Rathgar Road portfolio and site with €1.1m rent roll guiding €18m

Joint agents DNG Advisory and BNP Paribas Real Estate are guiding a price of €18 million for a significant apartment portfolio in one of Dublin’s most-sought after residential areas.

The Rathgar Road Collection comprises six period properties, which have been redeveloped over the past 40 years to accommodate 61 purpose-built and market-rented apartments, and three commercial units.

Located on two sites at 175-178 Rathgar Road and 149 Rathgar Road in Dublin 6, the portfolio comes with potential for the development of a further 44 apartments, and is being offered for sale in one lot.

Numbers 175, 175a, 176, 177 and 178 Rathgar Road comprises 53 purpose-built apartments and three commercial assets producing an annual rent of around €955,500. This site also includes a one-acre (0.404 hectare) residential development plot to the rear, which is capable of accommodating an additional 44 apartments, subject to planning permission.

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Number 149 Rathgar Road comprises eight purpose-built apartments producing an annual rent of approximately €130,000 with a development site for a single mews to the rear (subject to planning permission).

All told, the Rathgar Road Collection is producing a total rent roll of about €1,085,500 per annum.

Guide price

The portfolio’s €18 million guide price includes € 16.5 million for the standing residential investment, representing a gross initial yield adjusted for purchaser’s costs of 6.3 per cent. The average price per unit is approximately €270,490 which equates to a capital value of €617 per sq ft. The portfolio’s development potential meanwhile carries a value of about €1.5 million.

As no rent reviews have been undertaken by the existing owners since the Government’s introduction of rent protection legislation, the selling agents estimate the portfolio offers the prospective purchaser the opportunity to increase its rental income by between 4 per cent and 8 per cent.

The existing apartment stock is made up of a combination of large studio apartments (18 units) and one-bedroom apartments (43 units). The average rent per residential unit in the portfolio works out at about €1,407 per month.

The purchaser may also seek to renovate and refurbish some or all the existing buildings with a view to increasing the portfolio’s overall rent roll. New market lettings for apartments in this location should typically achieve in the order of €1,400 to € 1,650 per month for studio apartments and € 1,700 to € 1,900 per month for one-bed apartments.

Public transport

The suburbs of Rathgar and Rathmines are well-established and much sought-after rental areas in south Dublin. The investment, which is owned and managed by a local family, is just a short walk from Rathmines village and its amenities, and 2.2km from Dublin city centre. The area is well served by public transport, with numerous Dublin Bus routes providing ready and regular access to Dublin city centre.

Gareth Noone of DNG and Damien McCaffrey of BNP Paribas Real Estate expect to see strong interest from investors in the portfolio given the combination of its quality and location, and the ongoing shortage of rental accommodation in south Dublin.

Compliance and vendor surveys will be provided to intending purchasers in the project website visual data-room.