Dublin-listed REIT Irish Residential Properties (Ires) is to become the largest private residential landlord in Ireland following the planned acquisition of €211 mln of apartments.

Dublin-listed REIT Irish Residential Properties (Ires) is to become the largest private residential landlord in Ireland following the planned acquisition of €211 mln of apartments.

'With the closing of this transaction, our property portfolio will grow to a total of 1,202 apartment suites, transforming Ires into Ireland’s largest non-governmental residential landlord. All of our properties acquired to date are located in Dublin, in good letting locations, and with the benefit of proximity to public transport infrastructure and nearby employment,' Ires CEO David Ehrlich said.

The National Asset Management Agency (NAMA), Ireland's bad bank which is being wound up, has selected Ires as the preferred bidder for the Orange portfolio.

Orange is the first residential portfolio brought to market by NAMA and the largest residential portfolio ever offered for sale in Ireland. It comprises 761 suites in four properties in the developments at Charlestown, Lansdowne Gate, Beacon South Quarter and Bakers Yard, in the Greater Dublin area. Two of the properties include a total of 3,180 m2 of commercial space.

The purchase price of €211 mln (excluding transaction costs) will be funded by Ires REIT's cash reserves and its recently established €130 mln credit facility. Closing is expected in October 2014.

The apartment portfolio is currently over 98% occupied and has gross passing residential rents of almost €11 mln and €300,000 for the commercial space, generating a gross yield of 5.2%. By unit type, the residential suites comprise 70% 2-bed, 17% 3-bed, and 13% 1-bed units.

Ires raised €200 mln in an initial public offering on the Dublin stock exchange in April. The company is externally managed by Capreit, one of the largest residential rental REITs in Canada with over 41,200 units and a market capitalisation of C$2.4 bn (€1.65 bn).