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Ireland's first real estate trust is now making nearly €53m a year in rent

Green REIT has finished a €375 million office and shopping-centre buyout as property trusts keep on spending big.

Westend Shopping Park, Blanchardstown
Westend Shopping Park, Blanchardstown

THE FIRST COMMERCIAL property fund to set up in Ireland is taking in nearly €53 million a year in rent about 15 months after launching on the stock market.

The Green Real Estate Investment Trust (REIT) told investors today it had finished its €375 million buyout of the so-called “sapphire portfolio” of commercial properties at George’s Quay, George’s Court and Westend Shopping Park in Blanchardstown.

Together the properties are worth over €23 million a year to the company in rent – about half of which would come from several buildings at George’s Quay.

Meanwhile, the shopping centre on Dublin’s outskirts will be returning about €7.3 million a year in rent and includes retailers like Next, Gap and Lidl.

The company said it had also completed its €23 million buyout of another office block in Dawson St, Dublin which was “one of (the city’s) most prime CBD redevelopment opportunities”.

The sapphire portfolio was put under the hammer after a court battle between Ulster Bank and developers the Cosgrave brothers, who sued the lender for €250 million after claiming they were signed up for unsuitable financial products.

The case ended in a stalemate earlier this year and shortly afterwards it was announced the properties were sold to Green, which now owns 17 buildings worth €758 million.

Big money going on commercial property

Nearly 90% of the company’s property is in Dublin, where office rents have gone up 28% over the last 12 months and analysts have said prices could return to their pre-boom peaks by the end of 2017.

Green became the first listed real-estate trust set up in Ireland after new laws were brought in that allowed the companies to do their business without paying any corporate tax.

Since then, there has been a buying binge from several REITs including later entrants Hibernia and the Canadian-backed Irish Residential Properties, which earlier this year bought the largest-ever portfolio of apartments to be sold in Dublin for €211 million.

Green has raised nearly €700 million in two investment drives after launching on the share market last year.

READ: There’s more money flowing into commercial property than at the height of the boom >

READ:  Done deal: Marker residences sold to Canadian giant for €50 million >

About the author:

Peter Bodkin  / Editor, Fora

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