Consumers prefer real-life shopping experiences, says leading Irish retailer

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Retail is back and it’s here to stay, says Christine Dolan of Quayside Shopping centre in Sligo Town.

The centre manager believes that the majority of Irish consumers prefer the social experience of a trip to the shops over the convenience of e-tail.

She told the All-Ireland Business Times that Quayside is busier than ever.

“I think people have missed coming into the shops”, she said. “It’s a totally different experience to shopping online.”

“People love the social aspect of a day out shopping and I think most people are sick of the virtual experiences – there are a lot of people who have been quite lonely through the pandemic and you can’t beat meeting up with friends for a lunch date while having a browse through the shops.”

“There’s a great buzz around at the moment and people are starting to mix again and enjoy themselves.”

A 2020 report by Deloitte found that retail is Ireland’s largest industry and the largest private sector employer, employing almost 300,000 workers – with three in four of those employed based outside of Dublin.

Quayside Shopping Centre opened its doors in 2005 as the largest shopping centre in the northwest of Ireland.

With 130,000 feet of floor space the centre boasts 43 retailers including TK Maxx, Lifestyle Sports and Next.

Quayside lost two retailers over the pandemic, one of them was a Carphone Warehouse store which was a casualty of the Group’s decision to close 80 stores in Ireland last year.

Christine revealed that units have since been filled by two new tenants with more set to come on board.

While Christine admits that competing against online retailers will be a tough challenge in the years to come, she is not worried about the long term future of her industry.

“What we’ve proven here time and time again is that we are resilient.”

“We’ve been through a recession and we’ve come out stronger on the other end so I have no doubt that we will get back to where we were pre-pandemic.”

“In fact, I think we’ll be in a better place.”

According to the Central Statistics Office’s Retail Sales Index retail sales increased by 3.3% in June this year compared to May on a seasonally adjusted basis. On an annual basis, retail volumes were 10.6 per cent higher than in June last year.

Interestingly the retail sales figure for June this year was 13.4% higher when compared to two years earlier, before the Covid-19 pandemic.

Quayside Shopping Centre recently landed its third Business All-Star Accreditation in recognition of its contribution to retail in Ireland.

Reacting to the news, Christine said: “I am delighted to be part of an ambitious All-Star Business. To be accredited for the third year in a row is a huge honour and I see it as recognition of the hard work that goes on behind the scenes.”

Quayside’s focus over the next few months is to promote the “shopping centre experience” and Christine revealed that the centre will be introducing an initiative to help local craftspeople and creators.

She said: “We have plans to relaunch our very successful Christmas markets and hope to do this a little bit early this year. The markets provide a wonderful opportunity for local traders who may have been out of work the last while and want the chance to set up a pop up shop or trading stall.”

“We really want to celebrate with our customers and give something back to the local community this year.”

To learn more about Quayside Shopping Centre Sligo, visit their All-Star showcase page here.

Article by All – Ireland Business Times

Five Lamps Spar store guiding at €900,000.

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Five Lamps Spar store guiding at €900,000.

Ros Tierney of Bannon says: “We expect to see significant interest from pension investors. This is a high-profile, resilient property with a tenant who has performed strongly throughout the Covid-19 pandemic. The investment offers the purchaser an attractive yield and a long lease term.”

My Job: Neil Bannon

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In a wide- ranging feature for “My Job” in the business section of today’s @IrishExaminer, our founder and executive chairman @NeilBannon talks about the the importance of sustainability and what it means in practical terms, how clients are seeking to leverage the firm’s market leading expertise in Retail and apply it to a new user experience for the office.

He believes that there is a need for a big reset in how we imagine the office, moving it from being merely a functional space with a desk to a new proposition where it is an experience-led, productive, enjoyable place to create, collaborate and engage with colleagues.

Neil also talks about prospects for Cork and its hinterland plus how – as Ireland’s largest domestically owned Commercial Property Consultancy in a market dominated by global brands – our firm not only succeeds, it thrives.

Thanks to John Daly at The Irish Examiner for the opportunity.

Take a look at the link below:

My Job Neil Bannon

Executive Chair: Neil Bannon, Executive Chairman of Bannon Commercial Property I Newstalk

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We were delighted to hear our Executive Chairman Neil Bannon interviewed on Executive Chair, part of Newstalk’s “Down to Business” radio show on Saturday. Neil and Bobby discussed the big changes to the nature of the Office and how it will move from being functional to experiential. He provided the valuable insight that Investors and Employers are now going to be more concerned about the experience of being in the office. It will no longer simply be a place with a desk but instead somewhere you look forward to visiting in the new hybrid working world.

As a result, he mentioned that Bannon had seen a notable increase in clients seeking to have the firm leverage our market leading Retails skills and apply them to the Office.  Other topics covered included how Neil’s Law degree helps with complex lease and purchase negotiations, setting up Bannon with his father Joe and how an independent, Irish owned business, excels at competing with multi-national competitors in this market.

Take a listen…..

https://www.newstalk.com/podcasts/down-to-business/executive-chair-neil-bannon-executive-chairman-of-bannon-commercial-property

CPOs – TWO SIDES OF THE COIN

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In Irish history, there have been numerous examples of the presiding Government instigating a Compulsory Purchase Order (CPO) to implement national projects.  Intentions being for the future development of the country and public interest.  A Government Minister or Acquiring Authority is required to seek a CPO from An Bord Pleanála and in contentious cases such an order can be expedited to provide a clear pathway and certainty around the delivery of a project of national importance.

The rules for the assessment of compensation for land taken on foot of a compulsory acquisition, generally provide that the value of land shall be taken to be the amount, which the land if sold in the open market by a willing seller, might be expected to realise.  Compensation will also deal with issues such as severance and disturbance to remaining landholdings.  The characteristics and attributes of the property are considered as part of any assessment of compensation payable to the landowner.  If zoning is in place for residential development for example, the potential of that development and the requirement for much needed housing will be reflected in the compensation payable.

