IRES is set to add a €115 million Dublin build‑to‑rent scheme to its holdings, a move that would lift the listed landlord’s residential portfolio by about 8 percent.
Before this transaction IRES managed roughly 3,611 residential units valued at about €1.3 billion, so the new acquisition lifts both in the unit count and asset value noticeably for shareholders overall.
Deal specifics and financial outlook
The property, known as Two Three North in the Clongriffin area, comprises 236 private‑rented apartments and 46 units leased to Dublin City Council under a 25‑year contract that still has more than 21 years left.
The 25‑year council lease, with over 21 years remaining, secures income through at least 2045, reinforcing long‑term cash flow stability.
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Tristan Capital Partners, the private‑equity sponsor that brought the project to market, set a guide price of €120 million. The net initial yield was calculated at 4.83 % for the private‑rental block and 4.5 % for the council‑income side, giving a blended yield of 4.79 %.
Developed by Twinlite and finished in 2022, the scheme sits alongside the larger One Three North development, a 376‑unit build‑to‑rent project also financed by Tristan.
About 13 % of the private‑rented apartments were reported as under‑rented, a factor that could affect future cash flow. The transaction is expected to close in the coming weeks, adding roughly 282 units to the REIT’s inventory.
IRES strategy and recent activity
For several years the REIT focused on portfolio management, asset sales, and strengthening its balance sheet while handling Ireland’s former rent‑control regime and an activist investor. Recent statements indicate a shift toward taking advantage of a reopening residential investment market.
CEO Eddie Byrne told Bisnow that the firm remains selective, preferring assets where size and quality align with its goals rather than chasing a specific portfolio target. “We will definitely look to do more forward‑funding, because that’s an easy process for us using our own capital, and it enables developers to get on with construction and move forwards with their next projects,” he said.
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The REIT reported adjusted earnings of €33 million for 2025, a 7.4 % rise, while net rental income grew 2 % to €67 million. Net loan‑to‑value slipped to 44 % at year‑end, reflecting a more conservative financing stance.
Capital recycling has played a key role. Sales of individual apartments generated premiums over book value, funding new purchases. The REIT has been disposing of C‑ and D‑rated properties at yields near 4 % and acquiring A‑rated assets at roughly 5.25 %.
Those premiums have been redirected to finance the February forward‑purchase transaction successfully.
In February, the company announced a forward purchase of 77 apartments for €32 million, projected to deliver an initial yield of about 5.25 % once fully leased. Byrne expects similar deals to continue, suggesting a pattern of using forward funding to lock in yields.