Property trust well-positioned after €317m spend
The I-RES portfolio was valued at €323.6m at the end of December last with a net asset value up 1.3% from June.
Having listed with a seed portfolio of 338 units, valued at €45.5m, I-RES added 866 units via three transactions over five months.
Its portfolio consists of more than 1,200 residential units with a 99.7% occupancy rate and average rent of €1,250 per unit per month — an almost 17% increase since June.
“We continue to see strong rental growth across the company’s property portfolio and expect that to add significant value as rents in our more recently acquired portfolios, including the 761 residential suites in the Orange portfolio, are brought up to market levels on tenant renewals and turnovers,” the company’s chief executive, David Ehrlich, said.
I-RES acquired more than 760 residential units — of the Orange portfolio’s 1,550 total — across four properties as well as commercial space and development land for €211m, after it was brought to market by Nama in October 2014.
Outside of the 84 higher-end units at The Marker in the Dublin Docklands, I-RES’s properties are generally targeted at the mid-market segment and concentrated in four Dublin postcodes.
In November, I-RES entered into a “pipeline agreement” with sponsor CAPREIT— the Canadian Apartment Properties Real Estate Investment Trust — in order to allow it to expand its portfolio and acquire high quality properties which, alone, it may not have had sufficient funds or debt financing to compete for.
To date, the Sandyford-based Rockbrook Portfolio acquired last month by CAPREIT on behalf of I-RES for €87.3m is the only deal completed under the agreement.
With rents in the Dublin market climbing steadily and particularly in light of the Central Bank’s new rules on mortgage lending which could create further upward rental price pressure, I-RES remains in a strong position with further growth potential.
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