Latest news with #ArdstoneCapital
Irish Times
09-07-2025
- Business
- Irish Times
The institutional investors we need have withdrawn from the Irish housing market
Latest figures from the CSO confirm that institutional funding of new apartment developments for the private rental market has collapsed due to the unfavourable conditions prevailing in the State for this sector. This funding has fallen from 15 per cent of new homes purchased in 2022 to 5.5 per cent in 2024, a fall of 63 per cent. The 5.5 per cent mainly related to transactions that took place in 2021 and 2022 that are just now being completed, so the figure of 5.5 per cent actually overstates the level of funding due to the lag in sale closures. The recently announced Government measures on rent pressure zones (RPZs), while helpful in some respects, mainly for tenants , fail to recognise the seriousness of the position or to remove the blockages to pension funds and institutional capital supporting housing supply. There were no new residential units purchased by institutional investors in either 2024 or 2025, marking a complete withdrawal of this cohort from the market. Sales activity has ceased, with no new transactions recorded to date, apart from some stabilised (existing and tenanted) stock. This stands in contrast to claims made by some commentators, and it is regrettable that certain analyses of the CSO housing data have been inaccurate and misleading. Ken MacDonald, managing director at Hooke & MacDonald While Ardstone Capital is currently finalising its acquisition of the Spencer Place scheme in Dublin's north docklands for €177 million, the development is already fully let, offering the investor immediate income and a stabilised yield. As such, it does not represent a new residential purchase in the conventional sense, nor does it reflect a reversal of the broader trend of institutional disengagement from the Irish housing market. READ MORE According to Hooke & MacDonald Research analysis of the latest CSO/Eurostat figures, the biggest movers in the 2024 figures showing the composition of purchasers of new homes are first-time buyers and the public sector category which includes the Land Development Agency (LDA), approved housing bodies (AHBs), local authorities and the Housing Agency; this latter cohort has now become the second biggest purchaser of new homes, at 27.5 per cent of the total, increasing from 22 per cent in 2022 and a 96 per cent increase from 14 per cent in 2018. Hooke & MacDonald Research has tracked the composition of purchasers of new homes in the Republic from 2015 to 2024. First-time buyers have consistently been the leading purchasing group. In the latest statistics released by the CSO, first-time buyers continue to lead the way and increased their percentage of new home purchases from 33 per cent in 2023 to 36.5 per cent in 2024. Other owner-occupiers constituted 22 per cent, down from 23 per cent in the previous year. The dramatic movement by private funders away from the Irish housing market as shown by these figures is very damaging for supply in the market and particularly for the private rented sector, which is already negatively impacting on the supply and cost of accommodation and which is on course to deteriorate further this year and in the coming years. Institutional entities/pension funds have been responsible for funding the construction of more than 20,000 apartments, mostly in Dublin, in the past eight years providing accommodation for approximately 50,000 people based on an estimated occupancy of 2.5 persons per property. If these had not been built the rental market would now be in a far worse position than it currently is in terms of supply – these properties would not have been built if it wasn't for these sources of capital. Added to these figures would be the substantial number of public-sector housing units funded by the institutions. The State can only fund less than half of the €20 billion-plus required annually for the funding offer a minimum of 50,000 new homes so it is imperative that conditions are created as a matter of urgency for international capital funding to re-enter the market and make up the difference in the funding shortfall. The damage done by the 2 per cent rent cap is now plain to see. [ Rents unlikely to come down for several years after reforms, Coalition told before agreeing overhaul Opens in new window ] Funding by the Government for the different typologies of housing needed in the public sector is an absolute necessity and must continue. It is such a pity that funding for the private sector is being impeded by measures preventing institutions from supporting the private rental sector housing market in Ireland. Ken MacDonald is managing director at Hooke & MacDonald
The Herald Scotland
04-06-2025
- Business
- The Herald Scotland
Scotland's capital must protect it prime office stock
