Canadian-backed Irish Residential Properties REIT has been chosen as preferred bidder for Project Orange, a portfolio of 761 flats in greater Dublin.
IRES REIT is set to buy the portfolio from bad bank Nama for €211.3m (£168m) – considerably higher than the €160m guide price.
The REIT saw off competition from underbidders Kennedy Wilson and Marathon Asset Management.
The portfolio is around 98% occupied and has gross passing residential rent of €10.6m and commercial rent of £300,000, generating a gross yield of 5.2%.
Assets in Project Orange include the 235-flat Charlestown development in Finglas, 7km from the city centre, and Beacon South Quarter, a new 13-acre mixed-use development in Sandyford.
Savills and Hooke & Macdonald acted as agents for the vendor.
IRES REIT launched on the Dublin Stock Exchange in April, raising €200m to invest in residential property. The REIT clinched a two-year €130m (£104m) credit facility arranged by Barclays Ireland earlier this month, which part-funded the acquisition of Project Orange.
The transaction is expected to complete in October.
sophia.furber@estatesgazette.com
