German real estate fund Patrizia is readying the final launch of apartments in the Dun Laoghaire area of south Dublin as it brings 25 apartments to the rental market this week.
The German fund is holding a number of open viewings of its show apartments at the development, which it acquired back in July 2017. At the time, Patrizia paid €132 million for 319 apartments, or €413,793 each, across two buildings at Honey Park in Dun Laoghaire.
According to letting agent Hooke & Macdonald, there has been very strong interest in the development, with just 25 remaining units left to be let.
The units to be let are in the Charlotte building, which consists of 159 apartments. Two-bed apartments are available at the development from €1,900 a month, with one-beds at €1,675 and three-beds at €2,375. Penthouse units are available from €2,700. At the nearby Leona building, home to 160 apartments, tenants are paying from €1,765 for a one-bed; from €1,960 for a two-bed; and from €2,450 for a three bed.
The Honey Park area is a hive of activity on the build-to-rent front. Patrizia acquired the apartments from construction group Cosgraves, which has just put 214 apartments at the Fairways scheme in nearby Cualanor on the market for €95 million. This works out as an average price of €443,925 each.
Cosgraves also sold 197 apartments at Neptune in Honeypark to SW3Capital-Tristan Capital Partners for € 72.5 million (or €368,020 each) back in 2016. This development has two-beds on the market from €2,064 a month, with car parking spaces for a further €50 a month.
Property funds have been setting new benchmark rent levels right across the city of late. In Finglas, Ires Reit is looking for €1,850 a month for two-bed unfurnished apartments at Hampton Wood, while Kennedy Wilson is bringing 190 apartments to the market in January at Capital Dock in Dublin 2. Rents will start at €3,300 for a two-bed unit in the high spec building, which will include a concierge, gym and special dining room for residents. While higher rents have been achieved in the area - at the Merrion Hotel for example, two-bed apartments are available for rent for €8,850 a month - property funds are setting new benchmarks for rents being achieved across a new development. The rents at Capital Dock for example, sigificantly exceed the €2,716 being asked for at the nearby Marker, which is let by Ires Reit.
And there is always scope for upward movement of rents; as new builds, landlords of the units won’t be subject to rent rules that limit price increases to 4 per cent a year.