Protecting Edinburgh's office space The nature of work has evolved since the pandemic with hybrid and flexible working becoming more prevalent. Rather than diminish the need for office accommodation, for many occupiers these new ways of working have reinforced the need for a high-quality office environment to compliment hybrid working arrangements. Companies are now looking for well located, well-designed office space that fosters collaboration and innovation. Edinburgh's central business district (CBD) has long provided this, particularly in key locations such as St Andrew Square, Exchange District and the West End. Yet Edinburgh's office market remains constrained with a worrying shortage of prime Grade A space, which is subsequently impacting business expansion and relocation decisions. With a lack of new development, the case for refurbishment is strong with almost 40% of take-up in 2024 for refurbished office stock. One example is Ardstone Capital's refurbishment of 24 St Andrew Square, on behalf of CBRE Investment Management and the Ardstone Regional Office Fund, which was 60% pre-let at practical completion demonstrating the continued strength of demand for this type of high quality space. Significant competition Despite this, and even against a backdrop of positive sentiment, office developers in Edinburgh face a significant challenge. Essentially, they are struggling to compete when it comes to acquiring vacant offices to either refurbish or redevelop. Over the past 18 months, more than 220,000 square feet of prime office pipeline has been taken out of the market, all of which was sold for hotel conversion. While this demonstrates the significant appetite from hotel operators and enhances the city's tourism appeal, it also raises considerations about maintaining sufficient prime office stock to support a dynamic economic centre. Especially as recent sales were not for tertiary-located offices, but prime sites that, if developed, would command top-level rents. Savills sale of Edinburgh One, located on Morrison Street in the heart of the Exchange District, is a good example. It attracted strong interest from both office and hotel developers but ultimately sold unconditionally for hotel conversion. Other instances include Capital House, 28 St Andrew Square, and 9-10 St Andrew Square. These are all prime locations that cannot be easily replicated, meaning businesses may need to start looking elsewhere. Ultimately, this highlights the importance of creating a planning framework that supports a well-balanced approach to development. A Vision for the Future At present, there is currently no specific planning policy preventing the conversion of office buildings. Although the National Planning Framework 4 (NPF4) assumes the retention of office buildings and encourages alternative uses where office space is deemed unfit for purpose, there is no explicit protection of prime space. Introducing measures to safeguard strategically important office locations could help maintain a thriving business environment alongside the city's growing visitor economy. By fostering collaboration between local authorities, planners, developers and investors, Edinburgh can continue to evolve in a more balanced way that supports both tourism and business needs. Additionally, if exit yields tighten for office developers, this will make them more competitive when bidding for properties. After all, the issue isn't a lack of appetite, as evidenced by the aforementioned sale of Edinburgh One. Now, therefore, is the time for measures to be put in place to ensure Edinburgh remains a vibrant place to work, visit and invest. Mike Irvine is a director in the Edinburgh office agency team at Eilidh Levein and a surveyor in the Edinburgh investment team at Savills
Irish Times
28-05-2025
- Business
- Irish Times
Ardstone Capital to pay €177m for Dublin docklands apartments developed by Johnny Ronan firm
Ardstone Capital is set to pay €177 million to acquire Spencer Place, the high-end residential scheme developed by Johnny Ronan 's Ronan Group Real Estate (RGRE) in Dublin's north docklands. The company, which maintains offices in Ireland, the UK, Germany and Spain, is understood to be in the process of finalising its acquisition of the portfolio of 393 apartments from the US-headquartered Fortress Investment Group, having seen off competition from several parties. Another US real-estate investor, Hines, had been in the lead to acquire the Spencer Place scheme until recently, before being overtaken by Ardstone. The first round of bidding saw a total seven parties either bidding or expressing their interest in the scheme. While the initial stage of the process saw bids from Hines, Irish investment manager Carysfort Capital, German investor MEAG and one other party, Ardstone Capital limited its involvement at that point to an expression of interest, as did Ares Management and Axa. Offers for the portfolio are understood to have come in at €160 million-€170 million in the first round. Should Ardstone Capital complete its acquisition of Spencer Place for €177 million, it stands to secure a yield of 4.9 per cent on its investment. The proposed deal is understood to be in legals at present. The disposal of the portfolio is being handled by joint agents Eastdil Secured and CBRE. READ MORE The apartments at Spencer Place already came close to being sold on a number of occasions over recent years. In 2020, US real estate investor Cortland is understood to have been prepared to pay some €315 million to fund and acquire a larger scheme of 550 apartments and coliving units RGRE had been proposing for the site. The proposed deal with Cortland was abandoned, however, following repeated legal challenges from Dublin City Council in relation to An Bord Pleanála's approval of RGRE's plan to accommodate the additional units by increasing the height of the two blocks within the development from seven to 11 and 13 storeys respectively. In July 2021 the UK-headquartered property investor Round Hill Capital engaged in discussions with RGRE in relation to the potential purchase for about €220 million of a development comprising 349 apartments and a 100-bed aparthotel on the Spencer Place site. The portfolio that is now being sold comprises 393 apartments arranged across three blocks along with a range of facilities that include a 24-hour concierge, coworking area, bookable kitchen, gym, cinema, top-floor communal areas with views over the city, 78 car-parking spaces and 828 bicycle parking spaces.
