Portfolio Update

RNS Number : 9050E

Irish Residential Prop REIT PLC

11 November 2020

 

11 November 2020

I●RES Sells Non-Core Portfolio of 151 Apartments and Takes Delivery of 95 Apartments at Hansfield Wood

Irish Residential Properties REIT plc ("I•RES" or the "Company") is pleased to provide the following update on its residential property portfolio:

Sale of Non-Core Portfolio of 151 Apartments Across 10 Properties Located in Dublin

I•RES announces that it has completed the disposal of 151 non-core residential units spread across 10 properties. The sales price of €48m (net of costs) was achieved following a competitive sales process which attracted significant international and domestic interest. The price achieved was in excess of the original acquisition cost and c.6% ahead of the December 2019 valuations. The proceeds from the sale will provide added liquidity, which can be utilised for accretive growth opportunities.

The disposition included 151 leased-up apartments across 10 properties in a number of locations in Dublin, including Dublin 8, the IFSC, Sandyford and Tallaght, as well as 3 small commercial units. The objective of the sale was to deliver operational and asset management efficiencies from the portfolio.

The purchaser was a fund managed by Orange Capital Partners, an international investment manager with its office in Dublin and an existing footprint in the Irish market.

Commenting on the disposal, Margaret Sweeney, the Company's Chief Executive Officer said:

"We are pleased to have achieved a successful disposition and an opportunity for I•RES to rationalise some of the smaller more fragmented holdings from the assets portfolio. I am delighted that the price achieved was in excess of both the original acquisition cost and book value of the assets, which demonstrates the continued depth of interest in the multi-family real estate sector in Ireland."

Delivery of 95 Apartments in Hansfield Wood II, Dublin 15, for an investment of c.€31.1m

The Company is also pleased to confirm that it took delivery of 95 new build apartments in Hansfield Wood II (Pipers Court) on 1 August 2020. Given the proximity of quality transport infrastructure and amenities, the apartments have been particularly popular with both professionals and young families.

As of 10 November 2020, 81 out of the 95 apartments (85%) are now leased and income producing, with letting agreements in place for a further 10 apartments (11%). The latest delivery brings I•RES' ownership in the wider Hansfield development to 194 residential units. The Company confirms that the total investment in the development was c.€31.1m and the apartments have been leased in line with management's expectations for the development.

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

"The lease up of the new development at Pipers Court in Hansfield has progressed well with strong interest for this well-located block. This is indicative of the undersupply of well-located, good quality professionally managed rental stock in Dublin"

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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