Tuesday 22 October 2019

Prime Dublin residential portfolio at €46m offers 7.2pc initial yield

6 Grosvenor Place is part of the portfolio
6 Grosvenor Place is part of the portfolio
23 Harrington St in Dublin 8
Ronald Quinlan

Ronald Quinlan

A portfolio of 27 Pre '63 properties comprising 213 residential units and three commercial properties distributed across Dublin's city's most sought after rental locations has been brought to the market for a guide price of €46m.

Dessie Kilkenny of Savills Ireland expects to see significant interest from investors in the 'Circle Collection' owing to its scale, quality, and the prospect of a "highly attractive" gross initial yield of 7.2pc.

All of the properties within the portfolio are located in prime rental locations adjacent to key employment and transport hubs across Dublin city. A selection of these key locations includes Clontarf, Rathmines, Rathgar, Phibsborough, North and South Circular Road.

The collection is effectively fully-let and generating a gross rent roll of €3.49m per annum currently. This income is being derived from what the selling agents describes as "a sustainable and professional tenant base".

The current average rent per unit is approximately €1,346 per month, which represents a significant discount on rental level currently being achieved in Dublin City Centre.

The portfolio recently underwent an extensive programme of refurbishment and is fully compliant for planning, fire regulations and Local Authority Housing Standards. Each of the units within the collection incorporates a range of sustainable and low maintenance features.

Dessie Kilkenny of Savills says: "The Circle Collection sale is an excellent opportunity for an incoming investor to capitalise on the strong rental market conditions through this fully-compliant residential investment."

The sale of the Circle Collection comes just four months on from the acquisition by Orange Capital Partners and Lugus Capital for €70m of a portfolio of 265 residential units distributed across 30 prime Georgian buildings in Rathmines, Ranelagh, Rathgar, Portobello and Ballsbridge.

The Belgrave Collection was brought to the market by CBRE on behalf of a US investment group in May of last year for a guide price of €60m.

The 265 apartments within the portfolio comprised 146 studio apartments, 85 one-bedroom apartments, 29 two-bedroom units and five three-bedroom homes.

The entire collection was refurbished prior to its sale.

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