Agent CBRE is guiding a price of €46m for the student accommodation element of a significant mixed-use scheme which German supermarket giant, Lidl, is set to develop at Ballymun in north Dublin.
Prospective buyers are being invited to forward-purchase the two blocks of student housing at the scheme, known as North Quarter Student Accommodation. Consisting of 364 bed spaces, this housing will form part of larger development incorporating a fully-serviced supermarket, office accommodation, retail space and two cafés. The entire scheme has been designed by Darmody Architecture.
Upon completion of the development, Lidl will sell both blocks of student accommodation, including ancillary retail space and two cafés, to the purchaser.
The proposed development is situated just off the Main Street on Balcurris Road in Ballymun, approximately 1.4km from Dublin City University's main campus and 1.2km from the sports grounds of Trinity College Dublin (TCD).
North Quarter will also be accessible to DIT Grangegorman and Trinity College Dublin's main campus, as it is approximately 7km from Dublin city centre and easily accessible by private or public transport. Dublin Bus operates several routes within the immediate vicinity.
The scheme is also ideally located within a short distance of the M50 and M1 motorways, and Dublin airport. North Quarter is also approximately 200m from the proposed Metro stop in Ballymun, which will add an additional transport link to Dublin city centre.
The student accommodation sector in Ireland is a relatively new investment market. Currently, the vast majority of third-level students are living in private rented accommodation or on campus in halls of residence provided directly by various third level institutions.
Both of these forms of accommodation are severely undersupplied in Dublin at present, with approximately only one in seven full-time students in Dublin having access to purpose-built student accommodation (PBSA).
This data serves to highlight the significant supply and demand imbalance in Dublin, which has spurred activity by private developers and operators.
Commenting on the opportunity presented by North Quarter, Emma Courtney, associate director within CBRE's residential capital markets division, said: "The student accommodation sector is becoming a particularly attractive area of the commercial real estate market to investors and operators, given the supply and demand dynamics which currently exist.
"North Quarter provides investors with an opportunity to secure a newly developed scheme in a location where student numbers are high and projected to increase over the coming years."