Crane Survey February 2018
Contents The report 01 Key findings 03 Development snapshot 04 1 Residential 06 2 Office 11 3 Education and student housing 15 4 Hotel, retail & leisure 19 5 Development table 23 6 Contacts 35
The report What? A report that measures the volume of development taking place across City Council and its impact. Property types include office, residential, student accommodation and hotels. Where?, covering the City Council area. Who? Developers building new schemes or undertaking significant refurbishment of the following: Minimum size: Residential - 25 units Office 10,000 sq. ft. Education & Student Accommodation 10,000 sq. ft. Hotel 35 rooms When? The report covers the period from December 2016 to November 2017. How? Our Real Estate team in has monitored construction activity across the city by looking at commencement notices filed with City Council over the past 18 months, coupled with Deloitte market knowledge and walking the city identifying sites under development. 01
1. Residential 2. Office 82 55 Phoenix Park lmerstown 80 Ballyfermot 70 Drimnagh 92 Greenhills 65 Cabra zoo 71 86 89 84 58 88 Terenure 57 Ballymun 76 77 91 National Botanic Gardens 87 Rathmines 69 Drumcondra St Stephen s Green 75 Santry Whitehall 64 67 93 Milltown 90 73 62 85 74 61 53 UCD 56 66 59 62 Ballsbridge 72 79 Clontarf port Booterstown 68 78 83 Donaghmede 60 St Anne s Park 63 54 Kilbarrac ublin astle 45 St Stephen s Green Iveagh Gardens 28 26 36 48 43 29 30 49 40 Trinity College 42 Merrion Square 31 National College of Ireland 51 27 35 39 47 34 37 46 33 44 38 23 Marker Hotel 24 41 6 Ballsbridge 50 Aviva Stadium The Gibson Ringsend Stella Gardens Dundrum Blackrock Monksto Tallaght Clayton Hotel Burlington Road 25 3. Education and student housing 4. Hotel, retail and leisure National Botanic Gardens Whitehall St An Pa National Botanic Gardens Whitehall St Ann Park Drumcondra Clontarf Drumcondra Clontarf 13 11 4 7 8 2 5 port 18 port 12 12 1 10 6 St Stephen s Green 3 9 Ballsbridge 93 94 17 19 16 St Stephen s Green 91 22 14 21 20 15 Ballsbridge Rathmines Rathmines Milltown Milltown Booterstown
Key findings Crane survey results: More than 3,634 residential units under construction 2017 Outlook: Housing deficit and strong economic fundamentals in the Irish economy driving residential development Over 4,026,431 sq. ft. of new and redeveloped office space under construction in 2017 North and South Docklands the epicentre for development activity in the commercial space 13 major student accommodation schemes under construction in 2017 will deliver 4,529 beds when complete Strong development in the student accommodation space projected to continue into 2018 929 hotel rooms developed over the course of 2017 Brexit effects remain subdued; hotels nor the commercial office market appear to be impacted greatly at this point in time. However, a solution to housing deficit may increase attractiveness of as a location for the future 03
Development Snapshot Which sectors are the most active? (Number of schemes under construction) 12 Office 29 Office 13 Student Accommodation 42 Residential 9Hotels Total residential units under construction 3,634 Total office space under development 4,026,431 sq.ft. Number of student beds under development 4,529 Total hotel rooms under development 929 04
1 Residential Introduction The sustainability of Ireland s recovery and economic future is dependent on a number of interdependent factors, including continued growth in the tradeable sector of the economy, Ireland s ability to compete and attract talent to its cities and for its cities to adopt meaningful solutions, which address the real needs of its inhabitants. Fundamental to enabling economic prosperity is the provision of housing to meet the demand. Ireland is simply not producing enough housing, either in number or tenure type, to meet current and future demand. Housing completions fell from a peak of near 90,000 units in 2006 to a low of less than 10,000 in 2013. While there have been some tentative signs of improvement, housing completions remain exceptionally low with approximately 15,000 units completed in 2016. 1 As of 2017, it is estimated that Ireland will have to build 25,000 residential units per annum to meet demand. The government continues to introduce new initiatives to address the imbalance in supply and demand, 2 however, it will take time for these initiatives to create the desired and necessary impact. Central to meeting housing demand is strong residential development activity and the existence of a proper functioning marketplace. Irish residential property prices peaked in 2007 followed by a fall of more than 50% over the period 2007 2013 and a bottoming out in 2013. The effect of the housing market collapse and high loan-to-value ratios saw many developers get into financial difficulty and left the banks with high levels of non-performing loans on their balance sheets, eroding trust and confidence in the banking sector. In late 2009, as part of its response to the Irish financial crisis and the sudden deflation of the Irish property bubble, the Irish government created the National Asset Management Agency (NAMA). What followed was a prolonged period of reduced house building with developers exiting the market amid significant debt exposure. A dysfunctional and stagnant housing market ensued, with sale prices in many instances falling below the cost of construction. As market participants, and in particular banks, struggled to cope with the economic collapse, their focus shifted rapidly from development to one of survival and deleveraging. The pervading landscape of the markets is evidenced by the reduction in overall mortgage lending, which declined from a peak of 39.9bn in 2006 to just 2.5bn in 2011, five years later. 3 This period of reduced house building along with improving economic conditions (Ireland being the Euro area s fastest growing economy in 2016) has now created attractive market conditions for homebuilders in the short-to-medium term, as both house prices and rental rates increase across the capital. In the past five years, housing prices in have risen by an average of 61% or 134,300. 4 This strong and sustained demand, combined with a supply shortage, has underpinned the increased construction activity being seen in the Capital. 2017 has been a positive step forward for residential development in the City Council area, with approximately 42 residential sites under construction. These schemes will add a total of 3,634 new residential units when complete. The increased level of activity in the sector has been driven by a number of factors, including 1. National Statement of Housing Supply and Demand 2016 and Outlook for 2017-18. 2. Economic and Social Research Institute Quarterly Economic Commentary 3. Banking and Payments Federation of Ireland: Mortgage Drawdowns Q2 2017 4. Daft.ie House Price Report Q3 2017 06