But CPOs are not just about money.  The decisions and process involved can be emotive.  There are many stakeholders to consider and objectives to be met.  In some cases there is merit in considering a CPO for the successful delivery of projects of importance.  However, for every project that needs to be realised, there are landowners who need to be accommodated.  Many have a long history with their property, and they hold sentimental attachment in addition to financial value to them.  It is never a simple choice to sell that asset or be forced to sell it.

Depending on the project, such compensation sums for land acquisition may be considered relatively modest given the overall cost of the project.  However the personal cost to landowners may be significant as they can be dealing with the compulsory acquisition process for years before reaching a conclusion.

Acquiring authorities must carefully navigate the legal process, taking the obligatory steps with fairness and consideration. Landowners must equip themselves with the knowledge and understanding of the process and the impact on their livelihood. Specialist advice is essential on both sides to understand the true value of the property, both as a single property and as part of a wider scheme.

Our small island will continue on its path of growth and development.  Our challenge is to balance how we use the land we have for the good of our people, both users and owners.

Niall Brereton BSc MRCIS MSCI is a Registered Valuer and experienced Compulsory Acquisition Practitioner with Bannon Chartered Surveyors and Property Consultants.  Niall has advised on multiple CPOs, acting primarily for individual claimants and corporate landowners.  

 Bannon is currently advising landowners in respect of the following CPO projects:

 https://www.corkrdo.ie/major-schemes/m28-cork-to-ringaskiddy-project/

 https://busconnects.ie/

 http://www.donegal-ten-t.ie/

 https://www.foyneslimerick.ie/

 

How do we accommodate the office of the future?

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Covid-19 and Sustainability awareness are changing Ireland’s commercial property market

By Neil Bannon, Executive Chairman, Bannon

Opinion piece published in the Property Plus supplement, The Business Post, Sunday, July 25, 2021

The Commercial Property market will look very different in the coming years due to two game-changers – Covid and its permanent impact on the World of Work and the little-known but the highly important Environmental, Social and Governance (ESG) system that is the benchmark for assessing the environmental impact of real estate.

The Future of the Office – What’s Next?

The reality is that Covid has changed the world of work for both employers and employees. The office of Now and the Future needs to be accommodated in more sustainable, user friendly buildings, where wellbeing for its users is prioritised and consideration is given to how occupiers and users interact with and experience the building – both internally and externally. Also, we believe that, where possible, buildings should feel like an integral part of local communities and neighbourhoods and not appear “stand alone.”

In the past six months especially, we have noticed a spike in demand from clients who are talking to us about taking our market leading expertise in retail from such buildings as Dundrum Town Centre, Pavilions S.C. and The Square, Tallaght and applying those insights into new work environments. Unlike many players in the Irish market who are international, Bannon is a local business with deep roots here. We understand the “real world” culture of the market and understand the importance of real estate delivering long term returns for our clients. However, we believe this can be done in a way that simultaneously creates better places to work and reduces the impact on the environment.

One of the biggest changes to the office is that it is no longer just a place with a desk but has become a destination in itself. To many employees now used to months of focused home working and with limited opportunities for social interaction, a day at the workplace has become an event, a chance to see colleagues, be inspired, collaborate and connect. In this context, smart offices that use digital sensors to monitor and respond to factors such as occupancy, air quality, natural light levels are in high demand as are those with sustainable office design, and the flexibility to accommodate Hybrid workers.

Last, but certainly not least, with health and wellbeing being linked directly to productivity and profitability, offices now need to be a place of safety and empowerment for users.

More focus is needed on the entire user experience. From the moment when someone leaves their house, to arriving at their office, what does that entire journey look like?  Is it positive? Do they know where the local barber shop is; the chemist; the coffee shop, the fundamental services?  When they enter the car park, is it well lit? Do they feel safe? Does their phone signal work?  There are a lot of very personal experiences that impact whether your day is good or bad and I think that the corporate office market needs to really focus and learn from the retail sector which has been doing this for decades, in terms of making sure that every step of the journey is a positive step and a value add. That’s something we can change a lot in terms of the office.

ESG – delivering investor value, sustainably

With the environmental impact of real estate now increasingly important to investors, the ability to monitor, benchmark and improve the performance of buildings has become a fundamental objective for its clients. In Ireland, Bannon was an early adapter of the Investor-driven Global ESG Benchmark for the Real Estate Sector.

This is setting the benchmark for Environmental, Social, Governance (ESG) across the sector. Investors are now concerned with additional real estate performance metrics, such as energy consumption, greenhouse gas emissions and tenant and community engagement. With annual data updates, it will have a significant impact on property valuations and sustainability.

Ultimately, Bannon matches businesses with locations from which they can thrive. Our objective is to create longer term sustainable returns in property which means a greater focus on the function of buildings through active property and asset management and intelligent consultancy services rather than just the traditional focus of our industry Acquisitions, Sales and Lettings.

Sustainability has been one of the most over-used words in the property industry for several years now. It was easy to say but difficult to prove. What recent ESG legislation has done is create the platform that allows investors to see validated sustainability credentials for any property within their portfolio or indeed for something new which they wish to acquire.

Article by The Sunday Business Post

 

At a Glance: Office Market Q2 2021

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The Dublin office market has shown significant signs of improvement and given the large quantity of reserved space the second half of the year looks very positive.

At a Glance: Investment Market H1 2021

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Despite the backdrop, another very strong quarter in the Capital Markets with the private rented residential sector leading the charge as usual. Based on pipeline supply 2021 turnover looks set to be the 2nd strongest year of all time! See Bannon quarterly snapshot.

Hines completes acquisition of final phase at Chatham & King

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International real estate firm Hines has formally acquired the second phase of Chatham & King, a new high-profile mixed-use scheme next to the Gaiety Theatre on South King Street in Dublin city centre.

