IRES swoops on Nama apartments in €83m deal
Canadian property firm IRES Reit has agreed terms to buy 442 apartments from Nama in Dublin in a deal worth more than €80m.
The firm - one of the biggest landlords in the country - will pay €93m for the apartments at Tallaght Cross West in west Dublin.
In a statement, IRES said it has "entered into an agreement to acquire the apartments, 18,344 sq m (197,460 sq ft) of commercial space and associated underground car parking" at the site.
The deal will cost IRES €83m, and the deal is expected to close next month.
About 85pc of the apartments are occupied at present, and are producing rent of about €5.1m per year.
At that rate, the apartments will produce a yield of 7pc. That may rise to 8.1pc if all the apartments are occupied.
The commercial units are generating rent of €630,000 per annum. Only about one tenth of the commercial units are occupied at present.
The apartments comprise 161 one-bed, 237 two-bed and 44 three-bed apartments.
Tallaght Cross West is almost adjacent to Tallght Hospital and is close to other amenities such as The Square shopping centre.
Separately, IRES has completed a deal to buy 40 apartments at Bessboro in Terenure in south Dublin along with 64 car parking spaces in a deal worth €12.2m. Those apartments are producing rent of €640,000 per year.
It is also paying €2.2m for eight apartments at Beacon South Quarter in south Dublin.
Company chief executive David Ehrlich said the deals presented an "excellent opportunity for IRES to expand its locations in strong locations in the Dublin market".
"The Tallaght Cross West acquistion offers an unrivalled opportunity to acquire 442 essentially brand new apartments in a high quality development," he added.
Tallaght Cross West was originally developed by companies tied to Liam Carroll but construction was stopped several years ago.
Nama has since completed the fit-out of the properties since taking control of them.
The deal will take the IRES portfolio to more than 2,000 apartments nationwide.
It currently owns 1,614 homes, mostly in Dublin. IRES was set up by the huge Canadian firm CAPREIT to buy homes in Ireland last year.
A hotel at Tallaght Cross West was sold earlier this year and is not included in this sale.
Analysts welcomed the deal Goodbody's Eamonn Hughes said it was a "good deal at an attractive yield, with potential to increase the passing rent through asset management".
"Tallaght is well serviced by transport links to the city centre and given the shortage of accommodation in Dublin we expect strong demand for the remaining units.
"The additional acquisitions are in attractive suburban locations and should also see strong demand. This deal leaves IRES with circa €200m spending capacity which we expect to deploy over the coming months," he said.
IRES shares rose 0.9pc in Dublin. The shares are up 7pc in the last year.