Dublin's TU Aungier Street Campus For Sale Guiding €110 million - Construction Network Ireland - Construction Network Ireland

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Published in Commercial Property on 04/03/2020

Dublin’s TU Aungier Street Campus For Sale Guiding €110 million

#CBRE

CNI Editor reports

TU Dublin, Aungier Street Campus is being brought to the market for sale through agent CBRE on behalf of Technological University Dublin and Grangegorman Development Agency and their advisors Duff & Phelps Ireland Ltd.

The campus is being offered with a guide price of €110,000,000. The site has development potential, subject to planning permission, to deliver a brand new urban quarter in the heart of Dublin 2. D2HQ, situated only 350m from St Stephen’s Green, is the most prominent city centre development site to be offered to the market in Dublin in the last 12 months.

The site extends to 2.5 acres and is zoned Z5 City Centre under the Dublin City Development Plan 2016-2022. This
offers the ultimate purchaser the potential to provide for a mix of uses including offices, retail, residential, hotel & student accommodation.

The introduction of the Urban Development and Building Height Guidelines for Planning Authorities in December 2018 will be of major benefit to any proposed scheme given the location of the site. This has proven to be the case in the recent grant of planning for Apollo House, with a permitted height of 21 storeys recently approved by Dublin City Council. Connolly Quarter, adjacent to Connolly Station, has also been the beneficiary of the guidelines, with a residential development extending to 23 storeys recently approved through the SHD process.

Feasibility studies undertaken by O’Mahony Pike Architects provide 3 potential development options for Aungier Street, outlining the possibility for a purely commercial and a mixed use scheme comprising offices and apartments catered for the PRS market. The office scheme extends to 60,390 sq. m (Gross Floor Area), while the mixed-use options provide for a range of office space from 38,580 – 41,860 sq. m as well as 152 apartment units suited to the PRS Market.

The Dublin office market performed strongly in 2019, with approx. 236,500 sq. m of office lettings in Dublin city, with the Dublin 2/4 district accounting for in excess of 65% of total take up. Vacancy rates in Dublin are low and have settled around 4.2% in Dublin city centre, with a vacancy rate of approx. 3.4% for Grade A stock. With in excess of 432,000 sq. m of live requirements in Dublin at present, the office market is expected to continue to flourish, and Aungier Street will be in a prime position to benefit from the prevailing appetite for prime office space.

There has also been a significant increase in investor appetite in the PRS market, with €2.4bn invested last year, equating to 33% of the overall market spend. With Dublin remaining vastly underserved by apartment accommodation relative to other European major cities, interested  parties may seek to deliver an element of residential accommodation on site to capitalize on investor appetite, with prime net initial yields currently in the region of 3.75%.

The existing buildings on site range in height from 4-5 storeys above basement extending to 25,833 sq. m in total and were developed in phases between 1989 & 2004. The building accommodates 5,000 students at present. The site occupies a high profile corner location on the junction of Bishop Street and Peter Row, with excess 240m of frontage facing on to Bishop Street and Peter Row. The site is bound by Bishop Street to the south, Peter Row to the east, Peter
Street to the south and the National Archives of Ireland to the west. The entrance to the basement of the existing building is located on Bishop Street, with vehicular access also provided on Peter Street.

Technological University Dublin will welcome 10,000 students and staff to its new flagship campus in Grangegorman, Dublin 7 in September 2020. When complete, it will have more than 20,000 students and 2,500 staff on the 73-acre site.

Peter Garrigan, Director, Head of Development, CBRE said “D2HQ represents one of the most attractive mixed-use development sites in Dublin City and is in prime position to provide for a host of uses. With St. Stephen’s Green on the doorstep and the Luas in close proximity, the site is well catered for in terms of transport and local amenities, in an already well-established commercial location. We expect to see considerable interest from a range of interested parties for D2HQ given the scale and development potential to provide for a brand-new urban quarter in Dublin 2.”