Irish Residential Properties REIT has agreed to acquire 152 residential units located in Ashbrook, Clontarf, Dublin 3 in 2 phases for a total of €66 mln.
The acquisition will be funded from the company's existing credit facilities.
The acquisition includes completed apartments as well as a forward commitment to purchase a new development currently under construction. In particular, the company will be acquiring 108 completed apartments developed in the early 1990’s and fully occupied as well as it has committed to acquire 44 apartments under a forward purchase contract on an adjoining development site. The assets are due for delivery in the second half of 2023.
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, the company's Chief Executive O?cer commented: ‘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.’
