Stillorgan student accommodation for €5.7m offers buyer 6.26% net initial yield

Both private investors and family offices are expected to be among the parties interested in the sale of 409 Stillorgan Road in Stillorgan, Co Dublin. The subject property, a 32-bedspace purpose-built student accommodation (PBSA) scheme is being offered to the market on behalf of well-known family builder Durkan, by agent Colliers at a guide price of €5.7 million.

Developed in 2019 on the site of the former Priory Townhouse B&B, 409 Stillorgan Road occupies a prime location on the N11 just 2.2km south of UCD’s Belfield campus.

The subject property has an A3 Ber, extends to 854.8sqm (9,201sq ft), and is arranged over four floors. The accommodation is served by a lift and stairs, with each bedroom fully furnished with a built-in bed, desk and storage space. All floors have a fully fitted communal kitchen and common room. The scheme’s facilities also include secure key-card access to all bedrooms, CCTV, an on-site laundry room and a private courtyard. The development has car-parking spaces and a covered bicycle parking area.

Number 409 Stillorgan Road is fully operational and is generating gross income of €473,000 a year and a net operating income of €373,000 annually. The development benefits from strong demand both during the academic year and during summer letting periods, according to the selling agent.

The guide price of €5.7 million reflects a capital value of approximately €178,000 per bedspace and a net initial yield of approximately 6.26 per cent, assuming standard purchaser’s costs of 4.46 per cent.

[ Site of former Cabra pub with planning for student-accommodation scheme guiding at €7.5mOpens in new window ]

Michele McGarry of Colliers says: “409 Stillorgan Road is a modern, purpose-built student accommodation asset in one of Dublin’s strongest student-accommodation markets. The property’s proximity to UCD, strong occupancy record, A3 Ber rating and further income growth potential will appeal to a broad range of domestic and international investors seeking exposure to Ireland’s undersupplied student-accommodation sector.”