Property company Ires Reit has completed the construction of 68 apartments in Sandyford, Dublin 18, which may set a record for rents in the area.
The development, called the Maple at Block B2B, Beacon South Quarter, cost €19.6 million and was funded from the company’s credit facility and cash on hand. The building was carried out by Irish contracting firm Walls Construction.
The apartments caused controversy earlier this year when it emerged they were set to rent from €2,570 for a two-bed apartment.
A number of TDs attended a protest organised by the Dublin Tenants Association outside the offices of Ires Reit earlier this month in response to the rents.
Nonetheless, there has been significant interest in the complex, and the 68 apartments are fully leased with about 60 per cent of the leases beginning by the end of July and the balance by the end of August.
The company said annualised passing rents will be about €1.64 million generating a gross yield of about 8.4 per cent based on the €19.6 million cost.
The 68 apartments comprise four one-bed, 55 two-bed, and nine three-bed apartments.
Expanding
Ires Reit chief executive David Ehrlich said the company was "actively expanding" its development activities in response to the "significant supply and demand imbalance" in the Dublin area.
“We are initiating and continuing planning processes with respect to a number of our existing development sites, including a number of intensification opportunities,” he said.
“Additionally, Ires continues to explore new development opportunities including duplex, townhouses and other types of rental accommodation for rental purposes.
“We are heavily focused on development opportunities and would like to work with all levels of government to make the planning process and regulatory framework more approachable and responsive for proposals to build rental accommodations.”
An analyst with Investec said the successful completion of the project "augurs well" for the rest of Ires' development pipeline.
