Ireland's largest ever private rented sector (PRS) portfolio has been brought to market for over €425 mln by international broker Savills.
'Dublin Living' comprises 1,170 units across four newly developed schemes - Mount Argus, St. Clare's, Carriglea and Cabra Road. the development sites are owned by Marlet Property Group in conjunction with their finance partner, international asset managers M&G Investments.
'This exclusive portfolio will present an excellent forward funding opportunity to acquire a significant volume of new private rented sector units within a thriving cosmopolitan European capital city, as property prices and rents in Dublin continue to rise,' commented Domhnaill O’Sullivan of Savills Ireland.
'The developments on offer are in established residential locations with exceptionally high rental demand which is likely to attract interest from a range of local and international investors,' O'Sullivan added.
The quoting price, in excess of €425 mln, equates to an estimated net income yield of approximately 4.6%.
Based on current letting indicators for older existing multi-family schemes, the estimated net rental value of the portfolio today is in the region of €20.5 mln, according to Savills. However, with the schemes due for phased completion between the second half of 2018 and the early part of 2020, this figure is forecast to increase significantly due to the undersupply of private rented accommodation in Dublin.
According to Savills Director of Research, Dr John McCartney, the number of households renting privately in Dublin has grown by 42,400 since 2012, driving the current vacancy rate down to just 1.45%. Dublin's population is also rising by around 1.4%, which Savills suggests will impact rental growth by 7.3% per annum or 14.5% compounded up to the midpoint of 2019.
