Irish Residential Properties REIT (I-RES) has won NAMA’s Orange portfolio, the Dublin multi-family portfolio, for €211.3m.
The Orange portfolio is comprised of acquire 761 suites in four properties in the developments at Charlestown, Lansdowne Gate, Beacon South Quarter and Bakers Yard, in the Greater Dublin area.
In addition, there is approximately 3,180 sq m (c. 34,229 sq ft) of commercial space within two of the four buildings.
Contracts will be exchanged imminently, with closing in October. I-RES will finance the Orange portfolio acquisition with cash resources plus drawing on its two-year €130m revolving credit facility (RCF) with Barclays Ireland, which signed on 15 August.
Barclays Ireland’s RCF is priced at 250 basis points over Euribor. In addition, there was a one-time arrangement fee of €820.
The apartment portfolio is currently over 98% occupied and has gross passing residential rents of €10.6m and commercial rents of €0.3m, generating a gross yield of 5.20%. By unit type, the residential suites comprise 70% 2-bed, 17% 3-bed, and 13% 1-bed units.
In a statement, IRES stated that it anticipates significant rental growth over the near and longer term. When combined with IRES’ current portfolio, the combined portfolio capitalisation rate based upon net operating income will be approximately 5% on the closing of the acquisitions.
Charlestown is a new mixed-use development set on 40-acres in the north Dublin suburb of Finglas, within which IRES will acquire 235 apartments.
The overall development comprises facilities for tenants including a shopping centre, a medical centre, and a variety of leisure and restaurant operators. The property is located approximately 7km from Dublin city centre and 5km from Dublin airport and is adjacent to the M50 and M2 major transport corridors.
Lansdowne Gate is a newly-built superior quality development on 5.5 acres in the west Dublin suburb of Drimnagh.
The property is located adjacent to the LUAS light rail system, 5 km from the city centre and within walking distance of numerous larger employers, as well as shopping and leisure facilities.
At Lansdowne Gate IRES will acquire 224 apartments set in 11 blocks over semi-basement car parking, with the benefit of a centralised district heating system and landscaped gardens and children’s playground.
Beacon South Quarter is a new landmark mixed-use development, on 13 acres located in the south Dublin suburb of Sandyford.
A number of major employers are located in the immediate neighbourhood, including Vodafone, Merrill Lynch, Microsoft, and the development is adjacent to the LUAS line to the city centre.
The Beacon development includes many high-end occupiers including private medical care, leisure, and a selection of food