A round-up of other commercial property news in brief
D4 suites with prices cut
The selling prices for modern office suites on a south Dublin office campus have been drastically cut to ensure that they sell in the current difficult market.
The suites are in Beaver House at Beech Hill Campus in Clonskeagh, Dublin 4, which has been extensively refurbished since being vacated by Ericsson, the telecommunications giant.
Joint selling agents Finnegan Menton and Jones Lang LaSalle are quoting selling prices of €2,852 per sq m (€265 per sq ft) for the suites which come in a variety of sizes that will appeal to companies and investors. These prices are a long way short of the figure of over €7,534 per sq m (€700 per sq ft) achieved two years ago for the Topaz office investment, also in Clonskeagh.
Suites in Beaver House of 311sq m (3,350sq ft) with 10 car-parking spaces are for sale for €990,000. Larger units with floor areas of 602sq m (6,480sq ft) and 20 car-parking spaces are available for €1.92 million.
Interested parties will also have the option of different sized combinations or the entire building and 90 car-parking spaces for €8 million. This price equates to €2,583 per sq m (€240 per sq ft) and €10,000 for car-parking spaces.
Returns positive in UK
Beleaguered UK property funds delivered their first positive quarterly returns since the onset of the financial crisis in the three months to September, according to data provider IPD.
Unlisted pooled funds produced average returns of 1.7 per cent in the third quarter, their first gains since the second quarter of 2007, having chalked up cumulative losses of 48.8 per cent in the interim.
Meanwhile CB Richard Ellis in London has reported significant increases in real estate investment turnover in the UK, Germany and Spain in the third quarter of 2009. European investment activity totalled €17.3 billion, a 34 per cent increase on Q2 09 and the highest quarterly result so far this year. It is still well down on the €30 billion investment turnover in the same period of 2008.
Hotel group to invest 33m
The Moran Hotel Group is to spend £30 million (€33m) on enlarging the Chiswick Moran Hotel in London. Planning permission has been secured for an additional 81 bedrooms to bring the total up to 200 as well as 16 extra meeting rooms, a banqueting facility to cater for up to 300 people and additional underground parking for 90 cars.
River Island grows in Square
Nearly a year after opening a stand alone store at The Square in Tallaght, UK fashion giant River Island has extended its outlet by almost half to bring the overall floor area up to 650sq m (7,000sq ft). The rapid expansion underlines the success of the trader and also of the centre, which has been trading strongly despite the downturn in retail spending. River Island is understood to be paying a base rent of around €400,000 a year plus a percentage of the turnover. Elsewhere in the centre, restaurant and coffee chain The Streat has opened a new 139sq m (1,500sq ft) outlet on level two. Like River Island, The Streat will be paying a base rent as well as a percentage of its turnover. It has 35 stores, mainly in Northern Ireland.
Karl Stewart of DTZ Sherry FitzGerald, who acted for the owners of the centre, said the upsizing of River Island and the arrival of The Streat follows the completion of a €20 million refurbishment which has greatly enhanced the centre.
Lifestyle for Arklow centre
Sportswear retailer Lifestyle is to open a new store next month at the Bridgewater shopping centre in Arklow, Co Wicklow. The company will open in the former Principles store, a double level unit of 325sq m (3,500sq ft) on a 10-year lease. Lifestyle is likely to be paying a rent in the region of €60,000 for the unit, about a third less than the agreement with Principles.
Principles had the option of paying a rent of €95,000 or 10 per cent of the turnover. Earlier this summer, Bridgewater also reallocated the former Zavvi store to A wear. It has a floor area of 464sq m (5,000sq ft).
Colliers Jackson-Stops, which handled the lettings, has also agreed with a butcher to open a new business in a unit of 139sq m (1,500sq ft). The rent will be around €60,000 per annum. Shane Cahir of Colliers said the latest letting meant that the centre would now return to 100 per cent occupancy – a rarity for Irish shopping centres. The footfall levels in the centre continued to outperform the national average. In the summer months – from June to August – the centre had an average footfall of 60,000 per week. This was down 5 per cent on the same period in 2008 but better than the national average of minus 6.2 per cent.
The centre is marketing a 185sq m (2,000sq ft) quayside restaurant with access into the shopping centre. It is beside the nine-screen Gaiety cinema and is available at a rent of €60,000 per annum.
