The Montrose Student Residence has been put up for a sale with a guide price of over EUR 41.5 million.
The student housing scheme is situated next to the UCD campus at Stillorgan Road, Dublin, and is expected to be of interest to international investors.
The building represents the first purpose-built student accommodation of its kind to come up for sale in Dublin and will reportedly show an income yield of around 4.5% after acquisition costs, according to selling agents Savills. The gross rent roll is estimated to reach EUR 2.91 million per annum.
The former three-star hotel was converted into student accommodation at a reported cost of EUR 22.5 million, by Ziggurat Student Living.
The redeveloped building comes equipped with 205 en-suite bedrooms situated over five floors, while the ground floor has also been let out and hosts a bank, convenience store and cafe. There are also enough spaces in the grounds to accommodate 52 parked cars.
According to Marcus Roberts, head of student investment at Savills: "The chronic undersupply of purpose-built student accommodation, together with strong rental growth prospects and the prime location of the Montrose scheme beside UCD, make it a very attractive investment."
Expectations are that the student accommodation market in Dublin will evolve to compete with other commercial investment asset classes in Ireland and as a result will lead to more sales in the market over the next few years.