1 Residential crane survey renewed developer confidence, increased availability of credit from both traditional and alternative sources and the drive to meet increasing demand in a city which is experiencing a severe housing shortage. Major developments Kennedy Wilson and NAMA have commenced construction of one of s largest mixed use developments, Capital Dock, in the city s docklands. The scheme is made up of 7 blocks, ranging from 3 to 19 storeys. When completed, the development will include 204 luxury apartments. A feature of the development is that businesses that locate in the office blocks will have priority access to the scheme s apartments. JP Morgan has confirmed that it will acquire one of the schemes office blocks. On the site of the former Berkeley Court Hotel, Chartered Land is developing 5 pavilion-style seven and eight storey apartment blocks that will include 215 luxury apartments when completed. The penthouse has been pre-sold for 6.5m, the highest price ever paid for an apartment in the State. There are two major residential schemes underway in Ashtown ( 15). Ballymore Properties is developing 156 housing units at their Royal Canal Park scheme. The development is a mix of houses and apartments. Similarly, Castlethorn Construction has commenced Phase 1 of a development at Rathborne Park consisting of 60 units. Phase 1 is part of a scheme that will ultimately include 208 three and four bedroom houses, a crèche and two five-a-side playing pitches. Marlet Property Group is developing 180 apartments at its Mount Argus development on Kimmage Road ( 6). Located in Harold s Cross, the scheme is made up of eight blocks ranging in height from three to five storeys. In Clongriffin ( 13), Gannon Homes is in advanced stages of Phase 1 of its Beltree Park development which comprises of 114 three and four bedroom houses. Phase 2 and Phase 3 will add a further 29 and 28 houses respectively to this scheme. Dwyer Nolan Developments is developing a 106 unit scheme in St Margaret s Road, Poppintree ( 11). The development consists of 60 duplex units, 46 houses and associated roads, drainage and landscaping works. New market strategies PLCs and build-to-rent The pipeline for new residential development across is strong and looks set to continue into the medium term as new entities enter the market. Glenveagh Properties, a joint venture between US private equity firm Oaktree Capital and Maynoothbased homebuilder Bridgedale, raised 500m through their IPO in 2017. Glenveagh has stated that it s intention is to use the capital raised to build 1,000 homes per year by 2020 and 2,000 per year in the longer term. Cairn Homes, the London-listed homebuilder, was the most active developer in the area over the past year with c.609 residential units in the pipeline. In the Grand Canal Dock area ( 2), an area popular with young professionals and in close proximity to many blue chip companies, Cairn is building at Six Hanover Quay. The project consists of a 122 unit seven storey 07
1 Residential crane survey mixed use development over a basement car park. Residential accommodation is proposed from first to seventh floors with retail units provided at ground level. In Rathgar ( 6), Cairn is building the Marianella scheme which will include c.275 units across a range of formats, from one to four bedroom apartments to three bedroom townhouses. The scheme includes a residents clubhouse encompassing a gym, wellness suite, lounge and private cinema. s build-to-rent investment market reached 280m in 2017, with global institutional investors seeking to apply the professional letting model to the city. This is up from 220m and 250m in 2015 and 2016 respectively. 5 The build-to-rent concept is commonplace in markets such as the US and is becoming an increasingly popular investment option across Europe and the UK. While still a relatively new model in Ireland, the Irish residential sector is attracting more institutional capital than before and build-to-rent schemes are beginning to appear on the landscape. Higher property prices linked to supply shortages are increasing pressure on an already limited rental market. The highest number of households ever recorded (c. 500,000 according to the Central Statistics Office) are now renting. The ratio of homeownership to renting in Ireland was 70:30 in 2016 compared to 80:20 in 2006, confirming an increasing trend towards renting rather than buying among households. 6 Ires REIT, the Canadian property investment company and Ireland s largest landlord outside of the government, is one of the largest players in the build-to-rent market in. Other institutional investors in the market include US-headquartered Kennedy Wilson and Hines, with Irish Life expected to announce its entrance in the coming year. To date, most build-to-rent investors have bought already developed properties rather than developing greenfield sites. The largest residential investment transaction in City Council in 2017 was Kennedy Wilson s purchase of 124 apartments at North Bank in the North Docklands ( 1) for 45m. 5. Hooke & MacDonald Multi Family / Build to Rent Investment Market Review and Outlook for 2018 6. CBRE - Alternative investment in Ireland 2017 08
