The rise of the REITs continues with the Green REIT purchasing a €375m portfolio of commercial real estate assets in Dublin city centre.
Following the acquisition of the portfolio, which includes properties at Georges Quay and George’s Court in Dublin 2 and other commercial space at the Westend Retail Park in Dublin 15, Green REIT will have spent 94% of its property war chest.
Green REIT has now spent €644.8m acquiring property in the capital. The company had €719.4m to spend, funded by €644.8mn of shareholder equity and €74.6m of borrowings.
Chairman of Green Property REIT Ventures, Stephen Vernon, said the company has nearly reached its objective of investing all its funds in property.
“The acquisition of this substantial portfolio of high-quality properties represents significant progress towards our stated objective to assemble a portfolio of commercial property assets which delivers targeted shareholder returns.
“Our total invested capital will exceed €719m when this acquisition completes. Having launched as recently as July 2013 this efficient deployment of over 94% of the company’s capital on quality commercial real estate has exceeded the directors’ expectations and puts the company in a strong position to capitalise on further growth in property values in Ireland,” he said.
Green REIT’s property portfolio can now return an annual rent roll of €50m with its current level of occupation at 92%.
Meanwhile, Wilbur Ross is to reinvest some of the €500m profit he made by taking a stake in Bank of Ireland during the bank’s darkest days.
Mr Ross has partnered with Irish company Cardinal Capital to finance some €400m investment in property.
Cardinal Capital director, Nick Corcoran, told RTÉ: “We have had a successful partnership with Wilbur Ross over some years and we are looking at opportunities in the Irish market.”
Clients of both Wilbur Ross and Cardinal Capital will contribute to the new fund.