Ely Property has paid €21 million to acquire 45 apartments at the Cityquarter residential development in the new Athlone Town Centre, which will open next month.
In addition, Ely will manage the sale of another 75 apartments in the €60 million scheme on behalf of the developers.
All of the apartments come with Section 23 tax relief, allowing investors to offset up to 85 per cent of the cost of the units against other rental income once they own the property for 10 years.
This is expected to be one of the last tax-break apartment schemes to come to market following a change in policy by the Government.
Investors can choose to lease the apartments back to Ely, which has guaranteed to rent the units for a 10-year period.
Ely is one of the biggest developers and managers of student accommodation in Ireland and the UK.
It is a wholly-owned subsidiary of the Newcourt Group, a recruitment and security outsourcing services company listed in both Dublin and London.
Philip Marley, Ely's chief executive, said the apartments would be offered first to his company's 300-strong list of private client investors before being opened up to the wider market in about six weeks.
The apartments are expected to be ready for occupation in 2008.
"This is an excellent development that should completely change the centre of Athlone," Mr Marley said. "We think there will be a lot of interest from professional investors."
Cityquarter is part of a €500 million retail, leisure and residential development being built in the heart of Athlone.
It includes a four-star Sheraton hotel and the largest shopping centre outside Dublin, comprising 67 units.
Athlone Town Centre is due to open on October 18th, and is being built by Kerry-born property developer John O'Sullivan and accountants Jim Keane and Tom Donohue, who are partners in the Russell Browne and Keane accountancy practice.
Marks & Spencer, Next, Zara, Tommy Hilfiger and Eason have all signed up to the scheme.
CFI Property is seeking to raise €100 million from private investors to buy the centre. The total purchase price would be €345 million, with Anglo Irish Bank supplying the balance of funds in debt.
