Property investment fund Green REIT announces €169m disposal programme

Publicly-quoted property investment fund Green REIT has detailed the assets it is looking to sell in order to maintain its borrowing ratio following its acquisition of the Central Park office development in south Dublin.

The fund recently completed its €155m purchase of full ownership of Central Park, in Leopardstown, which houses Vodafone, Merrill Lynch, Tullow Oil, Salesforce, and Ulster Bank.

It had already stated it would dispose of some existing assets in order to maintain intended total gearing levels of 25%.

To that end Green REIT yesterday put six properties — with a combined guide price of €168.7m — on the market. Collectively being marketed as ‘The Glas Collection’ four of the six properties are in Dublin with the other two in Limerick and Naas.

They are the Ormond Building in Dublin 1, Classon House in Dundrum Business Park, the mixed-use Arena Centre in Tallaght, Parnell Car Park in Dublin, the Globe Retail Park in Naas, and Parkway Retail Park in Limerick.

“We estimate that these properties were acquired in the fourth quarter of 2013 for an estimated cost of €101m and a blended net yield in excess of 10%,” said Ray Crowley and Flor O’Donoghue of Davy Stockbrokers in a research note.

“Were it to achieve the guided price on these assets this would represent a significant uplift in valuation since acquisition,” said Goodbody Stockbrokers’ Colm Foley.