City's biggest landlord buys up flats for €18m
Dublin's biggest landlord, stock market listed IRES, has snapped up 89 apartments along with 145 car parking spaces in a €18.3m deal.
The deal brings the total number of apartments under IRES control to 2,377.
The new apartments are based at Coldcut Park in Clondalkin, Dublin 22 and are currently 99pc occupied with an annual passing rent of €1.4m. IRES said the investment will give a gross yield of around 7.7pc based on the purchase price.
The 89 residences are broken up into 18 one-beds, 22 two-beds, 32 three-beds and 17 four-beds with a number of three and four bed own-door duplex units.
IRES chief executive David Ehrlich said the deal was a "nice addition" to the company's portfolio.
"Coldcut Park is situated in close proximity to other properties in our portfolio, including Tyrone Court in Inchicore and Tallaght Cross West so that it fits well from a property management standpoint," he said.
The deal comes after IRES told shareholders in May it had a €150m warchest for further acquisitions and that it would be supply, rather than availability of cash, that would slow further moves. Goodbody analyst Eamonn Hughes said the deal potentially brings IRES's spending capacity down to around €130m.
"The gross yield on the acquisition of 7.7pc compares favourably with the existing portfolio average of 6.5pc (and its adjacent Tyrone Court and Tallaght Cross West properties, with gross yields of 7pc and 7.5pc respectively)," Mr Hughes said in a note.
IRES plans to double its current size.