Irish Residential Properties REIT plc ("I•RES" or the "Company") announced that it has completed
the construction of The Maple, a development comprised of 68 apartments at Block B2B, Beacon South Quarter.
Total construction cost of completion of c. €19.6 million (including VAT and allocated fair value of land) on 12 July 2017, which was funded from the Company's credit facilityand cash on hand. The building was completed on budget and on time by Irish contracting firm, WallsCon.
The 68 apartments are fully leased with c. 60% and 40% of the leases commencing by end of July and August respectively. As of 25 August 2017, all apartments at The Maple will be occupied, and the annualised passing rents will be circa €1.64 million generating a gross yield of c. 8.4% based on the c. €19.6 million cost of completion (including VAT and allocated fair value of land). This fair value of The Maple as per the Company's external valuer is c. €27.5 million. This favourable fair value along with historically low interest rates is expected to result in significant returns. The 68 apartments comprise: four 1-bed, fiftyfive 2-bed and nine 3-bed apartments.
David Ehrlich, IRES' Chief Executive Officer, commented: "We are pleased to announce the completion of our first development at The Maple, Beacon South Quarter, Sandyford. IRES is in Ireland for the very long term and is actively expanding its development
activities in response to the significant supply and demand imbalance in the Dublin area. We are initiating and continuing planning processes with respect to a number of our existing development sites, including a number of intensification opportunities. Additionally, IRES continues to explore new development opportunities including duplex, townhouses and other types of rental accommodation for rental purposes. We are heavily focused on development opportunities and would like to work with all levels of government to make the planning process and regulatory framework more approachable and responsive
for proposals to build rental accommodations."
Article Published: 20/07/2017