Irish Residential Properties REIT (I-RES REIT) has financed its €83 million purchase of a multi-family apartment scheme in suburban Dublin with a newly-agreed €250 million debt facility provided by Barclays and Royal Bank of Scotland’s Ulster Bank arm.
I-RES REIT completed the purchase of 442 apartments and 197,460 square feet of commercial space at the Tallaght Cross West development, which was built by Irish developer Liam Carroll. The properties were put onto the market last October through DTZ Sherry Fitzgerald on the instructions of a receiver at Deloitte who had been appointed by Ireland’s National Asset Management Agency (NAMA).
Last Thursday (14 January), the REIT announced that it had entered into a new revolving and accordion credit facility of up to €250 million, which can be extended to €350 million. The facility is secured by a floating charge over the assets of the company and its subsidiaries.
Barclays Bank Ireland and Ulster Bank Ireland were joint arrangers. Barclays is lending €162.5 million and Ulster Bank is providing €87.5 million. The five-year facility replaces a €60 million revolving credit facility which was due to mature this August.
“We are pleased to have arranged this facility with Barclays and Ulster Bank, which provides I-RES with flexible financing at very competitive rates for five years. This enables us to increase our portfolio leverage to our target 45% as we acquire and develop properties,” said I-RES REIT chief executive David Ehrlich.
“This facility supports I-RES REIT’s strategy to grow its portfolio via the acquisition and development of high quality multi-family units, and follows our involvement in the past 18 months in arranging close to €350 million in finance for the company,” added Henry Cleary, head of real estate at Barclays Bank Ireland.