Hines’s acquisition of the 3,950sq m (42,500sq ft) portfolio marks the culmination of the €165 million deal it agreed with US private equity giant Lone Star for the wider Chatham & King development in 2018. In acquiring the scheme, Hines fended off three rival bids. Two of the competing offers came from German funds, while the third bid came from the billionaire founder of the Zara fashion chain, Amancio Ortega.

In securing ownership of the development, Hines gained immediate control of a mixed-use building with retail units comprising 3,112sq m (33,500sq ft) occupied by Zara, H&M and Warehouse, along with 2,879sq m (31,000sq ft) of overhead office space occupied by data analytics management firm Qualtrics as its European headquarters.

The second phase, which has now been completed by Lone Star, comprises six residential units, five retail units totalling 1,486sq m (16,000sq ft) and 2,461sq m (26,500sq ft) of office space which will be occupied by Qualtrics. The €40 million cost of developing the new building on Chatham Street and Clarendon Row was included as part of the €165 million deal agreed on behalf of Hines European Core Fund (HECF) in 2018.

Negotiations

Hines says that negotiations are at an advanced stage on each of the five new retail units, which range in size from 46sq m (495sq ft) to 1,178sq m (12,680sq ft). The incoming tenants will sit alongside the existing tenants, which include Zara, H&M and Apple-reseller CompuB, which recently signed a new lease for a 315sq m (3,400sq ft) retail unit on South King Street.

The Chatham & King scheme has a prime location next to Grafton Street and St Stephen’s Green, and sits within close proximity to the Westbury Hotel and the new Dublin headquarters of the European Parliament, which is scheduled for completion in November 2023.

Simone Pozzato, managing director and deputy HECF fund manager at Hines, said: “The acquisition of phase two of Chatham & King completes the final element of this portfolio and marks the delivery of an LEED-accredited asset in the Dublin office and retail sector at an opportune time. The property is an excellent fit for HECF given its central location in Dublin, a city which continues to show strong economic growth.

“We are already encouraged by the promising engagements to date from some very exciting retail brands who would be ideally suited to this prestigious shopping district. We hope to have further announcements in this regard in the near future.”

Peter Lynn, director with Hines Ireland, added: “We are delighted to make this timely announcement as Dublin city centre continues to reopen and as Chatham Street itself has recently undergone a significant transformation with Dublin City Council’s pedestrianisation programme. Chatham & King is a high-quality addition to this historic street and our new retail spaces will represent a significant enhancement to the city’s most fashionable shopping district. We are also equally excited to be working with Qualtrics as our lead office occupier as they continue on their growth story.”

Article by The Irish Times

Consumer Sentiment Index

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Irish consumer sentiment is at a two-year high following a modest 1.6% monthly increase in June. This increase brings the index back in line with the 25-year average of the series suggesting sentiment has been normalised. This is further supported by the fact that June marks the fifth successive monthly increase in the index, the first time that has happened since the beginning of 2007. These results suggest that Irish consumers are becoming less concerned about their current circumstances and less fearful about the future which bodes very well the retail sector. Furthermore, trends over the past decade show consumer sentiment as a very accurate leading indicator of retail sales.

Bannon Shopping Centre Footfall (2019, 2020, 2021)

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There is an air of positivity coming from our shopping centre & retail park management teams across the country. It has been great to see the rebound in footfall since full reopening of our portfolio on the 17th of May last. The first three weeks since reopening have seen weekly footfall jump back to 86% of the levels seen in 2019. What’s much more significant is the number of retailers reporting May 2021 sales information (a total of 14 days) being ahead of May 2019 (31 days). There is no question that retailers need to see a sustained period of brisk trade but the data so far is pointing in the right direction.

Retail park portfolio’s €78m sale tests investor appetite

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With online shopping having come into its own following the unwelcome arrival of Covid-19, the sale by New York-headquartered Marathon Asset Management of three of Ireland’s best-known retail parks is set to test the post-pandemic appetite of investors for traditional bricks-and-mortar retail.

The Parks Collection is being offered to the market individually or as one lot by joint agents Cushman & Wakefield and Savills at a guide price of €78 million. The portfolio comprises Belgard Retail Park in Tallaght, Dublin 24, the M1 Retail Park in Drogheda, Co Louth, and Poppyfield Retail Park in Clonmel, Co Tipperary.

While the sale of the entire offers the prospective purchaser the opportunity to secure a collection of strongly-performing retail parks and an attractive net initial yield of 8.43 per cent, the portfolio’s assets are expected to see interest on an individual basis also.

Belgard Retail Park, for its part, is regarded as one of the foremost retail parks in the capital. Located on the Belgard Road in Tallaght and 11km from Dublin city centre, the scheme comes for sale fully-occupied and anchored by B&Q, the largest home improvement and garden centre retailer in the UK and Ireland. Other occupiers include Homestore & More, Dealz, Carpet Right, Halfords, Right Style Furniture, Burger King and Starbucks.

While the scheme currently extends to 12,728sq m (137,000sq ft) with 482 car parking spaces, it has planning permission for an additional retail warehouse unit of 2,404sq m (25,877 sq ft) over two levels with 1,409 sq m (15,166 sq ft) of ground-floor space and 995sq m (10,710sq ft) of retail warehouse/storage space at mezzanine level.

The total current rent is about €3.13 million per annum with a weighted average unexpired lease term of 7.3 years. B&Q contributes around 67 per cent of the income on a lease until 2028 with an upward-only rent review clause.

The M1 Retail Park is located 3km west of Drogheda town centre and just off the M1 motorway connecting Dublin and Belfast. It comprises a mix of retail, office and leisure accommodation extending to a total of 24,805sq m (267,000sq ft), along with 600 car-parking spaces. The majority of the development is taken up by retail and leisure (89 per cent) and is anchored by Woodie’s DIY who occupy 4,885sq m (52,585sq ft). The park’s other tenants include Smyths Toys, Sports Direct /Brand Max, Dealz, Equipet and EZ Living amongst others.

