In brief: New student housing for Dublin and industrial market latest
THE UK-headquartered student accommodation specialists GSA and BAM Ireland have signed a €43m contract for the development of Uninest Mill II, an additional residence being built near to GSA’s 400-bed flagship residence, Uninest New Mill in Dublin’s Liberties, pictured inset, which is opening this September.
The construction of Uninest Mill II at Merchant’s Quay is expected to create around 250 jobs during the building phase, with a further five full-time positions becoming available upon completion in 2018.
Uninest Mill II will provide 296 beds from September 2018, offering a combination of ensuite cluster apartments and community spaces.
The building’s ground floor is set to become a business incubation hub for start-ups, small businesses and entrepreneurs.
GSA already offers 101 student beds at Uninest Broadstone Hall in Dublin city centre.
The company expects to provide a further 491 beds at Kavanagh Court along with 400 beds at Uninest New Mill both of which are due to commence operations from this September.
With prime yields for industrial property ranging from 5.25pc to 5.5pc, it is now viable to build space to lease, according to the latest report from Savills on Dublin’s industrial property market.
The report notes that the supply to demand imbalance in the market has led to industrial rents rising sharply, with MSCI data revealing that rental growth rates have accelerated from 10.6pc to 10.9pc in the first three months of this year.
According to Savills, headline rents in Dublin now stand at €95 per sq m per annum and are expected to continue rising at a robust rate through 2017.
Director of Research at Savills Ireland, John McCartney says: “While selling prices would not yet justify building new industrial units for the owner occupier market, falling yields and rising rents have led to speculative development for the rental market, particularly in North Dublin.”