Hibernia has exchanged contracts to buy Dundrum View in south Dublin for €28m (£20m).
The scheme consists of two blocks of flats, comprising 22 one-bedroom units, 44 two-bedroom units, 14 three-bedroom units and 114 parking spaces in total.
Dundrum View is fully let and generates a net annual rent of €1.36m, reflecting a yield of 4.7%. It was bought from CMP Investment Partnership.
The scheme is located beside Dundrum Town Centre, Ireland’s largest shopping centre, which is being prepared for sale by Nama through Eastdil Secured as part of the €2.4bn Project Jewel.
Kevin Nowlan, chief executive of WK Nowlan REIT Management, the investment manager for Hibernia, said: “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-bedroom apartment, proving the attractiveness of the area to tenants.”
