Apartments in Docklands scheme sold for €800k each
A Cairn Homes development in Dublin has sold for an average gross price of €800,000 per apartment.
The Six Hanover Quay development in the docklands, which is made up of 120 apartments, a 5,000 sq ft restaurant and 1,400 sq ft café, was sold for €101m.
The development, still under construction, is being sold to a special-purpose company managed by Carysfort Capital, an Irish real estate investment manager.
"The sale of Six Hanover Quay in a single transaction is a tremendous outcome for our business which will deliver a strong return for our shareholders," said Michael Stanley, CEO and co-founder of Cairn.
Cairn originally bought the Hanover Quay site - due to be completed in early 2019 - for €18m in 2016, and expects to spend around €40m on its development.
While the company had originally intended to sell the apartments individually, it began a formal sales process through Savills to sell the entire scheme in response to "significant demand from international capital", looking to secure the building for their respective rental portfolios.
The overall price indicates a valuation of around €800,000 each per apartment at Hanover Quay.
Michael Looney, managing director of Carysfort, confirmed to the Irish Independent that Caryfort will retain ownership of the development, and the apartments will be rented out.
Mr Looney added that Carysfort is in the process of creating a residential platform of "institutional scale and quality", with over 400 units under management, and a target of an additional 2,000 units within 12 months. "This [acquisition] is consistent with our ambitions of working closely with renowned developers such as Cairn to provide a secure exit of scale, which allows them to get more homes delivered quickly."
Cairn yesterday also said it plans to commence three further apartment developments in the next 12 months.
"The nature and extent of our ambitious apartment construction activities will make an important contribution to this city, which suffers from a stark imbalance between office and apartment construction," Mr Stanley said.
Currently Cairn has developments in counties Wicklow and Kildare, as well as Dublin.
Last year the Dublin-listed Cairn Group reported revenue of €149.5m, an increase on the €40.9m which was recorded in 2016.
The substantial increase in revenue was driven by the sale of 418 residential units in 2017, which generated around €131m in revenue for the group.
Shares in Cairn were trading up over 1.6pc yesterday on the Irish Stock Exchange.