The relatively new market in Dublin for full apartment blocks continues to gain momentum with this week's planned sale of residential developments in both Citywest and Finglas.
Shane Corby of Savills is guiding €7.25 million for 32 apartments in Citywest and €4.25 million for 18 units in Finglas. The two schemes are expected to show a net initial yield of about 5.6 per cent.
The Round Garden development has been trading alongside Citywest Hotel and Golf Club since 1999. The two-storey, stand-alone, crescent-shaped building has a mixture of 32 one-, two- and three-bedroom apartments, which produce an annual rent roll of about €560,000. One-bedroom apartments rent at about €1,400 per month, two-beds make €1,450 and three-beds can fetch up to €1,750.
The Fuel Yard in Finglas was built in 2005 alongside the main road running through the village centre. The five-storey block has 18 one-, two- and three-bedroom apartments producing an annual rent of €262,000. One-beds rent at about €1,100 per month, two-beds at €1,300 and three-beds at €1,350. Savills said the block includes two shell and core offices that could easily be converted into apartments.
According to Mr Corby, the current supply-demand imbalance has led to a strong performance in the multi-family sector. “Both schemes are high yielding and have a number of short-term value-added initiatives. So we expect good interest from a variety of investor types.”
