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Kennedy Wilson Europe, which owns over € 1 billion of Irish property, is eyeing up a further stream of companies relocating from the UK post-Brexit.
In its first half results published Friday, the UK listed property group said that it is seeing “additional demand from Brexit-related enquiries” and it expects to see “further Dublin relocation announcements over the rest of the year”.
In the six months to June 30th, the group reported a 2.1 per cent increase in adjusted NAV per share to 1,241.4 pence, with net operating income up by 1.3 per cent to £79.7 million (€88.5m).
The investment fund, which has about a third of its total portfolio invested in Ireland, is positive on the outlook for residential growth, noting that “Dublin continues to show positive population growth projections”.
Despite the introduction of a residential rental cap of 4 per cent, which applies to ‘rent pressure zones’ for a period of three years, Kennedy Wilson said that given that its portfolio is 7.8 per cent under-rented as of the end of H1, it expects to benefit from rental growth in future periods. The group’s recently developed Vantage Phase II units in Sandyford, south Dublin, are exempt from this rental cap, as will be any existing unit which has undergone substantial refurbishment, the group said. Apartments are currently renting in the development for about €3,000 for a three-bed unit.
Across thehotel market Kennedy Wilson continues to see growth, with with Dublin RevPAR up 5.2 per cent year-on-year.
The group said it has completed renovation of the 135-room Portmarnock Hotel & Golf Links, Co. Dublin at a cost of € 9.8 million. The upgrade is feeding through to bookings, with weddings for 2017 so far up by 88 per cent on all of 2016, with RevPar up by 28 per cent.
On the retail front, the property group’s two-year refurbishment of Stillorgan Shopping Centre, Co. Dublin continues at pace, with construction of the new Tesco extension exexpected to be completed by the end of the year. Kennedy Wilson said that renewals with existing tenants have generated a 13.2 per cent rental uplift, and it expects to “further improve the tenant mix while increasing the rent roll.” At the nearby Leisureplex site, which it acquired in X, it is at design stage of an “exciting new mixed-use scheme which could add a further 200,000 sq ft, subject to planning”.