Irish Residential Properties REIT, the country's largest private residential landlord, has agreed a deal with Westar Homes Limited to buy 77 apartments in Naas, Co Kildare for a total consideration of €31.75m.
The property is currently under construction and is due to reach practical completion by the end of 2026.
It comprises a mix of apartment types including 20 one bedroomed apartments, 33 two bedroomed apartments and 24 three bedroomed apartments.
Irish RES REIT said it will lease the apartments when they are finished.
Based on the company's market underwrite and assessment of market rents, it said the investment is projected to generate a Net Initial Yield of about 5.25% and will be earnings enhancing following the lease up period.
It said today's deal represents a positive step in its strategy and will be funded using proceeds from the ongoing disposal programme. €34.9m of sales proceeds have been generated so far.
Eddie Byrne, CEO of I-RES, said the company's capital recycling programme is progressing well, having raised nearly €35m in proceeds so far.
"We are excited today to announce the reinvestment of a large portion of these proceeds into an accretive asset in a much sought-after and growing residential location," he said.
"This off-market acquisition, generated internally as a result of our teams' extensive connections and experience, represents a very attractive investment opportunity," he said.
"We continue to monitor accretive potential growth opportunities that we now see emerging in the market. This transaction demonstrates the role I-RES can play in funding much needed-new housing in Ireland," he added.