The total current rent is €2.44 million per annum with a weighted average unexpired lease term of 8.4 years. Woodies (with lease guarantees from Grafton Group plc) contributes around 40 per cent of the income on a lease until September 2030 with upward-only rent reviews.

The scheme also includes Mellview House, a four-storey building comprising 25,048sq ft of office space, a 30,483sq ft gym at ground floor, basement and mezzanine levels operated by Gym Plus and a number of other smaller retail units. Another building known as the Pavilion is home to Costa Coffee and TC Matthews with a recent new letting to Lanu Medi Spa.

An additional site adjacent to M1 Retail Park also forms part of the Parks Collection sale. The land extends to 27 acres and comprises three adjoining plots with proposed zoning under the Draft Louth County Development Plan 2021-2027 for three uses, namely ‘A2 New Residential’, ‘ C1 Mixed Use’ and ‘ B4 District Centre’.

99% occupied

Poppyfield Retail Park is located 2.5km from Clonmel town centre at the junction of the Cahir Road and the N24. Developed in 2004, the scheme extends to 12,821sq m (138,000sq ft) and comprises a mix of 14 retail warehousing units, a neighbourhood centre and 393 car-parking spaces. The park is 99 per cent occupied and anchored by Woodie’s DIY (with a lease guarantee from Grafton Group plc) and SuperValu. Other high-profile tenants include Harry Corry, Maxi Zoo, EZ Living, World of Wonder and DID Electrical. The neighbourhood centre is occupied by Costa Coffee, Sam McCauley, along with a hair and beauty studio and fish-and-chips operator. KFC also have a drive-through at the entrance to the park which does not form part of the sale.

The total current rental income is €1.43 million per annum and the weighted average unexpired lease term is seven years. Woodie’s and SuperValu contribute around 52 per cent of the income, and have seven and eight years remaining on their respective leases.

Marathon Asset Management acquired the M1 and Poppyfield parks originally as part of a larger portfolio in 2014, which also included The Park, Carrickmines; Lakepoint Retail Park, Mullingar; and the Four Lakes Retail Park in Carlow. Belgard Retail Park was acquired separately.

Marathon has undertaken significant asset management and phased disposal of these assets since then. The latest sale from its Irish retail portfolio was completed only this week and saw a private high net worth investor paying close to €7 million to secure ownership of Lakepoint Retail Park in Mullingar.

The scheme, which is anchored by Woodie’s DIY, is generating total rent of €516,000 per annum giving the purchaser an initial return of just under 7 per cent. The deal was brokered on Marathon’s behalf by Rod Nowlan of Bannon while Declan Bagnall of Bagnall Doyle McMahon represented the purchaser.

Article by The Irish Times 

Neil Bannon on Retail Recovery

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One of the recommendations in our recent report on City Centre retail for Dublin City Council was to improve connectivity between the Retail Core and the Office and Cultural hubs within the City making it easier for City workers and tourists to connect to the shopping areas. Delighted to see the works taking place on Merrion Row and Baggot St which will both improve the pedestrian experience and facilitate on street dining.

Neil Bannon on the Retail Sector

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Dublin Town reporting footfall in the City Centre at 87% of 2019 levels last Saturday, given the lack of Tourists that’s a very encouraging recovery. It will be interesting to see which retailers benefit most from the return of the consumer.

Changes to Pension rules out Commercial Property Purchases

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Following the government’s transposition of IORP II, any new One Member Arrangements (OMA) will now be largely prevented from borrowing for their investments and be required to hold at least 50% of their investment in regulated markets e.g. listed shared and/or bonds.

Commercial properties had been an attractive option for OMA pension funds which could buy a €2.0m property with a €1.0m pension pot and borrowings. The income could be applied to the loan to allow the pension to grow to the €2.0m cap without relying upon growth. The combination of restricting borrowings and the 50% cap has the nett effect of limiting property purchases to €0.5m largely ruling out directly held commercial real estate.

Happy to discuss the implications and opportunities further.

#bannon #bannonconsultancy #bannonresearch

 

Slane lands with residential and commercial potential guiding at €3.75m

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Agent Bannon is guiding a price of €3.75 million for a 46-acre landbank strategically positioned on the Slane Road between the M1 motorway and Drogheda town centre.

The property, which is in agricultural use currently, is expected to see strong interest from both residential and commercial developers, given its potential to accommodate a variety of uses. The entire holding is zoned “mixed-use (C1)” under the terms of the draft Louth County Development Plan 2021-2027. The objective of this zoning is “to provide for commercial, business and supporting residential uses”.

The final county development plan is expected to be adopted by the end of 2021. According to the draft plan, Drogheda is earmarked to further expand on its status as the largest town in Ireland with a target population of 50,000 by 2031. The town has been designated as a self-sustaining employment centre on the Dublin-Belfast Economic Corridor.

Well placed

The subject site is well placed to benefit from this expected growth thanks to its location. The lands are situated on the Slane and Mell Road, with the M1 motorway (junction 10) to the northwest and Drogheda town centre to the southeast. The M1 Retail Park, which is occupied by Woodies, Smyths, Sports Direct and Dealz, is situated less than 500 metres to the northwest.

Niall Brereton, director at Bannon, said: “This is an excellent opportunity to develop a mixed-use scheme of scale, subject to planning permission, at a strategic location close to Drogheda town centre and the M1 motorway, within a town which has been identified as a regional growth centre.”

The property is being offered for sale by way of tender with a guide price of €3.75 million. The last date for receipt of tenders is noon on Thursday June 10th.

Article by The Irish Times 

Bannon Shopping Centre Portfolio – Footfall (2019, 2020, 2021)

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In a normal year we welcome in excess of 100 million people into Bannon managed shopping centres. As is evident from the chart below the last 12 months have been very different. That said we remain hopeful that the end is now in sight and we look forward to seeing the portfolio back to full capacity in the near future.

