Line-up of tenants battle over Grafton Street

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Only four months after opening the Cos fashion store on Dublin’s Wicklow Street, the giant H&M fashion group has emerged as the favourite to put another of its luxury brands, & Other Stories, into the former A|wear shop on Grafton Street. The letting is likely to be confirmed later this month.

The line-up of tenants chasing the three-level floor plates at 26-27 Grafton Street includes American fashion chains Gap, Gant and Anthropologie, UK shoe retailer Schuh, the Spanish Inditex company, Zara Home, German fashion house Hugo Boss, the Irish-based Lifestyle Sports as well as & Other Stories. Some of the companies chasing the premises are understood to have offered at least €50,000 more than the quoted rent of €850,000 per annum.

The five-storey over basement building has the second largest retail area on the street after BT2 – apart from the department stores – with more than 882 sq.m (9,500 sq.ft) at basement, ground and first floor levels. The owners of the building, Aviva Investors, are planning to carry out a major upgrading of the block early next year including the installation of a new façade. In the meantime, the retail area has been let to HMV on a short term lease until next January at a rent which equates to €750,000 per annum. With the three top floors of offices extending to 836 sq.m (9,000 sq.ft) also to benefit from the refurbishment.

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RBS shortlists for Project Achill Final Round

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Royal Bank of Scotland has selected a shortlist of three private equity funds and one investment bank – Lone Star, Cerberus Capital Management, Oaktree Capital Management and Deutsche Bank – to progress to the second and final round for the nominally-valued €1.2bn Project Achill portfolio, following first round bids which were submitted on 1 August. The four finalists are understood to have bid for the majority of Project Achill, which comprised 31 separate borrower connections over six subpools originally extended to Ulster Bank, an RBS subsidiary.

The underlying properties within Project Achill include:

  • Belfast’s upmarket The ARC Apartments with 207 units at Titanic Quarter and the 130,569 sq.ft Gateway Offices, which is 90% leased to Citigroup to June 2024
  • A loan secured by the Forge Shopping Centre in Glasgow; the Ards Shopping Centre in Newtownards, 10 miles east of Belfast; Waterfront Plaza in Belfast, anchored by PwC and Mallusk Industrial Estate in Newtonabbey
  • A suburban Dublin office and retail portfolio over 118,669 sq.ft, including 1-5 Leopardstown Retail Park and Unit 33 Sandyford Office Park
  • The IBIS & Novotel Hotels in Friar Street, Reading
  • A Primark retail store at 62-74 Burleigh Street in Cambridge
  • Russell & Bromley’s store in Princes Street, Edinburgh
  • Independent House, Talbot Street in Dublin (which is home to the Irish Independent)
  • Exchange House in Belfast
  • Blackrock Business Park in Blackrock, Ireland
  • 16 completed residential units in Skerries and Malahide; a 128-acre land site with planning permission in Kinsealy, Skerries and Bettytown; 25 Merrion Square, an office block in Dublin; and 15 houses in Barnageeragh
  • A 16-strong mixed-use portfolio comprising residential, retail and office assets in Cork over 218,079 sq.ft, with a 74.5% occupancy

It is understood that second round biding bids on Project Achill, which is being sold by Eastdil Secured on behalf of RBS, have been called for Friday 19 September.

View previous article on this topic

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New partnership in Northside Shopping Centre

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Patron Capital Partners has formed a new retail and residential partnership with Brian O’Callaghan, the son of well-known Cork developer Owen O’Callaghan.

Patron has already begun working on its first joint project with Mr O’Callaghan to operate and expand the Northside Shopping Centre on the northern fringe of the M50 in Coolock, Co Dublin.

The UK and Luxembourg property fund with €2.5 billion under management acquired the centre in May from NAMA. The shopping centre was a key asset in a portfolio of loans “Project Drive” bought by Patron, which are associated with developer Brian O’Farrell. Project Drive had an outstanding loan balance of €228m which implies an approximate discount of 78.5%. Other assets in the portfolio include a retail centre in Poland, a potentially valuable site in north Dublin and a large house in the K Club.

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Pizza Express sells to Chinese firm for £900m

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The Pizza Express restaurant chain, which owns Milano in Ireland, has been sold to Chinese firm Hony Capital for £900 million.

With over 500 restaurants – 12 Milano’s in Ireland, 436 Pizza Express restaurants in Britain and 68 internationally – 12 restaurants in Hong Kong and nine in Shanghai, as well as outlets in India, Saudi Arabia and Bali – employing more than 9,000 workers. Hony aims to open another 200 restaurants in the UK.

The chain was owned by the Gondola Group, the market leader in the UK casual dining sector, which confirmed the sale to Chinese private equity firm Hony.

Bannon appointed management agents for Gorey shopping centre

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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.

Retail Investment for Sale in Cavan Town

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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.

High Court decision in the Bewleys case overturned

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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

Woodstown Village Centre sold for €3.8m

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The Woodstown Village Centre at Knocklyon, Dublin 16, which was sold in 2006 during the property boom for over €8 million, has been resold for over €3.8million. David Carroll of Bannon handled the sale for Declan McDonald of PwC, who was appointed receiver by the Ulster Bank.

The village centre is a split-level multi-let scheme accommodating 12 units and extending to 1,567sq m (16,874sq ft) anchored by a Spar store which pays a rent of €105,000.

With the village centre producing a rent roll of approximately €400,000, the new owner will get an initial return of 10%, rising to about 11% once tenants are found for the two vacant units.

Aldi to open a further seven stores in Ireland

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Aldi Stores (Ireland) yesterday announced it is opening a further seven stores and hiring an additional 450 employees in 2014. The new roles will be created nationwide, as Aldi continues to expand its store network, building on the momentum which has seen the retailer grow year on year sales by over 22% to capture 8% of the Irish grocery market.

High Court approves scheme for Elverys Sports

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The High Court has approved a survival scheme for one of Ireland’s best known brands, Elverys Sports which employs some 700 people full and part-time in 52 stores across the country. The scheme, supported by the National Assets Management Agency (Nama), will see Staunton Sports exit examinership on Friday.

Retail Ireland urges Government to cut income tax

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Retail Ireland, the national representative body for the entire retail sector, in advance of a conference in Dublin today, has called on the Government to cut income taxes, promote better regulation for the sector and do nothing to add to business costs and claimed that the sector has the potential of creating 40,000 new jobs in the sector in coming years.

