RedevelopmentSitesWith land values rising quickly in Sandyford, there should be plenty of interest in two well-located redevelopment sites in this fast-changing suburb, writes Jack Fagan
Two more land owners in Sandyford, Dublin 18, are planning to capitalise on the substantial rise in values in the area by offering for sale sites that will be redeveloped for offices and apartments.
The move will be closely monitored by several other property owners also contemplating selling sites and buildings while values remain high.
Sandyford has experienced major changes in the last few years, as low-rise factories and warehouses have been steadily replaced by high quality office and apartment schemes. The planners have been encouraging high density developments as a result of the upgrading of the roads network, particularly the extension of the M50, and the availability of the M11/N11 motorways, as well as the introduction of the Luas service.
Paddy Shovlin's ongoing Beacon development in Sandyford has become one of the great showpieces of modern architecture in south Dublin with its high density, high quality mix of apartments, offices, a hotel and a hospital. Shopping and more apartments are in the pipeline.
The enlightened approach to the scheme has set the bar even higher for more traditional building firms also hoping to cash in on the strong prices available in the area.
The two properties going for sale today give a good indication of the going rates for sites in the area. Irish Life is selling two adjoining industrial buildings - one of them occupied - on a site of four acres at Burton Hall Road that is expected to make over €60 million. And a short distance away at Heather Road, a privately-owned company is anticipating over €25 million for two acres which currently house a warehouse and office building.
In both cases, the guide prices are pitched lower than in some recent sales of development land in Sandyford.
The Irish Life property is located directly opposite the five-acre FAAC site which was bought earlier this summer by John Lally's Lalco Developers for around €110 million. Lalco is apparently planning to use the land for a mixed-use development that will be predominantly residential. The location of the Irish Life site lends itself to a similar mixed-use scheme, according to Ronan Downing of selling agent HWBC.
One of the industrial buildings of 3,088sq m (33,246sq ft) is vacant and stands on a site of 2.24 acres. The adjoining building of 3,302sq m (35,547sq ft) occupies a site of 1.8 acres and is let to cigarette manufacturers PJ Carroll & Co under a 35-year lease from 1991. The current rent of €419,104 is subject to an outstanding review.
HWBC, which is due to sell the site by tender on October 19th, says it should be of interest to developers already in Sandyford, as well as others trying to get a foothold in the area.
CB Richard Ellis is also expecting strong interest in the second site on Heather Road, just off Blackthorn Road in the centre of the Sandyford Industrial Estate.
It occupies a prominent position adjacent to Beacon South Quarter and Beacon Hotel. It has a similar zoning to several other sites in the immediate area that have been used for high density mixed-use schemes, according to the selling agent.
A study of the potential for the site by HKR Architects suggest that it could accommodate 165 apartments, 3,050sq m (32,830sq ft) of retail space and 7,100sq m (76,424sq ft) of offices. CBRE plan to sell the site by tender on October 11th.