1 Residential crane survey Conclusion The strong year for residential development in City Council was not without issue. Challenges remain with respect to the efficiency of processes, availability of land, and reducing build costs to improve overall economics of homebuilding, including: Government policies such as the release of state land and recent tax reforms should help discourage the hoarding of land, but implementation of same may prove challenging. landscape is unlikely to change dramatically over the short to medium term, and the presence of alternative lenders has become the new norm. Ultimately, the increase in the supply of housing needs to be maintained in order to ensure that City remains an attractive destination for new business investment. This is particularly relevant as the impact of Brexit continues and UK based companies consider future EU location needs. Further to this, the new National Planning Framework should help improve and expedite the granting of planning permissions. Infrastructure needs must also be addressed. Across the country, there have been calls to expand the Local Infrastructure Housing Activation Fund beyond the current 300m. To date, local authorities have sought 800m, indicating that the funds available are simply not sufficient. 7 Work remains to be done on reducing the average sale timeframe, with conveyancing taking on average 22 weeks in Ireland compared to the global average of 11 weeks. 8 9 From a financing cost perspective, access to senior debt remains difficult and particularly so for development assets. Traditional Irish senior lenders continue to apply a very narrow underwriting approach and with limited budgets. As a result, developers are turning to more expensive sources of capital through alternative funders to fulfil their requirements. The prevailing funding Average sale time 3,634 FOR SALE Total housing units being developed Ireland 22 weeks Globally 11 weeks 7. Deloitte Housing Report December 2017 6.5m Highest price ever paid for an apartment Penthouse at Lansdowne Place 8. www.lawsociety.ie/news/media/press-releases/econveyancing/ 9. World Bank Doing Business 2018 09 45m Largest residential investment transaction Kennedy Wilson
10 Phoenix Park St Stephen s Green St Anne s Park National Botanic Gardens Terenure Rathmines Greenhills Drimnagh Ballyfermot erstown zoo Ballsbridge Booterstown Monkstown Blackrock Drumcondra Ballymun Cabra Santry Donaghmede Kilbarrack B Is UCD Dundrum Milltown Clontarf Whitehall 85 79 69 65 82 55 80 71 88 87 58 70 86 76 84 75 72 89 64 67 90 73 62 57 77 91 92 93 60 83 68 78 81 63 54 74 61 53 56 66 62 59 port
2 Office Introduction The Irish economy performed strongly in 2017 with output rising at a rate of 5.8% per year compared to an average of 2% across the EU. 10 Irish GDP growth is forecasted to be 5% in 2017 with 4.2% forecasted in 2018. 11 This positive performance and outlook has resulted in jobs growth which has reduced the unemployment rate to 6.1%, down from over 10% in May 2015. Unemployment is.12 13 expected to reach 5.4% in 2018 Office development in 2017 continued at a fast pace and economic indicators suggest strong market appetite exists for the year ahead. As per Deloitte Crane Survey count, there are 29 major developments underway that will culminate in c.4,026,431 sq. ft. of new office space when complete. Major developments In City Centre, office development has been the most active market segment. General sentiment is that the office market will level off in 2018, with this year marking the peak of the current development cycle. The Factory Building, Bolands Quay ( 2) is one of the largest office developments in the City Council area. On completion, the scheme will encompass 309,592 sq. ft. of office space across two blocks, 12 and 13 storeys respectively, along with 41 residential units. Green REIT, the Irish real estate investment company, are developing One Molesworth Street ( 2), a 137,304 sq. ft. six storey office block with retail units on ground floor. The building is located in close proximity to Trinity College, the Grafton Street shopping area and Merrion Square. Barclays and Goshawk, the aircraft lessor, are among the companies which have already signed leases for office space at the new development. Targeted Investment Opportunities (an investment vehicle owned by Oaktree Capital, Bennett Development and NAMA) have two prominent developments underway in the 2 area at 76 Sir John Rogerson s Quay, and 5 Hanover Quay. At Sir John Rogerson s Quay, TIO is developing a nine storey mixed use block, along with a further two storeys of office space and café/retail space. The development includes a total of 120,373 sq. ft. in office space along with 72 apartments. The 5 Hanover Quay development is a seven storey office building on the waterfront which will comprise of 191,921 sq. ft. of office space. Nearby at 13-18 City Quay, Irish Life is developing an eight storey office development on the River Liffey which will comprise of approximately 107,000 sq. ft. with a further 10,000 sq. ft. of retail space at the ground level. The property is expected to be completed by summer 2018 with Grant Thornton contracted as the tenants. As referenced within the Residential section of this report, Kennedy Wilson and NAMA s Capital Dock scheme will bring three new office buildings to 2 s South Docklands. The buildings have a combined total of 343,483 sq. ft. of office space. JP Morgan have acquired one of the buildings, 200 Capital Dock and recruitment company Indeed will enter into 20-year leases for the other two office buildings, 100 and 300 Capital Dock respectively. 10. Savills Research Q3 2017 11. The Economic and Social Research Institute (ESRI) 12. CSO 13. ESRI 11
The Reflector development is underway at 8 Hanover Quay. The scheme is a mixed use office and residential development in the South Docklands and is being developed by Park Developments Group. The project is to include a six storey office element with a total of 145,507 sq. ft. of office space and seven storey residential element comprising of 40 individual units. The development includes car parking, bicycle parking and a roof garden. Completion is expected in the third quarter of 2018. Under construction in North Wall Quay is The Landings mixed use development which will add over 1 million sq. ft. of office, residential and retail space. The project is one of the largest ever of its kind in the capital and will include 270 luxury apartments, 650,000 sq. ft. of office space, restaurants, a gym and a hotel. The National Treasury Management Agency have agreed a 25-year lease for one of the buildings, No. 1 Landings. In close proximity to each other in 2, there have been two significant developments in 2017 by the Clancourt Group. At 10 Earlsfort Terrace, law firm Arthur Cox signed a long-term lease for the new 132,000 sq. ft. office block that is their new headquarters. On the same street, 3 Park Place is under construction and due to complete in the first half of 2018. This addition to Hatch Street will add a further 170,908 sq. ft. of office space to one of s prime business districts. 12
