Irish Residential Properties REIT (I-RES) has won NAMA’s Orange portfolio, the Dublin multi-family portfolio, for €211.3m.
In addition, there is approximately 3,180 sq m (c. 34,229 sq ft) of commercial space within two of the four buildings.
Contracts will be exchanged imminently, with closing in October. I-RES will finance the Orange portfolio acquisition with cash resources plus drawing on its two-year €130m revolving credit facility (RCF) with Barclays Ireland, which signed on 15 August.
Barclays Ireland’s RCF is priced at 250 basis points over Euribor. In addition, there was a one-time arrangement fee of €820.
The apartment portfolio is currently over 98% occupied and has gross passing residential rents of €10.6m and commercial rents of €0.3m, generating a gross yield of 5.20%. By unit type, the residential suites comprise 70% 2-bed, 17% 3-bed, and 13% 1-bed units.
In a statement, IRES stated that it anticipates significant rental growth over the near and longer term. When combined with IRES’ current portfolio, the combined portfolio capitalisation rate based upon net operating income will be approximately 5% on the closing of the acquisitions.
Charlestown is a new mixed-use development set on 40-acres in the north Dublin suburb of Finglas, within which IRES will acquire 235 apartments.
The overall development comprises facilities for tenants including a shopping centre, a medical centre, and a variety of leisure and restaurant operators. The property is located approximately 7km from Dublin city centre and 5km from Dublin airport and is adjacent to the M50 and M2 major transport corridors.
Lansdowne Gate is a newly-built superior quality development on 5.5 acres in the west Dublin suburb of Drimnagh.
The property is located adjacent to the LUAS light rail system, 5 km from the city centre and within walking distance of numerous larger employers, as well as shopping and leisure facilities.
At Lansdowne Gate IRES will acquire 224 apartments set in 11 blocks over semi-basement car parking, with the benefit of a centralised district heating system and landscaped gardens and children’s playground.
Beacon South Quarter is a new landmark mixed-use development, on 13 acres located in the south Dublin suburb of Sandyford.
A number of major employers are located in the immediate neighbourhood, including Vodafone, Merrill Lynch, Microsoft, and the development is adjacent to the LUAS line to the city centre.
The Beacon development includes many high-end occupiers including private medical care, leisure, and a selection of food & lifestyle shops.
Within the Beacon South Quarter development IRES will acquire 217 apartments and approximately 2,400 square meters of ancillary commercial space (of which approximately 80% is still vacant or under negotiation).
In addition, IRES will acquire three adjacent development sites with planning consent for 132 apartments and 7,200 square meters of commercial space.
Bakers Yard is a new multi-unit development on1.4 acres adjacent to Dublin city centre, and within walking distance of many large government and private sector employers, as well as local and national public transport infrastructure.
At this this location, IRES will acquire 85 apartments as well as an adjoining 0.45 acre site with planning consent for a further 55 apartments, 3 ground floor commercial units and underground parking.
In a statement, David Ehrlich, chief executive officer of IRES, said: “With the closing of this transaction, our property portfolio will grow to a total of 1,202 apartment suites, transforming I-RES 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. Also we are pleased to note that all these assets are recently constructed to a very high standard.
“Looking ahead, as we continue to build our size and scale in our targeted strong markets, we expect to see increased cash flows as we benefit from operating synergies and apply our proven property management programs to these new properties.”