Ires Reit to acquire Clontarf developments in €66m deal

The State’s largest private residential landlord Ires Reit has announced that it is buying 152 apartments in Dublin for €66 million.

The deal includes 108 completed apartments at Ashbrook in Clontarf. It has also forward purchased a second phase of the development which is currently under construction.

The completed apartments comprise 39 one-bedroom units, 66 two-bedroom units and three three-bedroom units, all of which were developed in the early 1990s. The majority – 91 per cent – are occupied and the company said it was expected that the remaining 10 apartments would be leased by the time the deal closes later this quarter.

The new phase includes 44 apartments on an adjoining site. Of these, 11 will be studio apartment, with the balance comprising eight one-bedroom units and 25 two-bedroom ones.

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These are expected to be completed by the second half of next year.

"This acquisition presents the opportunity for Ires to invest in an attractive residential property as well as adding further supply of new apartments in the much sought-after residential location of Clontarf," Ires chief executive Margaret Sweeney said.

“The property and development site are located close to a host of employment, amenity and transport routes as well as being a short commute to the city centre. This accretive investment is in line with our growth strategy and complements the overall Ires residential portfolio.”

The developments are in a rental pressure zone and will be subject to rent regulations. The company says that it is expected to generate a gross yield of 4.93 per cent.

Ires Reit specialises in residential investment. It currently owns 3,829 apartments and houses, mostly in Dublin but also in Cork. It expects that existing pre-purchase contracts will deliver another 69 homes by the end of the year and has a further 61 homes under construction.

The company said it has planning approval to develop an additional 543 residential units on sites it owns.

In its most recent results, Ires said the average rent across its portfolio was €1,641 a month.