Irish Residential Properties (IRES) Reit announced it has agreed to purchase 442 apartments, more than 18,000 square metres of commercial space and associated underground car parking at Tallaght Cross West in Dublin for €83 million.
The apartments comprise 161 one-bed, 237 two-bed and 44 three-bed apartments and currently have annualised passing residential rents of around €5.1 million at 85 per cent occupancy. The deal is expected to close in mid-January with the vendor expecting to lease the remaining 15 per cent of apartments before that date.
A residential leasing programme for the apartments began last September following a fit out of the properties. According to IRES the current commercial annualised passing rent is €63,000 at 10 per cent occupancy. Based on current annualised passing residential rents and lease up of the remaining 15 percent unleased apartments at market rents, it is expected to generate a gross yield of 8.4 per cent.
Tallaght Cross West was built by Liam Carroll of Zoe Developments just before the property crash in 2008. IRES Reit is acquiring the apartments from the National Asset Management Agency.
“These acquisitions represent an excellent opportunity for IRES to expand its portfolio in strong locations within the Dublin market,” chief executive David Ehrlich said. “The Tallaght Cross West acquisition offers an unrivalled opportunity to acquire 442 essentially brand new apartments in a high quality development having been recently completed by the vendor.”
IRES are an Irish multi-unit residential property investment company that floated on the Irish Stock Exchange last year. They have also completed the purchase of a further 40 apartments at Bessboro in Terence, Dublin 6 for €12.2 million.
Tallaght Cross West also includes 3 office buildings totalling 130,000 sq. ft. and a 186-bed hotel. Two of the office buildings have recently been sold to the Health Service Executive (HSE) and the third to Talacare which is to provide a Trinity College Dublin medical school facility in addition to a primary care centre.