3 Feb 2016 07:00
Green REIT announces asset disposal programme
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Dublin, 3 February, 2016 | Green REIT Plc, ("Green REIT"), the Irish property investment company, confirms that it has appointed JLL to sell "The Glas Collection" by private treaty on its behalf. The Collection comprises six properties and provides exposure to almost all Irish property sectors, with a diversified and secure income stream.
Four of the six properties are in Dublin and include the mixed use Arena Centre in Tallaght, Ormond Building in Dublin city centre, Classon House in Dublin 14 and Parnell Car Park in Dublin 1. The other two assets are Globe Retail Park in Naas and Parkway Retail Park in Limerick. Further information on the properties is set out below.
The Glas Collection comprises over 69,677 sq m (750,000 sq ft) of commercial space across more than 58 commercial units (excluding Parnell Car Park and the 63 Arena apartments), with a total passing rent of approximately €11.5 million per annum. The total guide price is in excess of €168.7 million, which equates to an initial yield of approximately 6.6%.
Pat Gunne, CEO, Green Property REIT Ventures Limited, commented: "We are bringing these assets to the market as part of our strategy to achieve our intended total gearing level of 25%. We recently acquired full control of Central Park and announced that we would be making a number of asset disposals in 2016 to achieve that objective."
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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
+353 (0) 1 6633686
Melanie Farrell
Jonathan Neilan
London
+44 (0) 203 727 1000
Giles Barrie
Claire Turvey
greenreit@fticonsulting.com
About the Glas Collection:
The Arena Centre, Tallaght, Dublin 24 is a multi-storey mixed use development consisting of five retail units, four retail warehouse units, three office blocks, residential complex, leisure facility and a 119 bedroom hotel, all built between 2006 and 2008.
With a guide in excess of €65 million, reflecting a net initial yield of 6.8% and with an annual rent of €4.6 million per annum and a weighted average lease term of 10.2 years, Arena Centre offers an investor a secure long term cashflow. Bank of Ireland, Woodies, Lidl and Dalata Hotel Group account for 80% of the total income and all have upward only rent reviews.
Bank of Ireland has recently shown its long term commitment by agreeing to remove a break option in 2018. Their next break option is now not until 2023 and comes with a 24 month break penalty should they decide to exercise the break.
The Ormond Building, Ormond Quay, Dublin 1 occupies a prominent city centre location overlooking the river Liffey and adjacent the Four Courts. The property is a modern 5 storey over basement building, predominantly in office use throughout with retail units at ground floor level. The block extends to 3,486 sq m (37,526 sq ft).
The Ormond Building provides an attractive tenant mix with almost 60% of the current passing annual rent of €1.2 million attributed to Dublin City Council and Regus and an overall WAULT of 8.3 years. The guide price is in excess of €17 million for The Ormond Building, which reflects an initial yield of 6.5%.
Classon House, Dundrum Business Park, Dublin 14, completed in 2008, is a detached four storey grade A office block extending to 6,940 sq m (74,700 sq ft) and benefiting from 144 car spaces. It provides a range of 27 own door state-of-the-art business suites on flexible floor plates. Car Trawler have continually expanded within the building by amalgamating units over recent years and now equate to 69% of the total contracted annual income.
The property is being offered for €22 million, equating to a net initial yield of 5.5%. This yield has significant potential to increase in the short term. The average passing rent in the building is in the region of €15 per sq ft with prime suburban rents forecast to achieve €30 per sq ft in 2016.
Parnell Car Park, Dublin 1 is a multi-storey car park with approximately 503 spaces and is guiding in excess of €11.2 million, a net initial yield of 6%. The property is let to Park Rite Limited at a rent of €700,000 per annum for a further 11.9 years. The car park is part of a development that comprises a multi-screen cinema and a number of food outlets, constructed in the late 1990s with the benefit of being in close proximity to a number of Dublin's major shopping centres.
Globe Retail Park, Naas, Co. Kildare is strategically located on the M7 Naas Road and is guiding in excess of €26 million, reflecting a net initial yield of 6.5%. The retail scheme comprises approximately 13,290 sq m (143,100 sq ft) over 8 units. The retail park is currently producing a total rent of approximately €1.7 million per annum, with 76% of this income secured by Woodies, Heatons and Smyths Toys. The scheme offers an attractive WAULT of approximately 11.9 years. Globe Retail Park is grouped for sale with Parkway Retail Park.
Parkway Retail Park, Limerick is being offered for sale at a guide price in excess of €27.5 million, which equates to a net initial yield of approximately 7%, off a passing rent of €2 million per annum. This modern retail warehousing development consists of 8 units and a separate detached partially complete restaurant unit, extending to 15,678 sq m (168,761 sq ft) in total.
The park is anchored by Homebase and TK Maxx (42% of total income), with other retailers including Currys, Hickey Fabrics, Elverys and Carpetright. Planning has recently been granted to fit out a new restaurant unit in the scheme, with lettings agreed with Costa Coffee and Camile Thai Restaurant.
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.