The ongoing strength and continued growth of Dublin's private rented sector (PRS) market is likely to be reflected again in the sale of a major residential scheme set to be delivered on the site of the former Chivers factory in Coolock.
Agent Cushman & Wakefield is inviting offers in excess of €170 million for the 471 apartments the scheme's promoter London-based Platinum Land intends to deliver as part of the "Jam Factory" scheme. The sale of the portfolio by way of a forward funding opportunity is expected to attract strong interest from a range of domestic and overseas institutional investors.
Upon completion, the development will comprise 471 build-to-rent (BTR) units distributed across four blocks ranging in height from four to nine storeys. The scheme will include a mix of 61 studios, 138 one-bedroom units, 166 two-bedroom units and 106 three-bedroom units with 394 basement and surface car parking spaces and 650 bicycle spaces.
Platinum Land is currently awaiting a decision on a further planning application for an additional 79 units to be added to the current proposed scheme. A decision is expected to be made early in December and, if granted, will provide permission for the development of 550 units in total.
Quite apart from the robust demand for accommodation in the Dublin PRS market, the interest of prospective purchasers of the Jam Factory scheme will be heightened by the developer’s intention to pre-let up to 30 per cent (between 141 and 165 units) of the development on 25-year index-linked leases to Dublin City Council. The total projected stabilised gross income of the entire development is €10 million per annum.
Set within three acres of landscaped parklands, the development will offer tenants a range of amenities including a standalone gym and creche building, as well as co-working and communal gathering spaces.
Coolock, meanwhile, is an established residential location, with existing local amenities that include leisure facilities, retail and grocery and educational institutions.
The Jam Factory is about 6km north of Dublin city centre and 3km from the M1/M50 interchange providing access to all arterial routes. The scheme is well served by public transport links with the Quality Bus Corridor (QBC) and Dart both situated within walking distance.
Nearby employment hubs include Dublin Airport, Beaumont Hospital, Dublin Port and East Point Business Park.
Patrick Hogan, head of PRS at Cushman & Wakefield, expects the Jam Factory to generate strong interest among investors due to the combination of its scale, location and the security of income which will be derived from the proposed long-term lease of 30 per cent of its units to Dublin City Council.