After the pandemic: in Dublin’s bare city

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After the pandemic: in Dublin’s bare city. Our streets must be reimagined to entice visitors rather than cater to workers. Bannon advises on this in The Sunday Times.

At a Glance: Office Market Q1 2021

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Covid 19 and level 5 restrictions have continued to impact the Dublin office market this quarter with just 14 transactions recorded across the sector.
As the vaccination rollout continues we are seeing a notable increase in market activity and re-activation of requirements, as companies plan for a return to the office. This is highlighted further by the increase in office accommodation reserved, which currently stands at over 500,000 sq.ft. across the capital.

At a Glance: Investment Market Q1 2021

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Despite the backdrop of Covid 19, Q1 turnover was a healthy €1.22bn, with 58% weighting to the residential sector. Strong demand in the sector for good product continues on a standing asset and forward commit basis. With restrictions on travel / viewings still in play the more traditional sectors have had a subdued quarter but should rebound later in the year. If you wish to discuss the quarter in more detail or general investment, please contact Rod Nowlan or David Carroll.

Bannon Consultancy Retail Pulse 2020 – A Rollercoaster Year

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We are delighted to share our latest Consultancy Retail Pulse for 1st March 2021. Should you wish to discuss any retail market or property queries, please don’t hesitate to contact us.

Neil Bannon on the Retail Sector

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The dramatic improvement in the balance sheets of Irish Consumers in the last decade is astounding, savings are up 35% and debt is down 33%, a €70bn nett turnaround. The potential for a positive impact on the retail sector post reopening is clear, the question is where will the money be spent. We are modelling the potential impact on the different retail sub-sectors and expect to see a very different outturn to the 2013 recovery.

Meath site zoned for residential and retail guiding at €2.5m

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Joint agents CBRE and Bannon are guiding a price of €2.5 million for lands zoned for the development of retail and residential in the commuter town of Dunboyne, Co Meath.

The subject site extends to 3.54 acres and is located at the centre of the town, to the rear of St Peter and Paul’s church and immediately adjacent to the new SuperValu development. Dunboyne train station is situated 1km from the property. The front section of the site is currently in use as a car park, while the rear section is under grass.

The site is located in an area zoned “B1 town/village centre” under the draft Meath County Development Plan 2020-2026. It is also identified as a “retail opportunity site” OS 1, under which additional retail development for the town could be accommodated. Residential development is also permitted under the current zoning objective.

Dunboyne is a well-established residential location, with an abundance of amenities including sports clubs, shops, cafes and restaurants. There are several schools in the town, including Dunboyne Primary School, Gaelscoil Thulach na nÓg and St Peter’s College secondary school.

There are a number of employment hubs located within close proximity to the town, including Dunboyne Business Park, the IBM campus in Mulhuddart, Blanchardstown and Damastown Industrial Park, MSD and Facebook Clonee.

Dublin city centre is located just 18km from Dunboyne and is readily accessible via the M3 motorway. In terms of public transport, Dunboyne train station offers a regular service to Dublin each day, with a travel time of about 30 minutes to the Dublin Docklands station. There are also in excess of 30 Dublin Bus services per day.

Darragh Deasy of CBRE’s development land division says: “This is a rare opportunity to acquire a development site in one of Meath’s most desirable residential locations. The subject site has terrific development potential, subject to planning permission, and should appeal to a wide pool of purchasers.”

Niall Brereton, director at Bannon, adds: “Dunboyne has been identified as a strategic development area within the Dublin Metropolitan Area Strategic Plan. Given the central location of these lands, they offer undoubted potential to develop a mixed-use scheme, subject to planning permission.”

Article by The Irish Times 

Retail in Dublin City Centre 1790-1990

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Are you interested in the history of some of Dublin’s past and present retailers?

Well, the Central Library are hosting a new series by Dublin City Council Historian in Residence Dr Mary Muldowney which takes a look at retail streets like Henry Street and how they have changed over the last 100 years or so. The series features Dublin favourites Arnotts, Clerys, Roches Stores and other major retailers that have disappeared; as well as featuring the small businesses.

In her opening talk on 8 February, Mary introduced us to the history of retail in Dublin City Centre.

The next talk, Shopping in Dublin City Centre 1790-1990. Henry Street and the women who worked there is on 8 March at 7pm.

This lecture will take place on Zoom and, in honour of International Women’s Day on 8th March, it will focus on the women who ran and worked in the many retail businesses on Henry Street.

Article by Dublin City Council

Surveyor’s Declare

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Bannon is delighted to support the @scsi recently launched Climate & Biodiversity Emergency Declaration. The “Surveyor’s Declare” document is an important resource for Surveyors who have signed up in support of a framework for Surveyors who are committing to play their part in the climate change challenge.

At a Glance: Office Market 2020 in Review

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Dublin Office Market 2020 – in Review. Full market report to follow.

At a Glance: Investment Market Q4 2020

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Last minute residential deal tips market over €3bn.

Retail parks seize opportunity presented by High Street’s difficulty

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It’s difficult to imagine things getting any worse for the retail sector than they did in 2020. But the chief driving force behind the decline of investor interest began long before Covid-19 arrived. There has been growing concern in relation to the impact of online retail and changing consumer trends on the long-term supply-demand dynamic for the bricks-and-mortar format. Much of this has been imported from the US where retail supply is five times that of Ireland, and the UK where it is 25 per cent higher and undergoing a sustainability crisis.

While the relative performances of these markets may already have been up for debate, the impact of Covid has ended the discussion. By mid-March the sector became virtually un-investable due to Covid-related uncertainties attaching to rental payments being added to those longer-term occupational concerns. The consequence of this is manifest in year-end investment turnover figures where retail will represent a record low 2.5 per cent of an anticipated total investment market turnover of € 3 billion. This from a sector that represented 24 per cent of investment turnover for the last decade (to 2019), but descending rapidly from a high of 53 per cent in 2016 to a previous record low in 2019 of 9 per cent.

