crotty Auctioneers are delighted to bring to the market the sale of Townsparks in Cavan Town. The investment is guiding €1,950,000 plus VAT which represents an initial yield of 15%. The building is located in the retail core of the Town and has direct access to the Town Centre Car Park. The property has a contracted rent of €292,876 per annum and is anchored by The Odeon Cinema which occupies 1,568 sq.m and accounts for 27% of the schemes total contracted rent. In addition to the Cinema the property has 4 individual retail units & bowling alley all which are occupied and leased at an annual rent of €213,645. Dealz the UK discount retailer account for 22.5% of the schemes income. Adjacent occupiers include Tesco, Dunnes Stores and Boots.
For further details contact Paul Fahey of Bannon on 01 6477900 or Crotty Auctioneers on 049 436 5020.
The National Treasury Management Agency (NTMA) will, today, offer outright buyback terms for the 4.6% Treasury Bond 2016 and will also offer switch terms from the 4.6% Treasury Bond 2016 into the 3.9% Treasury Bond 2023. Those opting to swap the 2016 bonds will be offered 2023 bonds at a price of 114.177, a 2.095% yield. The debt agency has said the country is already fully funded for 2014 and has raised over 70% of the €8 billion earmarked to fully pre-fund for 2015.
A sale of 10-year paper in March was Ireland’s first bond auction since it was locked out of the market in September 2010 and it has continued to raise funds at record low yields this year. Next week’s bond auction, which will be held on Thursday, will be the only one held between now and the end of September.
Information sourced from www.ntma.ie
High Court decision in the Bewleys case overturned. Supreme Court unanimously finds that the upward only rent review provision in the lease stands.
The decision means Bewley’s must continue to pay the €1.46 million rent up to 2017 and the cafe company said today it was “immensely disappointed” with the outcome.
Bewley’s had claimed its lease allows rents to fall as well as fluctuate upwards while Ickendel claimed the terms meant rents cannot fall. The High Court heard various reports indicated commercial retail rents have fallen by over 50% while a 2013 judgement in the Circuit Court fixed a new rent on a Grafton street property at just 53% of the previous rent.
The court was concerned with construing rent review provisions in a commercial lease which are articulated in conventional terms, she said. If Ickendel was correct, the rent payable was €1.46 million but if Bewley’s was correct, it was some €728,187.
Sourced from the Irish Times
Under previous law dating back to 1838, a subsequent occupier of a commercial property could be held liable for up to two years arrears of rates which could not be recovered from the previous occupier. Section 32 of the Local Government and Reform Act 2014 removes liability from subsequent occupiers and instead imposes new duties on owners of commercial property.
The Act defines an owner as any person other than a mortgagee not in possession who is entitled to receive the rents from the property thus extending its application to landlords, receivers, liquidators and mortgagees in possession.
Under the Act, where a property or an interest in a property is transferred so that a change in the party primarily liable for rates occurs, two obligations are introduced.
1. An owner must notify the relevant Local Authority of the transfer within two weeks. It should be noted that a transfer would include not just the sale of a commercial property but also leases, assignments or surrenders.
2. The party transferring the property or interest in the property is obliged to discharge all rates for which he/she is liable for and on the date of the transfer.
Even though the Act provides that the primary liability of the previous occupier for outstanding rates is not affected, an owner can become liable for up to two years rates due by a previous occupier if the owner fails to notify the local authority within the permitted two weeks – or if the arrears are not discharged at the time of the transfer, even if those arrears in fact relate to another party’s occupation of the property.
Any rates due by an owner, and not discharged, shall remain on as a charge on the property for up to 12 years.
Potential purchaser/lessees will need to seek evidence at the time of the transfer that all rent arrears have been cleared and obtain evidence of notification of transfer to the local authority. Owners not in occupation will need to be particularly vigilant in insuring the prompt discharge of rates by occupiers given the risk of the possible liability for any arrears passing to that owner.
These changes come into effect on 1 July 2014.
