Irish Residential Properties closes €90.6m Dublin property portfolio deal

Irish Residential Properties REIT has finalised the acquisition of a multi-million euro portfolio of Dublin properties and development land as part of a pipeline agreement with its parent company.

The €90.6m Rockbrook portfolio of properties, acquired by I-Res, includes 270 apartments in Sandyford, Co Dublin, 50,000sq ft of mixed use commercial space, and a development site with planning for more than 460 apartments.

The Dublin apartments are located in the Grande Central and South Central apartment complexes where I-Res already has a presence.

The property investment vehicle has landed somewhat of a bargain with considerable profit potential, according to Merrion Stockbrokers equity analyst Darren McKinley.

“The price paid is a 10%-15% discount to current market prices and the rental income offers a further 10% upside, which will drive earnings momentum. As the adjustment to the market capitalisation has now taken place and stands at €425m our view remains that I-Res REIT is a cheap, liquid, residential play on Dublin residential property,” he said.

Merrion expects the complete I-Res portfolio to generate €25m through rental income and a further €250,000 in commercial rents this year. Projections for 2016 are even more encouraging, at between €28m and €30m.

A dividend of between 4.5% and 5% is forecast in keeping with the requirement that REITs (Real Estate Investment Trusts) payout at least 90% of taxable income.