Rathgar portfolio of 61 apartments and three office mews units guided at €18m
Further potential for another 44 dwellings
AN INVESTMENT portfolio of mainly residential properties in Dublin 6 with rental and development potential has come to the market with a guide price of more than €18m.
Known as the Rathgar Road Collection, the portfolio comprises six properties with 61 purpose-built apartments and three office mews units, as well as an infill site with development potential. Joint selling agents DNG Advisory and BNP Paribas Real Estate Ireland say that the site which includes the three mews extends to one acre and could accommodate 44 additional apartments.
Practically fully let, the portfolio produces an annual total rent roll of about €1,085,500 and on the basis of the standing residential investment being valued at €16.5m, this represents a gross initial yield of 6.3pc after adjusting for purchaser's cost. The price tag also equates to an average price per unit of €270,490 and a capital value of €617 per sq ft. Consequently the development potential of the property is valued at €1.5m.
As rent reviews have not been undertaken since the introduction of rental caps, the agents estimate a purchaser could boost the yield further by between 4pc and 8pc depending on when the last rent increase was negotiated for each unit.
The portfolio is split between two locations close to the Rathmines and Rathgar ends of Rathgar Road. Most of the portfolio is located at 175, 175a, 176, 177 and 178 Rathgar Road towards the northern end of Rathgar Road, and it comprises 53 purpose-built apartments and the one-acre site with the three office mews. One of the latter is vacant. Another option may be to redevelop this whole site which extends to about two acres.
Nearer to Rathgar village is the portion of the portfolio at 149 Rathgar Road which comprises eight purpose-built apartments producing an annual rent of about €130,000 with a potential development site for a single mews to the rear subject to planning permission.
As many as 43 of the units are one-bedroom apartments with the other 18 comprising large studio units. Rents average about €1,407 per month, per unit.
Gareth Noone, director at DNG, says an investor might also renovate and refurbish some or all the existing buildings to assist increasing rent roll. New market lettings for apartments in this location should typically achieve €1,400 to €1,650 per month for studio apartments and €1,700 to €1,900 per month for one-bedroom units. The vendors are a local family who redeveloped the properties in the 1970s and 1980s when they retained the façades and chimney stacks of the old period properties that occupied the sites.