Irish REIT Hibernia has exchanged contracts to acquire an 80-unit apartment complex in the south Dublin district of Dundrum in an off-market deal worth €28 mln.
Irish REIT Hibernia has exchanged contracts to acquire an 80-unit apartment complex in the south Dublin district of Dundrum in an off-market deal worth €28 mln.
Dundrum View is fully let, generating net annual rent of €1.36 mln and a net initial yield of 4.7%.
The property comprises two apartment blocks with a total of 22 one-bed units, 44 two-bed units, 14 three-bed units and 114 parking spaces. The two-bed units are currently let at an average rent of €1,500 per month.
Dundrum View is being acquired from Ireland's CMP Investment Partnership.
'As has been widely publicised, the Dublin residential rental market continues to be characterised by strong demand and a lack of supply,' commented Kevin Nowlan, CEO of WK Nowlan REIT Management, Hibernia's investment manager.
Dundrum View is located near Block 3, Wyckham Point, where Hibernia has recently completed the fit out of 70 apartments and expects 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,' Nowlan said.