The US-based global property developer Hines has emerged as the top bidder for the Montrose Student Residence beside the UCD campus on Stillorgan Road, Dublin 4.
The company is believed to have bid close to the guide price of €41.5 million for the purpose-built student accommodation around the same time as it agreed to buy the Central Bank headquarters in Dame Street for about €65 million.
At least three other institutional bidders also pitched for the newly completed residential development which will show an income yield of over 5.4 per cent.
Rent roll
The gross rent roll is expected to reach €2.91 million per annum, according to an earlier briefing by selling agent Savills.
The Montrose is based on the former three-star hotel of the same name which was bought at the depths of the property crash in 2012 by UK student accommodation provider Ziggurat. That company is expecting to build up to 4,000 new student rooms in Dublin, Cork and Galway.
Several other developers are also gearing up to embark on other large student schemes in Dublin.
Two months ago a UK-Irish consortium paid about €20 million for a site for 935 bed spaces beside the Point Village in the north Dublin docklands.
Other off-campus residential schemes include one under construction at Gardiner Street and others at Dorset Street and Blackpitts which alone will provide 1,300 bed spaces.
The largest single scheme of about 2,000 spaces will be at Grangegorman to cater for students attending the newly located DIT.
The redeveloped 1960s Montrose building now has 205 en-suite bedrooms over five floors including a two-bedroom penthouse.
The 777sq m (8,363sq ft) on the ground floor have been let as neighbourhood services including a Bank of Ireland branch, a Spar convenience store and an Insomnia cafe at an overall rent roll of €220,000 per annum. The grounds include 52 car-parking spaces.
Ziggurat charges €245 per week for what it describes as “classic” bedrooms in Montrose; superior bedrooms make €275 per week while twin bedrooms attract fees of €300 per week.
