€75 million price tag – “The Gemini Portfolio”

Savills are bringing The Gemini Portfolio to the market for sale by private treaty on the instructions of the Receivers, KPMG and Grant Thornton.

This unique investment opportunity which consists of three modern well located multifamily schemes will attract significant interest from domestic and international investors looking for prime Irish investment opportunities. The entire is being offered for sale with a guide price of €75 million equating to a gross income yield of 10.4% based on 97% occupancy. Offers are accepted for the entire portfolio or elements thereof.

Savills recently completed the sale of The Alliance, the Gasworks, Dublin 4 for a price of €40 million which produced a net income yield of 6.25%. Meanwhile, Sandford Lodge in Dublin 6 is on the market with a quoting price of €26 million equating to a net initial yield of 6%.

The schemes within The Gemini Portfolio comprise Tallaght Cross East (Dublin 24), Island Key (Dublin 3) and Orchard Gardens (Cork City) totalling 640 modern apartments, approximately 18,720 sq. m. (201,500 sq. ft.) of commercial space and a 48 bed Hotel.

The gross passing rent is €5.56 million per annum of which 89% is attributed to residential and the remaining is secured against some excellent commercial covenants such as Marks and Spencer (Ireland) Limited and Tesco (Ireland) Limited. These covenants account for approximately 10% of the Portfolio income at present. Based on a 97% occupancy rate for the residential and commercial elements, we anticipate the gross income would reach approximately €8.15 million.

Domhnaill O’Sullivan, Director of Investments at Savills, comments that

“The multifamily investment market is relatively new to the Irish market.  However there is pent up demand from international investors looking for multifamily blocks as the macro and micro recovery prospects in this market are strong.  The Gemini Portfolio, the largest of its kind to be released will attract investors looking to build a residential platform.”

“A purchase price at quoting levels would be significantly below the replacement cost of the assets and represents an excellent time to invest at the bottom of the cycle.”

“We forecast the multifamily market will continue to be very active and evolve to compete with commercial investments as more sales come to the market over the next year.  We envisage that over 2,000 units could come to the market in the next 12-18 months. It’s a market sector we are very positive on”