The deal will be paid for using funds raised through previous sales of non-core apartments, which have generated €34.9m for Ires.
Ires is Ireland’s largest provider landlord but has not expanded its portfolio since 2021 and 2022, when it closed schemes commissioned before strict rent caps came into force.
More recent changes however make the market more attractive for big landlords – including a newly reduced 9pc VAT rate on block purchases of apartments and rent rules that from next month now allow landlords to raise rents annually, by up to 2pc, and reset to market rents between tenancies.
Falling European Central Bank rates also make the market more attractive.
Ires had indicated it was looking at expanding again.
The Naas deal is a so-called “forward purchase” agreement of properties that are not yet completed from Westar Homes Limited.
The property is currently under construction and is due to reach practical completion in the final months of 2026.
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The property is a mix of apartment types: 20 x 1 bed, 33 x 2 bed and 24 x 3 bed apartments in a self-contained block over 4 storeys with accompanying car parking.
The investment is projected to generate a Net Initial Yield of approximately 5.25pc and will be earnings enhancing following the lease up period.
The CEO of I-RES, Eddie Byrne, said the purchase represents a big share of his firm’s capital recycling programme.
“This off-market acquisition, generated internally as a result of our teams’ extensive connections and experience, represents a very attractive investment opportunity. Our asset recycling programme has, to date, generated sales proceeds 25pc+ above our carrying values, thus giving us effective selling yields of approximately 4pc which, through this acquisition, we are able to reinvest at 5.25pc in new A rated assets.”
Further deal are potentially in the works, he said.
“We continue to monitor accretive potential growth opportunities that we now see emerging in the market. This transaction demonstrates the role I-RES can play in funding much needed-new housing in Ireland.”
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