Irish Residential Properties REIT (IRES) has announced that it has executed contracts with Flynn & O’Flaherty Construction for the acquisition of 146 residential units located in The Phoenix Park Racecourse, Castleknock, Dublin 15. The total purchase price is €60 million (including VAT but excluding other transaction costs). IRES expects to complete the acquisition in January 2021, which will be funded from the Company’s existing credit facility.
About the acquisition
The property is located in the west Dublin suburb of Castleknock and is adjacent to the Phoenix Park, the largest enclosed park of any European capital city. IRES says that the scheme occupies an attractive position close to Dublin City Centre (c. 6kms), with easy access to the M50 motorway. Furthermore, it says that there are excellent public transport links to the City Centre, with Ashtown train station and a high frequency bus service close by. Castleknock and the Phoenix Park is a much sought after and mature residential location, providing some of Dublin’s finest amenities, including schools, sporting facilities, shopping and employment.
The residential units to be acquired by the Company include a mix of apartments, duplex units, penthouses and houses (20 x 1 bed, 113 x 2 bed and 13 x 3 bed). 120 of the residential units were built between 2002-2007. The remaining 26 residential units are newly built having been completed mid-2020 in a self-contained block overlooking the Phoenix Park. All residential units are completed to a high specification providing large windows and balconies that frame the views of the landscaped gardens and the park. Supporting on-site facilities include shops, café, gym and off-street bicycle and car parking.
137 of the residential units are currently leased and income producing with 9 residential units available for immediate lease-up. Based on current annualized passing rents on the 137 residential units and the lease up of the remaining 9 residential units, the asset is expected to generate an initial gross yield of 5.3%.
Comments from Margaret Sweeney, the Company’s Chief Executive Officer
“This acquisition presents an opportunity to invest in an accretive asset in a much sought-after residential location beside the Phoenix Park and is in line with I•RES’ growth strategy. The scheme is ideally located close to a host of employment, amenity and transport routes as well as being a short commute to the city centre. The scheme has been well managed by the Vendor and we look forward to a seamless transition of the residential units to I•RES early in the New Year.”