Investors involved in the supply of housing to third-level students will be interested in the opportunity presented by the sale of Koula Rooms, a fully let student-accommodation scheme in the south Dublin suburb of Monkstown. The property, which comprises 28 bed spaces across two detached two-storey blocks, is being offered to the market by agent Colliers at a guide price of €4.5 million.
Koula Rooms generates income across the academic year and summer letting periods. The development’s gross income and net operating income stand at about €357,000 and €307,000 a year respectively.
The asking price of €4.5 million reflects a capital value of approximately €150,000 per bedspace and a net initial yield of approximately 6.53 per cent on the net operating income, assuming purchaser’s costs of 4.46 per cent.
Located on Abbey Road and within a short walk of the campus of the IADT (Institute of Art, Design and Technology), which has approximately 2,500 enrolled students, the subject property comprises eight self-contained three-bedroom apartments. Each bedroom benefits from its own en suite bathroom, accommodating a total of 28 student bedspaces across single and twin-occupancy configurations. The scheme extends to a total area of 511 sq m (5,502 sq ft) and has recently undergone a comprehensive refurbishment programme, including newly installed storage heaters, upgraded fire safety systems and modernised bathroom fittings throughout.
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Apart from its proximity to the IADT campus, Koula Rooms is convenient for students looking to commute to UCD’s Belfield campus or to other third-level institutions including Trinity College and TUD. The property is well served by public transport, with several Dublin Bus routes providing regular access to and from Dublin city centre.
Michele McGarry of Colliers says: “Koula Rooms is a fully stabilised student accommodation investment in an established south Dublin location. The combination of strong demand for student accommodation, a comprehensive refurbishment and an attractive income profile should appeal to a wide range of domestic and international investors.”
