The ongoing shortage of supply in the student accommodation market is expected to generate strong interest in the sale of a fully-let investment in the heart of Galway city. Built originally by developer Gerry Barrett’s Edward Holdings in the mid 2000s, the 106-bed Radical Student Living scheme is being offered to the market on behalf of the current owner by agent CBRE at a guide price of €13.75 million.
A sale of the property at that level would provide the purchaser with a net initial yield of about 6.5 per cent. The gross passing rent includes estimated summer revenue of €1.39 million per annum.
The subject property is well located at Edward Square and sits just 500m away from Ceannt railway station. The development is positioned within walking distance (1km) of the National University of Ireland Galway (NUIG), and 3.2km from the Atlantic Technological University (ATU). Collectively, NUIG and ATU attract more than 25,000 full-time students each year.
The property is fully occupied for the 2022/23 academic year. It also offers excellent summer revenue potential thanks to Galway city’s long-established status as a proven tourist destination.
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Shane Cahir, who is handling the sale on behalf of CBRE, says: “The student housing market continues to perform very well with stable cashflows, strong occupancy rates and significant under-supply. As such, there continues to be a strong depth of capital looking to invest in the student housing sector in Ireland.
“Radical Student Living is an excellent opportunity to acquire a stabilised and income-producing student accommodation asset in the centre of Galway city.”
Shane Cahir, CBRE senior director, said: “The student housing market continues to perform very well with stable cashflows, strong occupancy rates and significant under supply. As such, there continues to be a strong depth of capital looking to invest in the student housing sector in Ireland.”