The lobby group says that recent retail sales figures have shown that while the volume of sales (excluding cars and bars) has increased by 2.2% in the past year, the values of sales has stayed the same. This clearly indicates that shops are aggressive discounting in an effort to attract customers. The pressure on the sector remains. To address the key challenges that still face the sector, Retail Ireland called on government to Cut income tax, this will put more money into the pockets of Irish consumers, and ultimately benefit the Exchequer though greater economic activity and tax revenue.

Retail Ireland MasterCard Annual Conference – 6th may 2014 www.retailireland.ie

Ikea’s plan for ‘flagship’ store in Cherrywood will not proceed

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Ikea , the Swedish household goods multiple, will not be permitted to proceed with its plans for a new 35,000sq m “flagship” store in the Cherrywood area of south Co Dublin. The company had sought to have the latest masterplan for this strategic development zone (SDZ) amended to include large-scale retail warehousing to accommodate a “flagship project of national significance”.

But An Bord Pleanála, in its decision to approve the SDZ masterplan, made no provision for such a development – in line with the recommendation of senior planning inspector Tom Rabbette, who had presided at a lengthy oral hearing.“I would not recommend that the board insert a specific objective allowing for a large-scale retail warehouse use in Cherrywood and I would not recommend that the board modify the proposed land uses to accommodate such a use,” he said.

To secure a site of 0.8ha for the retail warehouse and parking for 1,500 cars, the company wanted the masterplan modified to “rezone” a specific site off Wyatville Link Road for the proposed development and include it in the first phase of Cherrywood. But Green Party transport spokesman Tom Kivlehan argued that such a “destination-type retail offer” would have traffic implications for the area – a view also taken by the National Roads Authority (NRA) – and that retailing in Cherrywood was always intended to be local.

Depending on the outcome of a joint study by the council, the NRA and the National Transport Authority, the council could “at some stage in the future” vary the planning scheme for Cherrywood by including provision for a “large-scale retail warehouse”, he said. An Bord Pleanála generally approved the Cherrywood SDZ planning scheme, which covers an area of 800 acres – the largest undeveloped area within the M50. The scheme provides for approximately 70,000sq m of offices, a town centre and up to 7,000 new homes.

Retail Sales Recovery Continues

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There is mixed commentary when it comes to the CSO published yesterday, Retail Ireland, the Ibec group that represents the retail sector said CSO figures for retail sales in March were very disappointing and showed no change in sales in shops around the country when in fact Core retail sales volumes, excluding motor trade, rose by 2.6% in the first quarter while overall volumes rose by approximately 9%.  In March 2014 there was an increase of 1.4% in the value of retail sales when compared with February 2014 and there was an annual increase of 6.4% when compared with March 2013.

However, the late timing of Easter this year may affect the annual comparison in some of these sectors, and we would hope these figures bode well for April. Early indications from our shopping centre portfolio are positive and we would not be surprised to see a bounce back in April to coincide with the late Easter this year.

Summary of “The Commercial Property Review & Outlook 2014”

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A Summary of the Commercial Property Review & Outlook 2014 published by the Society of Chartered Surveyors Ireland (SCSI).

Offices

The office sector in Dublin is leading the way in the Irish Commercial Property Market. The SCSI Commercial Property Review & Outlook 2014, published in conjunction with Amárach Research, confirms that prime office rents in Dublin are between €350 per square metre and €377 per square metre in Quarter 1 2014 based on improved activity levels at the end of 2013 and start of 2014. There was a 23% increase in office take up in 2013.  While the turnaround was mainly driven by Dublin’s office market, improvements in the Irish economy in the second half of 2013 led to growth in both the retail and industrial sectors by the end of Quarter 4. The vacancy rate for prime office space has fallen close to 9%, and two thirds of Chartered Surveyors expect the supply of prime office space in Dublin to decrease significantly over the coming 12 months.

Industrial

Take-up in the industrial sector increased by 18% in 2013 and rents remained steady in 2013. Although there is an oversupply in certain locations, there is increased demand for prime industrial space, in particular by online companies with a greater need for modern logistics and distribution centres. Industrial prime rents have remained steady in Dublin at €61 per sq.m. per annum. Industrial rents increased in all categories in Leinster.

Retail

Rents for prime retail in Dublin continued to fall in 2013 and are now just above the €4,000 per square metre per annum mark. Rents for major town centre style malls showed a marginal decrease, indicating that rents in this sector have stabilised. Rents for prime retail increased in Leinster and are now at €325 per square metre, an increase of 7.3%. Rents for prime retail continued to fall in Munster in 2013 reflecting tough trading conditions in Cork City, Limerick City and Waterford City. On the other hand, rents increased across most retail categories in Connaught/Ulster in 2013, possibly reflecting more buoyant conditions in Galway City.

Investment

Approximately €1.9bn was invested in the Irish property market in 2013, which is three times more than in 2012. According to a report on Emerging Trends in Real Estate Dublin is the top spot in Europe for new investments in 2014. This is attributed to Ireland’s economic turnaround, falling unemployment and a forecast GDP growth of 2% in 2014, as well as the perception that prices have bottomed out and are beginning to recover. The main demand was for large office properties and growth was also recorded for industrial and retail properties.

Over half of investment spend in 2013 came from international investors with strong demand from the US, Europe and Asia. This is set to continue as an international report ranked Dublin as the number one location in Europe for new investment in 2014. This predicted growth is based on Ireland’s economic recovery.

Development Land

Non-agricultural land sales were up four fold between 2012 and 2014. This activity in Dublin is being driven by the improving office market and the increasing demand for family homes in the residential market.

For full report please go to www.scsi.ie/commercialreport2014

Two restaurants on high-profile sites for sale at fraction of original cost

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Two fully glazed stand-alone restaurants on high-profile sites along the river Liffey campshires at North Wall Quay in Dublin 1 are to be offered for sale by tender at a fraction of their original cost, with a guiding price of €350,000 for the J2 Grill & Sushi building and €400,000 for the slightly larger single-storey premises close by that currently is vacant.

David Carroll of Bannon advised two of the purchasers.

The north docks has been substantially transformed in the past decade or so with the development of Spencer Dock and more recently the completion of Convention Centre Dublin and the Point Village. Even without taking site values into account, the Dublin Docklands Development Authority (DDDA) spent €1 million about 15 years ago developing each of the two distinctive buildings, which were designed to cater for the dining needs of workers in the adjoining International Financial Services Centre.

