Joint agents DTZ and Savills have just launched the Project Plum portfolio in Dublin, which can be bought as an entire with rent roll of €4m, or in up to seven different lots, only one of which is in the city centre, a student accommodation block linked to Treasury Holdings.
Now, DTZ in Cork today launch Fullers Lodge, a 49-bed, eleven apartment student accommodation scheme on the city end of College Road, near UCC (pictured above), guiding €2m.
Last week’s widely anticipated budget confirmation that the CGT exemption for assets purchased by year’s end won’t be extended, has seen a marked increase in activity by purchasers and, in tandem with this, an increasing number of properties brought to market for sale by tender seeking to avail of this window of opportunity, says Eoin Ryan of DTZ Cork.
He has set a November 27 tender date and a guide price of €2 million for the purpose-built Fullers Lodge, for receiver Paul McCann of Grant Thornton. Built 10 years ago, it has a current income of €185,000 pa, and this is expected to rise to €200/215,000 for the 2014/2015 academic year, he suggests.
Peter O’Flynn, Director DTZ Sherry FitzGerald, said this tender offer “ticks all the boxes for many investors and the sale will close before year end. This investment is a rare example of a high quality student accommodation complex with a lot size which will appeal to a wide range of purchaser types.”
Meanwhile, a private investor has paid €1.9 million for 26 apartments, all fully let, at the Mariners Hall development in Cork city city’s Skehard/Mahon suburb near the CSO.
Mariner’s Hall, developed by Coleman Brothers, comprises 42 one and two-bed units in all and was built in the early 2000s, with basement parking. The gated and landscaped scheme, built over three levels, has underground parking for 45 cars, gas-fired underfloor heating, lifts, and is fully disabled accessible. Nearby employers include Dell, EMC,. RDJ, McAfee, VHI Swiftcare and the CSO.
The sale at Mariner’s Hall equates to about €75,000 per unit: the value will be watched as other sizeable residential investments in Cork city come to market in the coming weeks by tender, including Fullers Lodge, and a privately owned residential block of 42 units, between Skehard Road and the city centre, with strong income stream.
At the now-completed Mariners Hall sale, a larger number of units had formed the initial investment offer, via Declan Hickey of Downing Commercial for Nama/Bank of Scotland, but this was subsequently reduced to 26 units when only the banks’ units were released for sale.
At the time of first offer, the 39 units at Mariners Hall had an income of €328,000: the breakdown from the 26 now sold in one lot hasn’t been divulged by Downing Commercial, who would only confirm the sale had finally closed, to a private buyer.
Sources say the 26 were bought by a company associated with investors Jerry and Tom Carey, but this hasn’t been confirmed.
Sold earlier this year in Jacobs Island, Mahon, were nine apartments producing €85,000 pa in rent, making c €1 million, or €110,000 per apartment in the McCarthy Developments scheme by the city’s ring road and Jack Lynch Tunnel.
Details: DTZ Sherry FitzGerald 021-4275454, Downing Commercial: 021-4271000