€7.5m Swords apartment portfolio offers potential 9.67% yield

Agent Hooke & MacDonald is guiding a price of €7.5 million for a portfolio of 47 apartments and one retail unit at the hugely popular Applewood scheme in Swords, Co Dublin.

Built by developer Gerry Gannon 15 years ago, Applewood is well-located just 1.8km northwest of Swords town centre and the Pavilions shopping centre. Airside Retail Park is located 2.8km to the southeast, while Malahide village is 5.5km away.

The residential element of the investment, which is being sold on behalf of Gannon Properties, comprises six one-bedroom apartments (average 50sq m) and 41 two-bedroom apartments (average 80sq m). Located at Chestnut House and Bramley Terrace, the apartments are finished to a high standard, each with a good-sized balcony and one car parking space . The self-contained retail unit (85sq m) is located within the busy Applewood Village commercial centre with ample customer car-parking to both the front and rear.

Forty-four of the apartments are let and producing a current gross rental income of about €671,000 per annum, averaging €950 per month for the one-bedroom apartments and €1,225 per month for the two-bedroom apartments.

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There are three apartments left vacant for viewing purposes, and these have a projected rent in the region of €45,000 per annum, once let.

Retail unit

The one retail unit included in the sale is conveniently located within the same block as 35 of the residential apartments. The retail unit trades as Swords Angling Shop, and is let on a 10-year lease at a rent of €8,000 plus VAT per annum, with a rent review outstanding.

The total current rent, and projected rent of the vacant apartments, is in the region of €724,000 per annum.

Conor Steen of Hooke & MacDonald says the Applewood portfolio offers significant potential for rental growth owing to its location within close proximity to Swords village, Dublin Airport, the M1 motorway and Dublin city centre.

The portfolio’s guide price of €7.5 million equates to an average price of €156,000 per apartment and a gross yield of 9.67 per cent, based on the combined current and projected rents once fully let.