2. Office crane survey On Fitzwilliam Street Lower, the ESB is building a new headquarters. The project involves the demolition of the existing buildings, the retention and refurbishment of a number of protected Georgian structures and the construction of a new seven-storey office block. The new headquarters will include 484,375 sq. ft. of office space. Hibernia REIT are developing a seven storey mixed use scheme at Cardiff Lane ( 2). The development will include 152,126 sq. ft. of office space along with retail units at ground floor. At 1 Windmill Lane ( 2), Hibernia REIT is developing 14 new residential units alongside 122,000 sq. ft. of office space and 7,000 sq. ft. of retail space. The building is another addition to the bustling Docklands and IFSC area which has seen strong activity in the past year. any major relocations due to uncertainty over the true impact of Brexit. Brexit may result in an added layer of activity to the property market, however, it is clear that a resolution to the housing supply issue must be found to make an attractive proposition for international companies. 4,026,431 sq.ft. Total office space under development Conclusion The pipeline for new office space remains strong. Some of s biggest ever office schemes are now under construction, including Capital Docks, Boland s Mill and the Landings. The office market is bolstered by strong fundamentals (strong economic growth, low unemployment, low interest rates, low inflation) in the underlying Irish economy and the outlook is positive for 2018. 29 Number of major developments underway Since the UK voted to leave the EU in June 2016, there has been much speculation as to the likelihood of international firms relocating to in order to maintain the passporting rights required to sell services into Europe. A large uptake in office property was expected, however, this has yet to materialise in a meaningful manner as companies have delayed announcing 13
14 St Stephen s Green Trinity College lin tle Iveagh Gardens National College of Ireland Merrion Square 42 39 51 36 48 45 30 49 26 29 28 40 43 31 27 50 25 47 46 37 34 44 38 23 24 33 41 35 6 Aviva Stadium Ringsend Stella Gardens Irishtown The Gibson Clayton Hotel Burlington Road Ballsbridge Marker Hotel
3 Education and student housing Introduction Ireland has the youngest and fastest growing population in Europe. Each year, around 56,000 students complete their final school exams and progress to third-level education. However, the growth in the student population has not been matched by an increased supply of student housing and as a result lags behind other cities in purpose built student accommodation. The existing stock of student accommodation caters for just over 13% of the 78,791 students based in, compared with 30% in London. 14 Underdevelopment has led to a structurally undersupplied market in, resulting in many new schemes being launched as developers aim to take advantage of the high prevailing market rates and excess demand. As of May 2017, the area had 12,432 beds designated for student accommodation, which is insufficient to service the demand of 30,298 beds. Looking forward, this deficit is estimated to reduce marginally to 17,771 by 2019 and to 13,569 beds by 2024. 15 The number of students studying in is now 43% of Ireland s total student population with 61,500 full-time students enrolled at s four biggest third-level institutions (University College, Trinity College, Institute of Technology and City University). 16 To compound the undersupply of student accommodation, s third level institutions are in a period of high growth, with DIT s new campus in Grangegorman, Trinity s planned technology campus at Grand Canal Dock and DCU s planned 230m expansion all set to increase student numbers in the city. This study has tracked 13 of the major schemes underway in the City Council area which will bring 4,529 beds to the market when completed. This development activity is in line with the Irish Government s Rebuilding Ireland initiative which has set a target of bringing an additional 7,000 beds on stream by 2019. 17 Major developments student accommodation The largest student accommodation development in is the Point Campus in 1. The scheme is being developed by Michael O Flynn and fund manager BlackRock Real Estate. The scheme will provide a total of 970 beds across two seven storey buildings with associated student amenities and facilities. The development is expected to complete in the second quarter of 2018. To the west of the Point Campus, there is a 374 bed development at Summerhill in 1. The project is being developed by McAleer & Rushe and is well located for students at both DIT Bolton Street and Trinity College. The project is expected to be completed in the second quarter of 2018. At Dorset Point, Hines has developed a student accommodation complex that will add 477 beds. Located just north of the river, near the Grangegorman campus, Dorset Point will have a range of formats from 2 to 7 bedroom apartments along with amenities such as gym, study and cinema rooms. On 27-31 Church Street, Mortar Developments is developing a new 232 bed student accommodation scheme. The project will 14. Knight Frank Student Housing Report 2017 15. National Student Accommodation Strategy 16. Department of Education and Skills 17. National Student Accommodation Strategy 15
3. Education and student housing crane survey include 226 single bedrooms and a further 6 twin bedrooms. The development will also include amenities such as a social space, a gym and a laundry room. Taking a closer look at some of the developers, Global Student Accommodation ( GSA ) is building a 571 bed scheme at Brunswick Street, also serving the Grangegorman campus. GSA is a global investor in student accommodation and one of many foreign investors that have entered the Irish property market in recent years. Construction at Brunswick Street is expected to complete in the second quarter of 2018. GSA is also involved in the 491 bed development at Kavanagh Court on Gardiner Street ( 1). Kavanagh Court is well placed to serve both Trinity College and DIT Bolton Street students. 16
