Commercial Property

Tuesday 29 July 2014

Green REIT in talks with Danske over sale of five city properties

Sarah McCabe

Published 11/02/2014|02:30

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Danske Bank is shedding its property portfolio in Ireland
Danske Bank is shedding its property portfolio in Ireland

GREEN REIT is close to buying more Dublin properties as its bet on a resurgence in the capital's property prices continues unabated.

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The real-estate investment fund is on the verge of buying five Dublin properties from Danske Bank, the lender which is shedding assets at a rapid pace as it retreats from the Irish market, for a combined €23m.

Known as the D2 Portfolio, they are based in two key city centre locations in Dublin – Molesworth Street in Dublin 2 and Ormond Quay in Dublin 1.

Four of the five are located at Molesworth Street, currently occupied by seven tenants. They offer a "significant opportunity for redevelopment", the company has said.

The final property, the Ormond Building on Ormond Quay, is occupied by 15 tenants including Dublin City Council and several barristers.

In late 2013 it also signed a deal on a sixth new Dublin property, in Mount Street in Dublin 2.

Green REIT has now invested €214m since going public last year, its latest interim results show. And a massive 84pc of that has been ploughed into Dublin properties.

This Dublin focus is only likely to grow as the company was recently the preferred bidder on Central Park, a large portfolio of commercial and residential space in Dublin 18.

VALUES

"The strengthening macroeconomic backdrop in Ireland, particularly in Dublin, and supportive property market conditions, should lead to growth in rental and capital values in commercial property as we move through 2014," said Green REIT's chairman Gary Kennedy.

It has spent about 70pc of the funds from its Irish Stock Exchange Flotation last year.

But it still has about €247m on hand – about €86m left over from the IPO, combined with another €161m in loans.

"Having effectively deployed €214m of equity in a relatively short period, the company still has the financial capacity to take advantage of further attractive investment opportunities" said Mr Kennedy.

Its single biggest seller, since floating, has been Danske Bank.

Separately to the five new purchases, it has invested €127.6m on Danske Bank's "Project Arc" portfolio of commercial properties nationwide.

Other major assets include INM's print works in Citywest and EBS Building Society's headquarters in Burlington Road in the capital. As of December 31, 2013, 88pc of its properties had tenants. with rents totalling €17.3m in the year.

More than half of those properties were office space, with the rest spread across retail and industrial facilities.

Shares in Green REIT closed up 0.7pc to €1.29 yesterday.

Irish Independent

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