Business Irish

Wednesday 20 September 2017

Prime D4 apartments sold for €60m to professional landlord

A section of the Elm Park development at Merrion Gates, Dublin 4
A section of the Elm Park development at Merrion Gates, Dublin 4
Donal O'Donovan

Donal O'Donovan

The country's biggest residential landlord has snapped up hundreds of prime Dublin 4 apartments at an average price of just under €300,000 each.

The complex at Elm Park on the Merrion Road in Dublin 4 is next door to St Vincent's Hospital and just around the corner from RTE's headquarters at Montrose.

Stock market-listed Irish Residential Properties REIT (Ires) said yesterday that it has agreed a deal to buy the 201 apartments, along with 203 underground car parking spaces, for €59m.

Ires will have 2,288 apartments under professional management in Ireland when the deal closes, which is thought to make it the biggest private sector landlord in the country.

The property at Elm Park is part of a much larger complex originally developed in 2006 by Bernard McNamara, Jerry O'Reilly and the late David Courtney.

That huge scheme, still only part built, ended up in Nama and was sold to US fund Starwood Capital earlier this year for €183.5m.

Starwood is now selling on a portion of the scheme to Ires. The bulk of the assets being retained by Lonestar are high-end offices.

The units bought by Ires generate rents of €3.2m a year at a 92.5pc occupancy level - a yield of 5.4pc, based on the purchase price.

The 201 apartments comprise 101 one-bed, 96 two-bed and four four-bed duplex penthouses.

Ires said the homes, which will be rented out, are high quality but the complex has suffered from a lack of investment, with work under way to upgrade the amenities.

Irish Independent

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