The Irish Commercial Real Estate Market Quarter 1

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There was increased activity in Dublin’s retail investment market in Quarter 1 of this year with a total €524m also invested in Dublin’s office market. The acquisition by Hines and HSBC Alternative Investments of 73% of Liffey Valley Shopping Centre for €253m marked the first significant shopping centre sale of the year. Assets on Dublin city centre prime street, Grafton Street, traded for yields ranging from 4.6% to 6.7%.

Dublin accounted for 94% of Q1 investment. Overseas retailers continue to be attracted to Dublin’s prime pitches with Grafton Street, Henry Street and Dundrum Shopping Centre all in high demand.

It is reported by Davy Research, NAMA was the main source of product in Q1 as it accounted for circa €590m of deal flow. NAMA recently announced its commitment to bring at least €250m of deal flow to the market each quarter.

Strong rise in housing and commercial construction sectors since 2006

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Both the housing and commercial construction sectors saw stronger rises in activity than in February during March, with rates of expansion at three-month highs in each case. Meanwhile, the rate of decline in civil engineering activity slowed for the second month running and was the weakest since last November.

Commenting on the survey, Simon Barry, Chief Economist Republic of Ireland at Ulster Bank, noted that:“The recovery in the Irish construction sector gathered pace at the end of the first quarter, according to the March results of the Ulster Bank Construction PMI survey. The overall PMI index jumped to 60.2 last month as the rate of expansion picked up to its fastest pace in over eight years. Housing activity continued to rise sharply in March with last month representing the ninth month in a row of expansion linked to residential projects. Commercial activity also continues to expand briskly, while the pace of decline in civil engineering eased for the second month running.”

See full survey

Dublin City Council requests ‘Living City’ tax relief to include offices

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DUBLIN City Council (DCC) has requested an extension of the proposed Living City tax relief initiative to include offices in its submission to the Minister for Finance.

All six city councils including Cork, Limerick, Kilkenny, Galway and Waterford have submitted proposals which include the areas of their inner cities where pre-1915 buildings could qualify for the tax reliefs.
DCC proposes to confine the scheme to four areas of the city between the canals.  Some might argue that the prices for properties in Merrion and Fitzwilliam Squares, which have sold for up to €2m in recent times, suggest that these squares don’t need tax incentives. Nevertheless DCC points out that older office properties in the area have recently been losing occupiers to modern offices in areas such as the Docklands.

Two Drury Street shops sold for €900,000

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A private investor has paid in excess of €900,000 for two adjoining retail buildings at 24 and 25 Drury Street, Dublin 2, which will show an immediate return of 5.6 per cent. Another building at the opposite end of Drury Street recently made in the region of €520,000.

Both buildings were owned by developer Bernard McNamara as part of the Madrid Portfolio. They were sold on the instructions of Declan Taite of receiver Farrell Grant Sparks.

David Carroll of Bannon, who handled the sale, said “The demand for the two buildings was exceptionally strong, with a dozen formal bids received after more than 100 enquiries. The investment team is the progress of finalising another sale along the street which received similar strong interest and will make it the fourth transaction on Drury Street the team have concluded along this stretch in the last 18 months”.

Online Brochures: 24 Drury Street and 25 Drury Street

IBEC’s prediction of domestic growth good news for Retail

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Fergal O’Brien : IBEC

The Irish economy will grow faster than previously expected as 50,000 jobs are created and consumer spending improves, business group IBEC said in a new report. See full report: Economic Outlook March 2014

This growth will also be driven by higher consumer spending which is expected to increase by 1.9pc over the next 12 months, great news for retail and the shopping centres we manage.

Key issues highlighted in the forecasts include:
Consumer spending: A boost in consumer sentiment, positive news on retail sales and good employment news will lead to a recovery in consumer spending this year. Ibec forecasts an increase in consumer spending of 1.9% in 2014.

Exports: Last year the pharma cliff wiped almost €5 billion off the value of Irish exports. While the effect of the pharma cliff will continue in 2014, it should ease as the year progresses. Strong growth in key trading partners should see a continued robust performance in services exports and a recovery in goods exports.

Employment: Positive sentiment for employment growth now exists in both exporters and those companies operating in the domestic economy, which points to the positive jobs trends in 2013 continuing in 2014.

Grafton Street’s ‘Bus Stop’ sells for almost €3.4m

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Signature Capital, the Irish-German real estate investment company, has bought the Bus Stop newsagents shop at 6 Grafton Street in Dublin 2 for almost €3.5 million. The investment will show an initial yield of 6.5 per cent.

Signature Capital’s decision to buy the Grafton Street investment comes just after it agreed to sell the Neumarkt Galerie shopping centre in Cologne to the German bank savings fund manager Deka for €295 million having bought the 37,000sq m centre out of insolvency for €137 million in 2011.

David Carroll and Rod Nowlan of Bannon Investment Department were the agents for this property.

Related previous article

Blackrock Business Park – For Sale or To Let

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New to the market is Block 9 Blackrock Business Park, Blackrock, Co. Dublin – For Sale or To Let
(On the instructions of Brendan O’ Donoghue, Russell Brennan Keane (Receiver).

Two storey building extending to 438 sq m. (4,715 sq ft.) with potential for each floor to be self-contained with separate access. Block 9 also features high quality specification with air conditioning and 9 surface car parking spaces included with the property. Current occupiers in the park include; Tektronix Communications, CIT, An Post, Skill Pages and HRBR.

Please view our online brochure: Block 9 Blackrock Business Park, Blackrock, Co. Dublin

For further information please contact Louise Doherty or Katie Williams on 01 6477900

6 Grafton Street For Sale

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6 Grafton Street is to be offered for sale by joint selling agents David Carroll of Bannon and Lena Clarke of Lisney and interest is expected to be brisk.

Number 6 is located on a prime retail pitch on Ireland’s premier street between Nassau Street and Duke Street close to Brown Thomas, Marks & Spencer, River Island and Weirs. Grafton Street is following the recovery being experienced in other sectors of the property market. Vacancy levels are falling and the street has attracted new tenants including Massimo Dutti, Levi’s, Cath Kidston, Vans and Ecco. This improvement in occupier demand is expected to translate into a recovery in rental values.

The entire of 6 Grafton Street is let under a single lease to M&M Enterprises Ltd trading as Bus Stop Newsagents who retail from the ground and basement floors. The upper floors are sublet and in use as an internet café and tanning salon. The total annual rent is temporarily abated to €240,000 per annum and the lease has another 6 years to run expiring in August 2020. The building extends to 242 sqm (2,605 sqft).

