Saturday 17 August 2019

Green sees rental income up €1m as vacancy rate halves

Green REIT plans to build this property at 13-17 Dawson Street in Dublin 2
Green REIT plans to build this property at 13-17 Dawson Street in Dublin 2

Peter Flanagan

Green Reit saw its rental income jump by more than €1m in the past six months, as the property firm took advantage of rising rents and squeezed supply in Dublin.

For the four and a half months since July 1, Green said it has now halved the vacancy rate across its portfolio to only 1pc.

Company chief executive Pat Gunne said the firm was continuing to see good demand across its portfolio.

"We are making good progress on our development programme against a background of rising rents and our focus continues to be on delivering as early as possible into the development cycle to reduce our exposure to market risk and rising construction costs," he said.

"Our asset management has also been a great success with our estate at almost full occupancy," Mr Gunne added.

The company has received planning permission to redevelop an office block on Dawson Street in central Dublin, and has begun to demolish the existing block.

The company said it expects to complete a new block with about 89,000 sq ft of space in 2017. It will begin the process of letting out the offices next summer.

The company has demolished a nearby block at 32 Molesworth Street and has begun prepping the site for new construction.

Green's fourth biggest tenant, Pioneer Investments, will not break its lease in 2017, instead will continue up to 2027.

Investec's John Cronin liked where Green said it was heading.

"In overall terms this is a positive update from Green - its key developments are on track,

"It has improved its occupancy levels, and [there is] buoyant tenant demand for its well-located properties," he said.

Green shares in line with the rest of Europe, closing off 2.6pc at €1.49.

Irish Independent

Also in Business