Green REIT is preparing to kick off an ambitious development programme after fully investing the €710m (£519m) it has raised from shareholders since listing in 2013.
Ireland’s first REIT plans to spend €114m across four to five projects, targeting a return on cost of more than 30% as it looks to exploit opportunities across the prime portfolio it has assembled.
The company’s portfolio – most of which was acquired ahead of the rapid recovery in the Irish market – is now valued at €807m, up from €728m at the end of June.
Green REIT chief executive Pat Gunne said that the development business would “kick off
in earnest this year as it attempted to gain first mover advantage”.
He added: “There is quite a lot of dislocation still in the Dublin development sector between lands with planning, the right capital supporting the development programme and expertise to support the development process.
“By getting first out, we are again continuing our theme of first move advantage.”
Among the developments in Green REIT’s pipeline are Molesworth Street, for which planning has been submitted, and the 77,000 sq ft Horizon Logistics Park, for which it already has planning.
It has also secured a five-year extension to the masterplanning permission for the 147,000 sq ft office building Central Park.
The company has substantial facilities of €150m – with the option to increase to €290m – with Barclays Bank, which will help to fund the development pipeline.
Green REIT’s current loan-to-value ratio remains modest at just 10.3%.
Reporting half-year results for the six months to the end of December, the company posted a pretax profit of €74.3m.
Occupancy across its 2.2m sq ft portfolio currently stands at 94%, with an average remaining lease term of 5.3 years.
Dublin offices account for 74% of the company’s portfolio by value.