Lena Clarke of Lisney and David Carroll of Bannon, who are handling the sale, anticipate strong interest and are requesting tenders from prospective purchasers by 12.00 noon on 20 March 2014 (unless previously sold). Purchases completed prior to December 2014 will benefit from the favourable Capital Gains Tax provisions extended in last year’s budget.

The selling agents are guiding a price of €3 million, which reflects an initial yield of 7.65%. The property is expected to achieve this level in light of recent sales. Last year the sale of 11-13 Suffolk Street let to Avoca set a new benchmark for prime retail when it achieved €7.2m which was an initial yield of 5.71%. Prior to that 46 Grafton Street let to Hutchinson 3G Irl Ltd achieved €6m which was an initial yield of 7.10%. 103/104 Grafton Street let to River Island was sold for €40m in 2013, reflecting a yield of 7.04%.

For further information contact Lena Clarke, Lisney, on 01 638 2749 or David Carroll, Bannon, on 01 6477900

22 Drury Street, Dublin 2

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Bannon, on behalf of Tom Kavanagh (Receiver), is seeking in excess of €350,000 for no. 22 Drury Street a terraced investment property in the heart of the South City Markets.

Bannon, on behalf of Tom Kavanagh (Receiver), is seeking in excess of €350,000 for no. 22 Drury Street a terraced investment property in the heart of the South City Markets.

The property extends to 69.8 sqm (751 sq ft) and is partly occupied by acclaimed make up artist Ken Boylan on a short-term lease with a current passing rent of €24,500 per annum.  The upper floors, which benefit from separate access, are currently vacant but in turn key condition.  This is the fourth sale along the street the agents Bannon have handled in the last 18 months and they are expecting considerable interest for this latest sale.

New Openings at Nutgrove Shopping Centre

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Nutgrove Shopping Centre are delighted to welcome Dealz and Quigleys to the scheme who have both opened to trade in recent weeks.

Dealz are occupying a unit of c. 416 sq. m on the ground floor with additional storage space extending to 275 sq. m on first floor. The unit is located on the east mall with adjoining tenants including Burger King, Clarks and Penneys. Dealz have taken a new 10 year lease and are paying a rent in the order of €200,000 per annum. Dealz have effectively created a second anchor on the east mall in addition to Penneys and enhance the value offer within the scheme.

Quigleys have become the co-anchor in the newly created foodcourt adjoining Starbucks who opened to trade last year. The unit extending to 52 sq. m with shared seating has been let to Quigleys on a new 15 year lease with a headline rent of €60,000 per annum. Quigleys are a complimentary addition to the foodcourt creating synergy with Starbucks and significantly enhancing the existing food offer within the scheme.

In addition to the above other recent letting activity includes a new letting to Take Me Home a kitchen and homeware retailer who have signed a new three lease on the former Mc Kenna Man unit.

The recent signings have brought the internal mall to 100% occupancy with only one external unit currently available to let which benefits from full restaurant planning with ancillary take away.

The scheme continues to strengthen with a diverse and strong tenant line up including Tesco, Penneys, Dunnes, Boots, Argos, Lifestyle and many more big brand names.

Bannon and Jones Lang LaSalle are the joint letting agents for the scheme and acted for the Landlord in respect of the above transactions. Dealz were represented by DTZ Sherry Fitzgerald. Freeman Maguire acted on behalf of Quigleys.

For more information view: www.nutgroveshoppingcentre.ie or contact Jennifer Mulholland on 01 6477900

€3.9M for Side-By-Side Drive-Through Eateries

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McDonald’s and KFC located beside Charlestown Shopping Centre in Dublin

In one of the most unusual investment sales this year, two drive-through restaurants are to be offered for sale beside Charlestown Shopping Centre in Dublin 11. Joint agents CBRE and Bannon are seeking €3,950,000 for the newly-constructed food outlets which will give investors an initial return of 7 per cent.

The restaurants, rented by McDonald’s and KFC, are well positioned directly adjacent to a new 13,935sq m (150,000sq ft) nine-screen Odeon Cinema and Leisureplex which are scheduled to open next Spring.

The complex is being developed by brothers Mick and Tom Bailey of Bovale Developments whose loans have been transferred to Nama.

The State agency is understood to have provided funding for the restaurants and entertainment centre which are located at the junction of the N2 Ashbourne Road and the M50.

Dunnes Stores are the anchor tenant in Charlestown Shopping Centre, which first opened for business in 2007 and adjoins a substantial apartment development also completed by Bovale.

ANNUAL RENT

The restaurants are occupied under new modern long-term leases from 2012 and produce a combined rent roll of €291,400 per annum.The weighted average unexpired lease term runs to over 16 years.

McDonald’s pays an annual rent of €150,000 under a 25-year lease and is allowed to trade on a 24-hour basis.

The group reported an overall turnover of €77 million last year with a profit of €11 million from its 81 fast food restaurants.

MBCC Foods, trading as KFC, also signed a 25-year lease but has a break option in year ten. It pays a rent of €141,400 per annum.

In addition to KFC, the company operates Pizza Hut and Costa Coffee in Ireland, and recorded a 53 per cent increase in profits last year.

CBRE and Bannon say they expect considerable interest in what is a ‘dry asset’ because of the strength of the covenants and the excellent income return.

RETAIL INVESTMENT

Latest figures suggest that of almost €970 million spent on the purchase of investment properties in 37 deals this year, only 8.7 per cent of the funds have gone on retail investments.

‘While there is a strong sentiment from investors seeking high quality retail investment assets the spend figures to date substantiates the lack of good quality retail investment product to come to the market’ say CBRE and Bannon.

75 Morehampton Road, Donnybrook, Dublin 4

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With investors again looking for secure medium-sized retail investments in strong Dublin locations, there is likely to be good interest in the forthcoming sale of a Boots chemist in Donnybrook.

Agent Bannon is seeking in excess of €2.4 million for the attractive store developed especially for Boots at Morehampton Road in Donnybrook which will give the new owner a return of over 7.5 per cent.

The 340sq m (3,667sq ft) modern building is producing a rental income of €185,400 under a 25-year lease to Boots from 2008. The upwards-only lease provides for a break in the tenth year subject to nine months notice and a six months penalty clause.

The property, located a few doors from the highly successful Donnybrook Fair, is an ideal lot size for a small pension investor or an investor seeking a secure high yield home for a cash deposit.

