Bannon KeepCups and Chilly’s Water Bottles
The Bannon KeepCups and Chilly’s water bottles arrived today for all staff. As a firm we are strongly committed to reducing waste and promoting wellbeing. No more plastic coffee cups for the Bannon team!
The Bannon KeepCups and Chilly’s water bottles arrived today for all staff. As a firm we are strongly committed to reducing waste and promoting wellbeing. No more plastic coffee cups for the Bannon team!
The Affordable Housing Act 2021 brought about changes to the Part V process. The most significant change is the requirement for new housing developments granted planning permission after 3rd September 2021, to have a 20% rather than 10% Part V (social and affordable) provision. Of the increased 20% provision, at least half must be allocated for social housing support. The remainder can be used for affordable housing which can be in the form of either a purchase or cost rental (or a combination of both).
The over-arching aim of Part V provisions is for the State to capture a portion of the increase in land value resulting from the granting of planning permission for qualifying residential developments. According to the Government’s Housing Agency, the preferred option which should be pursed by local authorities is the acquisition of completed units on the development site, by means of a transfer to the local authority or to an Approved Housing Body (AHB). The net monetary value (NMV) obtained by the local authority must be the equivalent of 20% of the difference between the market value of the land on the date on which planning was granted and the existing use value.
For a development site with planning permission and a market value (MV) of €3 million and an existing use value (EUV) of €500,000, the NMV due to the Local Authority will have increased from €250,000 at a 10% obligation to €500,000 at a 20% obligation. Therefore the determination of an appropriate market value has considerably greater significance to the overall costs associated with any proposed scheme of development. Importantly, Section 96(7) of the Planning and Development Act provides that either party can refer the matter of NMV for determination by a Property Arbitrator in the event of disagreement with the Local Authority or their representative. However, any reference to Arbitration needs to be done in a timely manner as the conveyance of completed residential units will be contingent on the Part V issue being resolved.
Niall Brereton BSc MRCIS MSCI is a Registered Valuer and has considerable experience in preparing Part V Valuations on behalf of landowners and developers and negotiating agreements with Local Authorities.
We are delighted to share our latest Bannon Retail Pulse. This month we focus on the Food & Beverage Sector where we report on strong take-up and low vacancy across the sector. Our Retail Pulse is updated monthly and all are available on our website bannon.ie.
To view the full report, please click here.
At Bannon we manage over 75 individual commercial assets including Shopping Centres, Retail Parks, Neighbourhood Schemes, Multi Let and Single Let Offices. This represents over 7 million sq.ft of commercial real estate in Ireland, with an estimated value of €2 billion.
Given our involvement and exposure within this industry, we are regularly engaged to assist purchasers with the property management due diligence process associated with large scale property transactions. This process is particularly complex when it comes to the purchase of multi let retail assets.
When concerns are presented, an investor can only then appreciate the importance and benefits of a pre – sale due diligence. It highlights the perils associated with buying an asset and ultimately determines the price they will pay for the asset on closing.
A typical due diligence process will involve several specific fields of expertise, namely: Legal, Tax, Building Surveying, Planning, Sustainability, Property Investment and Management.
Once engaged, Bannon will work closely with the relevant advisors to ensure a thorough review of all property management related topics are analysed. As part of a due diligence process for a commercial property we would typically provide advice concerning the following items;
The list above is dependent on the complexity of the asset in question and can be amended to take account of asset specific variables.
Ordinarily the above information would be readily available from a data room which would be set up by the vendors agent. Once the information is received it takes some time to comprehend and consolidate such a vast quantity of information into a format which is easily understood by both our client and legal representative when negotiating the finer detail on closing of a sale.
In advance of such negotiations, we will equip our client with the findings from the due diligence process, paying particular attention to areas of concern. Common concerns which can arise from a due diligence process include;
If you are considering an investment in a commercial property, please do not hesitate to reach out to a member of the Bannon Property Management team.
Author: Eugene Burns, Associate Director, Bannon
Date: 27th April 2022
Property valuations tend to be of the ‘bricks and mortar’ variety, i.e. producing a valuation of the physical building either with vacant possession or based on an investment income stream. In addition to these traditional valuations, the Bannon team regularly undertake specialised valuations of a trading going concern. This involves valuing not only the building but also accounting for the value attributable to the business carried on therein. It is a niche aspect of valuation, whereby we, the valuer are required to understand both the property and the business to arrive at a value based upon the marriage of both elements.
Where traditional property valuations are often based upon comparison transactions including lettings and sales which set benchmarks against which a valuation is assessed, the valuation of a going concern is much more nuanced. One of the main impediments to such valuations is that going concerns are rarely openly traded in the commercial markets and therefore tangible comparison evidence is often scarce or completely lacking.
Even were there to be a bountiful supply of comparison transactions, the intricacies of the valuation of a going concern involves a much deeper understanding of the general industry in which the business operates, as well the mechanics of the subject business.
