Sunday 21 April 2019

Glenveagh sells 118 housing units to Ires Reit, announces deal with Premier Inn

Artist impression of the proposed 250-bedroom Premier Inn hotel at Castleforbes in Dublin’s Docklands.
Artist impression of the proposed 250-bedroom Premier Inn hotel at Castleforbes in Dublin’s Docklands.

Ellie Donnelly & Ronald Quinlan

Glenveagh Properties is forward selling 118 housing units to Ires Reit, Ireland’s biggest private landlord, for €38m.

The deal comprises of two, three and four bed homes at Taylor Hill Balbriggan and Semple Woods Donabate, both of which are in Dublin.

All units are scheduled for delivery in 2019.

Glenveagh’s development locations tend to be in rental neighbourhoods, which are attractive to institutional investors such as Ires.

Separately, the group has entered into a pre-let transaction with Whitbread for a proposed 250-bedroom Premier Inn hotel at Castleforbes in Dublin’s Docklands. The zoning for the site requires it to be developed as a mixed-use scheme.

Justin Bickle, co-founder and CEO of Glenveagh said: “This is a significant milestone in the development of our landmark site at Castleforbes."

"The zoning for the site requires it to be developed as a mixed-use scheme and securing a strong counterparty like Whitbread with a robust institutionally accepted covenant will add value to the overall project and provide Glenveagh with flexibility in the context of future options for Castleforbes.”.

The deal is the third to be signed by Whitbread in Dublin in the past year and marks the largest acquisition by Premier Inn in Ireland to-date, increasing the hotelier’s ambitions of 2,500 bedrooms in the Irish capital.

Premier Inn has already two sites secured in Dublin city centre. Last autumn Whitbread achieved planning permission for a 97-bedroom leasehold Premier Inn hotel on South Great George’s Street, and in January of this year it announced its first freehold purchase of a 180-bedroom hotel site at Twilfit House on Jervis Street.

Construction work has commenced on the South Great George’s Street hotel.

Last year Glenveagh lost €3.5m after tax, excluding exceptional items.

Earlier this month it announced it had bought two sites in Kildare for a combined €50m.

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