Register Log-in Investor Type

News

Irish Residential REIT acquires 152 Dublin apartments

Irish Residential Properties REIT (IRES) has acquired 152 residential units in Dublin for €66m, which will be funded from existing credit facilities. 

The acquisitions include completed apartments as well as a forward commitment to purchase a new development currently under construction in Ashbrook, Clontarf, Dublin 3.

Completed apartments (108 apartments)

The company has exchanged contracts to acquire 108 completed apartments developed in the early 1990’s that comprise a mix of 39 x one-bed, 66 x two-bed and three x three-bed units. 91% of the apartments are currently occupied and it is anticipated that all units will be leased by transaction closing in Q1 2022.

Forward commitment for new build (44 apartments)

The company has further committed to acquire 44 apartments under a forward purchase contract on an adjoining development site. The development includes 11 x studio, eight x one-bed and 25 x two-bed apartments. A contractor has been appointed by the vendor and delivery of completed units to IRES is anticipated for H2 2023.

The Ashbrook development is located in the affluent and mature residential suburb of Clontarf, Dublin 3, located around 5kms from Dublin City Centre. The area provides excellent direct public transport links to the City Centre, with Killester DART station and high frequency bus services close by. Both properties are in a RPZ (“Rent Pressure Zone”) and rents are subject to rent regulations.

Based on current annualized passing rents on the existing leased residential units and the lease up of the vacant units and units to be built, the asset is expected to generate a gross yield of 4.93%.

Margaret Sweeney, chief executive, said: “This acquisition presents the opportunity for IRES to invest in an attractive residential property as well as adding further supply of new apartments, in the much sought-after residential location of Clontarf. The property and development site are located close to a host of employment, amenity and transport routes as well as being a short commute to the city centre. This accretive investment is in line with our growth strategy and complements the overall IRES residential portfolio.”

IRES : Irish Residential REIT acquires 152 Dublin apartments

Leave a Reply

Your email address will not be published. Required fields are marked *

Please review our cookie, privacy & data protection and terms and conditions policies and, if you accept, please select your place of residence and whether you are a private or professional investor.

You live in…

You are a…