Thursday 19 April 2018

Allsop delivers €22m in sales in first online auction of 2017

Park House in Terenure was sold for €1.151m in Allsop's online auction last Thursday
Park House in Terenure was sold for €1.151m in Allsop's online auction last Thursday
Ronald Quinlan

Ronald Quinlan

Allsop's first online auction of 2017 generated sales in excess of €22m with over 3,000 bids submitted by the more than 800 bidders who registered to participate.

Among the sale's commercial highlights was the much-anticipated sale of Park House in Terenure, Dublin 6W.

Having been offered up for auction with a reserve price of between €1m and €1.1m, the Victorian-style property secured €1.151m on the day.

The building, which currently comprises a creche and four apartments, has significant residential conversion potential subject to the necessary planning permissions being obtained. Alternatively, there is scope for the buyer to increase the property's current rental income of €84,600 per annum by letting two apartments within the building that are currently vacant.

Outside the capital, a prime Limerick city centre investment, 32-33 William Street was sold for €1.18m - a full €350,000 above its guide price. With a current rent reserved of €90,000 per annum, the property's attractiveness is enhanced by its letting until 2031 to Power Leisure Bookmakers Ltd (trading as Paddy Power). The price paid for the property equates to a net initial yield of 7.3pc.

Oakleigh House in Donnybrook, Douglas, Co. Cork, meanwhile secured €875,000. Extending to approximately 604 sq m (6,501 sq ft), the mixed-use property comprises three retail units and three two-bedroom apartments. Fully let, the property is currently delivering an annual rent of €72,200.

A bank investment in Cahir, Co. Tipperary, which is let to AIB for €64,600 per annum with approximately 10 years remaining on the lease, was sold for €667,000.

In Dublin, The Hub in Crumlin - a public house and restaurant generating €36,400 per annum - was reserved at €440,000-€460,000 and sold prior to auction for above this price.

In terms of the auction's residential highlights, four apartments (Nos 5, 7, 9 and 12) in the Castle Court development at Castle Street in Dublin 8 were sold for a total of €677,000.

With three of the apartments subject to tenancies and one with vacant possession, this multi-family investmemt is set to deliver gross rental income of €33,900 per annum immediately.

Elsewhere in the capital, two ground floor apartments at Gateway Student Village in Ballymun, Dublin 9, were sold for a total of €236,000. Part of a rent-pooling scheme, this designated student accommodation, which comes with four underground parking spaces, delivered net rental income of €18,500 in semesters one and two in 2016.

Commenting on the strength of the auction's results, Richard O'Neill, director at Allsop said: "With bidders out in force, it was a good day for sellers who benefited from heated competitive bidding which drove prices well above reserves. Commercial investments and multi-unit residential investments were in considerable demand. An overall success rate of 87pc was recorded - our highest single-day success rate since the second quarter of 2015 - with post-auction sales expected to bring the figure to more than 90pc."

Referring to the performance of residential properties at the auction, Mr O'Neill added: "Multi-unit properties provided the strongest results. There was strong demand for this property type in 2016 and we expect this trend to continue, although the introduction of rent caps may encourage a preference for vacant stock which can provide the investor with access to market rents."

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