Two multi-family investment opportunities, with a combined guide price of more than €10 million, have hit the market in Galway and Cavan.
In Galway, BidX1 is guiding €5.6 million for 26 apartments at Tir Na gCapall in Ballybrit to be sold by private treaty. The sale price suggests an individual price of €215,384 per apartment.
Located opposite the Briarhill Shopping Centre and adjacent to the Clayton Hotel, in the town which is known for the annual Galway Races, the units are fully let, generating rental income of €410,100 a year, indicating a gross yield of 7.3 per cent a year. All of the apartments are three-bedroom ensuite units and are situated on well-maintained grounds, with ample surface car parking.
In Cavan, BidX1 is guiding €4.65 million for 46 apartments across two blocks at Clare’s Court in Cavan town centre. The annual rent roll comes in at at €423,400, suggesting a gross yield of 9.1 per cent based on the guide price of €4.65 million.
The apartment development comprises 48 units, all of which are occupied, along with two commercial units, a retail/cafe unit let to Insomnia and first-floor office accommodation. The individual sale price of the apartments is about €85,000.
Rental demand
The cafe unit, located in Block A and fronting on to Church Street/Main Street, is let to Insomnia on a 20-year lease from October 2017, while the office suite is situated on the first floor of the same block, extending to approximately 344sq m (3,702 sq ft). The office accommodation is vacant, providing the buyer with an opportunity to increase return.
Johnny O’Connor, head of investments at BidX1, said: “Both investments will provide an investor with the opportunity to acquire strong residential income in locations with stable rental demand, as evidenced by the continuous full occupancy of both assets.”
Activity in the private rented sector remains strong, with investors attracted by a strong rental market. While the Government introduced limits on bulk buying of homes during the summer, the measure, which imposes a stamp duty charge of 10 per cent on the cumulative purchase of 10 or more residential houses in a 12-month period, doesn’t apply in the aforementioned sales. This is because the stamp duty hike applies only to houses, not apartments.
