South docklands portfolio for €40m

A block of 84 high-quality apartments alongside the new five-star Marker Hotel at the Grand Canal Docks in Dublin 2 is the latest multifamily investment to be offered for sale on the international market.

Fergus O’Farrell of Savills is guiding €40 million for the Marker Residences along with six fully-occupied commercial units at ground floor level and 119 basement car parking spaces which are generating an overall rental income of €2.5 million per annum.

The Dublin-based real estate private equity firm Brehon Capital Partners and Midwest Holdings acquired the vacant hotel and apartments two years ago and after fitting them out to the highest standards have turned them into a highly profitable business. Brehon also bought the Powerscourt Hotel in Enniskerry after the property market collapsed. The Marker Residences popularity is due in part to the fact that they have been integrated with the hotel to give the occupants access to a range of facilities including concierge and room service, housekeeping, business and conference centre and a health spa with infinity pool, sauna and a gym.

The 84 two-bedroom apartments are laid out over six storeys with two units per core on each floor. Rents range from €1,900 to €2,400 per month, accounting for a gross rental income of almost €2.1 million.

The six commercial units extend to 1,263sq m (13,559sq ft) and are producing rents of €275,000 with an average unexpired lease term of 8.33 years. Savills estimate that the rent roll should exceed €350,000 when a stepped rent for one of the units reaches its maximum level and lease terms for another retail unit under negotiation is finalised. The tenant mix includes office and retail occupiers Lolly & Cooks, Smiles Dental Clinic, KBC Bank, GSN Pharmacy and Hanover Medical.

The Marker apartments are located in the heart of Dublin's south Docklands where some of the best office and residential blocks are located as well as a mixture of bars and restaurants. The apartments are adjacent to the Bord Gáis Energy Theatre and are within 15 minutes walk of Grafton Street. The area recently dubbed "silicon dock" has several large IT employers including Google, Facebook and LinkedIn.

Fergus O’Farrell said he was anticipating “an unprecedented level of interest” in the Marker Residences because of their prime location, 100 per cent occupation and the quantum of high-end luxurious multifamily units on offer. “The investment presents an opportunity to become part of Grand Canal Square, Dublin’s most salubrious address.”

Commenting on the sale Kevin McGillycuddy of Brehon Capital Partners said: “We bought this extraordinary development at a time when there was little appetite to invest in Irish residential property and we’ve brought it to life and woven it into the fabric of the Docklands community. Three years on we are very optimistic that there will be a high level of demand from both domestic and international investors looking to acquire a uniquely-located asset with an attractive rental yield, high-quality tenants and significant growth potential.”

Scope for expansion
The Marker Residences are an ideal investment for some of the international funds as well as the various REITs looking to rebalance their property portfolios. US investor Kennedy Wilson is the dominant player in Dublin's multifamily investment sector after buying the Clancy Barracks residential complex (

€82 million), The Gasworks apartments in Ringsend (€40 million);Sandford apartments (€27 million); Alto Vetro in George’s Dock (€11.5 million) and more recently the residential element of Central Park. Apart from the large number of apartments already in use at Clancy Barracks and Central Park, there is also scope to substantially increase the number of units at both sites.

Even though the Beverley Hills-based investor seems to have an insatiable appetite for apartments, it may well hold off on the Marker Residences following claims in the Dáil last week that some funds – Kennedy Wilson was not named – may now hold a dominant position in the city apartment rental market which has been marked by sharp increases in rents over the past two years. Social welfare Minister Joan Burton has undertaken to refer the issue to the Minister for Finance for investigation.