Ires Reit in move from apartments to houses
Ireland's biggest private residential landlord, Ires Reit, is to broaden its offering to the rental market with the delivery of new houses to complement its existing apartment stock.
In a statement issued to the stock exchange, the company announced its purchase for €7m of a 4.5 acre site with planning permission for 99 new homes at Hansfield Wood in Clonsilla, west Dublin.
To develop the site, Ires said it had entered into a €23m forward-funding agreement with developer Garlandbrook Ltd and contractor Newline Homes Ltd.
While Garlandbrook has already completed the first phase of Hansfield Wood and sold 325 houses to traditional owner-occupiers, the Ires phase of the development will be built for the rental market exclusively.
The deal between Ires and Garlandbrook represents the first time Ires Reit has entered into a partnership in the Irish market.
Due for delivery on phased basis from next month onwards, the Ires development at Hansfield Wood will comprise of 2 four-bedroom houses, 71 three-bedroom houses, 8 two-bedroom apartments, 12 three-bedroom duplexes and 6 two-bedroom duplexes. All 99 units are expected to be completed by the end of July 2018.
Based on current market rents, Colm Lauder, real estate analyst at Goodbody, said in a note published following the announcement that he expects the Hansfield development to deliver annual rental income of €1.9m for Ires Reit.
Since its flotation on the Irish Stock Exchange in April 2014 Ires Reit has grown to become Ireland's largest private residential landlord with 2,450 apartments spread across 20 Dublin developments. Included in the company's portfolio are 225 units at Beacon South Quarter in Sandyford, 442 units at Tallaght Cross West, 235 units at Charlestown in Finglas, and 201 units at Elmpark Green on the Merrion Road.
Ires Reit is just one of a number of major property companies now focussed on the delivery of Build-to-Rent (BTR) residential acommodation in Ireland. Kennedy Wilson, for its part, is a close competitor with some 2,100 residential units either built or at various stages of planning. The US-headquartered real estate giant has stated its intention to grow its Irish residential rental stock to 5,000 units in the next four years.
Developer Pat Crean's Marlet Property Group meanwhile is seeking to capitalise on the growing appetite for the BTR model, and is in the final stages of negotiating a €450m forward-funding deal with London-based Round Hill Capital for the 'Dublin Living' scheme, a portfolio of 1,800 apartments across four sites at St Clare's and Mount Argus in Harold's Cross, Carriglea on the Naas road and on the former CIE lands at Carlough Road in Cabra.
Elsewhere in the capital, the Irish subsidiary of US real estate giant Hines, recently submitted its planning application to Dun Laoghaire Rathdown County Council for the town centre phase of its development at Cherrywood. As part of this first phase of the project, Hines Ireland is seeking permission for the development of 1,269 Build-to-Rent apartments.