Carrickmines site bought for €8m in 2013 on market for €18m

US group puts Brennanstown Road site back on the market 18 months after buying it

A ready-to-go residential site on Brennanstown Road in Carrickmines, south Dublin, bought 18 months ago by the American-based Starwood Capital Group for €8 million, is back on the market at over €18 million.

The private treaty sale is expected to mark the start of a new selling campaign by overseas companies who managed to buy distressed property assets after the crash at a fraction of their original values.

Several of them who acquired properties in portfolios and loan books are planning to flip them on in the current buoyant market.

Meanwhile, some of the firms with development sites are hoping to set up joint ventures with Irish construction companies.

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Interest expected

Wesley Rothwell of agents

CBRE

is expecting considerable interest in the extensive Brennanstown Road site, known as Barrington Tower, which is located in one of the most-sought after residential areas in south Dublin.

The current shortage of houses is expected to lead to strong competition among developers, some of whom are being funded by private investment groups.

Brennanstown Road

The land extends to 3.15 hectares (7.8 acres) and fronts on to the Brennanstown Road.

It has full planning permission for 148 homes, 37 two-, three- and four-bedroom houses, and 111 apartments of which 96 will be two-beds, six will be three-beds and nine one-beds.

At the €18 million asking price, site values will work out at about €80,000 to €100,000 for each of the apartments, and €200,000 to €250,000 for the houses.

Dormer bungalow

The site includes a four-bedroom dormer bungalow known as Winterbrook which has a gross internal floor area of 287sq m (3,100sq ft) and stands on half an acre.

The Barrington Tower site has been the focus of considerable attention since it was first offered for sale without planning permission in 2005.

The vendors were then guiding €15 million but to the surprise of many, it was knocked down at auction to developer Bill Doyle at €36 million.

Receivers appointed

He secured planning permission for the residential development in 2008 but when the property market took a nose dive,

Bank of Scotland

(Ireland) appointed receivers to the company.

KPMG sold the site to Starwood for €8 million in an off- market deal in 2013. In the meantime, the planning permission on the site was extended to 2018.

Part of the appeal of the Barrington Tower site is that it is within easy walking distance of both Cabinteely and Foxrock villages. It is located close to the Egyptian ambassador’s residence and is also adjacent to Brennanstown Vale, a high-quality housing scheme completed in recent years.

Luas line

Another strong selling point is that the site borders the Luas Green Line and is serviced by the Brennanstown Road station which has already been completed. Travel time to St Stephen’s Green is about 25 minutes.

The M50 junction (16) and the N11 are also near the site.

Jack Fagan

Jack Fagan

Jack Fagan is the former commercial-property editor of The Irish Times