Friday 26 April 2019

Galway multi-family investment guiding €2.7m

TWM is quoting €2.7m for this multi-family unit in Galway
TWM is quoting €2.7m for this multi-family unit in Galway

Peter Flanagan

TWM is quoting €2.7m for an apartment block in Galway for sold as an investment.

The agents have been retained to sell the block known as Inse Beag at Doughiska in Co Galway.

TWM describe the property as a multi-family investment opportunity which is producing a gross rental income of €240,000 per annum.

Inse Beag comprises a modern development of 32 apartments in total, 30 of which are included in the subject investment sale.

The apartments are laid out in three detached blocks on a site extending to approximately 1.2 acres. Block One fronts onto the Doughiska Road while Blocks Two and Three are located behind in a cul de sac.

The subject investment includes five one bed apartments and five two bed duplex apartments within each block. Ample communal car parking is provided directly outside the apartments on-site. Inse Beag is situated in the established suburb of Doughiska, east of Galway city and easily accessible to the M6 Galway to Dublin motorway, Briarhill Shopping Centre, Galway Clinic and local business parks.

The 30 apartments are let on individual residential agreements with currently 93pc occupancy rate. The current gross rental income is currently in the order of €240,000 per annum. Management fees and expenses charged for the period January to December 2015, equate to approximately €55,450.

TWM say the asking price which reflects an initial yield 8.51pc which is based on gross income for 2016 and assumes standard purchaser costs of 4.46pc.

With negligible deposit rates and strong demand for residential rental accommodation Rosemary Casey and Sarah Winters of TWM are expecting good interest.

They commented that this is an "attractive lot size for investors who will be enticed by the asset management angles and immediate rental growth potential".

There has been little movement in the regional apartment block sector up to now but there are strong signs that that is beginning to change.

While many of the major apartment blocks have been bought by institutional buyers such as IRES Reit, there is a growing cohort of buyers now looking at smaller apartment blocks offering strong yields such as this.

Elsewhere, DNG Commercial is seeking €1.5m for an apartment block in central Dublin.

The block at Kelly's Court on Kelly's Row in Dublin 1 consists of 29 apartments.

The investment comprises the sale of 10 apartments within one block. The development is constructed over seven stories with the 10 apartments interspersed throughout.

DNG say the development was completed in 2007. The building is of concrete block or brick construction with reinforced concrete floors and double glazed timber framed windows.

Each apartment is fitted out to "a high standard".

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