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IRES nears €115M+ Dublin BTR purchase for 282-unit scheme
The proposed deal would add about 8% to IRES' residential portfolio, and the 236 PRS apartments are described as partly under-rented.
IRES is closing in on the purchase of a Dublin build-to-rent scheme known as Two Three North, a 282-unit development for more than €115M, with the transaction expected to close in the coming weeks, according to Bisnow.
The scheme includes 236 private rented sector apartments and 46 units leased to Dublin City Council under a 25-year agreement with more than 21 years remaining, and it is being marketed by private equity investor Tristan Capital Partners, with IRES selected as preferred bidder.
Two Three North has a guide price of €120M, implying a blended net initial yield of 4.79%, including 4.83% on the private rental component and 4.5% on council income. Tristan also identified about 13% of the PRS apartments as under-rented.
Bisnow reports the acquisition would mark a step up in IRES' acquisition pace after several years focused on portfolio management, asset sales, balance-sheet strengthening, and navigating Ireland's former rent-control regime, including responding to an activist investor. The company ended June with 3,611 homes valued at about €1.3B, and the potential purchase would add roughly 8% to its residential portfolio.