3. Education and student housing crane survey Conclusion The majority of new student accommodation developments are focused within the City Centre and despite some being more conveniently located to serve certain institutions, all are within manageable commuting distance from any of the third level institutions. 4,529 Total beds under development Recent activity also shows a changing dynamic in the student accommodation market. Student accommodation has traditionally been provided by third-level institutions, with 65% of developments built by the institutions themselves. 18 Current activity demonstrates the increased appetite among the private sector in the student housing market. 13 Number of schemes underway The outlook going forward is positive. After a prolonged shortage, the market is responding and attempting to bridge supply. This is a task made difficult by the growing number of students entering third level education. Ireland has a young and fast growing population with increasingly high progression rates from secondary into third level education. Another trend is the rising influx of international students, particularly from Asian countries with a rapidly expanding middle class. For the region, the combination of catch up on the supply side and increasing demand suggests that the market will be an active one in 2018. 17,866 beds Excess demand for student 19 accommodation in 2017 18. Knight Frank Student Housing Report 2017 19. National Student Accommodation Strategy 17
Ballymun Santry Donaghmede Whitehall Kilbarrack National Botanic Gardens St Anne s Park B Is Drumcondra Clontarf erstown Phoenix Park 13 11 4 7 8 2 5 port Ballyfermot 12 12 1 10 6 St Stephen s Green 3 9 Drimnagh Ballsbridge Rathmines Greenhills Terenure Milltown Booterstown UCD Blackrock Dundrum Monkstown 18
4 Hotel, retail and leisure Introduction Ireland s economic recovery continues to drive demand across the hotel, retail and leisure sectors. In 2017, Ireland welcomed approximately 10.65 million overseas visitors, generating revenue of c. 5.78 billion. 20 With tourism playing a large role in the success of this sector, market watchers are wary of a fall in UK tourists as the effects of Brexit and a weaker Sterling take hold. The UK is Ireland s largest tourist market. This issue is likely to be somewhat offset by the strong US economy and dollar boosting tourism from America. Hotel The hotel market had a strong year in 2017 with occupancy levels at c.84% for the year and average room rates of 177. The market dynamics in the Capital have increased the attractiveness of the market and led to an increase in planning permissions being sought and new hotels being developed. Furthermore, the Government s decision to keep the VAT rate at 9% for hotel related trade has boosted the sector. A continuing challenge to the hotel and tourism market is the shortage of room availability in hotels. Over the past 12 months, saw development activity that will add 929 rooms across the city, this included developments at the Iveagh Garden Hotel (152 bedrooms), the Dylan Hotel (28 bedroom extension) and Trinity City Hotel (77 bedroom extension). Notable developments under construction include: The new hotel and aparthotel scheme at 35-37 Charlemont Street in 2. The new development will consist of 172 bedrooms with a further 6 aparthotel bedrooms. The five storey development will be a four star Clayton branded hotel run by Dalata when completed in October 2018. On Kevin Street ( 8), Dalata is developing a 150 bedroom hotel. The development began in January 2017 and is expected to complete in May 2018. The project involved the demolition of the existing factory/warehouse that previously occupied the space. The hotel, operated under the Maldron name, is due to be operational from mid-2018. In Ranelagh, Press Up Entertainment Group is developing a boutique hotel that will consist of 41 bedrooms, a rooftop restaurant and a 50 seat arthouse cinema in the basement. The three storey hotel will also include a large open plan bar in the ground floor and conference facilities. At 1 Mill Street in 8, a 202 bedroom hotel is being developed. The seven storey hotel includes two restaurants and a gym on the ground floor which form separate tenancies. The property will be run by US hotel group Marriot International and operated under their Aloft brand. 20. Fáilte Ireland 19
On Harcourt Street ( 2), an area popular for nightlife, the Iveagh Garden Hotel, a new four star hotel is set to be complete in early 2018. The McGill Family are developing the property which will be the sixth hotel on the street and include 152 bedrooms. Other hotels which are at various stages of planning include a 95 bedroom hotel planned at the former Loreto Hall in St Stephens Green, 2, and a 78 bedroom, six storey hotel planned for Donnybrook, 4, being developed by Emmet O Neill s Kouchin Holdings. Retail and leisure Despite the growth of online shopping, Irish bricks-and-mortar retail has continued to perform well in 2017. On the demand side, Ireland s underlying macroeconomics have been supportive of a robust retail sector. Unemployment is low at 6.1% with forecasts for it to continue to fall towards 5.4% in 2018. Improving employment dynamics and an increase in discretionary income have resulted in increased consumer spending. The prevailing low interest rate environment dissuades saving while at the same time more and more credit options become available to the consumer, from financing packages on cars and holidays to the broad range of credit card products that exist in the marketplace. Recent headlines in the sector include the potential creation of a new REIT focusing solely on retail property. Sigma Retail Partners are identified as being the likely promoters. At the junction of Lennox Street and South Richmond Street ( 8), Glebrier Construction is developing a four storey mixed use building. The project will include a gym in the basement, a retail unit on the ground floor and office space in the upper floors. The development will include a total of 45,768 sq. ft. of retail/leisure space and a further 21,506 sq. ft. of office space. On the Swords Road in Santry ( 9), J Manning & Son is developing retail units at the Omni Park Shopping Centre. The new units have total area of 39,396 sq. ft. Conclusion Given the ongoing demand, it appears that the hotel sector will continue to increase capacity in the medium term. Strong occupancy levels coupled with increasing average room rates should ensure the economics of these new hotels stand. Within the City Council area under consideration, retail and leisure development is likely to continue with brownfield redevelopments/ refurbishments rather than totally new build facilities. 