Sunday 18 March 2018

Marathon wins race for Nama's Plum Portfolio

The Plum Portfolio include Beechwood Court in Stillorgan
The Plum Portfolio include Beechwood Court in Stillorgan
Peter Flanagan

Peter Flanagan

Marathon Asset Management has won the race for a portfolio of nearly 600 apartments in Dublin, becoming the latest overseas investment firm to snap up Irish residential units from Nama.

Marathon, which controls close to €7bn worth of assets around the world, has taken on the Plum Portfolio of 588 apartments. The portfolio had been marketed with an asking price of €116m.

Savills and DTZ Sherry FitzGerald brokered the sale on behalf of Nama.

The apartments in the sale are spread across seven apartment blocks in the city.

Some 101 apartments are located at Beechwood Court in Stillorgan, while there are 67 units at Time Place on Corrig Road in Sandyford. Lad Lane contains 40 units, while 141 apartments at Carrington Park as well as 38 units at Heywod Park are in the Northwood development in Santry. The sale also includes 128 units at Northern Cross on the Malahide Road and 73 units at the Waterside development, also on the Malahide Road.

Six of the seven blocks are located in the suburbs but with easy access to central Dublin, while the Ladd Lane development in Dublin 2 may offer redevelopment potential in the future.

The fact that the portfolio has sold in one lot gives a sense of the appetite that remains for Irish property. Nama were known to be open to the portfolio being sold in separate lots but clearly the market for large portfolios remains strong at present.

The deal also vaults Marathon to near the top of the list of Dublin landlords.

The firm already owns loans tied to the Heuston South Quarter development in Islandbridge. It paid €120m for those loans from Lloyds Banking Group last year. HSQ when completed will contain more than 300 apartments as well as office and retail.

The Plum Portfolio is currently producing a combined gross income of €7.43m. However, according to the agents, the letting of vacant commercial space and increasing passing rents - could see income increase to approximately €8.7m per annum.

Built in 2006, the Beechwood Court development comprises 316 apartments and houses; the majority of which have been sold, while the remaining 101 apartments are included in this portfolio sale. The current annual income stands at €1.5m.

Waterside is located on the Swords Road in North Dublin between Swords and Malahide. The sale includes 73 residential units and three commercial units totalling 5,780 sq ft. The current total annual gross income is €1.04m.

Carrington Park is described as a "high quality residential" complex located within the Northwood Development in Santry. There are a total of 347 residential units in the development, 141 of which are included in the sale. Some 13 of the units have yet to be fully completed and are described as requiring some "minor capital expenditure in order to bring them to a lettable standard". The completed units produce a gross annual rental income of approximately €1.58m.

Also located in Northwood is Heywood Court - which comprises a total of 90 units, 38 of which are the subject of this sale. The subject units benefit from 100pc occupancy and produce a current annual income of €402,000.

Northern Cross is a mixed use development comprising residential and retail accommodation over basement level car parking. The entire scheme includes 535 apartments, 128 of which are the subject of this sale and are completely occupied. The current total annual gross income stands at approximately €1.5m. The commercial element comprises 20 own door retail units and extends to 30,500 sq ft.

Time Place is in the centre of Sandyford beside Beacon South Quarter. The entire development comprises 90 apartments, 23 of which have been sold, while the remaining 67 apartments are included in this portfolio sale. The current annual income stands at €995,000.

The Lad Lane development is a six storey apartment block with 40 apartments which are held under a leasehold interest. The property is leased to to Reservations Network (Dublin) Limited at a rent of €372,000 for student accommodation.

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