Tuesday 23 January 2018

€9.25m for 44 apartments and 6 houses in Dublin city centre

The Smithfield Lofts portfolio’s €9.25m guide price reflects an average price of €185,000 per unit
The Smithfield Lofts portfolio’s €9.25m guide price reflects an average price of €185,000 per unit
Ronald Quinlan

Ronald Quinlan

Investors looking to take advantage of Dublin's booming residential rental market have an opportunity to snap up 44 apartments and six townhouses in the heart of the city centre.

Agents Savills are guiding a price of €9.25m for the units at Smithfield Lofts on North King Street. The price which equates to a gross income yield of 6.6pc and an average break-up value of €185,000 per apartment is expected to attract significant interest. The portfolio offers a number of value-add opportunities and comes with the benefit of 33 car parking spaces.

Built in 2000 by developer Liam Carroll's Danninger Developments, the Smithfield Lofts development comprises a five-storey-over-basement building containing 57 apartments, six two-storey townhouses and commercial units. The scheme is being sold on the instruction of statutory receiver David Carson of Deloitte.

This sale will see the disposal of 44 apartments, six townhouses and 33 car spaces. The remaining 13 apartments and commercial units within the development are already in private ownership.

The portfolio now being offered to the market consists of 16 one-bedroom apartments ranging from 40 sq m (430 sq ft) to 59 sq m (635 sq ft); 28 two-bed units ranging from 54 sq m (581sq ft) to 75 sq m (807 sq ft) and six two-bedroom townhouses ranging from 65 sq m (700 sq ft) to 82 sq m (882 sq ft). The units are located in an L-shaped block around a central courtyard and have lift services to all floors. The 33 car parking spaces are located in a secure underground gated car park.

The scheme is currently 98pc occupied and is delivering gross rental income of approximately €638,664 per annum.

Current rents for the Smithfield Lofts units are considered to be well below the market average for Dublin city centre
Current rents for the Smithfield Lofts units are considered to be well below the market average for Dublin city centre

Rents for one-bed apartments currently range from €835 to €1,300 per month, while two-bed apartments are commanding rents of €860 to €1,500 per month. Rents for the two-bed townhouses, meanwhile, range from €960 to €1,600 per month.

With the average rent across the scheme coming in at €1,086 per month, the scope for increasing rental income is significant.

According to the latest quarterly rental report from Daft.ie, rents in Dublin recorded a 12.3pc increase in the year to the end of June. The fastest growth rate was seen in Dublin city centre. Average rents in the area now stand at €1,741 per month. Overall average monthly rents in the capital are now over 18pc (€260) higher than their previous peak in 2008.

Savills are confident that the prospective purchaser of the Smithfield Lofts apartments and townhouses could increase rents to reflect the current market rates.

Smithfield Lofts is well-positioned in the heart of Smithfield, in Dublin's north city centre and in the centre of Dublin's legal district. Within the immediate vicinity is Smithfield Square, which offers residential amenities including restaurants, convenience retail and a cinema. The property is only 600 metres from DIT's new Grangegorman campus, where more than 10,000 students will be located by 2019. The area is well serviced by public transport facilities, with the Four Courts LUAS Red Line stop located just 360 metres away. There are also a number of bus routes and Dublinbikes nearby.

Commenting on the opportunity Smithfield Lofts represents, Leona Mullen of Savills said: "This is an excellent value-add opportunity. Given the increasing demand for rented accommodation, along with passing rents considerably below market rent and a very attractive average break-up value of €185,000 per unit, Savills expect good interest in this asset."

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