LONDON (Alliance News) - Green REIT PLC Friday said it has exchanged contracts to acquire two office buildings in Dublin for EUR32 million, representing a net initial yield of 6.8%.
The company said it would fund the deal from its own cash resources. It didn't name the sellers.
The first property is an office building on Harcourt street which is let to a government tenant at a passing rent of EUR1.0 million a year. The second is an office block on Harcourt Road, close to Harcourt Street Luas station, which is also let to government tenants at a passing rent of EUR1.3 million a year.
Passing rent is the gross rent, less any ground rent payable under head leases.
Green REIT also said that it has refinanced the secured debt provided to its joint venture Central Park Limited Partnership by LVS II SPE IV LLC, an entity advised and managed by Pacific Investment Management Company LLC.
The Central Park Limited Partnership is a 50:50 joint venture owned by Green REIT and LVS II.
It said Bank of Ireland has provided a term loan of EUR150 million to the partnership. Green REIT's 50% share of this bank borrowing is EUR75 million and represents the company's first bank borrowings.
It reiterated that it is considering its options with regard to further borrowing of its own, which will facilitate further acquisitions.
Green REIT shares were quoted up 0.6% at EUR1.32 Friday afternoon.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.