The high profile Rockbrook Estate in Sandyford, Dublin 18, is on the market for €80 million. The sale of the development is being handled by Savills on the instructions of Pearse Farrell, Receiver, Duff & Phelps.
The guide price for the property equates to an initial gross income yield of approximately 5.2% after standard purchaser’s costs.
Minority stakes within the Rockbrook Estate were previously acquired by the Comer Group who bought the incomplete Sentinel Tower in 2011 for approximately €1million, an Israeli investor who bought the Aldi store in 2012 for approximately €7.7million and CAPREIT (now IRES) who bought 63 residential units within Grande Central in 2013, which formed part of a portfolio they acquired last year for approximately €42million.
The Rockbrook Estate was partially constructed in 2007 and incorporates an integrated mixed use scheme. The development extends over a 3.12 hectare (7.7 acre) site comprising two complete residential blocks, known as Grande Central and South Central, ground floor mixed-use commercial accommodation, known as the Boulevard, and three levels of basement car parking. In addition to this, the development also incorporates a strategic 1.13 hectares (2.8 acre) partially developed site.
Sandyford is well established from both a residential and commercial perspective and the locality benefits from an excellent range of amenities and transport links. The Green LUAS Line is located directly in front of the scheme, while several Dublin Bus routes also service the development. The M50 and N11 motorways are easily accessible and provide swift access to all Dublin regions.
The residential blocks comprise 419 apartments in total, 270 of which make up the subject sale, 81 apartments in Grande Central and 189 in South Central. The 270 apartments are virtually fully occupied and consist of 46 one bedroom, 203 two bedroom and 21 three bedroom apartments. The stylish apartments benefits from impressive courtyards and landscaped areas, with the majority of the apartments containing their own balcony and car parking space.
The 270 residential units produce a current gross rent roll of approximately €4.15 million per annum with potential to further increase this income.
· The average monthly rent for a one-bedroom apartment in the scheme is approximately €1,136 with recently agreed rents increasing to €1,250 per month.
· The average monthly rent for a two-bedroom apartment in the scheme is approximately €1,308 with recently agreed rents increasing to €1,450 per month.
· The average monthly rent for a three-bedroom apartment in the scheme is approximately €1,655 with recently agreed rents increasing to €1,850 per month.
The mixed use commercial accommodation at The Rockbrook Estate extends to an area of approximately 4,459 sq m (48,000 sq. ft.) and has direct access to the multi-level underground car park. The scheme is anchored by EZ Living and the privately owned Aldi store. The total gross income from the commercial accommodation in question currently stands at approximately €183,000 per annum with immediate opportunities to increase the income through letting of vacant accommodation. The available commercial units are suitable for a variety of uses including retail, office, medical and leisure.
The development site included is approximately 1.13 hectares (2.8 acres) benefiting from an existing grant of planning permission to provide for an additional 467 apartments, 5,976 sq m of commercial space and associated basement car parking. The planning permission is valid until July 2016; however purchasers are likely to seek variances to this planning.
Dessie Kilkenny, Director of Investments at Savills Ireland commented;
“The Rockbrook Estate is a high profile opportunity for investors and developers – domestic and international – seeking to secure prime assets of scale. Sandyford and the greater Dublin area has been the focus of many investors who are looking to position themselves with exposure to the multi-family and development sector in prime suburban markets. This sector of the market is in advanced growth mode from a yield, rental and capital growth perspective. We have already witnessed this through the sales of Central Park, Heuston South Quarter and Clancy Quay and similarly expect the same from the current sales of Project Orange and Cherrywood.”