IRES completes Marathon Acqusition
2 August 2019
I●RES Completes the 'Marathon Acquisition' of 815 Residential Units for €285 million, increasing its total portfolio under management by 30%
Irish Residential Properties REIT plc ("I●RES" or the "Company") announces that, further to its announcements on 13 and 14 June 2019, the Company has completed the Marathon Acquisition, comprising 815 residential units across 16 high quality developments, for a total purchase price of €285 million (including VAT but excluding other transaction costs) (the "Marathon Acquisition"). This acquisition was funded via debt and equity from the Company's €600 million Secured Syndicated Revolving Credit Facility (provided by the Company's syndicated lenders; Barclays Bank Ireland PLC, The Governor and Company of the Bank of Ireland, Ulster Bank Ireland DAC, Allied Irish Banks p.l.c. and HSBC Bank PLC) along with the equity proceeds following a successful placing of 86.55 million new ordinary shares by the Company which raised net proceeds of approximately €131 million.
As previously announced, the key characteristics of the Marathon Acquisition are as follows:
· Fifteen of the developments are located in Dublin (765 residential units; 94% of the portfolio) and one scheme is located in Cork (50 residential units; 6% of the portfolio) comprising 138 one-bedroom (17%), 599 two-bedroom (73%), 77 three-bedroom (10%) and 1 four-bedroom (<1%), apartments and duplex units with associated car parking.
· The units are situated in a mix of both city-centre and prime suburbs including established residential areas close to quality infrastructure including schools, transport, employment and amenities. Also includes attractive new locations in Dublin and complements the existing I●RES portfolio.
· 797 (98%) of the residential units are currently leased and income producing with the remaining 18 residential units available for immediate lease up by I●RES.
· The Portfolio currently generates an annualised gross rental income of €14.2m (€1,486 on average per occupied unit per calendar month), and based on current estimated market rental value, the Portfolio is estimated to be reversionary by approximately 21%.
· Based on current annualised passing rent, and the lease up of the remaining 18 residential units, the Portfolio will generate an initial gross yield of c.5.1% growing to c.5.5% by year 3, (with an estimated reversionary yield of approximately 6.2% based on current estimated market rental value).
· Expected to be accretive to earnings in the first full year post acquisition.
Margaret Sweeney, I●RES' Chief Executive Officer, commented:
"I am very pleased to announce the completion of this strategic acquisition of an established portfolio of scale for I●RES, adding growth in our assets under management of 30%. The Marathon Acquisition represented a rare opportunity to acquire a quality portfolio of 815 units in attractive locations in both Dublin and Cork and through professional management and leveraging our existing operating platform, can deliver attractive returns for shareholders. This investment, which underlines the Company's long term commitment to the Irish market, increases the I●RES portfolio to 3,587 units with a further 298 units contracted for delivery by 2021 under pre-purchase contracts."
For further information please contact:
For Investor Relations:
Irish Residential Properties REIT plc
Margaret Sweeney, Chief Executive Officer
+ 353 (0) 1 557 0974
For Media Requests:
Q4PR
Gerry O'Sullivan
+ 353 87 2597644
About Irish Residential Properties REIT plc
Irish Residential Properties REIT plc is an Irish Real Estate Investment Trust ("REIT") listed on Euronext Dublin. The Company is the first REIT established in Ireland primarily focused on residential rental accommodations. The Company will continue to seek to acquire, hold, manage and develop investments primarily focused on residential rental accommodations in Ireland. The Company currently owns 3,587 residential units with an additional 298 units due for delivery between now and 2021 under pre-purchase contracts. 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. 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 except as required by law or by any appropriate regulatory authority.
This announcement has been issued through the Companies Announcement Service of Euronext Dublin.
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