Irish Residential Properties REIT plc, an Irish multi-unit residential property investment company, has today announced that, further to its announcement of 21 November 2014, CAPREIT Limited Partnership, through a wholly-owned Irish subsidiary, completed the acquisition of the Rockbrook Portfolio on 28 January 2015 for approximately €87.3 million.
The Rockbrook Portfolio consists of 270 residential suites and approximately 4,665 sq. m (50,214 sq. ft.) of mixed-use commercial space located in Dublin, Ireland. The portfolio also includes a development site of approximately 1.13 hectares (2.8 acres) which has planning permission for 467 residential suites, 5,976 sq. m (64,325 sq. ft.) of commercial space and associated basement car parking. The Rockbrook Portfolio is currently approximately 95% occupied and has a gross residential passing rent of approximately €4.4 million p.a. and commercial rent of approximately €0.3 million p.a., representing an initial gross rental yield of 5.4%. 81 of the residential suites comprising the Rockbrook Portfolio are located in buildings at Grande Central in which I●RES already owns 65 out of a total of 195 residential suites.
The Rockbrook Portfolio is the first portfolio to be acquired by CAPREIT on behalf of I•RES under the Pipeline Agreement. The acquisition by I•RES of the Rockbrook Portfolio from CAPREIT under the Pipeline Agreement is subject to I●RES shareholder approval and to I●RES having sufficient funds available. As previously announced, the terms of the Pipeline Agreement are conditional on shareholder approval under the Listing Rules of the Irish Stock Exchange as CAPREIT is a related party of I●RES under these Listing Rules. The Company intends to convene an extraordinary general meeting at which shareholders will be asked to consider and, if thought fit, approve a resolution to approve the Pipeline Agreement. Further details will be announced in due course.
David Ehrlich, the Company’s Chief Executive Officer commented: “We are very pleased CAPREIT has acquired this high-quality portfolio under the Pipeline Agreement, which allows I•RES the opportunity to acquire this portfolio at the right time, when we have completed our assessment of the funding options available to the Company. As our external manager, this shows CAPREIT’s continued commitment to the success of I•RES.”