Property investment company Ires Reit is looking to beef up its rental portfolio with the acquisition of 128 apartments at Hampton Wood in Dublin 11.
Ireland’s largest private landlord, with almost 2,500 properties in its portfolio, has been selected as the preferred bidder for the apartments, and although discussions are at an advanced stage, Ires Reit said that completion of the sale is still dependent on a number of factors.
While Ires Reit did not put a price on the deal, a guide price of € 32 million was mooted in this paper for the 128 Finglas apartments back in November. However Philip O'Sullivan, economist with Investec, suggests that it might be higher. "Given the strong competition for PRS assets in Dublin we would not be surprised if the agreed price was in excess of this guidance," he said.
The apartments, which are in walking distance of Ikea in Ballymun, are in two newly built blocks, with an expected rent of €1,350 per month for a one-bed, and € 1,700 for a two-bed. With an annual expected rent roll of € 2.4 million when fully let, the properties are expected to show a gross yield of 7.25 per cent.
Ires Reit continues to benefit from the strong growth in rents, and its latest results show that it’s attracting an average monthly rent of €1,517 across its portfolio, or as much as €2,697 at The Marker in Grand Canal Dock.
The real estate company is understood to be currently assessing its planning application for its site at Rockbrook in Sandyford, south Dublin. Last year the company failed in its application to build 450 apartments on the plot, due to concerns about height. However, the company recently said that it will submit another plan for some 450 apartments. Colm Lauder, real estate analyst with Goodbody Stockbrokers, said that the the revised apartment building guidelines may mean that Ires will be able to maintain the unit count at this scheme, despite the expected reduction in height and density