€32m project cashes in on build-to-rent boom
Dwyer Nolan Developments is set to capitalise further on the growing appetite of build-to-rent (BTR) investors for the Dublin residential market with the launch of 128 new apartments.
Joint agents CBRE and Dillon Marshal are guiding a price of €32m for 'The Square', a standalone development of one- and two-bedroom units within the wider Hampton Wood estate in Finglas which has been developed over the past number of years.
Based on that guide price, the scheme's prospective buyer can expect to pay an average price per unit of approximately €249,900 while securing a gross yield of approximately 7.25pc. Twenty-four of the newly-completed units have already been let at market rent with the remaining units ready to be brought to the lettings market. The total projected gross income for the scheme is in the region of €2,435,000 per annum.
The proposed sale of the Square scheme comes off the back of Dwyer Nolan's recent off-market sale of 138 new-build apartments to a UK BTR investor.
While the build-to-rent model is only in its infancy here, recent announcements from German investment manager Patrizia Immobilien and US real estate giant Hines on their respective plans to deliver of hundreds of BTR units at Honey Park in Dún Laoghaire and at Cherrywood show the sector's increasing strength.
A recent report from CBRE backed the business case for build-to-rent in Ireland, noting how the proportion of renters is growing. In 2016 there were 497,111 households renting, up 4.7pc from 2011, bringing the proportion of renters to nearly 30pc of the population.