Tuesday 25 July 2017

Play your cards right to cash in on bumper Casino investment

The Casino development at Malahide which has a guide price of €40m for a portfolio of 105 apartments
The Casino development at Malahide which has a guide price of €40m for a portfolio of 105 apartments

Donal Buckley

The multi-family investment market has received a fresh fillip with the launch of a portfolio of 105 apartments at The Casino, Malahide. Agents Hooke & MacDonald are quoting a guide price of €40m for the tranche, which represents about €381,000 per apartment.

The complex was developed by Gannon Homes, headed by Gerry Gannon who is currently undertaking a number of Nama-supported housing developments.

Rents, including potential rental income from show-apartments that are currently vacant, would equate to about €2,003,000 per annum, suggesting a gross yield of 5pc.

David Cantwell, director at Hooke & MacDonald, says a purchaser could expect to achieve average rental increases of approximately €80,000 per annum over the next three to four years.

Given the very strong price levels achieved last year for two units, he believes: "The Casino will no doubt also appeal to investors with an interest in selling off units on a phased individual basis."

The complex contains 115 units in total but 10 were sold in 2005 and one of these No.42, a two-bedroom apartment of 807 sq ft, was sold again in October 2016 for €457,500, while a second two-bedroom apartment of 1,022 sq ft, sold in August 2016 for €545,000. The latest offer comprises 85 two-bedroom and 20 one-bedroom apartments with average sizes of 636 sq ft for one-beds and 918 sq ft for two beds. The apartments were developed on the grounds of Casino House, a thatched shooting lodge owned by the Talbot family, which Fingal County Council plans to restore as an exhibition space for the village's Fry Model Railway Collection.

Hooke & MacDonald has been active in the multi-family market. Last month it secured the sale of a portfolio of 160 apartments at St Edmunds, near Liffey Valley for €36m, or about €3.75m over the guide price quoted by them and joint agents Lisney. The purchaser, investment firm Carysfort Capital, is expected to generate a net initial yield of 6.75pc. Hooke & MacDonald has also agreed sales on a number of other multi-families, the most valuable being 28 apartments at Castleforbes Square, Dublin 1, North Docklands, for close to their €7.5m guide price. With one unit vacant, the other 27 are producing a gross rent of €437,100.

Another two deals are agreed in Dublin 8 with 47 apartments at The Maltings, Watling Street, off Thomas Street, for close to the €7m guide and 20 units at the Ice Rink, near Dolphins Barn agreed for close to its €2.5m guide. A further 15 apartments at 31-35 Middle Gardiner Street, Dublin 1, have been sold for close to their €2.7m guide.

Sunday Independent

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