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KNIGHT FRANK 20-21 UPPER PEMBROKE STREET DUBLIN 2 IRELAND +353 1 634 2466 @KFIreland KNIGHTFRANK.COM ACHIEVING MAXIMUM VALUE & MITIGATING RISK IRELAND THE DEVELOPMENT LAND EXPERTS
KNIGHT FRANK20-21 UPPER PEMBROKE STREETDUBLIN 2IRELAND+353 1 634 2466 @KFIrelandKNIGHTFRANK.COM
ACHIEVING MAXIMUM VALUE & MITIGATING RISK
IRELAND
THE DEVELOPMENT LAND EXPERTS
NEW DEVELOPMENT HAS BECOME AN INCREASINGLY
FOCUSED AGENDA OVER THE LAST 12-18 MONTHS SINCE ECONOMIC RECOVERY HAS
PROVIDED DEMAND FOR NEW ACCOMMODATION AFTER THE LACK OF DEMAND THROUGH
THE DOWNTURN.
Knight Frank has been at the forefront of the development market helping to share development skills and research and forecasting the type of product demanded and the appropriate viability of schemes in the challenged financial markets we still find ourselves in.
A new generation of developer has appeared on our shores primarily funded by foreign capital but very much in need of the delivery platform skills that local developers and builders have to assist this capital in delivering their objectives.
Day to day we focus on the challenge faced by many developers who are looking to add value and assess how within the challenged financial markets best to deliver affordable accommodation.
As competition intensifies in Dublin it is crucial to understand occupier needs and emerging demand trends.
To facilitate this our research team continuously review the performance of rents, prices and sales volumes of the Dublin markets to ensure our clients and their schemes are in the strongest position possible.
Increased office rents and house prices have become the hot topic with the problem especially acute in the Dublin region.
It is clear that a shortage of new housing is at the heart of the problem with just 3,000 new residential units expected to be delivered in the capital in 2015 which is just a third of what is required on an annual basis (according to Knight Frank New Homes survey 2015). Our New Homes team have a pipeline of schemes coming on stream for 2016 but delivery of supply will depend on State Agencies moving appropriately.
There are now more types of funding on offer than there has been over the last 2 years. Those offering senior debt are now starting to compete against those offering mezzanine finance and equity finance. The two pillar banks have re-emerged as lenders for development land with planning permission and ready to be developed within the next 12-18 months.
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Achieving maximum value and mitigating risk are vital at all stages of the development lifecycle. We have been working for 35 years alongside both land owners and developers providing advice and support on both small and large scale developments.
THE DEVELOPMENT LAND EXPERTS
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James Meagher Director, Development LandOffice: +353 1 634 2466 Mobile: +353 86 255 [email protected]
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2015 PROPERTY TRANSACTIONS
FROM OUR HQ IN DUBLIN 2, OUR DEVELOPMENT LAND TEAM HAS TRANSACTED IN EXCESS OF €1.35 BILLION WORTH OF ASSETS. WE ADVISE ON EVERYTHING FROM SINGLE INFILL SITES TO MULTI-MILLION EURO PORTFOLIOS.
THE DUBLIN DEVELOPMENT LAND TEAM
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THE DEVELOPMENT LAND MARKET HAS CONTINUED TO GATHER SIGNIFICANT
MOMENTUM THROUGHOUT 2015. THE RESIDENTIAL AND COMMERCIAL SECTORS ARE
WITNESSING STRONG DEMAND FROM END OCCUPIERS WHICH IS FUELLING THE DEMAND FOR GOOD QUALITY SITES. READY-TO-GO OPPORTUNITIES ARE
COMMANDING SIGNIFICANT PREMIUMS GIVEN THE
DIFFICULT FUNDING MARKET WE FIND OURSELVES IN.
