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€10m Dublin investment portfolio offers yields of more than 6pc

A private Irish investor is selling three Dublin investment properties, two of which are at guide prices below their purchase prices.

The most valuable of them is a mixed-use investment known as Oxmantown Green, near Smithfield, Dublin 7, which comprises 25 apartments and two commercial units.

QRE Real Estate Advisers, which is handling the sale of all three properties, is guiding €9m for Oxmantown Green which will provide a gross initial yield of about 6.43pc.

The other two lots are 11 Main Street, Rathfarnham, Dublin 14, and 69 St Patrick’s Road, Dalkey, Co Dublin, both of which have €600,000 guide prices.

The Oxmantown complex is fully occupied with the exception of a single apartment and is currently producing a total rent of about €560,000 per annum which could increase to about €579,000 upon full occupancy. Its ground floor commercial units are occupied by Fuse Gym and McDermott Creed & Martyn Solicitors.

The current owner bought the complex for more than €6m in 2014 from a KPMG receiver and subsequently undertook an asset management programme which resulted in increasing the rent roll from its then level of €385,500.

 Located in two blocks around a central open air courtyard at first floor level, the largest of the apartments is a three-bedroom penthouse; there are 10 two-bedroom duplex units; nine two-bedroom apartments and five one-bedroom apartments. Secure parking for 21 cars is provided in the basement.

Galway-based firm O’Mahony Finnerty completed the development around 2009.

It is also located close to the trendy Stoneybatter area and Technological University Dublin.

Bryan Garry of QRE points out that 20 units benefit from a BER rating of B3 or higher.

This is a private treaty sale while the other two properties will go for auction on the Offr online platform on September 20.

One of those is located in the sought after village of Dalkey. A three-storey mixed use property, 69 St Patrick’s Road extends to 1,399 sqft. Internally it encompasses a ground-floor retail space utilised as a hairdressing salon. An office occupies the first floor while the one-bedroom top-floor apartment is vacant.

This lot currently generates a passing rent of €27,000 per annum, although the agent says that by letting the vacant second-floor apartment this would increase the rent to about €44,000.

Harry Byrne of QRE says this could result in a reversionary yield of about 6.5pc.

It last changed hands for €778,000.

In the centre of Rathfarnham village the third property, 11 Rathfarnham, is fully occupied at a passing rent of €44,200 per annum which would equate to a net initial yield of about 6.7pc.

It consists of a two-storey mixed-use building extending to about 1,927 sqft.

Internally, the ground floor is trading as a pharmacy. On the first floor there is a tenanted office to the rear, while a bridal showroom rents its first and second floor space.

It is understood the vendor bought the latter for €926,000 in 2004 and is now selling in order to focus on larger lot sizes.

written by Irish Independent

September 2023