NAMA HAS SOLD the largest-ever portfolio of Dublin apartments for €211 million -€50 million above the guide price sought just three months ago.
The portfolio consists of 761 apartments in four separate developments around the city.
The purchaser is Canadian-backed Irish Residential Properties REIT (IRES-Reit). with the deal has now amassed a property empire of over 1,200 apartments in the capital, making it the State’s largest non-governmental residential landlord.
The company is fronted in Ireland by former Grafton Group executive Colm O Nuallain. Other senior Irish executives include Declan Moylan, a solicitor woith Mason Hayes & Curran, and Property Industry Ireland chairman Aidan O’Hogan.
IRES is ultimately owned by Canadian real estate heavyweight Capreit.
Since making its first acquisition in September of last year, the property outfit has bought six apartment blocks in Dublin, most recently shelling out €50.1 million for the Marker residences, a luxury development situated in Dublin’s docklands.
There’s no sign that the Canadians will be slowing down any time soon, however, and have publicly discussed a target of 2,300 units in the city.
Company accounts released today show that IRES has spent €46 million on properties separate to today’s deal and the Marker sale, which would bring the company’s total expenditure in Ireland to over €307 million is little over a year.
The trust initially raised €200 million for its assault on the Irish market, before upping its spending power with a €130 million loan from Barclays earlier this month.
The accounts show that the company values the properties it initially bought for €46 million at €53.75 million, implying an increase in value of €7.75 million since it bought them up.
IRES booked a profit of €7.1 million in the period from 2 July last year to the end of June 2014.
The haul
The properties covered by the deal include 235 apartments in Charlestown, in Finglas, 224 units at Lansdowne Gate next to Drimnagh Castle, 217 flats in South Quarter and 85 apartments at Baker’s Yard in Dublin 1.
The apartments are 98% occupied and boast a rent roll of €10.6 million per year, supplemented by commercial rents of €0.3 million every year.
Many of the companies originally behind the developments were major boomtime property players, including the Bailey brothers’ Bovale Developments, which built the Charlestown properties.
The Baileys were found by the planning tribunal to have made corrupt payments to politicians, including former Fianna Fail minister Ray Burke, and later made the largest payment of back taxes and penalties in the history of the State, coming in at €22.17 million.
The deal was handled by Savills.
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