Stable start to the year for Green Reit as it targets new acquisitions

Property investment company Green Reit said on Monday that it has enjoyed a "relatively stable" start to the year, and its outlook remains positive as it looks to benefit from the shortage of quality office space.

Gary Kennedy, chairman of Green Reit, said that the period from January 1st was "relatively stable", and that the outlook remains positive, "with the company well placed to perform strongly against the backdrop of a strengthening domestic economy and the continuing shortage of supply of quality office space in particular."

Pat Gunne, chief executive, said that the company will continue to source "accretive acquisitions".

“The market remains competitive, and returns are still at their highest in the Dublin office sector, where we have invested a substantial portion of our capital.”

During the period new lettings with € 1.12 million of contracted rent were secured, with a further € 0.7 million of lettings under negotiation.The largest letting completed was of the second floor of Block G in Central Park in Leopardstown, where 26,000 square feet (2,400 square metres) was leased to Web Reservations International, an online travel booking company, for a term of 20 years with a tenant break option in year 10.

Green Reit’s portfolio now contains 24 properties valued at €882m and a rent roll of €55m, which will increase to €55.7m on completion of leases under negotiation.

Green said it is in “exclusive negotiations” to acquire a property at One Albert Quay, in Cork city centre, although it noted that there can be “no certainty” that the deal will go ahead.

Green has also commenced construction of Block H in Central Park, without pre-lettings in place, and is expected to complete in December 2016. Block H is an office building of 147,000 square feet (13,700 square metres), over eight floors, and with a triple level basement. The estimated total development cost is about € 53 m, which includes an apportioned site cost. Green will fund its 50 per cent share of the costs through a facility with Barclays Bank.

Green said it has submitted planning applications for the development of 13-17 Dawson Street and 30-32 Molesworth Street, and the pre-planning process is well underway for the redevelopment of 4-5 Harcourt Road.

In the months ahead, Green said its focus will be on exploiting the active asset management initiatives identified for the portfolio and managing the existing significant rent roll; a dvancing redevelopment and refurbishment opportunities; and acquiring further assets that fit the company’s investment policy and which are accretive to NAV per share.