US investment firm and Bank of Ireland investor Kennedy Wilson has agreed to purchase the Alliance Building in the Gasworks development in Dublin 4 in a deal worth more than €40 million.
The Sunday Business Post has learned that the firm was the highest bidder for the residential investment property, which was developed by Liam Carroll and is one of the most distinctive apartment blocks in the country.
Selling agent Savills was quoting a guide price of €43 million for all 210 apartments in the nine-storey glazed cylindrical block, which is currently producing an annual rent roll of €3.25 million. At that price, the yield on the deal would have been 7.25 per cent.
This newspaper understands that a deal has been done with Kennedy Wilson for about €42 million, just €1 million shy of the asking price. The price works out at an average value of €200,000 per apartment.
Savills confirmed that the building was under offer, but would not disclose any details of the sale. It is believed that contracts on the deal will be exchanged next week.
The Alliance Building, which is adjacent to the Grand Canal Dock scheme, has attracted significant interest from overseas property companies and wealthy investors since it was put up for sale on the instructions of receivers to Liam Carroll's companies last June. It is understood that a number of international investors were underbidders.
It is the latest high-profile commercial property investment in the capital to be acquired by overseas investors.
The sales of two other buildings - One Warrington Place on Mount Street, which is being bought by the British insurer Prudential, and Riverside II on Sir John Rogerson's Quay, which is under offer from a German private investment fund - are expected to be completed in the second quarter of this year.
Kennedy Wilson acquired Bank of Ireland's real estate investment management arm (BOI REIM) in June 2010, and led a group of five investors that bought a 30 per cent stake in the bank last summer.
More recently, Kennedy Wilson and partners from the US and Europe bought a $1.8 billion UK commercial portfolio from Bank of Ireland.
In total, the firm, together with its institutional partners, has acquired around $5.1 billion of real estate and real estate-secured debt through joint ventures and consolidated investments since the beginning of 2010. The estimated value of the assets under the company's management is currently more than $12 billion
Wednesday, March 21, 2012
US firm to buy apartment block in Dublin's Gasworks for €40m - Sunday Business Post
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People can cry about the current economics in Ireland but i think anybody who cant see the rental value and future return in Dublin are very short sighted .
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