Green REIT has announced that it has entered into a conditional contract with its joint venture partner to acquire full control of Central Park for €155m with an estimated all in cost of €160m. Completion of this acquisition is conditional on the approval of the Competition and Consumer Protection Commission in Ireland. The transaction is funded using (1) the Company’s revolving credit facility with Barclays Bank (€85m) and (2) by Green REIT taking over the vendor’s 50 per cent of the Bank of Ireland debt secured against the Central Park properties (€75m ). The deal is expected to close by mid-January 2016. The company says that the purchase price reflects a value of €428 per square foot and an equivalent yield of 5.6% on the investment assets.
Post acquisition, the company says that annual passing rent will increase by €7.2 million (14%) to €58.9m and annual contracted rent will increase by €8.9m (16%) to €64.4m. Furthermore, the acquisition of One Albert Quay in Cork, which will complete in Q1 2016, will increase annual contracted rent further by an estimated €4.1 million to €68.5m.
With regard to Block H in Central Park, which has been under construction since April 2015, the Company expects to deploy an additional €20m of capital towards its completion, to cover 100% of the costs to complete the building, with 100% of the development profit to accrue to the Company. This additional €20m will be funded from the Company’s revolving credit facility with Barclays Bank.
Green REIT takes full control of Central Park : GRN