Saturday 24 February 2018

IRES REIT launches new fundraising to pay down debt and buy more property

IRES announced the move on the Irish Stock Exchange. Reuters
IRES announced the move on the Irish Stock Exchange. Reuters
Peter Flanagan

Peter Flanagan

THE biggest private landlord in the country is to raise between €170m and €200m on the Irish Stock Exchange.

IRES REIT said it would place between 170 million and 200 million new shares on the market at €1 each - a 3.85pc discount on Wednesday closing price of €1.04. In a stock exchange announcement, IRES said the proceeds from the placement of between €161m and €190m will be used "to repay certain borrowings of the company, to acquire the Rockbrook Portfolio via the acquisition of Rockbrook special purpose vehicle [and] to fund further property acquisitions in line with the company's investment policy.

IRES has previously announced an agreement to buy the Rockbrook Portfolio of 270 residential units plus retail and development sites in Sandyford in south Dublin for €87m.

Company chief executive David Ehrlich commented: "With the completion of this offering, IRES will have new capital to maintain its track record of strong growth.

"We have accomplished a great deal since our initial offering last April - we have almost tripled the size of our property portfolio, generated solid organic growth through improved occupancies and average monthly rents, and built an experienced local management team in Dublin.

"With continuing strong fundamentals in the Irish apartment business, we expect our growth and solid operating performance to continue," he added.

IRES was set up by Canadian real estate giant CAP REIT last year to take advantage of the recovery in property prices here.

The firm has bought a number of developments, including the Marker Residences from Brehon Capital and the Orange Portfolio of 800 apartments from NAMA. It is the biggest landlord in the country aside from the State.

Credit Suisse is sole "global co-ordinator" and joint bookrunner. TD Securities, Barclays Bank and Investec have been appointed joint bookrunners in relation to the capital raise. IRES shares were down 0.9pc to €1.03 in Dublin.

Irish Independent

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