588 Dublin Apartments and Commercial Space for €116m

588 Dublin apartments across seven residential developments, along with 36,274 sq ft (3,370 sq m) of commercial and retail space, have been brought to the market with a guide price of €116m – equating to an initial yield of approximately 6.3% (based off 100% occupancy).

The sale – named ‘The Plum Portfolio’ – is being handled by Savills and DTZ Sherry FitzGerald, who confirmed that the developments are available collectively or in individual lots. The apartments are fully let and the sale will not affect the current tenants.

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All of the apartments included in the sale are located in Dublin – mainly in the suburbs – and have strong surrounding infrastructure and transport links providing access to Dublin city centre in less than 20 minutes. The one exception to this is a city centre block of apartments at Lad Lane, which may offer a redevelopment opportunity on lease expiry.

The residential element of the portfolio comprises:

Development

No. of Apartments

Beechwood Court, Stillorgan, Co Dublin

101

Time Place, Corrig Road, Sandyford, Dublin 18

67

Lad Lane, Cumberland Road, Dublin 2

40

Carrington Park, Northwood Park, Santry, Dublin 9

141

Northern Cross, Malahide Road, Dublin 13

128

Heywood Court, Northwood Park, Santry, Dublin 9

38

Waterside, Malahide Road, Co Dublin

73

Currently, the combined gross income from the seven developments is approximately €7.43 million per annum. However, according to the agents, successful implementation of asset management initiatives – such as the letting of vacant commercial accommodation and increasing current passing rents in line with market rents – could see income increase to approximately €8.7 million per annum.

Domhnaill O’Sullivan, Director of Investments at Savills said: “Project Plum presents investors with an excellent opportunity to acquire a significant volume of multifamily units at a time when property prices and rents in Dublin continue to rise. The developments on offer are in established residential locations with high rental demand which is likely to attract interest from both local and international investors.”

Ivan Gaine, Head of Capital Markets & New Homes, DTZ Sherry FitzGerald further commented: “We anticipate strong interest across the portfolio – in addition to the rent and yield trajectory; it is likely that prospective purchasers will underwrite on a ‘break-up’ value particularly across developments such as Beechwood Court, Stillorgan and Timeplace, Sandyford. There are also further asset management opportunities within the medium term in respect of the Lad Lane asset.”

Beechwood Court is located in South County Dublin – 10 km south of Dublin City Centre. Built in 2006, the development benefits from a high level of connectivity close to excellent transport links. The entire development comprises 316 apartments and houses; the majority of which have been sold, while the remaining 101 apartments are included in this portfolio sale. The current annual income stands at approximately €1.5 million.

Waterside is a modern residential development located on the Swords Road in North Dublin between Swords and Malahide. The sale includes a total of 73 residential units and 3 commercial units totalling 5,780 sq ft (537 sq m). The residential units are fully let typically on short term annual fixed term leases. The current total annual gross income is approximately €1.035 million including €60,000 per annum being produced by the commercial units which are leased on 15 x 5 year leases from August 2014.

Carrington Park is a high quality residential complex located within the Northwood Development in Santry. There are a total of 347 residential units in the development, 141 of which are included in the sale. 13 of the units have yet to be fully completed and require some minor capital expenditure in order to bring them to a lettable standard. The completed units benefit from 100% occupancy and produce a gross annual rental income of approximately €1.58 million.

Also located within the Northwood Development is Heywood Court – which comprises a total of 90 units, 38 of which are the subject of this sale. The subject units benefit from 100% occupancy and produce a current annual income of approximately €402,000.

Situated on the Malahide Road, Northern Cross is a mixed use development comprising residential and retail accommodation over basement level car parking.  The entire scheme includes 535 apartments, 128 of which are the subject of this sale and benefit from 100% occupancy. The current total annual gross income stands at approximately €1.5 million. The commercial element comprises 20 own door retail units and extends to 30,500 sq ft (2,833 sq m). All units are currently vacant, however once fully let, they have the potential to generate approximately €300,000 per annum.

Time Place is located in the centre of Sandyford, Dublin 18 and neighbours Beacon South Quarter, a prime residential development with retail space, a cultural centre and open-air mall. The entire development comprises 90 apartments, 23 of which have been sold, while the remaining 67 apartments are included in this portfolio sale. The current annual income stands at approximately €995,000.

The Lad Lane development is ideally located in the heart of Dublin City Centre only minutes’ walk from St Stephen’s Green. The property comprises a 6 storey apartment block and offers a total of 40 apartments which are held under a leasehold interest in its entirety. The property is currently held under a 4 year lease from August 2012 to Reservations Network (Dublin) Limited at an annual rent of €372,000 per annum and is currently in use as student accommodation. An additional €70,000 per annum of income is generated from the car park licence agreements.