“LOCATION, LOCATION, LOCATION IS THE REAL-ESTATE AGENT’S MANTRA, BUT EVEN
THE MOST SOUGHT AFTER ADDRESS WON’T GUARANTEE
A RUSH OF SALES IF THE PRODUCT OR TIMING IS
WRONG. KNIGHT FRANK’S INTEGRATED APPROACH
HELPS DEVELOPERS AND LAND OWNERS TO DESIGN AND/OR BUILD THE MOST DESIRABLE
ACCOMMODATION WHILE MAXIMISING RETURNS.
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FINÍN O’DRISCOLL Surveyor, Development LandOffice +353 1 634 2466 Mobile +353 86 049 [email protected]
KIERAN BRAY Surveyor, Development LandOffice: +353 1 634 2466 Mobile: +353 86 467 [email protected]
BRIDIE CAFFERKEY Administrator & P.A. Development LandOffice: +353 1 634 [email protected]
JAMES MEAGHER Director, Development LandOffice: +353 1 634 2466 Mobile: +353 86 255 [email protected]
EVAN LONERGAN Director, Development LandOffice: +353 1 634 2466 Mobile: +353 86 830 [email protected]
Price: Sold in excess of €7 million
Knight Frank recently transacted this 1.39 acre site with no planning permission.
Esmonde Motors Site, Stillorgan, Co. Dublin
Price: Confidential
Knight Frank recently sold this site with full planning permission for 3,227 sq.m. of office space.
Waterfront Office Site, Charlemont Place, Dublin 2
Price: Sold in excess of €67 million
Knight Frank recently transacted this 3.7 acre prime redevelopment site with no planning. www.theballsbridgeproject.com
Ballsbridge Project, Dublin 4
THE READY-TO-GO NATURE OF THIS BALBRIGGAN
SITE INCREASED DEMAND SIGNIFICANTLY FROM
BUILDERS.
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Price: Sold in the region of €9 million
Knight Frank sold this ready-to-go redevelopment opportunity with full planning permission for a 4,265 sq.m. of office/retail scheme.
South Great George’s Street, Dublin 2
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Price: Sold in excess of €4.5 million
High profile residential development site of approx. 4.75 acres with planning permission for the refurbishment of Bolton Hall House and the construction of an additional 20 houses.
Bolton Hall, Rathfarnham, Dublin 16
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Price: Sold in excess of €26 million
Knight Frank sold the prestigious, high profile Castlemartin Estate and Stud Farm extending to approx. 750 acres.
Castlemartin Estate, Kilcullen, Co. Kildare
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Price: Sold for €2.7 million
1.25 acre residentially zoned site in the much sought after residential area of Foxrock, Dublin 18. It did not have the benefit of planning permission.
Aberdour, Foxrock, Dublin 18
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Price: Sold in the region of €4.75 million
Knight Frank sold this ready-to-go redevelopment opportunity with full planning permission for 99 houses.
Naul Road, Balbriggan, Co. Dublin
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Price: Sold in excess of €1.5 million
Knight Frank sold this property which comprised a motor repair garage of approx. 1,434 sq.m. situated on a self-contained site of approx. 0.37 acres.
Russell Street, Dublin 1
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THE PRICE ACHIEVED FOR THE FORMER CEMEX SITE WAS A CLEAR ILLUSTRATION OF THE MARKET RECOVERY OVER THE
PAST 18 MONTHS.
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Price: Sold in excess of €5 million
Knight Frank transacted this high profile development site of approx. 15.7 acres with 9,316 sq.m. of industrial/manufacturing warehouses.
Former Cemex site, Naas, Co. Kildare
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Price: Acquired for €70 million
Former Garda Headquarters on Harcourt Street. The site comprised 2 acres in an off-market transaction.
Harcourt Street. Dublin 2
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Price: Sold in the region of €1.7 million
Knight Frank sold this partially complete development with 19 acres and standing stock.
Old Grange Wood, Monasterevin, Co. Kildare
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Price: Sold for €960,000
Knight Frank sold this partially complete residential development.
