Multi-family investor Irish Residential Property REIT (Ires) has inked a deal to acquire 118 houses from listed house builder Glenveagh Properties for €38.2 mln.
The firm said that the investment is expected to deliver a gross yield of 6.7% on completion and letting. Construction is on-going and the units are to be delivered to Ires in phases over the next 12 months, with both schemes becoming fully income producing by Q1 2020.
The first acquisition is for 78 houses at Taylor Hill in Balbriggan, 37km north of Dublin city. The second acquisition is for 40 houses at Semple Woods in Donabate, also in North County Dublin.
Analyst Goodbody noted that the deal will increase Ires' portfolio to over 3,000 units, providing the firm with a 'competitive income stream well in excess of what it could acquire for ready-built apartment stock in the city centre, while providing an attractive premium for the housebuilder'. Goodbody added that strong rents were currently available in these markets, underlining their attractiveness to PRS investors.
