IRES to Acquire 152 Residential Units

RNS Number : 4327X

Irish Residential Prop REIT PLC

05 January 2022

 

05 January 2022

I•RES to Acquire 152 Residential Units for €66 million

Irish Residential Properties REIT plc ("I•RES" or the "Company") is pleased to announce the execution of two contracts for the acquisition of 152 residential units located in Ashbrook, Clontarf, Dublin 3 in 2 phases. The total purchase price is approximately €66 million (including VAT but excluding other transaction costs). 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, as follows:

· Acquisition of Completed Apartments (108 Apartments):

The Company will be acquiring 108 completed apartments developed in the early 1990's and includes a mix of 39 x 1 bed, 66 x 2 bed and 3 x 3 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, 8 x 1 bed and 25 x 2 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, approximately 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. Clontarf provides some of Dublin's finest amenities including St Anne's Park, the Bull Island Nature Reserve, excellent schools and sporting facilities including Clontarf Rugby club and both Clontarf and Royal Dublin Golf Clubs. Restaurants, bars and local facilities are located nearby in both Killester and Clontarf villages. 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, the Company's Chief Executive Officer 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."

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For further information please contact:

Irish Residential Properties REIT plc
Sarah Stokes, Investor Relations    Tel: [phone]

Margaret Sweeney, Chief Executive Officer    Tel: [phone]

For Media Requests:

Q4PR
Gerry O'Sullivan                                                                           Tel: + 353 (0) 87 259 764

About Irish Residential Properties REIT plc

Irish Residential Properties REIT plc (together with IRES Residential Properties Limited, the "Group") is a growth oriented Real Estate Investment Trust that is focused on acquiring, holding, managing and developing investments primarily focused on private residential rental accommodations in Ireland. The Group currently owns 3,829 apartments and houses for private rental in Dublin and Cork with an additional 69 units due for delivery at the end of H1 2022 under pre-purchase contracts. The Company has a further 61 units currently under construction directly on owned sites with planning approval to develop an additional 543 residential units on its existing sites. The Company's shares are listed on Euronext Dublin. Further information in respect of the Company can be obtained from the Company's website at  www.iresreit.ie .

Note on forward-looking information

This note applies if and to the extent that there are forward-looking statements in this Announcement.

This Announcement may contain forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements referred to in this paragraph speak only as at the date of this Announcement. Except as required by law or by any appropriate regulatory authority, the Company will not undertake any obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise including in respect of the Covid-19 pandemic, the uncertainty of its duration and impact, and any government regulations or legislation related to it.

 

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