9 Hotel developments underway Notable developments in the retail and leisure space include: Refurbishments at 78-79 Grafton Street, Bewleys Café. The iconic venue reopened for business in November, having been closed since February 2015. 929 Hotel rooms under development Nearby at 28-29 Grafton Street, the IPUT owned building has undergone a major refurbishment and signed a long term lease with Victoria s Secret. 20
21 Phoenix Park St Stephen s Green St Anne s Park National Botanic Gardens Terenure Rathmines Greenhills Drimnagh Ballyfermot erstown Ballsbridge Booterstown Monkstown Blackrock Drumcondra Ballymun Santry Donaghmede Kilbarrack B Is UCD Dundrum Milltown Clontarf Whitehall port 18 17 19 14 21 15 20 91 22 16 94 93 port
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5 Development table No. Name/Address Developer/ Contractor 1 10 Mill Street, Newmarket, 8 2 Gardiner Street, Summerhill, 1 The Creedon Group Global Student Accommodation Main use Education & Student Accommodation Education & Student Accommodation Total size (sq.ft./units) Comments 406 Construction of a mixed use student accommodation facility. To contain 406 Bedspaces. 491 Construction of a seven story student accommodation facility. To contain 491 bedspaces. 3 212/213 Pearse Street, 2 Trinity College Education & Student Accommodation 250 Construction of a mixed use student accommodation facility. To contain 250 Bedspaces. 4 Brunswick Street, 7 Global Student Accommodation Education & Student Accommodation 571 Construction of a mixed use student accommodation facility. To contain 571 bedspaces. 5 Point Campus, 1 O Flynn Construction Education & Student Accommodation 6 Protestant row / 14/15 Wexford Street, 2 Safestore (Ireland) Ltd Education & Student Accommodation 970 Construction of a seven story student accommodation facility. Total development is 970 bed spaces 49 Construction of student accommodation facility. To contain 49 bedspaces. 7 27-31 Church Street,, 7 Mortar Developments Education & Student Accommodation 232 Construction of a mixed use student accommodation facility. To contain 232 bedspaces. 8 123-128 Summerhill, Mountjoy, 1 McAleer and Rushe Education & Student Accommodation 374 Construction of student accommodation facility. To contain 374 bedspaces. 9 183-188 Pearse Street, 2 John Delaney Education & Student Accommodation 24 Construction of student accommodation facility. To contain 24 Units. 10 Junction of Mill Street and Blackpitts, 8 BAM Building Ltd Education & Student Accommodation 303 Construction of a 7 story student accommodation facility. To contain 303 Bedspaces. 23
5. Development table crane survey No. Name/Address Developer/ Contractor 11 Grangegorman Road Lower, Grangegorman, 7 Iveragh Group Main use Education & Student Accommodation Total size (sq.ft./units) Comments 132 Construction of student accommodation facility. To contain 132 bedspaces. 12 30 & 32-36 Thomas Street and 10 Hanbury Lane, 8 Hattington Capital Education & Student Accommodation 250 Construction of student accommodation facility on a site at Thomas Street and 10 Hanbury Lane, 8. The development consists of 2 new & 5 renovated buildings. 13 107 Dorset Street Upper, Inns Quay, 1 14 Trinity City Hotel, Pearse Street, 2 15 Dylan Hotel, Eastmoreland Lane, 4 16 72-74 Harcourt Street, 2 17 1 Mill Street, Junction of Mill Street and Blackpitts, 8 18 81 & 82 North Wall Quay, 1, 1 Targeted Investment Opportunities Ltd. John Paul Construction Limited Education & Student Accommodation 477 Development of 477 bed student accommodation. Hotel 77 The works comprise of a 45 bed new build and a 32 bed roof top extension. - Hotel 28 Extension adding 28 new beds to the Dylan Hotel. McGill Family Hotel 152 Development of a 4-star hotel that will comprise of 152 bedrooms and include a bar and bistro among the amenities. BAM Ireland Hotel 202 Construction of a new 202 bedroom hotel consisting of 7 floors over ground. At Ground level there are two restaurants and gym which form separate tenancies. Oakmount Hotel 58 Retention of existing protected structure facade with construction of new 5 story over double basement hotel with associated conference facilities, cafe, bar and restaurant. To provide 58 Rooms. 24
5. Development table crane survey No. Name/Address Developer/ Contractor 19 Kevin Street, 8, J.J. Rhatigan and Company Main use Total size (sq.ft./units) Comments Hotel 150 Construction of a 150 bedroom hotel consisting of six storey over basement level building. 20 117-119 Ranelagh, Ranelagh, 6 Oakmount Hotel 41 The construction of a new three storey over basement building with a setback, penthouse top floor. Total of 41 guest bedrooms on the first and second floor levels and a roof-top Restaurant at the penthouse level. 21 Pearse Street, 2 John Paul Construction Limited 22 35/37 Charlemont St, 2 23 5 Hanover Quay, 2 TIO (an investment vehicle owned by Oaktree Capital, Bennett Development and NAMA) 24 The Factory Building, Bolands Quay, Barrow St, 2 and Bolands Mill, Ringsend Road/Barrow Street, Grand Canal Dock, 4 Hotel 43 Construction of seven storey extension to Trinity City Hotel to rear from second to sixth floor level comprising 43 bedrooms. Dalata Hotel 178 Construction of new hotel & aparthotel scheme consisting of 172 bedrooms and 6 aparthotel bedrooms. Office 237,990 Construction of a new office building of 7 storeys, including 2 office/enterprise units at ground floor. NAMA Office 395,671 Bolands Quay mixed use development comprising 8 no. buildings known as Buildings A, B, C & D, 1, 2 & 3 and The Factory comprising office, residential, retail and assembly use. 25 10 Pembroke Place, Ballsbridge, 4 Pembroke Place Developments Office 23,680 Construction of new 4 storey over basement office and new 4 storey over basement aparthotel. 25
