Dunshaughlin scheme for €2.1m

Joint agents Savills and Hooke & MacDonald are quoting €2.1 million for a mixed-use investment and development site in the village of Dunshaughlin, Co Meath.

Should it sell for this price a purchaser can secure a net initial yield of 10 per cent.

Ivy Hall includes 28 two-bed apartments above nine commercial units and an adjoining site of approximately 0.36 acres which has the potential for development subject to planning permission.

The development is adjacent to Main Street and is producing a gross income of about €220,000 a year, €188,000 of which is from the residential element. However, six of the apartments are vacant and, at an average monthly rent of €712, once all units are let the residential rent roll would rise to about €271,000.

Two of the commercial units, which are located around a central car park with 83 spaces, are occupied but the agents say the others could add €52,000 to the overall rent roll when the development is fully let.

There is no planning permission in place on the 0.36-acre site which is zoned B1 “to protect, provide for and/or improve town and village centre facilities”. This zoning allows for a variety of uses, including hotel, B&B or residential development.

The agents also point out that the car park’s 83 parking spaces “appears excessive relative to the size of the development”, so it may be feasible to further develop a portion of the car park, particularly the section adjoining the site.

Dunshaughlin is just off the M3 about 31km from Dublin city centre and experienced considerable growth during the boom.

Gavin Hanlon of Hooke & MacDonald says Ivy Hall provides an opportunity for an investor or developer to acquire a midsize multifamily investment with "significant opportunity to increase income in the short term following some capital expenditure".