A partly completed housing estate in Balbriggan in North County Dublin is to go for auction next week with a €750,000 guide price. According to the Irish Independent, the dwellings were completed and put on the market they could be worth €4m.
Known as Hampton Gardens, it is situated on a 7.3 acre site on the Naul Road, on the western approach to Balbriggan and consists of 11 houses and 40 duplexes and apartments which are substantially completed.
Up to 14 of the dwellings had been occupied by tenants until May of this year but after the receivers Kieran Wallace and Shane McCarthy of KPMG commissioned a survey of the compliance of the buildings, it was discovered that they did not comply with the fire regulations and the tenants were moved to alternative accommodation.
Another unusual feature of the development is that a developer could avail of a credit for up to €300,000 in development levies with Fingal County Council against funds already paid and works undertaken by the development company. The actual credit would be a matter for negotiation with the county council.
Loman Dempsey of selling agents Savills estimates that if the 51 substantially developed units were fully completed and made compliant, they could generate about €450,000 to €475,000 a year in rent on the basis of a two-bedroom apartment achieving a rent of €650 per month and a three-bedroom house achieving €1,000 per month.
On the other hand, if the 51 units were sold when completed and fully compliant they could generate about €4m on the basis of a modest average price of €78,430 each.
As well as the substantially completed units, the site also benefits from having all its internal roads completed and foundations have been laid for a further 23 houses.
Its planning permission would also allow for the construction of a further 33 houses, a further 39 three-and four-bedroom duplexes as well as an extra 35 two-bedroom apartments – or in other words, a total of a further 107 units. This permission is due to expire in November this year unless it is extended.
The land, which is located between St George’s School and Millfield Shopping Centre, is also convenient to the town centre and the M1 motorway.
Joint agents are REA Cumisky and the auction will be held on Wednesday next July 24.