Thursday 22 March 2018

Prime office rents 'near peak' and Brexit impact too early to call - Green REIT

One Albert Quay in Cork city
One Albert Quay in Cork city
John Mulligan

John Mulligan

Property investment firm Green REIT made a €145.5m net profit in its last financial year, and said its portfolio is now valued at €1.24bn.

It has also told investors that the effect of Brexit is “too early to call” in terms of assessing the impact or opportunity for Ireland and its real estate market.

Green REIT's net profit was 7.2pc lower than in the previous year, but net rent jumped 39pc to €52.6m, while the company nearly tripled its dividend.

The firm owns a number of high profile buildings such as George’s Quay and Court, a 50pc stake in Central Park, and One Albert Quay. Its tenants include bluechip clients such as Vodafone, Sage, Bank of Ireland, Tyco, Mastercard and Pioneer Investments.

Its top five assets account for 79pc of the company’s portfolio value, and 81pc of group rent.

The property group also said this morning that it believes that while commercial rents continue to rise, the market consensus is that “prime office rents are close to peak levels”.

Interest rates remain supportive of real estate as an asset class, and take-up of office space in Ireland has been “very robust”, added Green REIT, and is driven by local and international occupiers.

It pointed out that NAMA remains constrained in its development of assets under its control, and that although overall supply of speculative office space has continued to increase, robust take-up levels have meant the market is operating at “relative equilibrium”.

The investment management firm behind Green REIT was founded by Stephen Vernon and Pat Gunne.

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