15 May 2015 07:00
Acquisition of One Albert Quay, Cork
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Dublin, 15 May, 2015 | Green REIT Plc, ("Green REIT" or the "Company"), the Irish property investment company, confirms that it has entered into a conditional contract for the acquisition of One Albert Quay, a grade A office building under construction in Cork city centre, with pre-lets agreed for over half of the building. One Albert Quay is being developed by JCD Group, led by CEO John Cleary, a local developer with a strong track record in attracting Foreign Direct Investment ('FDI') tenancies to the Cork market. Cork is Ireland's second largest city, with a population of roughly half a million.
Summary details of the transaction are as follows:
§ Single office block, under construction, with practical completion and initial payment expected in Q1 2016.
§ Lettable area of 166,000 square feet (15,400 square meters) over 7 floors, subject to final measurement.
§ Pre-letting agreements recently signed with 2 tenants totalling 89,000 square feet (8,300 square meters). Tyco, a market leader in the global fire protection and security solutions industries, has agreed to lease 75,000 square feet (7,000 square meters) for its global headquarters, on a 20 year lease with a tenant break in year 12, while PricewaterhouseCoopers have agreed to lease 14,000 square feet (1,300 square meters) on a 15 year lease with no breaks. The total annual rent from these two pre-lettings is €2.1 million per annum.
§ Estimated total rent per annum from the building of €3.6 to €4.1 million, subject to achieving full occupancy.
§ Price range of €55 million to €58 million, depending on letting position at the final payment date, with phased payments to be made on lease commencement dates and the final payment 12 months after the initial payment, expected to be in Q1 2017.
§ Capitalisation yield of 6.75 per cent on let areas and 7.00 per cent on unlet areas.
§ Acquisition to be funded through the Company's revolving credit facility with Barclays Bank Ireland plc.
Savills acted as the agent on the transaction.
Pat Gunne, Chief Executive, Green Property REIT Ventures Limited, the Investment Manager, commented:
"We are delighted to announce the acquisition of what will be Cork's best office building and the first major city centre office development in Cork for over a decade. The yield premium over Dublin is attractive, particularly with the Cork office rental market at an earlier stage in the recovery cycle. We look forward to working with JCD Group in the period ahead to secure further high quality tenants for the remaining space in One Albert Quay."
ENDS
Contacts
Green Property REIT Ventures (Investment Manager to the Company)
Niall O'Buachalla
+353 (0) 1 2418400
FTI Consulting (IR and PR to the Company)
Dublin London
+353 (0) 1 6633686 +44 (0) 203 727 1000
Mark Kenny Claire Turvey
Jonathan Neilan Giles Barrie
Melanie Farrell
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.greenreitplc.com
Note on forward-looking information
This Announcement contains forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements referred to in this paragraph speak only as at the date of this Announcement. The Company will not undertake any obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise except as required by law or by any appropriate regulatory authority.