Bannon has carried out many valuations of convenience store and supermarket going concerns for many years. Based on long-established relationships with retail clients, we have a deep understanding of how these businesses function and the key criteria that impact their trading performance. This understanding provides Bannon with the insight to analyse the trading profit and loss accounts of the business. We understand the profitability of the operation based on establishing a sustainable EBITDAR (Net Earnings) position and the route and cost required to achieve that position.
In forming a view on a stabilised Net Earnings position, we review a number of items including but not limited to the following:
After concluding a stabilised Earnings position we then conclude a capitalised value, only after taking account of required capital expenditure and acquisition costs.
A further point that is becoming increasingly important in assessing a business are the ‘Green’ credentials of the building and the operation. Those businesses that have embraced ESG and invested accordingly should see benefits in more efficient operations resulting in cost savings. Businesses that have been slow to move with the times will experience higher costs that will impact the bottom line and reduce operating margins.
The valuation of supermarket going concerns is a highly niche aspect of commercial valuation practice. As market leaders in the retail sector, Bannon is uniquely placed to carry-out such valuations. Contact Ben Semple, Divisional Director and Registered Valuer from the Bannon Valuation Team for more information.
Email: bsemple@bannon.ie
Dated: 13th April 2022
While it is still too soon to quantify the impact of the geo-political and macroeconomic backdrop on the Irish commercial property market, based on the Q1 figures and advanced pipeline transactions we anticipate that 2022 will still become one of only three years to record a turnover in excess of €5bn.
To view the full report, click here.
Around 500 jobs are to be created across the island of Ireland by coffee and sandwich chain Pret A Manger.
The company is to open up to 20 shops within the next decade, as part of its entrance into the Irish market.
The outlets in the Republic and Northern Ireland will be rolled out by Carebrook Partnership Limited under a franchise arrangement.
The first shop is set to open on Dawson Street in Dublin this summer, creating 25 jobs.
“Setting up shop in the Republic of Ireland and Northern Ireland has been our plan for a long time, and we’re thrilled that we’re finally able to make it happen,” said Pano Christou, Chief Executive Officer at Pret A Manger.
“There has long been demand from our neighbours on the island of Ireland to bring Pret’s freshly prepared food and organic coffee, and now with the backing of Carebrook Partnership Ltd we’re able to do so.”
“We look forward to making this partnership a success.”
Carebrook Partnership Ltd has worked with Pret for three decades and runs many of its stores in London where it is a common sight on city centre streets.
Carebrook is majority owned by UK and US food sector veteran, Gerard Loughran, who grew up in Nenagh, Co Tipperary.
Ray McNamara from Dublin, who has 25 years’ experience in the Irish food industry and owns Ann’s Bakery is also a minority shareholder.
“We’ve been working with Pret for over three decades, ever since they arrived in London,” said Gerard Loughran, CEO, Carebrook Partnership Ltd.
“Having grown up in Tipperary, and with more than two decades of experience in the hospitality and food industry, I’ve always wanted to bring Pret to Ireland and Northern Ireland, so I’m delighted that this will soon become a reality alongside my co-owner Ray, who has great connections and links to the food sector in Dublin with 25 years’ experience.”
“We look forward to welcoming our new customers, soon.”
Last year Pret announced that it would aim to double the size of the business within five years, including launching into five new markets by the end of 2023.
Pret is owned by investment group JAB and founder Sinclair Beecham.
It currently has shops in the United Kingdom, United States, Hong Kong, France, Dubai, Switzerland, Brussels, Singapore and Germany.
Very positive news from the Department of Transport with the publication of Ireland’s first EV Charging Infrastructure Strategy 2022-2025.
We have been swamped with noise around EV charging over the last number of years. Bannon has installed charging units at a number of retail centres across the country, with more in the pipeline. Whilst there is clearly a need nationwide for a charging infrastructure to accompany the push to electrify the national fleet, the planning and installation of this infrastructure needs to be informed by the rational analysis of reliable data.
At Bannon we have access to an enormous database of nationwide data about how people use cars to access shopping destinations and where they come from, with over 100 million customer visits generated by the portfolio annually. This data can be used to establish which retail schemes need more charging points to satisfy their customer requirements, which schemes can be used as charging stop over points for people on longer journeys and which journeys could be redirected to public transport, cycling or walking. Using data to ensure that resources are deployed where they will be of most benefit is at the core of sustainability.
The Department of Transport is inviting input on the draft strategy to be sent to evinfrastructure@transport.gov.ie
Electric Vehicle Charging Infrastructure Strategy 2022-2025 PDF
Dublin office market take up has exceeded 490,000 sq.ft. across 47 transactions this quarter. Whilst this is a positive start to the year when compared to Q1 2021, it does represent a 54% decrease on Q1 2020 (pre-covid) figures. However, we would note that there is over 1,200,000 sq.ft. of office accommodation currently reserved and a number of unfulfilled requirements in the market, which should result in a more robust Q2/Q3 in terms of take up.
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Phone: +353 (1) 6477900
Fax: +353 (1) 6477901
Email: info@bannon.ie