Rental income at Ireland’s largest private landlord Ires Reit is set to jump by 14.6 per cent next year as the property investment company benefits from an increase in the number of units it rents.
According to a new report from Goodbody Stockbrokers, Ires Reit, which is Ireland’s largest private landlord, with a portfolio of some 2,608 properties, is forecast to generate rental income of some €39.5 million for this year, up by 9 per cent on 2017. However next year, rental income will jump by almost €6 million, or 14 per cent, to €45.2 million according to Goodbody forecasts. This is because new developments that were completed or extended in 2018, including The Maple in Sandyford, Hansfield Wood in Clonsilla, and Hampton Wood in Finglas, will return rents for the full year.
The report also suggests that the landlord has the potential to develop about 600 apartments at currently owned sites and properties. This includes 61 units at Bakers Yard Phase II, where planning has already been granted; 84 units at Beacon South Quarter Dublin, where planning has been submitted; and 430 units at Rockbrook, Sandyford.
Planning for the latter was originally turned down in 2017, and Ires Reit says it will now re-submit its planning application in late 2018. If it obtains this, then the apartments could be on the market for rent in late 2021.
The new properties could be added for “considerably less” than market costs, Goodbody says, given that the majority of the sites already have a lot of infrastructure, such as underground car parks, in place.
They also present a significant opportunity to boost Ires Reit’s rent roll, by about €17.6 million a year. Most of this rent would come from Rockbrook, where 430 new units could bring in an additional €13 million a year, or about €2,500 per month per apartment.
The new units at Beacon South Quarter, which will “substantially complete” the scheme, and may include 12 one-bed units, 59 two-beds, and 13 three-beds as well as a two-storey creche and retail units, will bring in an estimated €1.6 million a year, or €1,587 per unit, and could be built by end 2020.