Unsurprisingly for 2020 High Street retail has been worst affected with Grafton Street top of the list experiencing a 66 per cent reduction in footfall for March to October. While the street’s footfall figures had been holding steady at 25 million for the last two years, the 2020 outcome will be closer to 13 million.

No surprise then that almost a quarter of the units on the street are effectively available. Henry Street performed a little better as did some of the other city’s high streets, but the tone is similar. Next in line were the “comparison led” shopping centres which, as a general rule, saw footfall collapse during the first lockdown and rent collections plummet below 35 per cent. However, they did improve quickly and were less affected by the second lockdown. The burden of the service charge costs of running these mall-based schemes was exposed during these periods and will be a key factor in assessing the risk of ownership of these asset types in the future.

The resilience of the grocery sector shone through. No surprise therefore that 65 per cent of the limited 2020 retail investment transactions were grocery deals. Similarly, smaller grocery-led schemes performed better and recovered quicker than major town centres but weaker covenant strength and holding costs affected net rental collections.

Low holding costs
The retail sector’s star performers, however, have been the retail parks. Indeed, in the case of the 15 retail parks under Bannon management (between nationwide lockdowns) car throughput actually increased year on year for the period with rent collection rates approaching 100 per cent and impressive turnover increases. Even where tenants were adversely affected, low holding costs relative to shopping centres maximised the net income return to landlords.

If this crisis has accelerated the sector’s movement to the “retail endgame”, then retail parks and their occupiers have risen to the challenge. In this regard we envisage this asset type, along with grocery, to be the most liquid and popular sector for the year ahead.

Outside of this and following both Brexit and an anticipated mid-January lockdown we foresee a post-vaccine period of rebuilding balance sheets and filling occupational voids. While this period could take 12 to 24 months, there is little doubt that the rebasing of the sector generally will attract new investors wishing to get ahead of the recovery. This will probably manifest as loan trades first with a focus on fundamentally-sustainable schemes and high streets at attractive yields with occupiers who have embraced the omnichannel experience.

More sophisticated investors will recognise the buying opportunity that Covid-19 presents, especially if valuers fail to acknowledge the vast differences in performance across the sector.

Rod Nowlan is investment director at Bannon

Article by The Irish Times

Bannon Commercial Property Consultants Ltd. Chooses Yardi Software for Asset and Property Management

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The Ireland-based commercial property practice will drive efficiencies in their property management portfolio and tenant management with the Yardi platform

DUBLIN, Ireland (16, November 20) – Bannon Commercial Property Consultants Ltd. (Bannon) will manage over 7 million square feet of real estate on Yardi® Voyager, a cloud-based property management and accounting platform. The firm will also adopt Yardi® Lease Manager for a comprehensive view of tenant activities and portfolio performance.

Lease Manager, part of the Yardi® Elevate Suite, offers extensive data and oversight options. Finance and asset management teams can visualise total number of deferrals and abatements and aging accounts receivable. Property management teams can oversee rent collection and tenant communications.

Bannon will also adopt the Yardi® Procure to Pay Suite, an end-to-end procurement solution that includes Yardi PAYScan® for paperless invoicing and VendorCafe® for centralised vendor management. CommercialCafe®, an easy-to-use, self-service tenant portal will digitalise tenant communication for Bannon. CommercialCafe enables tenants to make online payments, access lease records and manage service requests.

“We are looking forward to the benefits of a cloud-based property management solution. We provide a ‘best-in-class’ approach to outsourced property management with quality at the core and we see synergies in Yardi’s offering. The Voyager platform will ensure consistency and modernisation in the way we report and manage our clients’ assets,” said Richard Muldowney, director and head of finance at Bannon.

“Yardi continues to expand its presence in Ireland, one of the fastest-growing real estate markets in Europe. We’re excited to support Bannon with technology that will facilitate strategic growth,” said Neal Gemassmer, vice president of international at Yardi.

Learn more about how Yardi is supporting real estate and investment clients in the UK and across Europe.

 

About Bannon Commercial Property Consultants Ltd.

Bannon is the leading indigenous commercial property practice in Ireland with a particular emphasis and track record in the retail space. The firm currently has 75 assets under management. For more information on Bannon, please visit bannon.ie.

About Yardi

Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide from offices in Australia, Asia, the Middle East, Europe and North America. For more information, visit yardi.co.uk.

Shopping Centre Portfolio – Footfall

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In general the footfall across our portfolio is remarkably consistent every year, however 2020 is very different. We remain hopeful that people will shop with purpose when the restrictions are eased at the start of December.
Businesses across the country need a strong finish to the year and we can all help to make it happen.

Neil Bannon on the Imposition of Essential Goods

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The inconsistent and illogical nature of the imposition of essential goods only sales in retail across the country is causing serious damage to the sector.

We have reports from across the portfolio of local Jewellers who are operating on a Click & Collect basis being told to pull their shutter, a news agency being advised that can sell cigarettes and lotto tickets but not books or magazines, a florist being told to close who traded during the last (and more severe) lockdown.

The government needs to think about where this spend will go. A customer told they cannot buy a magazine or a book in a shop that is already open is one click away from redirecting spend from a small local business to Jeff Bezos

Neil Bannon – September Retail Sales

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September Retail Sales indicate that at least one part of the economy is definitely experiencing a K shaped recovery. The stellar numbers that continue to come out of the DIY sector (YOY: Hardware +27.6% YOY, Electrical +21.1% & Furniture +11.9%) contrast sharply with Bars which are predictably down 48%.

What’s interesting is that total value of retail sales was up 7.2% year on year which means Irish consumers spent a lot more this September than last year.

This was all before the lockdowns started again which if recent experience is anything to go by will exacerbate the K shaped nature of the market performance.

