DTZ Sherry FitzGerald is to commence marketing the Tallaght Cross West multi-family and commercial development next week with a likely guide price in excess of €80m.

The development is being sold on the instruction of the receiver, David Carson of Deloitte, who together with WK Nowlan has managed the estate for the last four years.

DTZ said the complex is the largest volume of apartments to come on the market within a single development.

The HSE, the National Ambulance Service and Primary Care Centre and pharmacy will occupy a large part of the main office buildings and one retail unit on the campus. The three office buildings adjacent to the LUAS line are not included in the investment sale.

The 442 apartments comprise 161 x 1 bedroom apartments; 237 x 2 bedroom apartments and 44 x 3 bedroom apartments. DTZ says the targeted residential income is €6.1m per annum, assuming the flats rent for €1,000/month for 1 beds, 2 beds €1,200/month and 3 beds €1,450/month.

In Association with

There is 16,390 sqm of commercial/retail space with potential for up-to 22 retail units or potential other uses. The development has nearly 1,600 car spaces within a three level basement car park.

The receiver has recently disposed of the 186 bedroom hotel. Carson also sold two of the adjoining office buildings. 65 apartments were acquired through the NARPS special purpose vehicle and are being managed by the Tuath Housing Approved Housing Body and are not included in the sale.

Investment Volume

The third quarter of 2015 saw approximately €500m invested in the Irish property market, bringing total investment in the year to date to €2.2 billion. This compares to €2.9 billion in the same period in 2014.

Investment volumes in Q3 were boosted by a number of big ticket transactions, the most significant being the acquisition of a mixed portfolio of prime retail and suburban office buildings known as the Sovereign Portfolio by Irish Life for a reported €154m.

The portfolio, sold by Royal London Asset Management, reflects a 30% increase on the guide price and a net initial yield in the region of 4.5%.

Notable Sales

Other notable sales during Q3 included the sale of Block R on Spencer Dock, a Grade A office block located in the North Docklands area of the CBD, for a reported €104m to the Central Bank. US investment firm, Invesco Real Estate, acquired the Frascati Shopping Centre in Blackrock, Co Dublin, for in excess of €69m.

According to DTZ Sherry FitzGerald, solid demand in Dublin’s CBD alongside strong occupier activity has seen no let-up in the weight of capital chasing prime office assets.

Office investment volumes in the first three quarters have amounted to €1.3 billion.

The retail sector has also had a very buoyant opening nine months,with turnover totalling €460m, or 21% of overall investment. Activity was led by shopping centre sales which increased considerably compared with the corresponding period in 2014.

2015 has witnessed a rise in the volume of retail investment outside of the capital, 57%, with overseas private equity firms driving activity outside of Dublin.

DTZ estimates that €3 billion will transact in the Irish investment market this year, excluding loan sales.