It follows Green REIT and Hibernia REIT to the Irish market after the Government made changes to permit the establishment of REITs, which allow investors to own property via a company rather than being direct landlords.
Irish property prices are rising again, after plunging by around 50%.
US asset manager Franklin Templeton, which made one of the canniest trades in Europe’s debt crisis in buying Irish debt before the country started to recover, made a corner stone investment in Irish Residential Property REIT, it said in a statement yesterday.
Templeton put in €25m and was joined by Toronto-listed CAPREIT, which invested €40m. Ireland’s largest life assurance company, Irish Life Assurance plc, invested €24.2m and New York investment trust Fir Tree Partners €30m, Irish Residential Property REIT said.
Templeton also holds 7.5% of Green REIT.
“The company intends to use the funds raised to acquire a strong portfolio of multi-unit residential properties in Dublin and the other major urban centres,” Irish Residential Property REIT IRPR chief executive David Ehrlich said.
It has a portfolio of 338 residential units in the greater Dublin area valued at €45.5m.
Irish house prices rose by 0.1% month-on-month in February and were 8.1% higher than a year earlier.