Cairn Homes has agreed to acquire 3.5 hectares of development land in Dublin from Irish broadcaster RTÉ for €107.5 mln, a 43% increase on the indication price when Savills started marketing the plot two months ago.
The 'Project Montrose' site sits adjacent to RTÉ's headquarters in the leafy Donnybrook district of Dublin.
Savills said the land provides the opportunity to develop a mid to high-end housing scheme of up to 500 units comprising a mix of apartments and houses, subject to securing necessary planning permission. 'This is the most significant land sale to have taken place in Dublin in 2017 and sets a new benchmark for land values in the area,' the real estate adviser added.
While the price paid has surprised market watchers, Cairn Homes, the London-listed Irish residential property developer, believes it has got its calculations right.
'Cairn is delighted to have acquired what we believe to be Dublin's most attractive residential development site,' said Cairn CEO Michael Stanley.
'Our design-led approach, the quality of the homes we build and our economies of scale make this a truly exceptional opportunity for us. At Cairn, we believe in building exceptional homes in great locations and the Montrose site will significantly add to the new homes we will bring to the market over the coming years. We are currently undertaking major apartment developments at both Marianella, Rathgar and 6 Hanover Quay in Dublin city centre.
'We were very much encouraged by the support for our strategy through the success of our recent share placing. There was a clear recognition amongst investors of the benefits of a balanced portfolio and of the potential of building quality homes at price points across the market spectrum.'
The transaction is expected to close during July.
The sale to Cairns follows a competitive bidding process Savills ran on the vendor's behalf.
'When we launched Project Montrose to the market back in April, we described it as a once in a generation opportunity to be part of a truly transformative development story in one of Dublin's most affluent and fashionable areas,' said Mark Reynolds, director at Savills Ireland.
'The competitive bidding process and final sale price of €107.5 mln is testament to that. We now look forward to seeing this development come to life and providing a new high quality scheme in Dublin 4.'
The site is sold with a detailed feasibility study for a housing scheme designed by O’Mahony Pike Architects.