€3.5m for landmark Lafayette Building

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The Lafayette Building, one of Dublin’s best known privately owned structures is coming to the market through Bannon with a quoting price of €3.5m.

Redeveloped by Treasury holding in the late 90’s, this striking six storey over basement building dominates the city’s streetscape on the southern side of O’Connell Bridge. It has uninterrupted views over the City’s principle thoroughfare including major city landmarks such as the GPO, The Spire and The O’Connell Statue.

The basement, ground and first floors of the building were let to Manchester United back in 2000, who only occupied the property for a couple a years before withdrawing from Ireland. They still pay their rent of €520,000 p.a but have sub-let the property to the Lafayette Bar and Café who run a night club from the basement and bar from the ground floor.

The second floor and part 3rd floors are separately leased and occupied by The Blood Bank. The remaining upper floors comprise 14 residential units which have already been individually sold off.

The combined income from the building of €625,453 would deliver a prospective purchaser an initial yield of 17%. This return will be dramatically impacted should Manchester United action their break option in August 2015, despite the 9 month outgoings break penalty. However according to agents Bannon this is where the asset management opportunity lies.

Of particular relevance in this regard will be the new Luas ‘Crosscity’ line which will have a stop literally outside the buildings front door. According to Rod Nowlan of Bannon ‘This will be a real game changer for the occupational prospects of the building and this side of Westmoreland Street in general’. Including the break penalty, income will effectively continue to flow form the Manchester United portion of the buildings until mid-2016 which is only months from the anticipated completion of the Luas Cross City Line.

Due to the looped nature of this line this particular stop is likely to be one of the busiest stops on the entire Luas network.

Units 2 & 3, Aran Centre, Blessington Business Park

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Two commercial units within Blessington Business Park, Co. Wicklow have recently come to the market through agents Bannon, acting on behalf of Joint Receivers Kieran Wallace and Sarah Jane Pentony of KPMG.  Units 2 & 3 Aran Centre both have an area of 276 sq m (2,970 sq ft) and form part of a terrace of six modern commercial units situated opposite Aldi, close to the town centre.  Occupiers within the centre include TechCon Group, C.J. Auto Parts, Proserve Cranes and Maja Polish Food Shop.

Unit 2 is being sold in shell condition with the benefit of full vacant possession at a quoting price of €110,000. Unit 3 is occupied on a short term basis by C.J. Auto Parts.  A quoting price of €130,000 is being sought for this unit.  Both units have a two storey section to the front with warehouse and mezzanine space to the rear which is accessed via a loading door.  Given the high profile of the centre both units would lend themselves to a variety of uses including retail, subject to planning permission.

The e-brochure can be viewed at the following link: wicklow-blessington-aran-centre or please contact Niall Brereton

High yielding long term investment in Sligo town centre

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Bannon, on the instructions of the local Quinn family, are bringing to the market a modern mixed-use investment opportunity situated in the heart of Sligo with an asking price of €3.7m.

Known as Castlewood House, the opportunity comprises a modern commercial and residential development which was completed in 2010 and finished to an exceptionally high standard.  The property was developed by local businessman Kevin Quinn and family.

The development has dual frontage onto both Rockwood Parade, along the Garrivogue River, and Castle Street.

The sale includes a large department store fronting Castle Street which is occupied by Heatons, together with three floors of self-contained office accommodation, 16 apartments and car parking.

Heatons occupy the 2,341 sq m department store on a 25 year lease from 2010 with over 22 years unexpired term certain.  The current rent of €200,000 per annum (set in 2010) will be subject to a fixed uplift in 2015 to €250,000 with market reviews five yearly thereafter.  The office accommodation is accessed via a separate access and lobby from Castle Street.

The residential element in its entirety includes 21 apartments, 16 of which are the subject to this sale (9 x 1 beds and 7 x 2 beds).  15 of these 16 apartments are currently occupied and producing a gross income in the region of €120,000 per annum.  Each apartment is fitted to a high standard with modern fixtures and fittings throughout.  The apartments, many of which have river views, are developed within two blocks and benefit from a landscaped courtyard area.  These apartments are amongst the highest quality outside of the capital.

A basement car park with over 50 spaces provides parking for the residential and office elements and also forms part of the sale.

David Carroll of Bannon, who will be handling the sale, comments ‘we expect there to be considerable interest in the opportunity given the secure long term nature of the Heaton’s income and the opportunity to acquire a portfolio of residential units with a proven high occupancy record in the heart of Sligo’.  The property will be sold in three lots with Lot One comprising the commercial element and car park, Lot Two the residential element and Lot 3 the entire.

DEAL’Z on Main Street Gorey makes €1.15M

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A high street retail investment property on Main Street, Gorey occupied by UK retailer Poundland t/a Deal’z, has been successfully sold by agents Bannon for €1.15m.

Poundland occupy the unit under a 15 year lease and are contracted to pay €115,000 per annum which will net the purchaser an income yield of approximately 9.57% after standard acquisition costs.

David Carroll, who handled the sale on behalf of CERTUS, said ‘there was a considerable level of interest in the property given the strength of the Poundland brand who reported a €780m turnover for the 12 months to April 2012, an increase of 21% from 12 months previous’.

Bannon are due to launch a selection of investment product in the coming months ranging from city centre investments to provincial mixed use schemes.

The Drury Barber makes €370,000

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Bannon recently handled the sale of a small city centre investment property on Drury Street, Dublin 2. The agency achieved approximately €370,000 for the property which is occupied by the long established ‘The Drury Barber’ who have been trading from the building for over 20 years and have approximately 12 years remaining on the current lease.

The current rent of €24,000 will net the investor an immediate return in the order of 6.2% after standard purchasers costs.

David Carroll of Bannon who handled the sale on behalf of the receiver commented that “over 125 parties enquired about the property over the 4 week marketing campaign compounding the significant demand from cash investors for well-located commercial real estate”.

Bannon will be bringing to the market two further buildings on Drury Street in the coming weeks

DV8 appoint Bannon

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Fashion retailer DV8 (www.dv8fashion.com) have instructed Bannon to act jointly with BTW Shiells in relation to their roll out of new stores in 2013.

DV8 currently trade in Tralee, Roscommon and Clonmel and have a requirement for 30 additional stores. The requirement is for stores ranging in size from 3,000 to 6,000 sq. ft.

