Wednesday 18 July 2018

Auctioneers ramping up sales as end of year looms

Kaibo, 157 Vernon Avenue, Clontarf
Kaibo, 157 Vernon Avenue, Clontarf

Donal Buckley

Such is the rush to sell off properties before the end-of-year deadline that vendors are giving prospective buyers less than the usual three weeks within which to assess them.

For instance, both Real Estate Alliance (REA) and Sherry FitzGerald have bumper auctions scheduled for October 24 and 26 next respectively. However, only two weeks before the auctions, some vendors were under pressure to finalise the paperwork. Needless to say, such tight sales campaigns favour cash buyers.

Broomfield Business Park, Malahide
Broomfield Business Park, Malahide

To be fair to the auctioneers, they didn't hang around and began marketing some lots on their websites, and not waiting for later lots.

Sherry FitzGerald is hoping to have 12 lots for its bumper auction on October 26 and as we went to press they had eight lots with combined values of about €5.5m.

The agent is also hosting two small auctions next Wednesday, one of which is for two Dublin northside houses, each in the million-euro-plus price range.

Real Estate Alliance will auction 23 lots in its Leinster auction on October 24 with combined values of €2.27m. They include 11 Dublin dwellings being sold individually, as well as a Rathgar house which is in small flats.

59 Rathgar Ave, D6
59 Rathgar Ave, D6

Meanwhile, REA Coonan will auction two stud farms with the price tags being around the €3m figure.

The most valuable lot in the Sherry FitzGerald bumper catalogue is a tranche of seven student three-bed apartments at 1-7 Schoolhouse Court, Santry, Dublin 9, for which the agent is guiding €1.6m.

Fully let, these generate €178,500 a year in gross rent, which reduces to €152,250 after netting management and ESB fees. The guide price works out at €228,571 per apartment and suggests a net initial yield (NIY) of 10.68pc. It is convenient to DCU's Glasnevin campus.

A similar yield of 10.41pc is being guided for two office buildings at Broomfield Business Park, which have a combined €1.3m guide price.

Located about 1km south of Malahide village, the units are occupied by nine tenants at an overall rent of €141,356. They come with parking for 29 cars. Seven of the tenants are on short-term monthly licences and two are on longer term leases.

Also in Santry, a €1.05m guide has been applied to Swiss Cottage and the adjoining Euro House, at Swords Road, Dublin 9.

This suggests an NIY of 10.39pc.

The ground floor of Swiss Cottage is let to Magner's Pharmacy at a rent of €50,000. The first floor is rented by Butler Smith letting agents at €10,800. Euro House, a two-storey commercial building, is let to the Tanning Salon at a rent of €53,122.

A mixed-use investment, 69/70 High Street, Kilkenny City has a €750,000 guide price. With its current annual rental income of €74,040, this suggests a gross initial yield of 9.87pc.

Extending to 413.4 sq m (4,449 sq ft) over three floors, its occupants include Elverys sports shop on the ground floor, a barber's on the first floor, and a residential apartment on the top floor.

Next Wednesday, October 18, Sherry FitzGerald will auction a five-bedroom detached family home - Kaibo, 157 Vernon Avenue, Clontarf, Dublin 3 - which has a €1.95m guide. Presented in very good condition, the 338 sq m home includes a living room, family room and open plan kitchen/ dining/ living room.

Also in Clontarf in the nearby 29 Kincora Road, a fire-damaged five-bedroom detached house on almost half an acre is being offered with a €1.2m guide.

The most valuable lot at REA's bumper auction is 59 Rathgar Avenue, Dublin 6, an end-of-terrace house sub-divided into eight flats which has a €725,000 AMV. Extending to 210 sq m (2,260 sq ft) it includes four studio units and four one beds. Three of the units are let.

REA's most valuable commercial lot is an Athlone industrial investment which has a €460,000 AMV and potential for a 14pc return.

Comprising Units A, B, C, D, E, F, G, H, K & L, Nestor Complex, Monksland, Athlone West, Roscommon, its four warehouse and office units extend to 2,132 sq m. (23,000 sq ft). It is located within Daneswell Business Centre and is within easy reach of transport links.

Fully-let, it generates current annual passing rent of €66,847, suggesting a gross initial yield of 14.53pc.

A Carlow investment property known as Kennedy Corner, Kennedy Street, Carlow Town, has a €425,000 AMV. An established Chinese restaurant occupies 330 sq. m. (3,500 sq ft) at ground floor level and pays annual rent of €40,000. In addition a 140 sq m (1,500 sq ft) corner unit is vacant at ground level as is the 450 sq m (5,000 sq ft) first floor area, which could be used as a gym.

Local agent Harry Sothern says: "With some outlay, this entire property could generate more than €60,000 a year or a gross return of more than 14pc."

REA's Dublin properties include four apartments and a house in Dublin 15 at prices which range from €160,000 to €240,000 each as well as a retail unit and three flats at The Plaza, Ballymun Dublin 11, at prices ranging from €110,000 each.

Meanwhile, REA Coonan is about to test demand for horse-breeding stud properties in the greater Dublin area at two separate auctions.

On October 24 the agent will auction the 171-acre Loughtown Stud in Donadea, near Maynooth, Co Kildare, with a €3.5m AMV.

The following day, October 25, they will auction the 118-acre Ballinteskin Stud, Enniskerry, Co Wicklow, with a €2.5m guide which reflects a sharp €11.5m drop on its 2008 asking price.

As well as a Georgian house and 32 stables, the facilities which have been run as a stud farm for over 40 year, also include a helicopter hangar and landing pad. The estate is situated close to Roundwood and Enniskerry, Co Wicklow, with views of the Sugar Loaf in the distance.

Property developer and outspoken critic of Nama, John Flynn, bought it in 2006 from members of the Durkan housebuilding firm for €7m and after a major revamp and extension offered it for sale in 2008 for €14m, but it failed to sell.

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