The Central Bank has published an SME Market Report compiled by economists in the Financial Stability Division. This report gives an up-to-date picture of developments in the Irish SME credit market, it provides information on credit demand, credit access, loan terms and conditions, loan default, interest rates and credit market concentration.
The report shows up to €8.6 billion in loans held by the covered banks to small and medium businesses are in arrears over 90 days. At the end of 2013, the average SME owed its bank €71,101 and was paying interest at 6.41 per cent. The numbers show that just over 26 per cent of all loans to the sector were in default, meaning that repayments on these debts were 90 days or more overdue.
The highest default rates are found among construction companies, hotels, restaurants, and SMEs with exposure to the domestic economy. The SME sector has been flagged as a huge problem for the Government. Last month the Government announced the creation of the Strategic Banking Corporation of Ireland, which has funds of €500 million, and which lend money to a SMEs through resident lending institutions.
Gross new lending to SMEs has remained static at €350m to €750m over the period between 2010 and the end of last year. The number of SMEs applying for credit has decreased from 40% to 35% between 2011 and 2014.
View Full Report SME Market Report: H1 2014
The National Treasury Management Agency (NTMA) has today completed an auction of Irish Treasury Bills, selling the target amount of €500 million. Total bids received amounted to €2.1 billion which was 4.2 times the amount on offer. The Treasury Bills, which have a maturity of three months, were sold at an annualised yield of 0.105%.
The NTMA has raised €6.5 billion of Ireland’s long-term money this year already, bringing it 81 per cent of the way towards its full-year funding target of €8 billion.
David Carroll of Bannon has advised Ardstone Capital on their most recent Irish purchase of the Crampton Buildings in Temple Bar. The investment manager acquired the block for €8.2m representing an initial yield of 6.15% which is occupied by a range of leisure and retail users.
The upper floors are held by Dublin City Council who are due to embark on a significant refurbishment of the old Artisan dwellings which will significantly enhance the immediate area. Bannon will continue to advise Ardstone on the asset management strategy for the block whilst also taking over the day to day management.
Ardstone originally bought the four-storey modern block at 85 Pembroke Road about 12 months ago for €4.75 million. The 875sq m (9,410sq ft) building was then occupied by AIB Capital Markets on a lease which then had a further 11 years to run.
Retail Ireland, the Ibec Group that represents the Irish retail sector, has welcomed the opportunity to participate in this week’s inaugural session of the Government’s new Retail Consultation Forum.
Retail Ireland has long campaigned for the establishment of a dedicated engagement forum between Government and the sector and welcomed the decision to establish the Retail Consultation Forum, announced earlier this year, as part of a number of initiatives under the Action Plan for Jobs 2014. The establishment of the Forum and the opportunity for Retail Ireland to participate in it is an endorsement of Ibec’s ongoing campaign to place retail firmly at the heart of Government thinking.
The Forum will meet quarterly with a different topic under consideration at each session. At this week’s meeting, Retail Ireland had the opportunity to engage with other industry representative groups to propose fiscal measures and other initiatives to support the industry under this year’s budget.
Information sourced from www.ibec.ie
Property developer Johnny Ronan is gearing up to re-enter Dublin’s office construction market after agreeing to buy a key site beside the former Burlington Hotel along with a UK partner for €40.5 million. The site has full planning permission for a high density office block with a net floor area of 15,384sq m (166,668sq ft). The site is currently occupied by a 1980s office block which has been vacant since it was sold in 2007 by Allianz Insurance to developer Bernard McNamara for €105 million.
Johnny Ronan was responsible for the vast majority of the large- scale office projects in Dublin in recent years including the 700,000sq ft Central Park; the 100,000sq ft high rise Monte Vetro sold to Google; the 200,000sq ft Connaught House and Bank of Ireland HQ on Burlington Road and the 400,000sq ft PwC and Fortis blocks at Spencer Dock along with the adjoining National Convention Centre.
There has been no new office construction in the city for the last six years and the only two office blocks currently being developed in Dublin – at Canada House on St Stephen’s Green and the Veterinary College in Ballsbridge – are being built by telecoms billionaire Denis O’Brien and the Galway-born Comer brothers.
Story sourced from the Irish Times
