588 Dublin apartments across seven residential developments, along with 36,274 sq ft (3,370 sq m) of commercial and retail space, have been brought to the market with a guide price of €116m – equating to an initial yield of approximately 6.3% (based off 100% occupancy). The sale – named ‘The Plum Portfolio’ – is being handled by Savills and DTZ Sherry FitzGerald, who confirmed that the developments are available collectively or in individual lots. The apartments are fully let and the sale will not affect the current tenants.
In the press release issued today there is no reference to the seller, which is NAMA (National Assets Management Agency), Ireland's public toxic property loans agency - for a sale of this size it is stupid to withhold the name when it is known in the industry.
All of the apartments included in the sale are located in Dublin – mainly in the suburbs – and have strong surrounding infrastructure and transport links providing access to Dublin city centre in less than 20 minutes. The one exception to this is a city centre block of apartments at Lad Lane, which may offer a redevelopment opportunity on lease expiry.
Currently, the combined gross income from the seven developments is approximately €7.43m per annum. However, according to the agents, successful implementation of asset management initiatives – such as the letting of vacant commercial accommodation and increasing current passing rents in line with market rents – could see income increase to approximately €8.7m per annum.
Domhnaill O’Sullivan, director of Investments at Savills said: “Project Plum presents investors with an excellent opportunity to acquire a significant volume of multifamily units at a time when property prices and rents in Dublin continue to rise. The developments on offer are in established residential locations with high rental demand which is likely to attract interest from both local and international investors.”
Ivan Gaine, head of Capital Markets & New Homes, DTZ Sherry FitzGerald further commented: “We anticipate strong interest across the portfolio – in addition to the rent and yield trajectory; it is likely that prospective purchasers will underwrite on a ‘break-up’ value particularly across developments such as Beechwood Court, Stillorgan and Timeplace, Sandyford. There are also further asset management opportunities within the medium term in respect of the Lad Lane asset.”
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