Tallaght apartments offer 11% return

Fifty rented apartments in the centre of Tallaght, Dublin 24, are to be offered for sale at an average valuation of €

120,000 per unit and a gross investment return of 11 per cent.

Damian McCaffrey of agents Knight Frank is guiding €6 million for the Abberley Square apartments on High Street and Belgard Road, which are being sold on the instructions of receiver Tom Kavanagh of Deloitte.

Mixed-use scheme

The apartments form part of a mixed-use development including 107 residential units over five floors designed around a central courtyard with an adjoining multistorey car park to the rear. The ground-floor commercial units, known as

Tallaght Retail Centre

, are occupied by a range of traders including

Centra

,

Subway

,

Paddy Power

and Milano.

The fully-fitted apartments are almost fully occupied and let on standard 12-month tenancy agreements at average rents ranging from €975 for one-bed until to €1,300 for three-bed units.

The current annual rent roll of €660,000 could be increased to market level at €720,000 through active asset management and lettings, according to the selling agents.

The 50 apartments developed in 2006 include 15 one- beds, 30 two-beds and five three-beds.

They range in size from 87sq m to 100sq m and are finished to a high standard including fully tiled bathrooms, integrated kitchens, wood flooring and balconies with decking.

McCaffrey said the attractive yield and rent roll should appeal to domestic and overseas investors seeking to scale up their holdings.