The prospect of immediate rental income copper-fastened by the security of a 25-year government lease is expected to see strong interest from investors in the sale of Project Haven, a portfolio of approximately 60 social housing units across Dublin’s north, south and west suburbs.
The portfolio is producing a guaranteed gross rental income of €952,000 per annum and is being offered to the market by agent CBRE on behalf of Allied Irish Property and the Topland Group at a guide price of €21 million.
While the vendors have not provided a precise breakdown of the portfolio’s composition, it is understood the properties comprise an equal mix of houses and apartments distributed across residential schemes located in the main in Finglas, Tallaght and Blanchardstown.
Each property within the portfolio has been fully refurbished and let by way of a standard lease for a term of 25 years, directly to the relevant local authority in each area. Index-linked rent reviews are provided for in every third year.
Some 61,880 households were assessed as qualified for housing support as of November 2020, with Dublin county accounting for 43 per cent of the national total. The Government has set a target to deliver 50,000 social houses over five years.
Shane Cahir of CBRE says he expects the Project Haven portfolio to appeal to a wide range of domestic and international investors given the in-place income, reduced operational costs and secure 25-year government lease structure.
The vendors, Allied Irish Property, specialise in investment in the residential sector throughout Ireland and in the provision of social housing to local authorities.
According to its website, the company’s structured finance division offers finance and equity to developers with a primary focus on social housing. Its joint venture partnership with the UK-headquartered Topland Group meanwhile provides it with significant financial firepower. Topland is one of the largest multi-billion pound, privately-owned investment groups worldwide.
Outside of its particular interest in the social housing sector, Allied Irish Property says it has “the ability to offer instant cash for residential houses and apartments to owners and investors who are looking to sell fast, save time, and save money on fees”.
Allied Irish Property is not a part of, or associated with, AIB bank.