A round up of this week's other commercial property news in brief ...
Irish keen on German market
The renewed interest by Irish property investors in the German market comes at a time when IPD has just reported overall returns of 35 per cent for 2008. It was one percentage point lower than in 2007.
The strong returns are in sharp contrast to the significant re-pricing which most other Continental European markets have experienced.
Donnybrook scheme rejected
Plans to redevelop Madigans bar at Morehampton Road in Donnybrook, Dublin 4, have been blocked by An Bord Pleanála.
James Madigan and Sons had sought permission to demolish most of the existing structure and replace it with a mixed-use three-storey over basement building. It would have included a retail unit over basement, ground and first floor levels and a separate café bar/restaurant on the same floors. It was also proposed to provide three two-bedroom apartments.
The board said that, notwithstanding the retention of part of the existing public house, it was considered that the development involving a third floor mansard roof extension would detract from the streetscape in a residential conservation area.
Mego to open in Swords
Limerick-based fashion retailer Mego is opening a new store today at The Pavilions in Swords. Its range of fashions come from Mexx, French Connection, InWear, Lipsy and Jackpot.
Mego’s owner, Martin Tynan, who will be paying a base rent of €200,000 plus 10 per cent of the turnover for 369sq m (3,972sq ft), plans to open up to eight stores, most of them based in primary shopping centres, as well as in Dublin city centre.
Another fashion trader due to open shortly in Swords, Marc O’Polo, is also expected to expand its operation into other shopping centres in Ireland.
Simon Cooper of Savills advised Mego and Bannon Commercial acted for The Pavilions.
€75,000 rent for Bray pub
DNG Commercial is seeking a rent of €75,000 a year for the former John Kavanagh public house on Castle Street in Bray, Co Wicklow.
It is across the road from Superquinn. The ground floor extends to 265sqm(2,852sq ft). The agent says the owners may consider an initial letting with the option to purchase the building at a later stage. A pub licence can be acquired for around €95,000.
KFC to pay €80,000 rent
Fast food operator KFC is to pay a rent of €80,000 a yearfor a 150sq m(1,615sq ft) shop beside the Ilac Centre in Parnell Street, Dublin 1.
Paul Shine of DTZ Sherry FitzGerald, who acted for KFC, said his client was keen to open further outlets, particularly in the city centre but they were also looking for drive-through facilities in the suburbs.
Disputes on the rise
The economic slowdown is leading to a much increased number of construction disputes, according to Ciaran Fahy, chairman of the Irish branch of the Chartered Institute of Arbitrators.
He told a well-attended annual lunch that it was a fact of life that disputes would arise in major complex contracts and this was all the more likely where work was scarce and profit margins had been cut back to the extent that companies were struggling for survival.
The increased level of disputes was manifesting itself in cases coming before the Commercial Court or the alternative Arbitration Dispute Resolution system which was more highly developed in the construction industry.
