28 Oct 2013 07:00
Press Release
ACQUISITION OF €127.6 MILLION COMMERCIAL PORTFOLIO
Yield on Investment Portfolio in excess of 8.5%
GRN ID GRN LN
Dublin, 28 October, 2013 | Green REIT Plc, ("Green REIT" or the "Company"), the Irish property investment company, announces that it has exchanged contracts to acquire a portfolio of commercial real estate assets (the "Portfolio") from Danske Bank Ireland for €127.6 million (net of acquisition costs), with an initial yield on the investment properties in excess of 8.5%. This marks the first acquisition undertaken by the Company since its successful listing in July of this year in which it raised equity of €310 million to invest in the Irish commercial property market. The acquisition will be funded from existing cash resources.
The Portfolio comprises 10 properties, eight of which are in Dublin. The Portfolio is a mix of prime and good secondary assets; totals over 708,000 sq. ft.; and, is currently 84% let with a weighting towards the retail (37%) and office (29%) sectors. The properties currently generate a net rental income of €10.6 million from a strong base of 65 tenants, including Bank of Ireland, Homebase, Lidl, TK Maxx, Woodies, Park Rite and Kuehne & Nagel. The average weighted unexpired lease term across the portfolio is in excess of nine years which is due to the number of long leases in situ from quality covenants. The Portfolio also includes a development site of approximately 112 acres adjacent to Dublin airport. This site has the potential for a logistics development of up to 1 million sq. ft.
Stephen Vernon, Green REIT Plc, commented:
"Our first transaction since we successfully raised €310 million and listed in July is consistent with our stated strategy of investing in primarily Dublin based commercial property.
"The acquisition of this significant, diversified portfolio, with strong covenants, not only provides excellent cashflow generation, but also presents the opportunity to drive rental income and enhance capital value through active asset management. This transaction confirms that liquidity in the market has risen dramatically, as we had expected. We continue to identify and evaluate a number of other attractive assets which meet our investment criteria".
Peter Hughes, Head of Non-Core, Danske Bank Ireland, commented:
"We are pleased to be able to announce the sale of this portfolio to Green REIT Plc. We remain committed to reducing non core exposures and this sale is a significant step forward in our deleveraging efforts in Ireland".
Pat Gunne, Managing Director, Green Property Ventures, the Investment Manager, commented:
"This first deployment of the capital we raised in July into such a high quality portfolio underpins our belief that providing long-term capital is both positive for the Irish commercial property market and allows us to achieve our objective of delivering attractive returns for our shareholders. The solid rental income base is key to us achieving the dividend model we outlined to our investors".
Grant Thornton and DTZ acted for Danske Bank. Jones Lang LaSalle acted for Green REIT Plc.
The Portfolio details are set out below.
PORTFOLIO DETAILS
The Portfolio comprises the following 10 properties:
· 97 St Stephens Green, an office in Dublin 2;
· Fitzwilliam Hall, an office building in Dublin 2;
· 1-2 and 4-5 College Green, two ground floor retail units in Dublin 2;
· Horizon Logistic Park in Co. Dublin;
· Parnell Car Park in Dublin 1;
· Classon House, an office in Dundrum, Dublin 14;
· The Arena Centre in Tallaght, Dublin 24;
· Globe Retail Park in Co. Kildare; and
· Parkway Retail Park in Co. Limerick.
The Portfolio also includes a development site of approximately 112 acres adjacent to Dublin airport with the potential for development.
Portfolio breakdown by sector:
· 37% retail
· 29% office
· 8% land
· 7% industrial
· 7% car park
· 6% vacant
· 4% residential
· 2% hotel
The Portfolio's top 5 tenants:
· Woodies (Grafton Group plc) - 22%
· Bank of Ireland - 13%
· Glandore Business Centre - 7%
· Lidl Gmbh - 6%
· Park Rite Ltd - 5%
ENDS
Contacts
FTI Consulting (IR and PR to the Company)
Dublin London
+353 (0) 1 6633686 +44 (0) 20 7831 3113
Mark Kenny Stephanie Highett
Jonathan Neilan Richard Sunderland
Melanie Farrell Giles Barrie
Nina Legge
greenreit@fticonsulting.com
About Green REIT Plc
Green REIT Plc is an Irish Real Estate Investment Trust ("REIT") and is listed on the Irish and London Stock Exchanges. The Company was the first REIT established in Ireland following the introduction of REIT legislation by the Irish Government. The Company's stated strategy is to create a property portfolio consisting primarily of commercial property in Ireland to deliver income and capital growth through opportunistic investments, active property management and prudent use of debt finance. Please visit www.greenpropertyreit.com