Irish Residential Properties REIT plc (“I•RES” or the “Company”), an Irish multi-unit residential property investment company, announces that it has completed the acquisition of the “Orange” portfolio which was previously announced to the market on 29 August 2014.
The “Orange” portfolio is the first residential portfolio brought to the market by the National Asset Management Agency (NAMA) and consists of 761 suites in four properties in the developments at Charlestown, Lansdowne Gate, Beacon South Quarter and Bakers Yard, in the Greater Dublin area and a total of approximately 3,180 square meters of commercial space in two of the properties.
The purchase price of €211.3 million (including VAT, but excluding other transaction costs) was funded by the Company’s cash on hand and its recently established €130 million credit facility.
The apartment portfolio is currently 98% occupied and has gross passing residential rents of €10.9 million and commercial rents of €0.1 million, generating a gross yield of 5.20%. The portfolio comprises 70% 2-bed, 17% 3-bed, and 13% 1-bed residential suites / units.
I•RES anticipates significant rental growth over the near and long term. When combined with I•RES’ current portfolio, the combined portfolio capitalization rate based upon net operating income is approximately 5% on the closing of the Orange acquisition.
David Ehrlich, the Company’s Chief Executive Officer commented: “With the closing of this transaction, our property portfolio now comprises 1,203 apartment suites, transforming I•RES into Ireland’s largest non-governmental residential landlord. In the months of July and August, operating margins strengthened, rising to approximately 80%. With the closing of this transaction, we expect to see operating margins continue to strengthen as we benefit from operating synergies and our property manager, IRES Fund Management Limited, the Irish subsidiary of Canadian Apartment Properties Real Estate Investment Trust, applies its proven property management programs to these new properties.”
On 7 October 2014, the Company appointed Elise Lenser as its secretary. Ms Lenser has also been appointed as associate counsel at CAPREIT Limited Partnership. Prior to her appointment, Ms Lenser was a senior associate in the corporate and securities department at Stikeman Elliott LLP, a leading Canadian business law firm.