Green REIT acquires second commercial property portfolio
Green REIT has contracted to purchase its second portfolio of commercial real estate assets, D2 Portfolio, from Danske Bank Ireland at a total cost of EUR23m (EUR22m net of costs).
The portfolio consists of five properties with a total rent roll of EUR1.4m along with significant redevelopment potential.
These acquisitions are expected to complete imminently.
In late 2013 the company acquired a property on Mount Street, Dublin 2 for EUR6.35m.
The D2 Portfolio comprises five properties with c. 69,000 sq. ft. in two locations: Molesworth Street and Ormond Quay. Four of the five properties are located at 30-33 Molesworth Street, Dublin 2, in the city centre and are currently occupied by seven tenants. The properties are leased at relatively low rents providing the opportunity for rental growth with some of the existing leases due to expire between 2014 and 2016. There is also a significant redevelopment opportunity.
The Ormond Building on Dublin’s Ormond Quay, Dublin 1, adjacent to the Four Courts is the fifth property in the Portfolio. A modern office building currently occupied by 15 tenants, the property has an area of c. 31,000 sq. ft. It includes some vacant space providing an opportunity for rental income growth. Over 50 per cent of the rental income comes from Dublin City Council with 11 years unexpired on the lease. The remainder of the income is dominated by barristers’ chambers.
The company completed a EUR6.35m transaction in late 2013. The Mount Street property is a single office block with an area of c. 49,000 sq. ft. The property is currently let to the Office of Public Works, an Irish state body, with two years remaining on the lease agreement. There is an opportunity for refurbishment which will allow for significant income growth.
Pat Gunne, chief executive, Green Property REIT Ventures Limited, says: “We expect increased activity in the Irish commercial property market in 2014. Our ability to identify and acquire attractive assets - both on and off market - reflects the strength and breadth of our team and also our extensive network of industry relationships. Green REIT is uniquely positioned to capitalise on a more active market in 2014 to build a portfolio of high quality assets which will enhance our ability to deliver attractive returns for our shareholders.”
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