IRES to Acquire 146 Residential Units

RNS Number : 4675I

Irish Residential Prop REIT PLC

14 December 2020

 

14 December 2020

IRES REIT to Acquire 146 Residential Units for €60 million

Irish Residential Properties REIT plc ("I•RES" or the "Company") is pleased to announce the execution of contracts with Flynn & O'Flaherty Construction (the "Vendor") for the acquisition of 146 residential units located in The Phoenix Park Racecourse, Castleknock, Dublin 15. The total purchase price is €60 million (including VAT but excluding other transaction costs). The Company expects to complete the acquisition in January 2021. The acquisition will be funded from the Company's existing credit facility.

The property is located in the west Dublin suburb of Castleknock and is adjacent to the Phoenix Park, the largest enclosed park of any European capital city. The scheme occupies an attractive position close to Dublin City Centre (c. 6kms), with easy access to the M50 motorway. There are excellent public transport links to the City Centre, with Ashtown train station and a high frequency bus service close by. Castleknock and the Phoenix Park is a much sought after and mature residential location, providing some of Dublin's finest amenities, including schools, sporting facilities, shopping and employment.

The residential units to be acquired by the Company include a mix of apartments, duplex units, penthouses and houses (20 x 1 bed, 113 x 2 bed and 13 x 3 bed). 120 of the residential units were built between 2002-2007. The remaining 26 residential units are newly built having been completed mid-2020 in a self-contained block overlooking the Phoenix Park. All residential units are completed to a high specification providing large windows and balconies that frame the views of the landscaped gardens and the park. Supporting on-site facilities include shops, café, gym and off-street bicycle and car parking.

137 of the residential units are currently leased and income producing with 9 residential units available for immediate lease-up. Based on current annualized passing rents on the 137 residential units and the lease up of the remaining 9 residential units, the asset is expected to generate an initial gross yield of 5.3%.

Margaret Sweeney, the Company's Chief Executive Officer commented:

"This acquisition presents an opportunity to invest in an accretive asset in a much sought-after residential location beside the Phoenix Park and is in line with I•RES' growth strategy. The scheme is ideally located close to a host of employment, amenity and transport routes as well as being a short commute to the city centre. The scheme has been well managed by the Vendor and we look forward to a seamless transition of the residential units to I•RES early in the New Year."

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 7644

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 3,683 apartments and houses for private rental in Dublin and Cork with an additional 69 units due for delivery between now and the end of H1 2022 under pre-purchase contracts. The Company has a further 66 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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