Prime Development Land At Maryborough Ridge, Douglas, Cork
Cork, 27 September 2018 - CBRE, on the instructions of NAMA-appointed Receiver George Maloney of RSM Ireland, have today launched the highly anticipated sale of 42.99 acres of prime development land at Maryborough Ridge, Moneygourney, Douglas. This is Cork’s first major post-recession sale of residential development land with full planning permission and is set to be a key barometer in assessing the health of the Cork development market.
The lands are being offered in a single lot and comprise an area of 18.65 acres with full planning permission for 198 houses and a creche along with a further 24.34 acres currently zoned for medium density residential use.
The proposed development lies adjacent to the successful Maryborough Ridge estate where there are 353 residential units in a mix of high quality traditional family housing, duplexes and apartments. The latest phase of development carried out by the Receiver George Maloney, RSM Ireland and project managed by Blue Broe commenced in 2017 and consisted of 20 detached houses extending to over 1,700 sq.ft. These houses sold rapidly with the final sales going through earlier this year at in excess of €500,000.
The proposed scheme designed by Deady Gahan Architects has a very attractive family housing mix with 150 semi-detached and terraced units to meet the strong level of local demand. In addition there are spectacular views from the site overlooking Cork City and the surrounding country side and the proposed scheme has been designed to take advantage of these value adding views. The scheme also includes 48 duplexes and apartments which are likely to appeal to the first time buyer and investor market.
In a departure from the traditional private treaty lump sum method of disposal; the offering here comprises the granting of a licence to develop the 198 units for which there is FPP along with an option to purchase the remaining zoned lands at a future date. The guide price is €12.9m for the Licence, which is to be paid via an initial upfront fee, with the remaining consideration paid in instalments as houses are built and sold. The option lands are guided at €7.3m. The option will be granted on foot of an initial payment and exercisable subject to the grantee making an application for planning permission for a residential development on the lands within a defined timeframe. This structure provides an opportunity for a broad range of developers, and ensures housing is delivered in the short term in an area with significant pent up demand.
Douglas is considered one of Cork’s best suburbs and has a population of just over 21,000. It is located just 4kms south of Cork City Centre and is easily accessible off the N40 South Ring Road. Douglas has an array of boutiques, bars, restaurants and hotel, along with two shopping centres anchored by the likes of Dunnes Stores, Marks & Spencer, Tesco and TK Maxx. It also has an array of top quality primary and secondary schools and a large variety of sporting organisations and clubs.
Housing supply in Douglas is reflective of the national trend with just 88 houses currently on offer according to myhome.ie equating to just 3.85 units per 1,000 population. Meanwhile daft.ie list just 12 properties as being available for rent.
Cork has an exciting future and is set to become the country’s fastest growing city over the next 20 years under the 2018 launch of the National Planning Framework Strategy (Ireland 2040). Cork has laid the seeds of a robust and resilient economic base particularly in the biopharma and ICT sectors, for example Apple’s European Headquarters was established in Cork in 1980 and today has over 6,000 employees. Other businesses of scale include the likes of DELL/EMC, VMWare, Johnson Controls, Pepsi, GE Healthcare and most recently Deutsche Bourse who announced their move and expansion to the South Dockland’s ‘Navigation Square’ development which will cater for over 500 staff. All such activity points to continued strong underlying demand for quality housing the best locations.
I expect considerable interest from across the developer spectrum as the disposal under licence has the benefits of significantly reducing the requirement for site finance, improves land cost affordability and guarantees housing delivery at a time when supply is at critically low levels.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE U.C., (CBRE Ireland) registered in Ireland, no. 316570. PSRA Licence No. 001528 is the country’s largest commercial real estate services company with offices in Dublin and Cork. Currently employing over 135 employees, we work with occupiers, investors and developers of office, industrial and logistic, retail, hotel and healthcare property, providing strategic advice and execution for property sales and leasing; tenant representation, corporate services; property and project management; appraisal and valuation; development services; investment management and debt advisory; business rates and compulsory purchase and research and consulting. Please visit our website at www.cbre.ie