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Friday 22 August 2014

Green REIT forks out €380m in Dublin deal

Peter Flanagan Commercial Property Editor

Published 12/06/2014 | 02:30

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GREEN REIT is to pay more than €380m for a host of commercial properties in Dublin, in the latest major property deal in the city.

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In a statement, the real estate investment trust said it was forking out €375m for office blocks at Georges Quay and George's Court, Dublin 2 as well as retail and other commercial space in Westend Retail Park, Blanchardstown in west Dublin.

The properties are being sold by Cosgrave Property Group.

The cost will rise to €384m when acquisition costs are included.

In total, the deal comprises 650,000 sq ft of space, made up of 347,000 sq ft of top grade offices and 202,000 sq ft of retail space in Blanchardstown. Another 101,000 sq ft of office and commercial space is also in Blanchardstown.

The sale price equates to an initial yield of around 6pc.

The deal means Green will become landlord to the likes of Pioneer Investments, Invesco, Northern Trust, GAM Fund Management and RBC Dexia.

The transaction will be funded by the company's cash pile initially but Green is likely to use the assets to secure additional bank funding.

Green has now invested close to €720m in Irish property.

Green chief executive Pat Gunne commented: "We are delighted to execute a transaction of this scale and quality at this point in the Irish real estate recovery cycle."

A spokesman for Cosgraves claimed the disposal represents the culmination of a strategy to deleverage the business and to concentrate on their extensive development portfolio.

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