Savills and Hooke & MacDonald have been appointed on behalf of four separate private vendors to bring a portfolio known as The Orange Collection to the market for offers in excess of €160 million, representing a net initial yield of circa 6.64%.
Available as a whole or in individual lots: Beacon South Quarter, Dublin 18; Charlestown, Dublin 11; Lansdowne Gate, Dublin 12 and Bakers Yard, Dublin 1, comprise 761 modern apartments, approximately 3,164 m² (33,864 ft²) of commercial space and four development sites extending to approximately 0.70 hectares (1.74 acres).
Current annual gross income across the entire collection is approximately €10.4 million per annum, 99% of which is generated from the residential element which benefits from effectively a 100% occupancy rate. Based on current headline rents achieved and letting of vacant commercial space, the projected gross rent would increase to approximately €12.5 million per annum. The residential units are let on short-term residential tenancy agreements, typically for a ﬁxed 12-month period, while the majority of the commercial income is derived from the Bank of Ireland, which has 18-years remaining on its lease.
The collection presents strong asset management opportunities to add significant value. These include rental growth opportunities when passing rents are brought in line with current rents achievable, letting the remaining vacant commercial space totalling 2,373 m² (25,536 ft² ) and developing the four approved sites to provide additional commercial and residential accommodation. In total, there is planning permission for a further 187 apartments and approximately 7,977 m² (85,864 ft²) of commercial space.
The assets are expected to attract significant levels of interest from domestic and international investors looking for modern, well located blocks. The residential units are a mix of apartments, duplex units and penthouses, which are predominately two beds (534 in total) with 128 three beds and the remaining 99 units laid out as one beds. All units are of a high specification with fully fitted kitchens and bathrooms, well maintained communal areas and quality landscaped grounds.
Charlestown is located in north-west Dublin, on St. Margaret’s Road in Finglas, approximately seven kilometers from Dublin city center and five kilometers from Dublin airport. The investment comprises the residential element of the mixed use Charlestown development located in multi-storey blocks above the shopping center, and provides a total of 235 apartments of the overall 285 units constructed. Car parking is provided at basement level. Developed by Bovale Developments Ltd in 2007, the investment is currently producing a gross income of €2.84 million per annum, however a total annual gross income of €3.34 million can be expected once all rentals adjust in line with current market levels.
The Lansdowne Gate development is located five kilometers south-west of Dublin city center on the banks of the Camac River and adjacent to Drimnagh Castle. The Luas Red Line, M50 Motorway and a multitude of employers including Our Lady’s Children’s Hospital are all very easily accessible. Comprising a total of 280 apartments, 224 of these units are the subject of this sale along with 224 parking spaces. Built by Cosgrave Property Group in 2005, the units are currently producing an income of €2.97 million per annum. However once all rentals adjust in line with current market levels an income of approximately €3.4 million per annum could be expected.
Originally developed by Landmark Developments and for sale on the instruction of Mazars, Beacon South Quarter offers the opportunity to be part of a new and continually expanding neighborhood that provides a place to work and live to the highest standards. Located in the heart of Dublin’s south city suburbs, it is on one of the main gateways to the city center located beside the Luas Green Line and M50 interchange. This multi-family investment opportunity is currently producing €3.46 million and comprises 217 modern apartments, four commercial units extending to approximately 2,395 m² (25,576 ft²) and 234 basement car parking spaces allocated to the residential element. In addition to the existing buildings there are also three undeveloped sites which have potential for a further 132 residential apartments and 7,120 m² (76,639 ft²) of commercial accommodation. Once 100% occupancy within the existing built development is reached at current rents achieved, gross income is expected to exceed €4.5 million per annum.
Baker’s Yard offers the opportunity to invest in a modern multifamily, city center development which benefits from future development and asset management opportunities. The purchaser will beneﬁt from a majority ownership in this Dublin 1 scheme, which is for sale on the instructions of O’Dwyer Property Management and comprises 132 apartments in three blocks, 85 of which are included in this sale. Also included in the sale are six ground and first floor commercial units extending to approximately 792 m² (8,525 ft²) and an adjoining 0.18 hectare (0.45 acre) site, which sits on the prominent corner of the North Circular Road and Portland Street and benefits from full planning permission for a further 55 apartments, and three commercial units. In addition, 85 secure basement car parking spaces are to be included in the sale with planning permission allowing for a further 59 spaces. Current annual gross income stands at €1.16 million however a return of approximately €1.25 million per annum is expected once all rental levels are adjust in line with current market levels.
Domhnaill O’Sullivan, director of investment at Savills Ireland, comments: “This is an excellent time to invest and acquire multifamily units in scale while residential rents are increasing. A purchase price at quoting levels would also be significantly below the replacement cost of the assets.”