Wednesday 22 January 2020

NAMA sells 800 apartments in Dublin for €211m

Beacon South Quarter in Dublin 18 is among the apartments to be sold
Beacon South Quarter in Dublin 18 is among the apartments to be sold

Sarah Stack

Almost 800 NAMA apartments have been snapped up in Dublin for more than €211m.

The units at Charlestown near Finglas, Lansdowne Gate in Drimnagh, Beacon South Quarter in Sandyford, and Bakers Yard in the city centre, are being sold to Irish Residential Properties (IRES) Reit.

Chief executive David Ehrlich said the Canadian-backed investment trust expects to build further in size and scale.

"With the closing of this transaction, our property portfolio will grow to a total of 1,202 apartment suites, transforming I-RES into Ireland's largest non-governmental residential landlord,” he said.

“All of our properties acquired to date are located in Dublin, in good letting locations, and with the benefit of proximity to public transport infrastructure and nearby employment. Also we are pleased to note that all these assets are recently constructed to a very high standard."

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Contracts are expected to be exchanged imminently to acquire the 761 units. In addition, a total of approximately 3,180 square meters of commercial space will be acquired in two of the properties.

The apartment portfolio is currently over 98pc occupied and has gross passing residential rents of €10.6m and commercial rents of €0.3m.

By unit type, the residential suites comprise 70pc 2-bed, 17pc 3-bed, and 13pc 1-bed units.

These assets comprise the so called "Orange" portfolio, which is the first residential portfolio brought to the market by NAMA.

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It said the purchase price of approximately €211.3m, excluding transaction costs will be funded by the company's own cash and a €130m loan it recently secured from Barclays.

Real estate investment trusts (Reits) are tax-efficient vehicles used to raise cash on the stock market to buy property. Since the first Irish Reit hit the market last year more than €1bn has been raised from investors, mainly outside Ireland, to buy assets here.

IRES Reit was set up by Canada's Capreit, one of that country's biggest residential landlord's with an interest in 41,429 residential units.

Irish Independent

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