D4 Receivership.com (Gasworks)

evilal · **Posted:** Thu Nov 17, 2011 9:44 pm

2Pack wrote:

I understand these are premium for all of location space and build quality by Dublin standards.

Not in terms of space, 2pack. They are badly laid out and smaller than those in the surrounding blocks (which were significantly cheaper). Build quality is good but the place is poorly deisgned acoustically.

Objective Investor · **Joined:** Jun 28, 2011 **Posts:** 261

evilal wrote:

2Pack wrote:

I understand these are premium for all of location space and build quality by Dublin standards.

Not in terms of space, 2pack. They are badly laid out and smaller than those in the surrounding blocks (which were significantly cheaper). Build quality is good but the place is poorly deisgned acoustically.

Ha that brings me back, I lived in this apartment building for a year and there was one particular lady who's night-time activities could be heard from any living room in the entire building (provided the window was open). Never did find out who she was but we had a lot of fun guessing!

Elka · **Joined:** Sep 30, 2009 **Posts:** 549 **Location:** here

Wasn't a brothel operating there?

evilal · **Posted:** Thu Nov 17, 2011 11:32 pm

A brothel was operating in an adjoining building. There are (were?) several escorts living in the complex also, but whatever.

2Pack · **Joined:** May 3, 2007 **Posts:** 10511

Ah lads, there is a knocking shop in every second apartment block in Dublin nowadays so stop picking on the Alliance.

evilal · **Posted:** Fri Nov 18, 2011 7:31 am

Ah yeah it was just part of the local colour. Can you tell the hos from the Google totty?

Worth pointing out that in Ireland it's perfectly legal as long as the girls are working for themselves, indoors.

BlameGame · **Joined:** Jun 21, 2010 **Posts:** 2954

Larry wrote:

On Daft there are 184 2-bed apartments in South Dublin City and Dublin City Centre asking €1400 or more (which is what the Alliance asks, although it seems €1300 is the clearing price). In price and location terms, these are the direct competition for the Alliance.

If I remove the price filter, there are 1,017 2-bed apartments in total in these areas. So...

> The Alliance is in the top c.15% most expensive South City and City Centre 2-bed apartments.
> In absolute terms, there only c.200 more expensive 2-bed apartments in these areas of Dublin.
> Between those 200 and the 200 in the Alliance, you could accommodate about 20% of Google's employees.
> The Alliance has the benefit of being highly lettable given Google and other hi-tech firms in the area
> It also has the intangible benefit of being a landmark building with character and thus potentially having OO as well as investor appeal.

Ergo, €200,000 should be close to a ceiling on Dublin 2-bed apartments and an 8% gross yield should pinpoint the actual price you pay.

Whats quite interesting is that they are openly pitching this at 7.25% gross yield on rent.
I know the "market is the market" but this will actually slow down the market!

Some of the foreign money I've seen is making offers priced for almost double this return on gross rental yield on apartment blocks.

And this is a Non Nama bank remember - Ulster.
NAMA and the other banks are going to be expecting to get 14 times the gross rent on apartments. I know the market may not deliver this but it essentially freezes the stock on the shelves for another year.

slasher · **Posted:** Sun Mar 18, 2012 10:30 am

Sunday Business Post reporting this Alliance Building has been sold to US firm Kennedy Wilson for more than 40€mill - 42€m it understands-200k per gaff

Interesting article, touting plenty of foreign interest in blocks.

Can't cut and paste from iPad app

johnnyone234 · **Posted:** Thu Jun 07, 2012 8:58 am

Larry wrote:

On Daft there are 184 2-bed apartments in South Dublin City and Dublin City Centre asking €1400 or more (which is what the Alliance asks, although it seems €1300 is the clearing price). In price and location terms, these are the direct competition for the Alliance.

If I remove the price filter, there are 1,017 2-bed apartments in total in these areas. So...

