Residential property trust buys the Marker apartment block for €50m

Irish Residential Property REIT (I.RES) has bought an apartment block in the Grand Canal Dock area of Dublin for €50.1m from Brehon Capital Partners and Midwest Holding.

The Marker Residences are located beside the Marker Hotel and Grand Canal Theatre in the Silicon Dock’ area of Dublin. Many of the biggest social media companies in the world such as Google, Twitter and Facebook, have their European headquarters in the vicinity.

An Bord Pleanala recently approved a fast-track planning scheme for the Docklands strategic development zone. Nama has earmarked €1bn investment in the area for a mix of residential and commercial property.

I.RES, which is a subsidiary of Toronto-based Canadian Apartment Properties Real Estate Investment Trust, is the latest REIT to float on the Irish Stock Exchange. It raised roughly €200m in April to exploit investment opportunities in the property market, although unlike the other two REITs to float on the Irish market in the past 12 months — Green and Hibernia — it will be focused on the residential property market.

“We are delighted to acquire this prestigious property. Together with our existing 338 apartment portfolio in Dublin, we are beginning to build the diversified portfolio which is part of our investment strategy,” said David Ehrlich, chief executive I.RES.

“The Marker Residences are luxury properties which we believe have significant upside potential, particularly given their strategic location and the exciting redevelopment proceeding in the Dockland district. We see this property positioned right at the hub of what will become one of Dublin’s most vibrant communities.”

Finance minister, Michael Noonan, introduced legislation in the 2012 budget to set up real estate investment trusts. REITs enable investors to gain exposure to the property market without acquiring underlying assets.