At a Glance: Investment Market Q3 2020

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David Carroll, Investment Director – “Q3 2020 turnover of €681m continued to illustrate the domination of PRS investment versus other asset classes with circa. 70% of value attributed to the sector. Covid-19 impacts continue to effect the supply and demand factors of traditional investment sectors. There is now close to €2bn of office product being marketed publicly and privately thus Q4 should provide some clarity on where investor appetite is at”.

At a Glance: Office Market Q3 2020

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Lucy Connolly, Divisional Director – “Covid-19 continued to impact the Dublin office market in Q3 with 230,000 sq.ft. of take up recorded across 29 transactions, bringing the YTD figure to 1.38M sq.ft. relative to 2.12M sq.ft. for the same period in 2019. Going into Q4, there is 360,000 sq.ft. of office accommodation reserved”.

Neil Bannon – Retail Sales

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As per the Retail Sales figures released by the CSO and our own experience across our retail park portfolio DIY & Household goods sales have been the stand out performer of the Retail sector since March.

Retail Parks continue to perform well with rolling restrictions on other retail outlets redirecting spend into home improvements.

Interestingly this is a sector with very low levels on pure online penetration although we have been actively engaging with a number of occupiers about facilitating their client and collect offer.

At a Glance: Office Market Q2 2020

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Lucy Connolly – Divisional Director – “The anticipated impact of covid-19 on the Dublin office market translated to a take up figure of 75,000 sq.ft. this quarter. We do expect to see a busier Q3 with over 700,000 sq.ft. of accommodation reserved, with some large transactions close to completing in the coming weeks. We commenced the quarter on a positive note with the recent announcement that Gilead are to create 140 new jobs following their letting of over 30,000 sq.ft. at North Dock”.

At a Glance: Investment Market Q2 2020

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David Carroll, Investment Director – “Q2 turnover of €430m reflected the impact of C-19 on the commercial market. 20 deals were completed with 78% of turnover attributable to just four transactions”.

At a Glance: Office Market 2019 in Review

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With 3 transactions in excess of 100,000 sq. ft. take-up reached an impressive 1.2m sq. ft. in Q4. This brings the year-end total to 3.29m sq. ft. across 204 transactions. Full report to follow.

At a Glance: Investment Market Q4 2019

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The strongest ever quarter for the Irish investment Market with total turnover for Q4 2019 reaching a staggering €3.76bn and total turnover for the 12 months of the year in excess of €7bn. To put the quarter in context it is higher than the entire annual turnover of the last cycle peak in 2006 of €3bn+ and annualised smashes this cycles 2016 peak of €4.5bn. PRS remained the most active sector accounting for 41% of transaction value. Full Report to follow.

Economic growth set to continue in 2020 but at a reduced rate

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The Irish economy looks set to register strong growth again in 2019 with GDP likely to increase by almost 6 per cent in the current year. While certain multi-national related transactions are distorting the headline figures, the large increase in taxation receipts and the continued strong performance of the Irish labour market means the underlying economy is performing well.

The persistent growth of the Irish economy is remarkable given the strong headwinds observed in 2019, the uncertainty about the Brexit process, and the moderation observed in global conditions, all of which are likely to have had a negative impact on the domestic economy. The Brexit process has merely been parked, with the possibility of a free trade agreement being negotiated between the UK and the EU in 2020. This will almost certainly result in further uncertainty in the years ahead. We expect to see the economy grow by a slower rate in 2020 of 3.3 per cent.

Another potential challenge for the Irish economy is the issue of corporation tax receipts, which are becoming an increasingly large share of the total tax receipts of the Irish exchequer. They now account for over 18 per cent of total tax receipts and there is concern that a portion of these receipts may be windfall revenues, which are not sustainable. ESRI economist Petros Varthalitis examines the implications for key fiscal metrics if there was a sudden reduction in the amount of corporation tax receipts available. It would likely require significant measures to be adopted by the Government in order to maintain fiscal discipline. The results underpin the need to quantify the potential windfall component of these receipts. They are also important given the recent proposals by the OECD for corporation tax policy.

The Commentary also examines the regional diversity of the Irish property market performance over the last 10 years. ESRI economists Matthew Allen-Coghlan and Kieran McQuinn note that both prices and rents have grown at significantly different rates in different areas of the country during this period. Areas of the country that had relatively high prices and rents initially experienced the fastest pace of growth subsequently. This suggests that different regions of the country have experienced varying economic growth rates over the past 10 years.

ESRI reports

Monthly unemployment rate remains unchanged from October 2019

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The seasonally adjusted unemployment rate for November 2019 was 4.8%, remaining unchanged from October 2019 and down from 5.6% in November 2018. The seasonally adjusted number of persons unemployed was 117,800 in November 2019, compared to 117,700 in October 2019. When compared to November 2018, there was an annual decrease of 17,600 in the seasonally adjusted number of persons unemployed.

Summary points for November

  • In November 2019 the seasonally adjusted unemployment rate was 5.3% for males, remaining unchanged from October 2019, and down from 5.6% in November 2018.
  • The seasonally adjusted unemployment rate for females was 4.2% in November 2019, down from 4.3% in October 2019, and down from 5.7% in November 2018.
  • The seasonally adjusted number of males unemployed in November 2019 was 70,600 compared to 69,700 in October 2019. In November 2019 the seasonally adjusted number of females unemployed was 47,100 compared to 48,000 in October 2019.
  • The seasonally adjusted unemployment rate for persons aged 15-24 years (youth unemployment rate) was 12.5% in November 2019 up from 12.2% in October 2019.

CSO Reports

Retail Sales volume decreased by 0.5% in October 2019

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The volume of retail sales decreased 0.5% in October when compared to September on a seasonally adjusted basis and increased by 3.0% on an annual basis. When Motor Trades are excluded, the volume of retail sales decreased by 2.1% in October 2019 and rose by 3.2% when compared with October 2018.

The sectors with the largest month on month volume decreases were Other Retail Sales (-9.3%) and Fuel (-5.2%).  The sectors with the largest monthly volume increases were Pharmaceuticals, Medical & Cosmetic Articles (8.1%) and Clothing, Footwear & Textiles (3.0%).

