Monday 14 October 2019

€285m Ires deal hikes rental total to 3,500

High-end: Ires’s Marker Apartments at Grand Canal Square in Dublin
High-end: Ires’s Marker Apartments at Grand Canal Square in Dublin
Ellie Donnelly

Ellie Donnelly

Ires Reit, Ireland’s biggest private landlord, is to buy the ‘XVI Portfolio’ of 815 homes for €285m from Marathon Asset Management.

Ires will have 3,568 rental properties after the deal, with a further 316 residential units due for delivery by 2021.

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Goodbody Stockbrokers analyst Colm Lauder said the deal accelerates Ires growth and adds further scale.

“Ires can now bring its considerable economies of scale to the management of these units, and when cost efficiencies are implemented it will likely outperform for them versus what other investors could have achieved,” Mr Lauder added.

The stock market-listed landlord will raise €137m through a share placing to fund the portfolio of 15 blocks in Dublin and one in Cork.

The homes being bought are mostly leased, generating average rents of around €1,500 a month, below the €1,600 a month average charged by Ires for its existing units.

Around three-quarters of the portfolio is made up of two-bedroom units, with a further mix of one-bed, three bed, and duplex homes.

In Dublin it includes 142 homes in Santry, 101 units at Beechwood Court, Stillorgan, and 128 at Northern Cross, Malahide Road. The 50 units in Cork are at Harty’s Quay.

The Ires portfolio ranges from the super high-end Marker apartments at Grand Canal Square in Dublin’s docks and Elmpark, close to St Vincent’s Hospital and RTÉ in Dublin 4, to modern developments in Tallaght, Finglas and Inchicore in Dublin.

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