Hibernia Reit buys €28m apartment block

Property investment company Hibernia Reit has acquired an 80-unit apartment complex in Dundrum, south Dublin for €28.05m in an off-market transaction.

The complex situated close to the M50 and Dundrum Town Centre generates net annual rent of €1.36m and a net initial yield of 4.7% when fully let.

The property comprises two apartment blocks with a 22 one-bed units, 44 two-bed units, 14 three-bed units and 114 parking spaces. The two-bed units are let at an average rent of €1,500 per month.

Investment manager chief executive Kevin Nowlan said previous investment in the area has proven its attractiveness to tenants.

“We are delighted to have agreed the off-market acquisition of 80 apartments in an excellent location beside the Dundrum town centre and close to the M50 and Luas green line,” said Mr Nowlan.

“As has been widely publicised, the Dublin residential rental market continues to be characterised by strong demand and a lack of supply.

“Dundrum View is less than a kilometre away from block 3, Wyckham Point, where we recently completed the fit-out of 70 apartments and expect to deliver the final 143 apartments by the end of September 2015. All of the 70 completed apartments in block 3 were let [or bookings were secured] prior to, or shortly after, completion and we have achieved average rents of €1,700 per two-bed apartment, proving the attractiveness of the area to tenants.”

Last month, Hibernia said that it had acquired two more properties on Lime Street in the Dublin Docklands for €4.6m.