Savills has been appointed to bring ‘Dublin Living’ to the market this week and will be seeking forward funding proposals for this unique portfolio. The sale will represent Ireland’s largest Private Rented Sector (PRS) public offering comprising approximately 1,170 units within four schemes in one lot.

The portfolio will be the first large scale PRS platform opportunity of its kind to be offered for sale in the Irish market and will contain four newly developed schemes including Mount Argus and St. Clare’s in Harold’s Cross, Dublin 6W along with Carriglea in Bluebell, Dublin 12 and the Cabra Road development in Dublin 7. The development sites are currently owned by Marlet Property Group in conjunction with their finance partner, the international asset managers M&G Investments.

Based on current letting indicators for older existing multi-family schemes, the estimated net rental value of the portfolio today is predicted to be in the region of €20.5 million allowing for market standard operational costs. However, with the schemes due for phased completion between the second half of 2018 and the early part of 2020, this estimated rental figure is forecast to increase significantly during the construction period of the four schemes due to the critical undersupply of private rented accommodation in Dublin and the consequent inflationary pressure on rents.

According to Savills Director of Research, Dr. John McCartney, the number of households renting privately in Dublin has grown by 42,400 since 2012. However the very limited amount of housing construction has failed to keep up with this continually increasing rental demand and the current vacancy rate in the Dublin PRS has been driven down to just 1.45%. Dublin’s population is also rising by around 1.4% (20,000 persons per annum) and recent Census figures show a tendency towards urbanisation in Ireland. As a result of this considerable supply and demand imbalance, Savills predicts continued growth, with new residential rents in Dublin expected to rise by an average of 7.3% per annum or 14.5% compounded up to the midpoint of 2019.

The portfolio has a quoting price in excess of €425 million which equates to an estimated net income yield today of approximately 4.6% after purchasers’ costs and is expected to attract significant levels of interest from domestic and overseas investors looking to establish a considerable foothold in Dublin’s PRS market capitalising on rental growth prospects in the city.

The four high-quality PRS schemes will deliver a mixture of spacious residential apartments, which are predominately two beds (750 in total) with 255 one beds and the remaining 165 units laid out as three beds. All units will be finished to an extremely high specification with fully fitted kitchens and bathrooms, while residents will be able to avail of state of the art amenity provisions including residents’ lounges, business centres, meeting rooms, concierge facilities and gyms. The developments will also contain impressive communal areas and picturesque landscaped grounds.

According to Savills, the four schemes will benefit from exceptionally strong rental demand owing to their close proximity to Dublin City Centre and excellent transport connectivity.

Mount Argus in Harold’s Cross is regarded as one of the most popular residential locations in south Dublin and is located just 2 km south-west of St. Stephen’s Green. The area has a vast range of boutiques, shops, bistro-style restaurants and cafés as well as recreational amenities including the adjacent Mount Argus Park and the nearby Harold’s Cross Park. It benefits from excellent public transportation links including a Quality Bus Corridor providing swift access to the city centre and beyond.

Mount Argus is the first scheme in the portfolio already under construction with the majority of the superstructure now in place on the 1.8 ha (4.45 acre) site. The development will comprise 180 apartments within eight residential blocks ranging in height from three to five storeys in addition to approximately 280 basement car parking spaces. The scheme will include 25 one bedroom apartments, 130 two bedroom apartments and 25 three bedroom apartments offering an estimated net rental value in the region of €3.3 million per annum based on today’s current rents. The expected completion date of Mount Argus is the second half of 2018.

St. Clare’s is also located in Harold’s Cross approximately 500m north of the Mount Argus development. The 1.7 ha (4.20 acre) site was formerly the home of St. Clare’s convent which dated back to 1803 and will provide 220 apartments along with secure underground parking for 154 car spaces. It will comprise seven new high end multi-storey residential apartment blocks in addition to the original convent and chapel buildings which are being carefully converted into apartments and tenant amenity accommodation.

There will be 58 one bedroom apartments, 127 two bedroom apartments and 35 three bedroom apartments, in addition to a crèche facility that will extend to approximately 2,250 sq ft. St. Clare’s is due for completion in 2019 and currently has an estimated net rental value in the region of €4 million per annum based on today’s market rents.

The proposed Carriglea development is located 5 km south-west of Dublin city centre on the banks of the Camac River nestled adjacent to the extensive Lansdowne Valley Park and Pitch & Putt Course and the historic Drimnagh Castle. The M50 Motorway along with a multitude of employers including Our Lady’s Children’s Hospital and St. James Hospital are all easily accessible. The Luas Red Line Terminus at Bluebell is 3 minutes’ walk from the property providing convenient access to St. James Hospital in approximately 10 minutes, and the city centre in approximately 20 minutes.

Carriglea is due for completion by the early part of 2020 and will provide a total of 362 apartments within ten impressive multi-storey residential blocks on a 2.62 ha (6.47 acre) site. The mix of units will include 75 one bedroom apartments, 223 two bedroom apartments and 64 three bedroom apartments. The scheme will also include a 3,000 sq ft crèche facility along with basement car parking with 274 spaces all surrounded by picturesque landscaped gardens. Based on today’s current rents, the estimated net rental value for Carriglea would be in the region of €5.9 million per annum.

The final scheme located in Cabra, Dublin 7 will include 408 units making it the largest asset within the portfolio. Cabra is a Dublin city centre suburb located approximately 3 km north-west of O’Connell Street and 15 km south of Dublin Airport. It is also situated north-east of Phoenix Park, one of the largest enclosed recreational spaces of any European City.

The development will be conveniently positioned close to the new LUAS Cross City Line with a LUAS Terminus within a couple of minutes’ walk from the property linking Cabra to the city centre and beyond. The new LUAS Cross City route also continues northbound to Broombridge with services planned to commence in December 2017.

The scheme is located within 1 km of the Grangegorman Quarter, an extensive education and health community development for the Health Service Executive and Dublin Institute of Technology (DIT) which is currently consolidating all of its campuses at this newly developed campus. Grangegorman currently has over 10,000 staff and students and is expected to increase to 20,000. When fully completed it will be one of the largest educational facilities in Ireland.

This 3.92 ha (9.69 acre) development will include eight well-configured multi-storey blocks to include a total of 97 one bedroom apartments, 270 two bedroom apartments and 41 three bedroom apartments. In addition, the scheme will also include approximately 29,000 sq ft of retail accommodation, a small 1,600 sq ft office unit and a 4,000 sq ft crèche facility along with 429 car parking spaces.

Cabra has an estimated net rental value in the region of €7.3 million per annum based on today’s market rents with completion also due by the early part of 2020.

Domhnaill O’Sullivan of Savills Ireland commented:

“This exclusive portfolio will present an excellent forward funding opportunity to acquire a significant volume of new Private Rented Sector units within a thriving cosmopolitan European capital city, as property prices and rents in Dublin continue to rise. The developments on offer are in established residential locations with exceptionally high rental demand which is likely to attract interest from a range of local and international investors.”