Friday 24 February 2017

IRES to acquire D4-based Elmpark Apartments in €59m deal

Michael Cogley

Michael Cogley

Elm Park
Elm Park

Irish residential property firm IRES is to acquire 201 apartments with 203 underground parking spaces at Elmpark on Merrion Road in Dublin 4 in a deal worth €59m

The deal is expected to close this month and once concluded IRES will have 2,288 Irish apartments under its control.

Elmpark has passing residential rents of around €3.2m at 92.5pc residential occupancy and generates a gross yield of around 5.4pc, based on the €59m purchase price.

The 2012 apartments are split up into 101 1-beds, 96 two-beds and four four-bed duplexes.

Based on current annualized passing residential rents and lease up of the remaining 7.5pc unleased apartments at market rents, it would generate a gross yield of around 5.9pc.

IRES chief executive David Ehrlich said the deal adds to the mix and overall quality of the firm's portfolio.

"Elmpark is really a unique complex in terms of design, quality and location and represents a rare opportunity for IRES to add to its South Dublin portfolio.

"We believe that the completion of the grounds and amenities and other improvements to the complex will add significant long term value and Elmpark will be a cornerstone property for years to come."

Having spent years in receivership IRES said the amenities associated with the properties have suffered. However, the property firm intends to invest to address the issues which it says "will benefit the apartments considerably".

The apartments form part of a mixed use development on a  17 acre site  which also includes four detached headquarter office buildings, retail and amenity accommodation.

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