Tuesday 17 July 2018

Bidders to fight it out for €110m prime Dublin docklands site

An aerial view of the CB3 site, one of the last prime development sites in Dublin’s Docklands
An aerial view of the CB3 site, one of the last prime development sites in Dublin’s Docklands

Ronald Quinlan Commercial Property Editor

One of the last remaining prime development sites in the Dublin Docklands and its strategic development zone (SDZ) is going on the market today for a guide price of €110m.

Extending over 5.91 acres to the rear of the Central Bank's new headquarters at North Wall Quay, CB3 (City Block 3) Docklands is being offered for sale in three lots by joint agents Cushman & Wakefield and Savills on the instruction of David Carson of Nama-appointed receivers Deloitte.

Lot 1 is guiding a price of €45m and comes with full planning permission for the development of 347 residential units on 1.44 hectares (3.55 acres). At €65m, Lot 2 has a pending planning application for an office-led mixed use scheme of 30,890 sq m (332,497 sq ft) distributed across a 0.95 hectare (2.35 acre) site. Lot 3, meanwhile, incorporates the entire CB3 portfolio.

The competition is expected to be intense, owing to its pivotal location on Mayor Street Upper and Castleforbes Road, and at the heart of the Dublin Docklands SDZ.

Prospective purchasers will be encouraged by the performance of the Dublin office market in 2017, with five lettings of over 100,000 sq ft secured. In one of those transactions, the NTMA agreed to rent over 140,000 sq ft of office space at Dublin Landings, the one million square foot mixed-use scheme being built by developer Sean Mulryan's Ballymore beside the Central Bank's new headquarters, and within a short walk of the CB3 site.

Other major projects under way within the immediate area include developer Johnny Ronan's scheme at Spencer Place, Blackrock's Point Campus, Glenveagh's North Block, and the Exo Building at the Point Village.

In terms of its residential offering, CB3 has full planning permission for 347 units comprising 340 apartments (103 one-beds, 191 two-beds and 46 three-beds), and seven three-bed two-storey houses. Planning permission was secured in advance of the new apartment design standards published recently by Housing Minister Eoghan Murphy. According to the selling agents, more recent feasibility studies suggest that these revised standards could see the residential density on the CB3 site increased to between 400 and 450 units.

The CB3 commercial site, designed by Reddy Architecture + Urbanism, has a pending planning application for a substantial office scheme laid out over three blocks with some retail space provided at ground level.

The finished scheme would offer in the region of 30,890 sq m (332,497 sq ft) office space, which crucially complies with NZEB (Nearly Zero Energy Building) standards.

US-headquartered real estate investment giant Kennedy Wilson meanwhile announced that it has entered into a joint venture with Axa Investment Managers to target the Private Rented Sector (PRS) market.

The partnership will start with 1,173 units across three of Kennedy Wilson's existing Dublin PRS schemes - the Alliance in Ballsbridge, Clancy Quay in Islandbridge and Sandford Lodge in Ranelagh. Kennedy Wilson will continue to hold its current 50pc interest in the three assets as part of the deal.

Meanwhile, Ires REIT, has said it generated net income of €6.3m for the first three months of the year - up 7pc. It announced deals, including an agreement to acquire 128 apartments at The Square, Hampton Wood, Finglas, for €39.995m.

Irish Independent

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