Hundreds of apartments up for sale

HUNDREDS of already occupied Northside apartments have gone on sale as part of the biggest ever property bulk sale in Dublin.

A total of 235 apartments in Charlestown, Dublin 11, and 132 units at Baker’s Yard in Dublin 1 off the North Circular Road up for grabs along with around 400 properties on the Southside.

The NAMA controlled properties are being sold on behalf of four separate developers by agents Savills and Hooke & MacDonald and the guide price totals in excess of e160 million.

The agents say the portfolio presents excellent asset management opportunities including rental growth opportunities. Current annual gross income across the entire collection is approximately e10.4 million per annum, 99 per cent of which is derived from the residential element which benefits from effectively a 100 per cent occupancy rate.

According to the agents, the projected gross rent would increase to approximately e12.5 million per annum based on current headline residential rents and the letting of currently vacant commercial space.

The portfolio is expected to attract substantial interest from North American investors. Canadian real estate investor CapReit is reported to have recently raised e200 million for an Irish investment vehicle and has bought similar investments in Inchicore and Tallaght.

The 235 units for sale in Charlestown make up the majority of the residential element in the mixed use development and are located in multi-storey blocks above the shopping centre.

The original developer of Charlestown in 2007 was Bovale Developments, a company owned by brothers Thomas and Michael Bailey who were disqualified from acting as company directors for seven years last December.

The units at Charlestown are currently producing a gross income of e2.84 million per annum, but the agents say a total annual gross income of e3.34 million can be expected once all rentals adjust in line with current market levels.

The other Northside units for sale are at Baker’s Yard in Dublin 1. The buyer will have a majority ownership in the scheme, which is for sale on the instructions of O’Dwyer Property Management.

The scheme comprises 132 apartments in three blocks, 85 of which are included in the sale along with six commercial units and an ajoining 0.18 hectare site on the corner of North Circular Road and Portland Street.

The site has full planning permission for a further 55 apartments and three commercial units.

The sale includes 85 secure basement car parking spaces and there’s planning permission for a further 59. The agents say annual gross income stands at e1.16 million but a return of approximately e1.25 million per annum is expected once rental levels adjust in line with current market levels.

Domhnaill O’Sullivan of Savilles believes the collection represents good value.

“This is an excellent time to invest and acquire multifamily units in scale while residential rents are increasing,

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“A purchase price at quoting levels would also be significantly below the replacement cost of the assets.

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David Cantwell of Hooke & MacDonald added:

“This is the largest and most interesting portfolio of modern purpose built residential units, also including commercial elements and development sites to be offered on the Irish market, representing an outstanding opportunity for investment, asset management and add-on value.

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