There was a decrease of 1.0% in the value of retail sales in October 2019 when compared with September 2019 and there was an annual increase of 1.4% when compared with October 2018. If Motor Trades are excluded, there was a decrease of 2.4% in the value of retail sales in the month and an increase of 0.5% in the annual figure.

CSO Reports

Employment increases by 2.4% in year to Q3 2019

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There was an annual increase in employment of 2.4% or 53,700 in the year to the third quarter of 2019, bringing total employment to 2,326,900. This compares with an annual increase of 2.0% or 45,000 in employment in the previous quarter and an increase of 3.0% or 66,700 in the year to Q3 2018.

CSO Reports

Residential property prices rise by 1.1% in the year to September

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Residential property prices increased by 1.1% nationally in the year to September. This compares with an increase of 2.0% in the year to August and an increase of 8.5% in the twelve months to September 2018.

In Dublin, residential property prices decreased by 1.3% in the year to September – house prices decreased by 1.5% and apartments decreased by 0.2%. The highest house price growth in Dublin was in Fingal at 1.5%, while Dun Laoghaire-Rathdown saw a decline of 6.8%.

Residential property prices in Ireland excluding Dublin were 3.6% higher in the year to September, with house prices up by 3.4% and apartments by 4.8%. The region outside of Dublin that saw the largest rise in house prices was the Border at 11.8%, while the smallest rise was recorded in the Mid-East at 0.2%.

Overall Decline

Overall, the national index is 16.9% lower than its highest level in 2007. Dublin residential property prices are 21.4% lower than their February 2007 peak, while residential property prices in the Rest of Ireland are 20.0% lower than their May 2007 peak.

Recovery

Property prices nationally have increased by 85.3% from their trough in early 2013. Dublin residential property prices have risen 94.7% from their February 2012 low, whilst residential property prices in the Rest of Ireland are 84.0% higher than at the trough, which was in May 2013.

CSO reports

Monthly unemployment rate of 4.8% October 2019

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The seasonally adjusted unemployment rate for October 2019 was 4.8%, down from 4.9% in September 2019 and down from 5.7% in October 2018. The seasonally adjusted number of persons unemployed was 117,300 in October 2019, compared to 118,100 in September 2019.  When compared to October 2018, there was an annual decrease of 19,400 in the seasonally adjusted number of persons unemployed.

Summary points for October

  • In October 2019 the seasonally adjusted unemployment rate was 5.2% for males, down from 5.3% in September 2019, and down from 5.6% in October 2018.
  • The seasonally adjusted unemployment rate for females was 4.4% in October 2019, remaining unchanged from September 2019, and down from 5.9% in October 2018.
  • The seasonally adjusted number of males unemployed in October 2019 was 68,600 compared to 69,200 in September 2019. In October 2019 the seasonally adjusted number of females unemployed was 48,700 compared to 48,900 in September 2019.
  • The seasonally adjusted unemployment rate for persons aged 15-24 years (youth unemployment rate) was 12.3% in October 2019 up from 12.2% in September 2019.

CSO reports

Retail Sales volume increased by 4.3% in September 2019

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The volume of retail sales increased 4.3% in September when compared to August on a seasonally adjusted basis and increased by 4.2% on an annual basis. When Motor Trades are excluded, the volume of retail sales increased by 2.3% in September 2019 and rose by 4.7% when compared with September 2018.

The sectors with the largest month on month volume increases were Hardware, Paints & Glass (8.8%) and Motor Trades (8.4%). The sectors with the largest monthly volume decreases were Department Stores (-2.2%) and Clothing, Footwear & Textiles (-2.2%).

There was an increase of 3.8% in the value of retail sales in September 2019 when compared with August 2019 and there was an annual increase of 2.8% when compared with September 2018. If Motor Trades are excluded, there was an increase of 2.0% in the value of retail sales in the month and an increase of 2.1% in the annual figure.

CSO Reports

Smyths Toys now the most successful Irish retailer abroad

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The filing of its accounts confirmed last week that Smyths Toys is already making a financial return on its deal last year to acquire the central European operations of Toys R Us.

The family-owned group is now – individually and collectively – profitable in Ireland, the UK, Germany, Austria and Switzerland. That surely makes Smyths the most successful ever Irish retailer abroad.

The two biggest indigenous Irish grocers, Dunnes Stores and Musgrave, are larger, more storied, family-owned operations than Smyths. Yet the toy retailer has succeeded abroad where they have failed.

Dunnes and Musgrave both have operations in Spain, but in recent years both effectively abandoned their forays into Britain.

Smyths, meanwhile, has completely conquered the British market, opening more than 100 large retail outlets there in a little over a decade, vanquishing its specialist rivals. Its UK sales are now about €675 million.

Its prospects for maintaining growth in Britain are likely to slow as Brexit keeps sterling weakened, and Smyths runs out of unserviced locations to open new stores. As it already dominates the specialist Irish toys market, Smyths’ most obvious avenue for further growth became Europe.

The global insolvency last year of Toys R Us provided Smyths with a golden opportunity to buy out of bankruptcy the German-Swiss-Austrian stores of its US rival. The accounts filed last Friday show it paid less than €62 million to gain control of more than 90 outlets, which made Smyths profits of almost €14 million in 2018.

As it fine tunes them to better fit its sophisticated big box retailing model, their financial contribution may improve further.

The wider Smyths group is now on course for annual sales of close to €1.4 billion. Despite the success of its foreign forays, the group still made an annual profit of just €36 million.

With margins of less than 3%, Smyths may be tempted to expand its footprint even further if it wants to keep growing profits in years to come.

Published Article

Over 300,000 jobs linked to Foreign Direct Investment in Ireland in 2017

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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.

CSO Reports

Residential property prices rise by 3.1% in the year to April

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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.

CSO reports

Society of Chartered Surveyors - SCSI Ireland

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