THE FIRST of a number of distressed property sales planned for the Sandyford area of south Dublin is to get under way this week when agent CBRE seeks a buyer for an investment portfolio and an adjoining development site at Bracken Road in Sandyford Industrial Estate.

Property values in Sandyford shot up during the boom period between 2004 and 2007, peaking at €25 million an acre, as developers competed for opportunities to turn the area from an industrial estate and business park into a high-density residential, office and retail suburb. The early success of Beacon South Quarter with its hospital and clinic, hotel and shopping centre prompted other developers to pitch for development options in the area.

Some of the properties bought at inflated prices are now in receivership and are due to be offered for sale over the coming months.

Paul McCann of Grant Thornton is handling the sale of what is known as the Gateway site and an office and industrial investment at 96 Bracken Road following his appointment as receiver to Judd Developments Ltd.

Wesley Rothwell of CBRE is quoting a guide price of €3.5 million for the 2.03 hectares (5 acres) which includes a two-storey office building and two warehouses, all extending to 3,600sq m (38,749sq ft). Two of the buildings are currently producing a rental income of €175,000.

Most of the rent – €140,000 – is coming from the Audi Centre Ltd, which has taken a lease of four years and nine months from the end of 2010, while another €35,000 is being paid by Hamilton Corporate Ltd on a three-year lease from October 2010.

Rothwell says the Sandyford Urban Framework Plan has brought significant clarity to the development opportunities at this location, most particularly in relation to specific land uses and plot ratios.

The Gateway site has dual zoning for light industrial/warehousing as well as medical/hospital, with a density of 2.5:1 and a building height of six storeys.

The southern end of the site is also zoned for light industrial/warehousing with a density of 0.5:1 and a building height of two storeys.