Irish Residential Properties REIT has bought 152 build-to-rent homes in Ashbrook, Clontarf, Dublin.
IRES paid €66m (£55m) for two phases of the scheme, funded from the company’s existing credit facilities.
The first phase comprises 108 flats built in the early 1990s. Some 91% of the homes are let, with full occupancy anticipated by the time the transaction completes at the end of this quarter.
The REIT has committed to buy a further 44 homes under a forward purchase contract on a neighbouring development site.
Based on the current passing rents on the standing stock and lease up of vacant units, the investment is expected to generate a gross yield of 4.93%.
Margaret Sweeney, chief executive of IRES, said: “The property and development site are located close to a host of employment, amenity and transport routes, as well as being a short commute to the city centre. This accretive investment is in line with our growth strategy and complements the overall IRES residential portfolio.”
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