Savills seek €100m on Heuston loans

Loans linked to the mixed-use development, Heuston South Quarter, opposite Heuston Railway Station in Dublin 8, are to be offered for sale on the international market.

Savills are believed to be seeking in excess of €100 million for assets the loans are secured against, including a multi-family apartment complex, Grade A offices, mixed-use commercial buildings featuring a supermarket, and a development site extending to 1.47 hectares (3.63 acres).

The complex was developed by Galway-based JJ Rhatigan and is producing an income of €7.5 million which, according to a briefing given to one fund, has "immediate growth prospects". Figures show that 58 per cent of the income comes from the apartments, leaving 42 per cent with a commercial weighting.

The loan sale is proceeding on the instructions of Paul McCann of Grant Thornton, who was appointed receiver by Bank of Scotland(Ireland).

HSQ adjoins the Eircom headquarters, which was sold by that company to Quinlan Private at the end of 2006 for an amazing €190 million. JJ Rhatigan’s subsequent development of the adjoining site is widely acknowledged as one of the best mixed-use schemes in the city in recent years, which would have been finished out by now but for the property crash.

There are 343 apartments in all on the site, 264 of which are included in the loan sale. The one-, two- and three-bedroom homes are spread over four blocks and are currently producing a rental income of €4.33 million. New rental agreements coming through are set to increase the overall rent roll over the coming years. The new rents being achieved are €1,200 for one-beds; €1,450 for two-beds and €1,800 for three beds.

The second element of the development, the 12-storey- over-basement Brunel office building is effectively fully let, covering an area of 7,456sq m (80,257sq ft). There are 136 car parking spaces assigned to the block out of the overall parking capacity of 413. The American mass media company AOL rents 2,989sq m (32,172sq ft) and with two new tenants due to move in, the overall rent roll will increase to €2,180,978.

The retail element and own-door offices have an overall floor area of 7,285sq m (78,417sq ft) at ground and mezzanine level. Supervalu contributes almost €800,000 of the €1 million rent coming from this part of the site.

A feasibility study – and this is shortly to be brought to a planning stage – has shown that the remaining site can accommodate about 18,166sq m (195,537sq ft) of commercial accommodation and 115 further apartments.