Merrion sees scope for higher rents
Rent increases of as much as 10pc are "plausible" in Dublin city centre, according to Merrion Capital.
In a note to clients, Merrion analyst Daren McKinley said that after meeting Green Reit management, he was "assured that Green Reit management where very focused on preserving capital and that overpaying for assets was not part of their strategy".
According to Mr McKinley, Green's management continues to expect further momentum in the Irish real estate market. Yield compression is largely complete with prime assets trading with 5pc to 6pc gross rental yield but given the lack of supply of primes CBD office assets 5pc to 10pc rent increases are plausible.