Sunday 21 January 2018

Opportunity in Swords & Kinsealy at €6m

Drynam Hall is located in the thriving north Dublin suburb of Kinsealy
Drynam Hall is located in the thriving north Dublin suburb of Kinsealy
Applewood Village in Swords, north Dublin
Ronald Quinlan

Ronald Quinlan

Agents Knight Frank are seeking offers in excess of €6m for two income-producing, mixed-use neighbourhood centres in the bustling north Dublin suburbs of Swords and Kinsealy.

The commercial centres of Applewood Village in Swords and Drynam Hall in Kinsealy are being sold in one lot. The collection comprises of 15 retail units, five café/restaurant/takeaway units, two medical practices, 13 office suites, a public house/office-licence, a crèche, an ATM, one one-bed apartment, five two-bed apartments, one three-bed apartment and two three and four bed houses. Taken together, there are 46 units extending to some 6,011 sq m (64,700 sq ft) in total.

While the investment is currently producing gross rent of €721,000 and is 74pc occupied, Ross Fogarty of selling agents Knight Frank believes rental income of €900,000 is achievable if fully-let at today's market levels. Mr Fogarty says the collection's €6m asking price equates to an initial yield in the order of 11pc once standard purchaser's costs of 8.46pc are factored in.

Applewood Village is an award-winning residential and commercial scheme comprising some 36 acres just to the north fringe of Swords. The development was designed by CCK Architects and developed by Gannon Homes between 1999 and 2005. The overall development comprises of some 783 residential units and 14,000 sq m of commercial accommodation.

The commercial properties being offered for sale are located on and adjacent to Applewood Main Street, the central commercial core of the wider development. The units are set out at ground, first and second-floor levels and benefit from ample on-street and surface car parking. The units range in size from 55 sq m to 200 sq m for ground floor retail/restaurant/café units and 25 sq m to 200 sq m for upper-floor office suites.

Drynam Square, which also forms part of the sale, comprises a mixed-use block within the Drynam Hall housing estate in Kinsealy. The development consists of a crèche and two retail units at ground floor, with seven apartments at upper floor levels, a medical suite and two adjoining three and four bedroom houses. On-street parking is available directly outside the block and the houses have a dedicated car port each.

The retail units are presented with vacant possession and are finished to shell-and-core condition ready for tenant fit-out. The property was developed circa 2005.

Commenting on the opportunity Applewood Village and Drynam Hall presents, selling agent Ross Fogarty says: "This is a well-diversified holding with substantial upside for purchasers who have the resources and management knowhow to drive efficiencies and rent. The collection is being sold with a well-established income profile that has weathered previous challenging times and is operating from a very sustainable base with strong prospects for improvement through letting of vacant units and room for moderate rental growth.

"Swords as a location is well ear-marked for strong population growth which further unpins the commercial viability of the offering. At sub €100 per sq ft investors are being offered the opportunity to purchase the income-producing asset below prevailing construction costs."

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