Irish Residential Properties REIT said on Tuesday that it has completed the sale of 194 residential units in West Dublin to Tuath Housing for a total of €72 mln.
The transaction was originally announced in August 2023. The proceeds from these asset sales will be used to strengthen the company’s balance sheet, I-RES said. The deal 'represents an attractive return on the original acquisition cost and is in line with book value at 30 June 2023', the vendor added.
The transaction closed in two phases, with the sale of 91 units in Hansfield Wood closing on August 25, 2023, and the divestment of an additional 103 apartments which includes Piper’s Court, and a small 8-unit apartment building in Hansfield Wood closing on October 2, 2023.
I-RES CEO, Margaret Sweeney, commented: 'Today’s announcement marks a significant milestone on our disposal programme, and the completion of this transaction has been achieved well ahead of the expected timeframe. The attractive returns delivered from this transaction reflects the quality of the assets and our value-add management of them, which is a core part of our operating model.'
The company has now delivered on €96.5 mln of its €100 mln asset disposal programme, which is part of its long-term strategy to optimise capital and create shareholder value. The proceeds are being used to further strengthen the balance sheet by retiring the Company’s higher cost debt under its revolving credit facility.
Following the completion of these transactions, the company’s LTV1 is now 42.1%, with 82% of the company’s debt now hedged against interest rate volatility. The hedged portion of the company’s debt is fixed at a blended interest rate of 3.27%. The company remains focused on delivering on its value maximising portfolio management and disciplined capital allocation strategy.
Following the completion of these sales the group now owns 3,734 apartments and houses for private rental in Dublin and Cork.