Friday 24 November 2017

IRES opens up €150m warchest with move for dozens of Dublin apartments

David Ehrlich, IRES chief executive
David Ehrlich, IRES chief executive

Michael Cogley and Ronald Quinlan

The country's largest private landlord, IRES, has snapped up 89 apartments along with 145 car parking spaces in an €18.3m deal.

The deal brings the total number of apartments under IRES control in Ireland to 2,377.

The new apartments are based at Coldcut Park in Clondalkin, Dublin 22, and are currently 99pc occupied with an annual passing rent of €1.4m.

IRES said the investment will give a gross yield of around 7.7pc based on the purchase price. The residences are broken up into 18 one-beds, 22 two-beds, 32 three-beds and 17 four-beds with a number of three and four-bed duplexes.

IRES chief executive David Ehrlich said the deal was a "nice addition" to its portfolio.

"Coldcut Park is situated in close proximity to other properties in our portfolio, including Tyrone Court and Tallaght Cross West, so that it fits well from a property management standpoint," he said.

The deal comes after IRES told shareholders in May it had a €150m warchest for further acquisitions and that it would be supply, rather than availability of cash, that would slow further moves.

Goodbody analyst Eamonn Hughes said the deal potentially brings IRES's spending capacity down to around €130m.

"The gross yield on the acquisition of 7.7pc compares favourably with the existing portfolio average of 6.5pc (and its adjacent Tyrone Court and Tallaght Cross West properties, with gross yields of 7pc and 7.5pc respectively)," Mr Hughes said in a note.

The Clondalkin acquisition follows a strong start to the year for IRES, which reported a near-60pc increase in revenue. The company plans to double its portfolio.

Meanwhile, UK property developer U+I has secured planning permission for the redevelopment of the Donnybrook House office building in Dublin 4 and The Avenue building in Sandyford, Dublin.

The company will begin works on the refurbishment of Donnybrook House in October with the aim of delivering 45,000 sq ft of offices, 2,000 sq ft of retail, 4,000 sq ft of restaurants and a basement gym of 20,000 sq ft upon completion.

Irish Independent

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