Irish Residential Properties Reit (Ires Reit) is to acquire 201 apartments at Elm Park, adjacent to St Vincent's private hospital, in Dublin for €59 million.
The Merrion Road development currently has annualised passing residential rents of €3.2 million with a 92.5 per cent residential occupancy rate generating a gross yield of 5.4 per cent.
The 201 apartments comprise 101 1-bed, 96 2-bed and 4 4-bed duplex penthouses. There are also 203 underground car parking spaces.
Based on current annualised passing residential rents and lease up of the remaining 7.5 per cent unleased apartments at market rents, the development should generate a gross yield of 5.9 per cent, Ires Reit said.
The apartments form part of a mixed use development on a 17 acre site which also includes four detached headquarter office buildings, retail and amenity accommodation.
Elm Park was developed in 2006 by Bernard McNamara, Jerry O’Reilly and the late David Courtney.
US investor Starwood Capital Group and Irish developer Chartered Land acquired the 750,000 sq ft office and residential campus from receivers Duff & Phelps on behalf of the National Asset Management Agency (NAMA) in February.
Ires Reit, an Irish multi-unit residential property investment company that floated on the Irish Stock Exchange in 2014, said that while the apartments are of high quality, the complex has suffered from years in receivership.
“The vendor and owner of the other major elements of the complex is undertaking a significant program to address these issues, which will benefit the apartments considerably,” it said.
Following completion of the deal, which is expected to occur by the end of the month, Ires Reit will have 2,288 apartments under professional management in Ireland.
"The acquisition of Elm Park adds significantly to the mix and overall quality of our portfolio. Elm Park is really a unique complex in terms of design, quality and location and represents a rare opportunity for Ires Reit to add to its South Dublin portfolio," said chief executive David Ehrlich.
“We believe that the completion of the grounds and amenities and other improvements to the complex will add significant long term value and Elm Park will be a cornerstone property for years to come,” he added.
