Irish Residential Properties REIT plc, Ireland’s largest provider of private rental accommodation, has entered a forward purchase agreement with Westar Homes Limited to acquire 77 high-quality apartments for a total consideration of €31.75 million. The property is currently under construction and is due to reach practical completion in Q4 2026.
Located in Naas, Co. Kildare, a rapidly growing commuter town southwest of Dublin, the property occupies an attractive position close to the town centre, with easy access to the M7 motorway and Sallins commuter rail station. The location benefits from a strong local employment base and is adjacent to the major employment hubs of Southwest Dublin including City West, Grange Castle and Tallaght. Naas is the largest town in Co. Kildare and is a mature urban location providing a range of amenities, including education, healthcare, retail and other social infrastructure.
The property to be acquired by the Company comprises a mix of apartment types including 20 x 1 bed, 33 x 2 bed and 24 x 3 bed apartments. The apartments will be completed to a high specification, with A2 BER ratings and strong sustainability criteria including air-to-water heat pumps, LED lighting and PV panels. The self-contained block is set over 4 storeys at podium level with accompanying car parking. The Company will begin to lease the apartments following practical completion. Based on the Company’s market underwrite and assessment of market rents, the investment is projected to generate a Net Initial Yield of approximately 5.25% and will be earnings[1]enhancing following the lease up period.
The acquisition represents a positive step in the Company’s strategy and will be funded using proceeds from the ongoing disposal programme. To date, €34.9 million of sales proceeds have been generated.
Post acquisition and along with the ongoing asset recycling programme, we expect to maintain LTV comfortably within I-RES’ target range of 40%-45%.
Eddie Byrne, CEO of I-RES, commented: “Our capital recycling programme is progressing well, having raised nearly €35 million in proceeds so far, and we are excited today to announce the reinvestment of a large portion of these proceeds into an accretive asset in a much sought-after and growing residential location. 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 25%+ above our carrying values, thus giving us effective selling yields of approximately 4% which, through this acquisition, we are able to reinvest at 5.25% in new A rated assets. 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.”