Ireland's Green REIT Makes First Purchase

Ireland's Green REIT Makes First Purchase

Commercial News » Done Deals | By WPC Deals Team | October 29, 2013 2:40 PM ET

Ireland's first real estate investment trust, Green REIT, has agreed to purchase a commercial property portfolio for €127.6 million ($176 million) from Danske Bank Ireland. 

This is the first purchase for the REIT since its inception this summer. Green REIT raised €310 million in its initial listing and plans to fund the purchase with existing cash resources, the company said in an announcement. 

The portfolio, a mix of "prime and good secondary assets," includes 10 properties, eight of which are located in Dublin. The 708,000-square-foot portfolio is 84 percent leased, primarily in the retail and office sectors.

The properties generate approximately €10.6 million in net rental income from 65 tenants, including Bank of Ireland, Homebase and Park Rite. The initial yield on the properties is in excess of 8.5 percent, the REIT announced.

The portfolio also includes a 112-acre development site next to the Dublin airport.

"The acquisition of this significant, diversified portfolio, with strong covenants, not only provides excellent cash flow generation, but also presents the opportunity to drive rental income and enhance capital value through active asset management," said Green REIT's Stephen Vernon.

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