5. Development table crane survey No. Name/Address Developer/ Contractor Main use Total size (sq.ft./units) Comments 26 3 Park Place, 2 Clancourt Group Office 170,908 Under construction and due to complete in the first half of 2018. This new addition to Hatch Street will add a further 170,908 sq. ft. of office space. 27 Vertium, 1 Burlington Road, 4 28 21 Charlemont, 2, Ireland Ronan Group Office 172,724 Five storey office building, over two levels of basement, with office accommodation at upper basement level, parking and ancillary facilities at lower basement level. The total net internal office area is 16,000 sq m (172,724 sq. ft.) together with 95 car spaces. Rohan Holdings Office 36,813 Development of a 6 storey over basement office building. 29 The Sharp Building, Hogan Place, 2 McGarrell Reilly Group Office 44,745 44,745 sq m of modern Grade A office space set over seven floors. 30 5 Earlsfort Terrace, 2 IPUT Office 65,000 Redevelopment of building into modern office accommodation with car parking at basement level. 31 Fitzwilliam Street Lower, 2 32 Elm Park Development, 4 33 Waterways House, Grand Canal Quay, 2 ESB Office 484,375 The project involves the demolition of the existing buildings, the retention and refurbishment of a number of protected Georgian structures and the construction of a new seven-storey office block. Starwood Capital Office 182,500 The Seamark Building. Esprit Investments Limited Office 38,600 Development of seven storey office building fronting onto Grand Canal Dock. 26
5. Development table crane survey No. Name/Address Developer/ Contractor 34 30-32 Sir John Rogerson s Quay 35 Exchange Facility, Mayor Street Lower, IFSC, 1 Main use Total size (sq.ft./units) Comments IPUT Office 28,276 IPUT are undertaking a high quality refurbishment of the unique warehouse building to the front, with the potential to develop a modern office building on the site to the rear. IPUT Office 136,895 The construction of a new six storey office building with a cafe/ retail unit at ground level. 36 13-17 Dawson Street, 2 37 Cardiff Lane, 2, 2 Bam Building Office 137,304 Construction of a six storey office building over three below ground levels. Hibernia Reit Office 152,126 Construction of a mixed use development in a building extending to 7-storeys (over lower ground & basement level), including retail/ non-retail services at ground floor, and commercial office development throughout the remainder of the proposed building. 38 76 Sir John Rogerson s Quay, Grand Canal Dock, 2 TIO (an investment vehicle owned by Oaktree Capital, Bennett Development and NAMA) Office 120,373 Construction of an office building comprising of 9 floors of office space with top floor set back facing Sir John Rogerson s Quay along with 2 floors of office space located off Britain Quay and a cafe / retail unit. 39 1-6 Sir John Rogersons Quay, 40 55 Charlemont Place, 2 Hibernia Reit Office 110000 Mixed use office/commercial development with all associated site works. Oakmount Office 70,999 Six storey office development. 27
5. Development table crane survey No. Name/Address Developer/ Contractor 41 New Wapping Street, Mayor Street Upper and Castleforbes Road, North Wall Quay, 1 Main use Total size (sq.ft./units) Comments Ballymore Office 114,087 The development will consist of construction of a new office building, along with the construction of a two level basement area below ground level. 42 13-18 City Quay, 2 Irish Life Office 118,000 The proposed development comprises a new eight storey office building with own door commercial units at ground floor located over a single storey basement car park. 43 10-11 Molesworth Street, 2 IPUT Office 137,057 The development consists of a six storey office building (Ground + 5 upper levels) over three levels of basement (Basement-2, Basement-1 and Lower Ground Floor). 44 Capital Dock, Sir John Rogersons Quay, 2 Kennedy Wilson Office 343,483 The construction of a mixed-use development, including 7 blocks (Blocks A - G) ranging in height from 3 to 19 storeys delivering 204 apartments, together with retail units (Blocks E, F); cultural use (Block E, F), residential amenity services (Block E, F), a crèche (Block D) and restaurants (Block D, F, G). Two levels of basement will accommodate 391 no. car parking spaces and 650 no. bicycle parking spaces. 45 4-5 Harcourt Road, 2 JSL Group Ltd Office 75,993 Construction of a part seven part eight storey office building over one level of basement. 46 Grand Canal Quay, 2 Paul Hackett Office 37,771 Construction of a 7 Storey Over Basement Office Building 28
5. Development table crane survey No. Name/Address Developer/ Contractor Main use Total size (sq.ft./units) Comments 47 10-12 Hogan place, 2 Raymond Reilly Office 64,357 Construction of new 6 storey over basement office building, with 1 commercial unit at ground level. 48 One Molesworth Street, 2 Green Reit Office 137,304 137,304 sq. ft. six storey office block with retail units on ground floor. 49 10 Earlsfort Terrace, 2 Clancourt Group Office 132,000 132,000 sq. ft. office block completed in the 2017. 50 No.1 Ballsbridge, Shelbourne Road, 4 The Comer Group Office 135,400 135,400 sq ft of premium grade-a office space and will achieve LEED Gold accreditation. 51 1 Windmill Lane, 2 Hibernia Reit Office 122,000 Development totals 122,000 sq. ft. of offices, 7,000 sq. ft. of retail and 14 residential units 52 Lansdowne Place, 4 Chartered Land/Abu Dhabi Investment Authority Residential 215 215 luxury apartments across five pavilion-style seven- and eightstorey blocks. 53 Capital Dock, Sir John Rogersons Quay, 2 54 Beltree, Clongriffin, 13 Kennedy Wilson Residential 204 The construction of a mixed-use development, including 7 blocks (Blocks A - G) ranging in height from 3 to 19 storeys delivering 204 apartments, together with retail units (Blocks E, F); cultural use (Block E, F), residential amenity services (Block E, F), a crèche (Block D) and restaurants (Block D, F, G). Two levels of basement will accommodate 391 no. car parking spaces and 650 no. bicycle parking spaces. Gannon Homes Limited Residential 171 The construction of 171 no. houses in a number of phases. 29
