herald

Sunday 17 December 2017

Nama to raise €120m in sale of apartments

Nama is selling off a mass of 'Plum Portfolio' apartment blocks all around Dublin which is set to raise millions of euro.

The 588 homes, which are in six Dublin suburbs and one in the city centre, are expected to fetch in the region of €120m in the sale.

The appointed estate agents say the apartments could be sold as one massive lot, or as seven separate entities.

The apartments, which are currently owned by different developers and investors, are at Beechwood Court, Stillorgan; Corrig Road, Sandyford in Dublin 18; Lad Lane off Cumberland Road in Dublin 2; Carrington Park in Santry, Dublin 9; Heywood Court, also in Santry; Northern Cross, Malahide Road in Dublin 13; and Waterside, Malahide Road, Co Dublin.

INCOME

The apartments are fully let and the sale will not affect the current tenants.

Currently, the combined gross income from rents in the seven developments is approximately €7.43m per annum.

However, according to the agents, the letting of vacant commercial accommodation and increasing current passing rents in line with market rents could see that income increase to around €8.7m a year.

"We anticipate strong interest across the portfolio," said Ivan Gaine, Head of Capital Markets and New Homes at DTZ Sherry FitzGerald.

"Project Plum presents investors with an excellent opportunity to acquire a significant volume of multi-family units at a time when property prices and rents in Dublin continue to rise," echoed Domhnaill O'Sullivan, director of investments at Savills.

"The developments on offer are in established residential locations with high rental demand which is likely to attract interest from both local and international investors."

Last August Nama sold 761 apartments in four other Dublin schemes for €211m.

The National Asset Management Agency (NAMA) was established in December 2009 as one of a number of initiatives taken by the Government to address the serious problems which arose in Ireland's banking sector as the result of excessive property lending.

Wind up

It has now announced that it expects to be able to wind up its operations ahead of schedule - mainly due to the improving property market.

In a policy statement accompanying its results for the first half of 2014, the asset management agency says it is on course to complete much of its business by the end of 2017 or into mid-2018.

As part of efforts to address housing shortages in the Dublin area, NAMA earlier this year set up a dedicated "residential delivery team" driving the agency's commitment to complete 4,500 new homes by the end of 2016 and to assess the scope for more houses after that time.

It is thought that 1,000 units will be finished by the end of 2014, another 1,500 in 2015, with the rest to be finished by the end of 2016.

cfeehan@herald.ie

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