> The Alliance is in the top c.15% most expensive South City and City Centre 2-bed apartments.
> In absolute terms, there only c.200 more expensive 2-bed apartments in these areas of Dublin.
> Between those 200 and the 200 in the Alliance, you could accommodate about 20% of Google's employees.
> The Alliance has the benefit of being highly lettable given Google and other hi-tech firms in the area
> It also has the intangible benefit of being a landmark building with character and thus potentially having OO as well as investor appeal.

Ergo, €200,000 should be close to a ceiling on Dublin 2-bed apartments and an 8% gross yield should pinpoint the actual price you pay.

Larry was spot in the analysis

Quote:

The ALLIANCE Building located in the iconic cylindrical Gasworks estate in Dublin’s Ringsend has finally sold to international property investment firm Kennedy Wilson for €40 million.

The company purchased the property with its partner Fairfax Financial through Savills from Grant Thornton, which acted as appointed receiver on behalf of Ulster Bank.

The 210 apartments in the nine-storey block have an annual rent roll of €3.5 million.

The sale will throw some light on values of residential apartment blocks in Dublin, since not too many similar deals have been concluded here in recent times.

The 202 two-bedroom apartments in the building – there are also eight one-beds on the ground floor – are rented at an average of €1,300 a month.

However, what makes the block unique – and no doubt most attractive – is that 80 per cent of the units are rented by staff from Google’s European headquarters in the adjoining office campus.

The €40 million sale price works out at about €190,000 per apartment.

http://www.irishtimes.com/newspaper/pro ... 37968.html

FirstBass · **Joined:** Aug 31, 2010 **Posts:** 2369

slasher wrote:

Sunday Business Post reporting this Alliance Building has been sold to US firm Kennedy Wilson for more than 40€mill - 42€m it understands-200k per gaff

Interesting article, touting plenty of foreign interest in blocks.

Can't cut and paste from iPad app

Someone from IBRC told me that the likes of foreign pension funds were interested in some blocks but only if they could have the whole thing. The likes of Elysium in Cork or Elmpark have had some sold and can't be taken over as a complete entity to be managed

evilal · **Posted:** Thu Jun 07, 2012 10:52 am

FirstBass wrote:

Someone from IBRC told me that the likes of foreign pension funds were interested in some blocks but only if they could have the whole thing. The likes of Elysium in Cork or Elmpark have had some sold and can't be taken over as a complete entity to be managed

Well, some of the owners might jump at the chance of unloading, assuming their banks let them...

FirstBass · **Joined:** Aug 31, 2010 **Posts:** 2369

I'd have thought it would be possible to negotiate an exit. There's always one that'll try to hold out for too much and bugger the deal though

HissingSound · **Joined:** Sep 26, 2010 **Posts:** 189

oceanclub wrote:

My wife mentioned that one of the guys there who bought an apartment didn't want to show his face on camera - wonder why!

To be fair, for everyone who likes to flash their cash, there are others who don't want their wealth and investments feeding gossip among neighbours and acquaintances.

HissingSound · **Joined:** Sep 26, 2010 **Posts:** 189

2Pack wrote:

Ah lads, there is a knocking shop in every second apartment block in Dublin nowadays so stop picking on the Alliance.

Didn't know that. Do letting agents mind if you ask them whether such a facility is conveniently located in the apartment block they are showing you, or would they get offended?

Ctrl+P=$ · **Joined:** Jun 4, 2012 **Posts:** 202

slasher wrote:

Sunday Business Post reporting this Alliance Building has been sold to US firm Kennedy Wilson for more than 40€mill - 42€m it understands-200k per gaff

Interesting article, touting plenty of foreign interest in blocks

I wonder what their finance costs are? Probably around 2%. Versus 5% for an ordinary person.

Youre going to increasingly see large private equity parasites with preferential access to cheap finance, buy up all the assets and turn whole populations into renting tenants. We are going back to the 1800s landlord era.

Its very important that the ECB does NOT cut interest rates and facilitate these parasites hoovering up of our assets.

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