Investors in Dublin’s much-in-demand private-rented-sector (PRS) market may be interested in the opportunity presented by the sale of the Georgian Collection, a portfolio of 13 residential rental properties distributed across a number of the city’s most sought-after neighbourhoods.
The portfolio, which is fully let and generating a total of €2.145 million in annual rental income, is being offered to the market by agent Savills at a guide price of €30 million.
The Georgian Collection briefly comprises of a total of 91 dwellings consisting of a mix of studio, one-bed, two-bed, three-bed and four-bed units located in areas such as Clontarf, Glasnevin, Drumcondra, Phibsborough and Stoneybatter.
All of the properties within the portfolio have been subject to extensive refurbishment programmes and finished to a high quality according to the selling agent and are in full compliance with planning and fire regulations and local authority housing standards. In terms of their sustainability, the units carry a mix of A and B Ber ratings.
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The properties variously include a Victorian redbrick at 50 Castle Avenue in Clontarf, Dublin 3, which is divided into eight refurbished residential units and producing a rent roll of €213,000 in annual rental income. This breaks back at an average of €2,219 per month per unit.
Number 25 Howth Road, also in Clontarf, Dublin 3, comprises a three-storey midterrace redbrick residence and is currently producing €218,040 in annual rental income, or an average of €1,652 per unit per month.
Numbers 25 and 27 North Circular Road in Dublin 7 – two adjoining period houses close to the entrance to the Phoenix Park – comprise a total of 16 residential units. These produce an annual rent roll of €420,060, or an average of €2,188 per unit per month.
Should a sale of the portfolio proceed at the €30 million guide price, the new owner would be in line for a net initial yield of just under 6 per cent after standard purchaser’s costs of 9.96 per cent.
Kevin McMahon of Savills says: “Strong investor interest is expected in this opportunity due to the very attractive returns on offer. This is underpinned by the quality of the assets and the robust fundamentals of the Dublin rental market, with strong population and employment growth, minimal vacancy and an acute supply/demand imbalance. “We expect interest from a number of new investors on foot of the very favourable proposed amendments to Irish rent regulations. These will enable stronger rental growth and overall returns.”