Dublin Airport Business Park – For Sale

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Bannon are seeking €1.25m for an investment/development opportunity situated on the Swords Road in Santry. The opportunity comprises Block A, Dublin Airport Business Park together with an adjoining 1.17 acre site with full planning permission for a commercial scheme of development. Block A is currently producing €85,000 of rent per annum with the opportunity to increase through active management.

For full brochure details: brochures.bannon.ie/dublin-airport-business-park-santry or for more information please contact David Carroll of Bannon.

Palmerstown Shopping Centre Management

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Bannon have been appointed management agents for the Palmerstown Shopping Centre, replacing Savills. The centre is anchored by Supervalu and Super Dome Bowl.

The new appointment brings to 4 the number of shopping centres added to the Bannon management portfolio in the last 6 months.

Management of Thurles, Dungarvan and Johnstown Shopping Centres

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Bannon’s Retail Management team continues to expand with their recent appointment as Managing Agents of Thurles, Dungarvan and Johnstown Shopping Centres.

Bannon are one of the biggest players in shopping centre and retail park management nationally collecting in excess of €75m rent per annum and administering €20m of service charges throughout their portfolio.

Tara Giles, Associate Director in Bannon, said “Shopping Centres have always been a specialism but the recession has accentuated the need for specific expertise in the field.  Managing shopping centres is about understanding how customers and retailers interact, how that interaction generates sales, and consequently rent and capital value for our clients. Shopping centres are in Bannon’s DNA’

Dublin City Commerical Rates Revaluation

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A Revaluation of the estimated 25,000 commercial properties within the Dublin City Council administrative area is currently ongoing. The objective of this process is to directly link the annual commercial rates liability of a property with the actual or estimated rental value.

Following the Revaluation process, your annual rates liability may increase, decrease, or remain unchanged. It is imperative that all occupiers actively engage with the Revaluation process to ensure that they receive a fair valuation as this will form the basis for all future rates bills.

We have summarised some key information in our Rate Payers Guide (PDF)

Rent Reduction Negotiations – A guide for Landlords

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Rent reduction discussions are commonplace in the current Irish Property market particularly in the retail area but they need to be seen for what they are; A Re-negotiation of Existing Lease Terms.

If you are in the business of re-negotiating lease terms then why stop at the rent? It is important that landlord’s asset managers and their funders are live to the opportunity to exchange potentially lucrative improvements in their overall lease profile for any rental concessions made to a tenant. We have set out some examples in our guide:

Rent Reduction Negotiations – A Guide for Landlords (PDF)

Prime Blackrock retail unit to let

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Bannon are the appointed letting agents for a prime retail unit on the Main Street in the affluent south Dublin suburb of Blackrock, which has an asking rent of €45K.
Prominently located between Starbucks and The Organic Food shop, with a high level of passing footfall, this unit comprises 136 sq m over two floors, with a ground floor area of 70 sq m and lower ground floor area of 66 sq m.
Available immediately, the unit is fully-fitted out as a high-end ladies fashion store. Due to its key location and affordable rent, Cian McMorrow of Bannon foresees a strong interest from a wide range of boutique owners, independent fashion retailers as well as food operators.

For further information, please view our online brochure and to arrange a viewing please contact Cian McMorrow of Bannon on 01 6477900

D4 shop with €20k rent

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A ground floor retail unit of 35 sq m (380 sq ft) at 99 Morehampton Road, Donnybrook, Dublin 4, is available to rent for around €20,000 per year.

Located in the very heart of Donnybrook Village, the unit is close to Donnybrook Fair, Boots chemist, Butlers Pantry, Nourish and AIB amongst others.

Jennifer Mulholland of Bannon, who is handling the letting commented that the unit is generating considerable interest from a variety of occupiers due to its prominent location, which benefits from high levels of passing motor and pedestrian traffic.

Bannon retail network welcomes key US member

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The International Retail Network; a group of specialist retail property consultancies of which Bannon is the Irish founder member, has expanded into the US with the recent appointment of The Dartmouth Company as a member.

This latest addition reinforces the network’s global presence; with representation now in Ireland, Germany, France, Spain, Belgium, the UK & the USA.

The Dartmouth Company is an established commercial real estate firm, with five offices located across America, including Boston and New York.

Specialising in the leasing and sale of retail properties across New England and New York; its experienced team represent a number of local, regional and national retail clients, as well as advising landlords on the leasing of several high profile shopping centre schemes.

Neil Bannon, Managing Director at Bannon said:  ‘On behalf of the International Retail Network, Bannon are delighted to welcome our newest member, The Dartmouth Company on board. With their expertise and sound knowledge on the US retail market, they will give us a strong foothold in this region for the first time and will be crucial in providing locally sourced advice to retail brands wishing to expand into the US market or US-based brands who have plans to develop operations in Europe.

Now with presence in seven key countries; the International Retail Network offers clients unsurpassed expertise, worldwide market knowledge, and professionalism all within one global niche network, meaning the best available services for the results they require’.

 

New retail listing in Temple Bar

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Prominent corner unit facing onto Cope Street and Fownes Street with high levels of pedestrian footfall.

1-2 Cope Street, Dublin 2

M&S take store in Douglas SC

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While British retailer Tesco plans 10 or more new Irish stores in the next 18 months, its more up-market rival Marks & Spencer is set to open its sole new Irish store this year in Cork.

Having secured M&S, Douglas Village Shopping Centre owners the Shipton Group follow with a pet deal of their own – a 6,000 sq. ft. letting at the opposite end of the centre from M&S, to pet supply company Maxi Zoo.

Marks are due to open their 15,000 sq. ft (22,000 sq. ft. gross) store in late November – in plenty of time for Christmas.  They say they will bring 100 new jobs to the revamped centre, where Tesco are main anchor, owning their own 90,000 sq. ft. of space over two levels.

This week, Tesco announced an 8% rise in sales, and said their current €115 million expansion of 11 supermarkets could bring 750 jobs.  Planned new locations include Waterford’s Ballybeg; Newcastle, Galway; Swinford in Mayo; Naas, along with recent openings in Dublin, Wicklow and Westmeath.

Over 1,000 job applications and CVs were received for M&S’s 100 new Cork jobs alone, and all posts are now filled.  The company has 700 British outlets and 300 others in up to 40 countries worldwide. M&S opened in Clonmel’s Showgrounds last year.

The Love family’s Shipton Group redeveloped the 1970s Douglas Village Shopping Centre in ‘08/09, more than doubling it in size to 250,000 sq. ft., as part of circa €90m investment to include Tesco’s own unit (their largest in Munster).

