Sunday 25 August 2019

Demand is strong for residential portfolios

Strong performer: A lot of seven dwellings at Anley Court, Lucan, West Dublin, sold for €1.6m, 6.7pc over its €1.5m guide price, at a recent online property auction
Strong performer: A lot of seven dwellings at Anley Court, Lucan, West Dublin, sold for €1.6m, 6.7pc over its €1.5m guide price, at a recent online property auction
Donal Buckley

Donal Buckley

Two tranches of residential properties were sold for more than €1m each through the recent BidX1 online auction.

The most valuable of these was a group of seven dwellings including two bungalows at 3, 4, 13, 40, 48, 50 and 52 Anley Court, Lucan, in West Dublin, which sold for €1.6m, or 6.7pc over its €1.5m guide price.

Located within a gated residential development, these comprise two one-bedroom apartments, three two-bedroom apartments and two three-bedroom dormer bungalows.

One of the bungalows is leased and generates annual rent totalling €25,200 while the other units are vacant.

Anley Court is located off Esker Lane between the N4 and Lucan village.

In Delgany, Co. Wicklow, a development of 11 apartments at 1-11 Laurel Grove sold prior to auction. It had a €1.4m guide price or an average of €127,270 for each apartment. All occupied, their combined annual rents total €143,880 or an average of €13,080 each. Based on the reserve, the rent equates to a gross initial yield of almost 10.28pc.

Comprising eight two-bedroom apartments and three one-bedroom units, the combined floor areas of the apartments extend to 633 sq m (6,814 sq ft) over two floors. With its surface level car park, the auctioneer says the property has further development potential.

A Wexford industrial property sold for €1.05m, or 5pc over its €1m guide price. Let to Advanced Environmental Solutions (Ireland) Limited it generates a current annual rent of €120,000, equating to a gross yield of more than 11.4pc.

Its lease has nine years to run and provides for upward only rent reviews. This also has a relatively healthy covenant as Advanced Environmental Solutions is a subsidiary of state-owned Bord na Mona.

Located at Kilrane Business Park, Kilrane, near Rosslare port in Co Wexford, the mainly warehouse premises extends to 2,445 sq m (26,314 sq ft) and is located on a 1.36 acre site off the Ballyknockan Road, about 18km south east of Wexford town.

In Dublin City centre, a mixed use investment at 82A Dorset Street sold for €540,000, or 35pc over its €400,000 guide price. As the corner property generates a total annual rent roll of €39,000, this suggests a gross initial yield of 7.22pc.

Its 53.32 sq m (574 sq ft) ground floor is let as a barbershop trading as Fades and Blades at an annual rent of €15,000 with more than six years to run on its lease.

The three-storey premises on the corner at the junction with North Circular Road extends to a total of 155.32 sq m (1,672 sq ft) and upstairs there are two two-bedroom tenanted apartments.

Two warehouse and office premises, Unit D3 and D4 Station Road Business Park, Clondalkin, Dublin 22, sold for €341,000, or €21,000 over their guide price. Extending to a combined 492 sq m (5,296 sq ft), one of the units is vacant and the other, D4, is let to an individual trading as Insurance Works at a current annual rent of €7,200.

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