Green REIT buys Dublin property portfolio for €375m

Wednesday 11 June 2014 18.52
Newly acquired portfolio includes office buildings at George's Quay and George's Court in Dublin 2
Newly acquired portfolio includes office buildings at George's Quay and George's Court in Dublin 2

Investment property company Green REIT has agreed a deal with Cosgrave Property Group to buy a property portfolio in Dublin to €375m.

The portfolio includes office buildings at George's Quay and George's Court in Dublin 2 and retail and commercial space in Westend Retail Park in Blanchardstown.

Property website CoStar News said it understands that the Cosgrave Group had invited a select group of investors to bid for the Project Sapphire porfolio, including Green REIT, Hibernia REIT, IPUT, Irish Life and Kennedy Wilson Europe.

The properties have passing rents of €23.7m, and a total of 58 tenants with a 97% occupancy rate.

The main office tenants include Pioneer Investments, Invesco, Northern Trust and GAM Fund Management, while the retail tenants include Nike, Next, Gap, Heatons, New Look, Argos and Lidl.

Green REIT said it will fund the deal with its own cash. It said it intends to raise bank debt against the assets in due course, the process for which will start shortly.

After this deal is complete, the total capital investment by Green REIT will be €719.4m. It said this has been funded by €644.8m of shareholder equity and €74.6m of borrowings.

The company said the transaction is in line with its stated objective to assemble a portfolio of prime and good quality secondary properties with a Dublin focus. 

"Having launched as recently as July 2013 this efficient deployment of over 94% of the company’s capital on quality commercial real estate has exceeded the directors’ expectations and puts the company in a strong position to capitalise on further growth in commercial property values in Ireland," commented Green REIT's chairman Stephen Vernon.