It has close to 50 shop units, and 1,000 multi-level car parking spaces.  One of the latest arrivals is Welch Sports, after a quality re-fit of the old Lifestyle Sports store.

Joint agents DTZ Sherry FitzGerald and Bannon this week confirmed a Douglas centre deal with Maxi Zoo to open a circa 6,000 sq. ft. unit, their eighth store here and their first to open within a shopping centre.

There are two circa 10,000 sq. ft. units in the old Tesco footprint available, at a quoted rent of c€30 psf, suitable for ladies fashions, a Next etc.

Quoted from Sitewatch, Tommy Barker, Irish Examiner

Dublin central gets green light from An Bord Plenala

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Bannon are delighted to announce the decision by An Bord Pleanala to grant planning permission for Chartered Land’s Dublin Central Development. This decision marks the culmination of several years work by the entire team involved. Bannon has been involved from the outset of this project which aims to deliver a major commercial development in Dublin City Centre which will re-establish this location as the premier retail destination for Ireland.

The development will occupy a high profile site of c. 2.17 hectares with extensive frontage (220 meters) on Dublin’s principle thoroughfare, O’Connell Street, which has been transformed in recent years with works carried out in its public realm. The scheme will also enjoy profile and access to Henry Street, one of Dublin’s busiest shopping streets with additional access onto Moore Street and Parnell Street.

The scheme will comprise in excess of 100,000 sq.m. (1.1 Million Sq. Ft.) of accommodation including 100 shops, restaurants, 700 basement car parking spaces and 22 apartments. Dublin Central will be anchored by the country’s largest Department Store comprising approximately 25,000 sq.m. Terms are agreed with John Lewis to occupy this major store.

Bannon are pleased to report strong on-going interest from major UK and international tenants interested in securing flagship store presence in Ireland. Dublin Central has been designed to provide large modern retail footprints that to date have been rarely available within the existing fabric of Dublin City. This development will represent the first major retail addition to Dublin City Centre since the Jervis Centre in 1996 which highlights the pressing need for the delivery of a scheme for the 21st Century. Due to the complexity in assembling a site of this size, this truly represents a once in a generation opportunity which will, upon opening in 2016, prove to be a major success.

Ban on reviews….its lose lose lose

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The ‘on again off again’ saga of upward only rent reviews came to an end this week.  Dermot Ahern finally decided to sign a banning order on the contentious clause under Section 132 of the Land Conveyance Reform Act after suggestions the matter was being dropped.  While on the face of it this populist decision looks like progress, it is not necessarily one that is going to be applauded by either side of the deep legal divide.

The tenants lose.
The raw reality of the amendment is that it puts tenants holding existing leases with upward only provisions in an even worse position than they were before it.  As the legislation cannot be retrospective it means tenants occupying property under existing leases at over inflated rents will not only remain at the mercy of their landlord for a rent reduction, but the prospect of off-loading their now antiquated lease to another occupier is further reduced.  There can be little doubt that tenants willing to enter into leases in the current market can have almost whatever clauses they want in the lease as long as they are prepared to pay rent.

The landlords lose.
On the landlords’ side the argument has been clear, the upward only rent provision facilitates investment and development funding by providing security of income.  Without it, the cost of funding will rise, gearing levels will fall and consequently existing values, particularly development land, will be diminished even further from their currently depressed state.   Similarly, from an international perspective, at a time when the advantages of the Irish commercial property market (namely high returns, no Euro currency risk and a UK based legal structure) were finally beginning to register on mainland Europe, we have removed one of the fundamental foundations of the market.

The Taxpayers lose.
So landlords aren’t happy and tenants aren’t happy. What of the Irish state itself? Well the news doesn’t get any better there either.  It is clear that single biggest loser from the change in the legislation is the world’s largest property company, NAMA.  Due to the timing of the change in the revised legislation, the negative value implications are unlikely to be reflected in the NAMA transfer valuations meaning that the value implications will be borne by NAMA/the taxpayer.  Similarly, it will be NAMA who will be out in the market in a few years looking to attract international investors to an Irish property market with reduced security of income.  The lack of ‘joined up thinking’ between the Department of Finance and the Department of Justice is a worrying precursor to the future commercial operation of the Nama project.

Fundamentally, unless the amendment is retrospective the government is simply legislating for an event (namely another Celtic Tiger Boom and Bust) that is unlikely to ever happen again, at least in our lifetime.  In the 35 years prior to 2000 there were few, if any, five yearly rent reviews in any sector that did not result in an increase in market rent and a consequent uplift on review. Does the minister think that rents will be lower in March 2015 that in March 2010? He must do as it is only if this is the case that this new provision will be of any benefit to a tenant. If it is the government’s view that demand for real estate will be lower in 2015 than it is now, it seems somewhat at odds with the NAMA business case that was published a few weeks ago telling us it will all be fine if we wait long enough.  Those worst effected by the cataclysmic shift in rents, namely the Irish retailers and ultimately their landlords, have already begun to alter how they do business and in this regard I think this sector has changed for the better, and changed for the long term.  Turnover rents, CPI rents or base rents with performance linked top-ups are the new reality for the retail sector.  Similarly, for funders to the retail sector, headline rental levels will only be part of the funding picture.  They have seen too many retailers renege on contractually bound legal commitments over the past 12 months to limit their risk assessment to ‘a lease and tenant covenant’.  Its clear that going forward funders will demand that borrowers support the sustainability of rental levels with detailed analysis of catchment, projected scheme turnover and ultimately conversion to retailer profitability.

If this is a populist measure I, for one, am struggling to see which sector of the population it appeals to. It certainly doesn’t help anyone affected by the property market (which by the way post NAMA is all of us the taxpayers).

Rod Nowlan
Investment & Asset Management Director
BANNON

M&S new anchor for Pavilions, Swords

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Chartered Land have confirmed that Marks & Spencer have signed legal documents and will become the anchor tenant for the proposed extension of the Swords Pavilions shopping centre in North Dublin.

Marks & Spencer will occupy approximately 150,000 square feet of retail space within Phase 3.   The store, which is anticipated to open in Spring 2014, will be the largest store in the Republic of Ireland and is expected to create in excess of 450 jobs.

Chartered Land received planning permission in September 2009 to extend the successful Pavilions shopping centre, such extension to include over 650,000 sq.ft. of retail accommodation over two mall levels.   The scheme will contain 2 new anchor stores.  House of Fraser have agreed terms for the second anchor store of 125,000 sq.ft.

