FIONA REDDAN
Green REIT, the Irish listed Real Estate Investment Trust, is set to buy five Dublin city centre properties in an off-market transaction from Danske Bank for €23 million. The deal is expected to close "imminently". The transaction will leave the fund with € 86 million of equity available for investment, which, together with the ability to raise up to € 161 million of debt finance will see the group look to capitalise on a more active market in 2014.
According to the fund's interim results released today, it has raised a total of €310 million in capital and invested some €214 million of equity to date. In 2013, it invested €191 million at an initial yield of 9 per cent, and since then,a further €23 million has been contracted. This €23 million investment consists of five properties with a total rent roll of € 1.4 million, along with significant redevelopment potential. The "D2" portfolio comprises five properties in two locations, Molesworth Street and Ormond Quay. Four of the five properties are located at 30-33 Molesworth Street, Dublin 2, in the city centre and are currently occupied by seven tenants paying "relatively low rents". The Ormond Building, adjacent to the Four Courts, is the fifth property in the Portfolio. Over 50 per cent of the rental income comes from Dublin City Council with 11 years unexpired on the lease. The remainder of the income is dominated by barristers' chambers.
The fund’s net asset value stood at €299.7million, or 96.7 cent per share, as of December 31st 2013. It reported a passing rent of € 17.3 million last year.
Gary Kennedy, chairman of Green REIT, says that the company still has the financial capacity to take advantage of further attractive investment opportunities.
“The effective deployment of further capital will grow the size of our portfolio, enhance our income stream and drive shareholder returns”.
The property investment company, which was established last July, was the first REIT to establish in Ireland, following the introduction of REIT legislation, and it is also listed on the Irish Stock Exchange.
Earlier this month the fund was selected as the preferred bidder, along with US real estate giant Kennedy Wilson, to buy the Central Park development in Leopardstown, south Dublin, for €310 milion. In late 2013 Green REIT acquired a property on Mount Street, Dublin 2 for € 6.35 million.
