Wednesday 11 December 2019

Green REIT signs eight-year lease with Vodafone

The Vodafone building at Central Park in south Dublin
The Vodafone building at Central Park in south Dublin

Michael Cogley

Irish property investment company Green REIT has agreed a new eight-year lease with Vodafone on its Irish headquarters building at Central Park, Dublin 18.

The lease will see Vodafone remain at the 263,000 sq ft premises until 2026, paying rent of €7.3m per year to Green REIT.

Vodafone, which is Green REIT's single largest tenant, has agreed to remove its lease break options in 2018 and will receive a rent-free period equivalent to 12 months' rent.

"As the largest occupier within Central Park, this commitment is a great vote of confidence for the location, underpinning its position as Dublin's best office park," said Ronan Webster, asset management director of Green Property REIT Ventures.

"There are now over 4,000 people working in blue-chip companies within Central Park, which will increase further with the completion and letting of Block H, a new 150,000 sq ft office block, which will be delivered at the end of 2016," Mr Webster said.

The news will come as a relief to the investment firm whose profits dipped €7.2m last year.

The firm filed its annual results for 2015 on Monday, which showed net asset value growth of 7pc over the 12-month period.

Green chairman Gary Kennedy said the firm was looking forward to 2016 "with confidence".

The firm recently acquired full control of the Central Park site in Leopardstown, upping its ownership stake from 50pc to 100pc.

In doing so Green announced earlier this month that it would implement an asset disposal programme, which would look to sell off 'Project Glas'. The project is a collection of six properties, four of which are in Dublin.

Green Property REIT Ventures chief executive, Pat Gunne, said the firm was bringing the property to market to achieve its intended total gearing level - the ratio of its assets to its debt - of 25pc. "We recently acquired full control of Central Park and announced that we would be making a number of asset disposals in 2016 to achieve that objective," Mr Gunne said.

The Glas Collection is made up over of over 69,000 sq ft of commercial space across more than 58 commercial units.

The collection has a total passing rent of around €11.5m a year with a total guide price of €168.8m.

The guide price equates to an initial yield of approximately 6.8pc.

Irish Independent

Also in Business