5. Development table crane survey No. Name/Address Developer/ Contractor 55 Royal Canal Park, Pelletstown, 15 Ballymore RCP Developments Limited Main use Total size (sq.ft./units) Comments Residential 156 The development will consist of 156 residential units and 3 retail units. To be completed in a number of phases, along with the development of an Aldi retail Unit (Shell & Core Only). 56 5 Hanover Quay, Grand Canal Dock, 2 Cairn Homes Residential 122 Seven storey mixed use development over a basement car park. Residential accommodation is proposed from first to seventh floors, consisting of 122 units, with retail units provided at ground level. 57 Poppintree, Ballymun, 11 Dwyer Nolan Developments Ltd Residential 106 Development of a 106 unit scheme. The development consists of 60 duplex units, 46 houses and the associate roads, drainage and landscaping. 58 Dolphins Barn, 8 Purcell Construction Ltd Residential 100 The refurbishment of 72 apartment units located in three four storey blocks resulting in 63 refurbished and upgraded apartments. The construction of of 28 apartments and the construction of 9 houses. 59 No.1 Ballsbridge, Shelbourne Road, 4 60 Main Street, Clongriffin, 13 The Comer Group Residential 88 88 luxury apartments. GEM Construction Company Limited Residential 84 The construction of 84 residential units and 2 commercial Units. 61 76 Sir John Rogerson s Quay, Grand Canal Dock, 2 TIO (an investment vehicle owned by Oaktree Capital, Bennett Development and NAMA) Residential 72 Construction of a Residential apartment block comprising of 72 apartments. 30
5. Development table crane survey No. Name/Address Developer/ Contractor 62 St. Joseph s Centre, Gracepark Road, 9 63 Parkside Boulevard, Balgriffin, 17 Main use Total size (sq.ft./units) Comments CTN Developments Residential 62 Phase 1 of development, consisting of 42 housing units and Phase 2 of development, consisting of 20 houses. Commencing as part of a 137 unit development. Cairn Homes Residential 48 Development comprises of 2 residential blocks providing a total of 48 units. 64 Broome Lodge, Fassaugh Road, Cabra, 7 Glasgiven Contracts Ltd Residential 43 Construction of a three storey building containing 43 apartments for use as sheltered housing. 65 Saint Helena s Drive, Finglas, 11 ABM Construction / ABM Design & Build Ltd. Residential 40 Development of 40 Rapid Build units. 66 8 Hanover Quay, 2 Park Developments Residential 40 The construction of a mixed use development comprising of a 6 storey over basement office building and a 7 storey over basement residential element accommodating 40 residential units. 67 144 Richmond Road, Drumcondra, 3 J.J. Rhatigan and Company Residential 39 Construction of a 4-storey over basement mixed-use development consisting of 39 apartments and 2 commercial units. 68 Belcamp Avenue, Darndale, 17 PJ Carey(Contractors) Ltd. Residential 38 Development of 38 social housing units. 69 Ballymun Road, Ballymun, 9 Blacklough construction Ltd Residential 31 Construction of 31 Apartments in a single 4 storey block, over an already completed basement and 11 Town houses in 3 blocks. 31
5. Development table crane survey No. Name/Address Developer/ Contractor 70 Mourne Road, Drimnagh, 12 71 Clancy Quay, Islandbridge, 8 ABM Construction / ABM Design & Build Ltd. Main use Total size (sq.ft./units) Comments Residential 29 Development of 29 Rapid build modular social housing units. Kennedy Wilson Residential 163 Phase 2 of Clancy Quay development will add 163 new units. 72 Elm Park Development, 4 Starwood Capital Residential 340 The development includes two blocks of multifamily housing totalling 332 units and a terrace of eight houses. 73 Grace Park Wood, Drumcondra, 9 Castlethorn Construction Residential 123 Development of 123 housing units overphases. 74 1 Windmill Lane, 2 Hibernia Reit Residential 14 Development totals 122,000 sq. ft. of offices, 7,000 sq. ft. of retail and 14 residential units 75 75 Orwell Road, Rathgar, 6 Cairn Homes Residential 275 Construction of four residential apartment blocks and 12 semidetached houses. 76 Mount Argus, Kimmage Road, Harolds Cross, 6w 77 Hampton Wood Drive, Poppintree, 11 Marlet Property Group Dwyer Nolan Developments Ltd Residential 180 Construction of a residential development of 180 units. Residential 106 Construction of 106 residential units. 78 13 Malahide Road, Balgriffin, 17 79 Ardilaun Court, Sybil Hill Road, Raheny, 5 80 Orchard Lawns, Cherry Orchard, 10 Cairn Homes Residential 93 Development of 3 apartment blocks providing a total of 93 units. MKN Developments Ltd Residential 76 The construction of 76 no. residential units. MDY Construction Residential 72 Construction of 72 residential] units. 32
5. Development table crane survey No. Name/Address Developer/ Contractor 81 Belmayne, Balgriffin, 17 Main use Total size (sq.ft./units) Comments Cairn Homes Residential 71 Construction of 71 residential units. The development comprises of 56 terraced, 10 semi-detached and 5 detached units and a mix of 28 three bed units and 43 four bed units. The proposed development includes 159 car parking spaces. 82 Rathborne, Ashtown, 15 Castlethorn Construction Residential 60 Phase 1 of development at Rathborne Park, consisting of 60 housing units, commencing as part of 208 dwellings, a creche and two 5-a-side playing pitches. 83 Tonlegee road, Raheny, 4 DHD Construction Ltd Residential 47 Construction of a 3 storey 47 unit apartment block for the elderly. 84 Terenure Road West, Kimpton Vale Ltd Residential 46 Construction of 46 residential units over a number of phases. Total development consists of 51 Units. 85 North Wall Quay,, 1 Michael McCarthy Residential 38 Construction of an 11 storey tower fronting onto North Wall Quay containing 38 residential apartments. 86 Raleigh Square, Crumlin, 12 Glenman Corporation Residential 33 Construction of 33 apartments for social housing. 87 5-6 Johns Lane West, 8 Duggan Brothers (Contractors) Ltd Residential 33 Apartment development consisting of 33 apartments. 88 Arbour Hill,, 7 Richmond Homes/ Avestus 89 288 Bannow Road, Cabra, 7 Residential 25 Construction of 25 houses. Paddy O Leary Residential 24 Development of 24 residential units. 33