The overall return from commercial property in Ireland last year was 10.8 per cent, the highest for three years and was boosted by the performance during the last quarter of 2003, according to the Jones Lang LaSalle Irish Property Index.
Earlier this month the more broadly based Irish Property Index, conducted by the London-based IPD, reported overall returns of 12.7 per cent, a vast improvement on the 2.2 per cent in 2002.
The Jones Lang LaSalle quarterly index, which is based on a representative portfolio of properties and has been published for almost 25 years, found that the pace of growth improved last year, primarily driven by the strong performance of the retail sector. "The relative stability of industrial rental and capital values also helped but the office market recorded a negative year-on-year return," according to Dr Clare McParland, head of research at Jones Lang LaSalle.
The last quarter of 2003 turned out to be the strongest of the year with capital values going up by 3.7 per cent, giving a rise of 7.1 per cent for the year as a whole. Retail capital values were the strongest sector throughout the year and rose by 9.6 per cent in the quarter and 22.7 per cent in 2003. Industrial capital values rose from 0.0 per cent in the first quarter of 2003 to 2.6 per cent in the fourth.
Annual growth of industrial capital was 2.9 per cent in 2003. Office capital had negative returns for the first three quarters of 2003 (-0.2, -0.5 and -0.2 per cent respectively). In contrast, office capital values rose marginally in the fourth quarter of 2003 by 0.4 per cent but had a year-on-year decrease of -0.6 per cent.
Income growth in the portfolio was 12.6 per cent in 2003. This is the strongest income in any one year since the early 1990s and is partly due to rent reviews during the year. In particular, the retail section of the portfolio had an annual net income rise of 13 per cent in 2003.
Rental values in the index portfolio fell by -0.6 per cent in the fourth quarter of 2003 and by the same amount in the entire year. Retail rental values rose by 3 per cent in the fourth quarter and 7.6 per cent in the year.
The performance of the retail market was driven by continued investor demand for the sector combined with a continuing interest from UK and European retailers attempting to enter the market.
Industrial rental values increased slightly by 1.0 per cent in the quarter and 1.0 per cent in the year. Office rental values were negative at -2.5 per cent in the fourth quarter 2003 and -4.3 per cent for 2003.
Boots opens outlet in Naas Town Centre
Boots is continuing its expansion programme in Ireland, opening its latest outlet in the newly-completed Naas Town Centre. The multiple will be paying a rent of around €165,000 for 371.6 sq m (4,000 sq ft). Boots now has 34 stores in Ireland, the most recent in Clonmel, Sligo and Limerick. Marks & Spencer's Simply Food also opened in Naas Town Centre recently. Karl Stewart of C S Tierney O'Neill, who advised Boots, said the company was planning further outlets this year.
Riverdance offices at
Mary Street Little for rent
Tyrone House, the former premises of Abhann Productions (producers of Riverdance) at Mary Street Little, Dublin 1 , has come on the letting market through Druker Fanning & Partners. The agency is quoting a rent of €301 per sq m (€28 per sq ft) for a superbly refurbished loft office on the first floor which extends to 743 sq m (8,000 sq ft). It has CAT 5 cable, raised floors, cellular offices, staff canteen a lift and an underground car-park where spaces can be rented at €2,500 per annum.
€25m-plus guide for three housing sites in Naas
Coonan estate agents are quoting in excess of €25 million for three separate sites with planning permission for 227 homes at Oldtown Demesne, Naas, Co Kildare, which are to be sold at tender on March 3rd. Will Coonan of the estate agency said the strong demand for new homes in the Naas area and the fact that the successful bidder will not have to provide for social or affordable housing would undoubtedly help the sale. The permission will allow a mixed development of apartments, townhouses and large detached homes. The land will be sold in one or four lots .
Bruce College building for sale with €3m guide
Dublin's South William Street is in line for further changes with the forthcoming sale of the former Bruce College close to Castle Market. The building is one of the finest on the street and has a floor area of 778.61 sq m (8,381 sq ft) and is located directly opposite the Powerscourt Townhouse Centre. Property Team O'Mahony is quoting a guideline price of over €3 million for the four-storey over basement building which goes to auction on March 2nd. Bruce College is relocating in the city centre.
New wine shop to open on Chatham Street
A new upmarket wine shop is to open at 4 Chatham Street, just off Dublin's Grafton Street. Peter Foley, a former director of Berry & Rudd Ireland Ltd, has taken a 25-year lease on the premises at an annual rent of €90,000. With the basement, ground and first floors of numbers 4/5 Chatham Street now fully let, there are still the second and third floors of 125 sq m (1,345 sq ft) each of office/retail space. Jones Lang LaSalle is handling the letting.
La Senza to open lingerie
shop in Liffey Valley
The lingerie retailer LaSenza is to open its first Irish store at Liffey Valley Shopping Centre in west Dublin. The company will be paying a rent of €395,000 for its new store which will have a floor area of 384 sq m (4,130 sq ft).
Other recent lettings in the centre include Next, which agreed to rent a store of 3,000 sq m (32,292 sq ft) as well as Office, Warner Brothers and Ernest. Hamilton Osborne King and Strutt and Parker handled the lettings.
