Major Multifamily Portfolio in Dublin Brought to Market for $147M

By Adriana Pop, Associate Editor

Dublin, Ireland–A private investor and Ireland’s National Asset Management Agency have appointed international real estate advisor Savills and DTZ Sherry FitzGerald to sell 588 apartments across seven residential developments in Dublin.

The guide price for the entire portfolio has been set at approximately $147 million (€116 million), which represents a net initial yield of approximately 6.3 percent.

The residential properties, collectively known as “The Plum Portfolio,” are fully leased and offer about 36,274 square feet (3,370 square meters) of commercial and retail space. Residents will not be affected by the sale of these assets, which may also be acquired separately, as individual lots.

The residential component of the marketed portfolio includes:

• 101 apartments at Beechwood Court, Stillorgan, Co Dublin
• 67 apartments at Time Place, Corrig Road, Sandyford, Dublin 18
• 40 apartments at Lad Lane, Cumberland Road, Dublin 2
• 141 apartments at Carrington Park, Northwood Park, Santry, Dublin 9
• 128 apartments at Northern Cross, Malahide Road, Dublin 13
• 38 apartments at Heywood Court, Northwood Park, Santry, Dublin 9
• 73 apartments at Waterside, Malahide Road, Co Dublin

The combined annual gross income from the seven properties is currently about $9.4 million (€7.43 million) and has the potential to increase to more than $11 million (€8.7 million) per year.

“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,” Domhnaill O’Sullivan, investment director at Savills, says.

Most of the apartment complexes included in the sale are located in the city’s suburbs, with the exception of the Lad Lane property in downtown Dublin.

Beechwood Court is located in South County Dublin and benefits from a strong surrounding infrastructure and transport links. It was built in 2006 and comprises 316 apartments, most of which have been sold. The remaining 101 apartments included in the portfolio sale bring an annual income of approximately $1.9 million (€1.5 million).

Time Place is situated in the center of Sandyford, Dublin 18. It is also nearby Beacon South Quarter, a prime residential development with retail space, a cultural center and an open-air mall. The community features 90 apartments, 67 of which are subject to this portfolio sale. The property’s current annual income stands at approximately $1.26 million (€995,000).

Located in the heart of downtown Dublin, the 40-unit Lad Lane residential community is currently in use as student accommodation. Since August 2012, the six-story property is held under a four year lease agreement to Reservations Network (Dublin) Limited at an annual rent of $471,000 (€372,000). Furthermore, its car park license agreements generate an additional income of more than $88,000 (€70,000) per year.

The Carrington Park residential community is situated within the Northwood Development in Santry. It comprises 347 apartments, 141 of which are subject to this sale. 13 of the units have yet to be completed, while the rest of the apartments are fully leased and offer a combined gross annual rental income of approximately $2 million (€1.58 million).

Northern Cross is a mixed-use residential and retail development located on the Malahide Road. It features 535 apartments, 128 of which are the subject of this sale and benefit from full occupancy. The property’s total annual gross income currently stands at $1.9 million (€1.5 million). The retail component, which includes 20 units, totals 30,500 square feet (2,833 square meters). The units are currently vacant, but once fully leased, they have the potential to generate about $380,000 (€300,000) per year.

Located within the Northwood Development, Heywood Court comprises a total of 90 apartments, 38 of which are included in this portfolio sale. The subject units are completely occupied and produce an annual income of approximately $509,000 (€402,000).

Waterside is located on the Swords Road in North Dublin between Swords and Malahide. The property features 73 residences and three commercial units totaling 5,780 square feet (537 square meters). The entire complex has a total annual gross income of approximately $1.3 million (€1.035 million), which includes more than $76.000 produced by the commercial units, which are leased on 15 five year leases beginning August 2014.

“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,” added Ivan Gaine, Head of Capital Markets & New Homes at DTZ Sherry FitzGerald.

Photo credits: www.daft.ie