Green REIT acquires office buildings for €32m

A property investment company has closed a deal to buy two Dublin city centre office buildings for €32m.

Green REIT has purchased the offices which are on Harcourt St and Harcourt Rd in Dublin 2.

Commenting on the acquisitions, Green REIT chief executive Pat Gunne said that they will further strengthen the trust’s strong portfolio.

“Our existing tenant profile is exceptionally strong and the €52.3m annual rent roll will generate a 7% portfolio yield. Harcourt Rd also presents a very exciting Dublin city centre redevelopment opportunity,” he said.

The deal, the trust says, is in line with its objectives to assemble a portfolio of prime and good quality secondary properties with particular emphasis on the Dublin market.

Following the acquisitions, the trust has now invested 99% of the total equity raised since its launch in July 2013.

Green REIT was the first real estate investment trust in Ireland following the introduction of legislation by Finance Minister Michael Noonan in Budget 2013.

Earlier this year, the trust acquired the Central Park property portfolio in a joint venture with LVS II, and another portfolio of commercial property loans from Danske Bank for €22.1m.

The Harcourt St and Harcourt Rd properties have been let to a government tenant at a passing rent of €1.01m and €1.26m respectively.

The company also announced its first bank borrowings yesterday. Bank of Ireland Corporate Banking has provided a term loan of €150m to Green REIT and its partners to refinance the secured debt on the Central Park portfolio, with the company holding a 50% share of this borrowing.

Chairman of Green REIT Stephen Vernon commented: “This first major bank debt raising for Green REIT with Bank of Ireland is a milestone in our development and we look forward to continuing our long term relationship with Central Park.”