Gallows Hill, Athy, Co. Kildare
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THE ACQUISITION OF THE GARDA HQ ON
HARCOURT STREET FOR €70M WAS ONE OF THE
MOST SIGNIFICANT “SPECULATIVE” OFFICE
SITE PURCHASES OF THE YEAR.
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Price: Confidential
Knight Frank acquired this prominent city centre site from C.I.E. with potential for 20,000 sq.m. of office development.
Tara Street, Dublin 2
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Price: Acquired for €6.25 million
Knight Frank acquired this 5 storey, 1,938 sq.m. student accommodation building comprising of 23 apartments for redevelopment.
Alexander Court, 25 Upper Pembroke Street, Dublin 2
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Attention to detail at every stage of the development process helps Knight Frank’s consultants build the best returns for developers and land owners. Creating a development that not only sells well but also makes a good return for its developer doesn’t generally come about by luck, but will be down to meticulous planning throughout the lifetime of the project.
HOW KNIGHT FRANK CANMAXIMISE RETURNS
AN INTEGRATED APPROACH: LOCALLY AND GLOBALLY
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The Development Land team has the benefit of being able to work very closely with our residential department to advise our clients on the constantly evolving new homes market. This gives us up to the minute knowledge on consumer requirements. Our New Homes department have been market leaders in this area for the past 5 years and by adopting a joint approach we are best placed to maximise the return to the land owner.
Knight Frank has the leading Irish office agency team and we work closely with our office colleagues to advise on maximising the space and site value for office development opportunities.
Our office team are literally changing the office rents in the market place and therefore we are best placed to give comfort to office site purchasers on the likely rents achievable for the end product.
THE VALUE ADD PROCESS
P R O F I T A B I L I T Y
CONCEPT PHASELand useUnit mixContext
DESIGN & BRIEFVisionObjectivesLeadership
PLACEMAKINGMessaging and promotion Land use integrationSocial responsibility
SALES
StrategyReviewPump prime
1RESEARCHMarket analysisPractical experienceCommunity
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PLAN PHASE-INITIALSchematic testingBuilding relationshipsHorizontal v Vertical integration
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VIABILITY
DeliverabilityPhasingFunding
PLAN PHASE-DETAILDesignReview Deliver
BUILD PHASEInnovateSustainabilityScale
MARKETINGCampaign structureBrandingCollateral
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The development pathway illustrated on this page highlights the 10 key stages Knight Frank’s development consultancy and marketing experts will split a project into, from concept to sales. Every stage will have a significant bearing on the overall viability of the scheme.
Although the internal and external look and feel of the development is what will eventually attract buyers, a lot of work will have been done before an architect or interior designer even put pen to paper. Much of the development process is devoted to rigorous analysis and market research into the potential target audience and pinpointing the exact product they are looking to buy and what price they are likely to pay.
Following the development pathway and getting the concept right from the very beginning of the project is therefore crucial for maximising returns.
At Knight Frank we have a dedicated development land team that advise on all aspects of the development process to include:
• Land acquisitions
• Advising on appropriate product mix for planning applications
• Carrying out appraisals to advise on site values, GDVs, profit levels, etc.
• Joint ventures
• Land disposal
The combination of our people, research and technology has helped us to grow our enviable track record and that’s why clients come back to us for their personal and professional property requirements.
OVER 13,000 PROPERTY PROFESSIONALS IN MORE THAN 417 OFFICES IN 58 COUNTRIES.
Through our Knight Frank worldwide network we have in-house dedicated teams to help advise on the following:
• Agency• Building Consultancy• Business Rates• Capital Markets• Corporate Recovery & Restructuring• Development Consultancy• Facilities Management• Global Corporate Services• Lease Advisory• Planning• Project Management• Property & Asset Management
• Sustainability Consultancy• Tenant Representation• Valuations• Workplace Consultancy• Healthcare• Hotels• Industrial & Logistics• Offices• Residential• Retail & Leisure• Rural & Agricultural• Student Property• Public Sector
