Nama defends Tallaght Cross West sale as rent forecasts improve sharply
Ccanadian property giant IRES REIT is set to make even more money than expected on its purchase of 442 apartments in Dublin barely a month after it agreed to buy them from Nama.
The investment firm has paid Nama €83m for the 442 apartments at the Tallaght Cross West development in the west of the city. The sale was conducted through Nama-appointed receivers Deloitte.
When the sale was agreed a month ago, IRES said the apartments were 85pc occupied and it was forecasting an annual yield of 8.1pc if they were fully occupied. Now though, the property is 88pc occupied and IRES believe it can get a yield of 8.5pc if it is fully occupied.
The improvement in projections for the property will only fuel criticism of the sale, with Fianna Fail's Michael McGrath calling on the apartments to be sold to individual buyers to help the capital's housing crisis. IRES is the country's biggest landlord, with more than 2,000 properties.
Last night a Nama spokesman said the sale was "conducted by a receiver on an open market basis who, acting as an agent of the debtor and in line with the receiver's requirement to obtain the best achievable financial outcome, recommended the terms of the sale". Tallaght Cross West was originally developed by Liam Carroll but was eventually taken over by Nama which completed the fit-out of the apartments. The property is generating rent of about €5.3m per year. At that rate, the apartments will produce a yield of 7.4pc. That may rise to 8.5pc if all the apartments are occupied, IRES said.
The development comprises 161 one-bed, 237 two-bed and 44 three-bed apartments. IRES is also taking over commercial units on the site. Only 10pc of the retail units are occupied, producing rent of €600,000 a year.
Despite criticism of the sale, Nama says it had offered all the apartments at the Tallaght Cross West complex to the Housing Agency and to Dublin's local authorities before deciding to sell the majority of them.