On completion of Phase 3 Pavilions will be the largest shopping centre in Ireland with over 1 million square feet of retail and some of Ireland’s top retailers including Dunnes, Zara, H&M, TK Maxx, Mego, Boots, Tommy Hilfiger and Champion Sports.

Bannon acted on behalf of Chartered Land and CBRE on behalf of M&S.

Bannon highly commended at UK Property Awards

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Bannon’s Retail Management Team were recently commended at the prestigious SCEPTRE awards held in the Dorchester Hotel in London. The accolade is particularly impressive as Bannon were the only Irish-owned property agents to be shortlisted and commended. The judging panel were impressed by the firm’s dynamic approach in dealing with the economic challenges currently facing the shopping centre market. The firm has sought to reduce service charges, deliver vibrant marketing programmes and to work with their retailer partners to improve trade and performance whilst delivering value.

Bannon currently manage a commercial portfolio comprising 360 tenants, €60 million in rent and €12 million in service charge. The firm has recently been awarded the management contract for the prestigious Whitewater Shopping Centre in Newbridge, Co. Kildare.

Commenting on this achievement, Joe Bannon, Executive Chairman, stated that he was “delighted and proud of Bannon’s progress in the shopping centre arena and we are looking forward to working on the Whitewater scheme with a view to adding value for our clients and enhancing trade for our retail partners”.

Rent review law to change property market entirely

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Legislation endeavouring to abolish the upward-only rent review is shaking the foundations of the property establishment. In most leases it means rents cannot fall below the prevailing rate when the rent is reviewed, usually every five years.

What is curious about the proposal is that it is in essence seeking to secure by force something that the market could, and is, providing anyway.

A potential tenant is currently perfectly within its rights to seek an upward and downward rent review within a new lease (in precisely the same way as a house buyer is entitled to seek a fixed or variable mortgage from the bank).

If all tenants demanded this clause landlords would have no option but to concede. In essence the debate is actually about the alignment of the landlords’ and tenants’ interests and is largely only relevant in respect of retail property.

In this regard landlords and their leases have been reacting accordingly. Leases that cater for base rents of 70% to 80% of market value with turnover top-up have been around for some time.

Similarly, 100% turnover-related rents are also on the increase and essentially represent the majority of rental deals done this year.

Consequently, whether as a result of the natural evolution of the market or indeed the abolition of upward-only rent reviews, investing in property will no longer be about the lease or even the tenant covenant, but the specific property. Private investors, institutions and bankers alike have, to date, been looking at properties as financial instruments. Cash flowing out via lease payments with the benefit of upward-only reviews in the context of a given tenant’s covenant to arrive at an acceptable return has been the flawed foundation of property investment over the past decade. The property adviser’s role in the exercise was often relegated to a rubber-stamping valuation exercise a few days before contract signing. This uninformed approach to property investment has been the stronghold of many naïve investment syndicates over the past few years and explains the success of the myriad of bank sales and leasebacks.

So if a newly let shopping centre is acquired from here on it will all be about the ability of that property now and in the future to justify its rent role. Sustainable rents will be the focus.

In this regard property becomes a living breathing commodity and not a financial instrument and understanding it will be the key to successful investment. Supply and demand will form the foundation of this analysis in the unregulated development markets such as the office and industrial sectors.

However, property-specific issues such as running costs, occupational obsolescence and ongoing refurbishment capacity will be of critical importance.

For the regulated retail development market it is much more complex. It is not just about the physical property and the likely supply and demand to the sector but also about understanding the tenants’ business and what makes them profitable in that specific property.

This sector above all others will see an alignment of interest between the landlords and tenants and understanding it will be key.
Rod Nowlan, Investment Director

St. Olaves Business Centre, Kinsealy, co. Dublin

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Providing some much needed good news within the commercial property market, joint agents Bannon and Kelly Walsh have successfully let a further four units at St. Olaves Business Centre, Kinsealy.

In a more challenging property market, the joint agents have secured Eugene Berry Financial Services, Green with Envy Landscape Designers, McGovern Public Relations and Jim Clarke Project Management.

Just three units remain available which would suit a variety of service/office providers or destination retail uses such as a café, restaurant, beauty salon etc.

Developed by Newlyn Developments, St. Olave’s Business Centre is also home to Links Crèche and Montessori and Collier Broderick Resource Consultancy.

Despite the slowdown in suburban lettings Newlyn developments had adopted an innovative strategy of enabling the tenant to lease the units on a long term basis with the option to purchase them at an agreed price in the future.

Marcus Wren, Director with Bannon said “given the shortage of funding at present, this approach has proven extremely successful, allowing interested parties the luxury of testing the location by renting initially with the option to purchase once funding is more readily available. We continue to have significant interest from potential occupiers, mainly based in the surrounding north Dublin suburbs such as Malahide, Portmarnock and Kinsealy who are attracted by the high quality of the development, plenty of car parking, low occupational costs and the ease of access by car and bus to the city centre, airport and M50.”

The own door showroom/retail units range in size from 66 sq.m up to 321 sq.m and are finished to a high standard while also benefiting from ample car parking.  Attractive terms are being offered with quoting rents in the region of €215 per sq.m.

For further information please contact Louise Doherty or Katie Williams on 01 6477 900

Eur 50M John Lewis store to debut in Dublin

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John Lewis has confirmed it is to debut in Ireland and open its first non-UK store in the capital city at Chartered Land’s O’Connell Street scheme.

As revealed by Property Week in May, the department store operator has agreed to occupy a 250,000 sq ft space at the scheme – Dublin Central – spread over five levels.

The move represents an investment of EUR50m (£40.5m) for the John Lewis Partnership in Ireland and is expected to create over 800 new jobs. The store will open in 2013. The Dublin department store will form part of the company’s existing expansion plans to double the size of its business in the next ten years.

Dominic Deeny, Chartered Land chief executive, said: ‘We are delighted to welcome John Lewis as the anchor tenant for our proposed Dublin Central scheme, which aims to be at the top of the Irish retail hierarchy.’

Gareth Thomas, director of retail design and development for John Lewis said: ‘Today’s announcement is significant for John Lewis in that it marks the first move by John Lewis to a location outside the United Kingdom.’

‘We look forward to developing our presence in the Irish market and in due course, delivering our unique and exciting product range and service offering to Irish shoppers.’

Neil Bannon of Bannon acted for the landlord.

Society of Chartered Surveyors - SCSI Ireland

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