Savills, on behalf of receivers Grant Thornton, has sold Clancy Quay in Dublin 8 for over €80 million, representing the largest multi-family sale in Ireland. The sale, which reflects a net yield just over 6% when fully completed and let, attracted 10 bidders with Kennedy Wilson emerging as the successful buyer.
The predominantly residential scheme occupies a 5.6 hectare (13.83 acre) site overlooking the River Liffey in Islandbridge, three kilometers from Dublin City Center. It includes 420 deluxe apartments and approximately 3,408 m² (36,683 ft²) of commercial space in Phase 1 and an adjoining development site extending to approximately 3.42 hectares (8.46 acres) of undeveloped land and buildings referred to as Phases 2 and 3.
Fergus O’Farrell, investment director at Savills Ireland, says: “Clancy Quay attracted strong levels of interest from domestic and international investors because it is the most significant multi-family block investment to come to the market in this cycle. This is due to the asset’s scale and the opportunity to capitalise on an extremely strong rental market. This transaction, together with a number of recent high profile asset sales such as the Gemini Portfolio and Sandford Lodge, is evidence of improved transactional activity and growing investor appetite for prime product in central Dublin. It is a trend we expect to continue.”
Completed in 2009, Phase 1 comprises 122 one-bedroom, 206 two-bedroom, 90 three-bedroom and two four-bedroom apartments as well as the commercial element and secure basement car parking. Currently 270 of the residential units are complete with 228 let and the remaining 42 in the process of being let. The 228 let units produce a current annual rent roll of approximately €3.17 million with the anticipated gross income expected to reach approximately €6.8 million on full occupancy including the vacant commercial space.
Phases 2 and 3 of Clancy Quay have full planning permission for 323 residential units together with various other uses including a hotel, educational buildings, a crèche and further ancillary commercial uses. There is also provision for an additional 482 car parking spaces. On completion of Phases 2 and 3 it will be one of Dublin’s largest private residential developments.