Case Study: Transforming a Pre '63 Property in Dublin
In the competitive Dublin residential property market, pre '63 properties—those built before 1963 and often subject to specific regulations regarding their conversion and use—represent unique investment opportunities. These properties can be particularly appealing to experienced property investors looking to renovate and either sell for a profit or rent out to tenants. However, the initial acquisition and subsequent refurbishment of such properties require significant capital outlay, not to mention navigating the complex legal and regulatory landscape. This is where Onate steps in, providing a loan offering that turns potential into profitability.
The Opportunity
An experienced property developer identified a promising Pre'63 building in Dublin. The property, comprising multiple units, was in a dilapidated state but located in a high rental demand area in Dublin city. The developer's vision was to fully refurbish the units to a high standard, making them appealing to modern renters, while preserving the building's historical character.
The Challenge
Despite the clear potential for a high return on investment, the project presented several challenges:
Difficulty in securing the property due to demand for these types of Pre’63 properties in Dublin
Substantial refurbishment costs, given the building's state and the need to comply with modern building standards from a fire safety and planning authority perspective
The need for quick access to funds to secure the property in a competitive market and commence work.
Onate's Solution
Onate offered a tailored financial package that addressed each of these challenges:
Transactional certainty, Onate is extremely well capitalised and funded from a broad base of several financial institutions
75% Funding of the Purchase Price: Onate agreed to fund 75% of the purchase price, significantly reducing the initial capital the developer needed to commit. This support was crucial in enabling the acquisition in a highly competitive market
100% of Refurbishment Costs Covered: Recognising the potential value uplift from the refurbishment, Onate provided 100% of the estimated refurbishment costs. This commitment ensured that the project could proceed at pace, without financial constraints hindering progress
Fast Funding Release: Onate's agile and efficient processing meant that funds were available quickly, allowing the developer to close the purchase and start the refurbishment without delay.
The Impact
The financial offering put in place by Onate had several positive outcomes:
Bringing a derelict property back into the property market: The developer was able to preserve a piece of Dublin's architectural history, updating it to meet the needs of contemporary residents
Economic Viability: The project became economically viable through Onate's funding, with the potential for a strong return on investment upon completion
Community Benefit: The refurbished units helped to alleviate local housing shortages, providing high-quality living spaces in a prime location
Repeat Business and Growth: The success of the project encouraged the developer to pursue additional Pre'63 properties, contributing to the growth of their portfolio and the regeneration of more areas within Dublin.
Conclusion
Onate's bridging finance solution demonstrates the pivotal role of tailored financial products in unlocking the potential of complex real estate investments. By providing substantial funding for both the purchase and refurbishment of Pre'63 properties, Onate not only facilitates derelict buildings being brought back to life but also supports experienced developers in bringing valuable, high-quality housing solutions to the market. This case study exemplifies how strategic finance can overcome significant barriers to entry, drive urban renewal, and contribute positively to the housing landscape.
If you're ready to explore new opportunities and need a financial partner who can rise to the challenge, contact Onate now:
John Ring | john@onate.com | 0878305276 or Michael Gavin | michael@onate.com | 0851454200
