Iput to spend €500m ‘greening’ its property portfolio

Iput, the leading Irish property investment group and developer, is planning to spend €500 million “greening” its portfolio of offices and logistics facilities to reach a net zero carbon position by 2030.

The plan was revealed to investors at its annual general meeting on Thursday. The shareholders were also told that its annual rental income will rise to €160 million within three years, up from last year’s total of €122 million.

“The growth in rental is based on locked in lettings,” Iput chief executive Niall Gaffney told The Irish Times.

This rise will be largely due to the completion of its €360 million Wilton Park development, where social media group LinkedIn has been signed up as an anchor tenant. The campus was previously the headquarters of the IDA and Enterprise Ireland.

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Wilton Park will provide 600,000 sq ft of grade A offices as well as retail, restaurants and amenity space. When fully completed, it will generate about €32 million in annual revenues for Iput.

In terms of its investment in sustainability measures, Mr Gaffney said: “As part of our investment strategy, we are making a clear commitment to placemaking across the key neighbourhoods of Dublin where we have an active presence: St Stephen’s Green, Wilton Park and the Docklands.”

These developments have been delayed by recent restrictions, which shut down parts of the construction industry.

Mr Gaffney said the office will remain important after the pandemic ends.

“I believe in the future of the workplace and the neighbourhood and offices will continue play a key role in that. The level of enquiries for offices we’ve had recently has pushed up.”

Sustainability goals

Commenting on its investment in sustainability measures, Mr Gaffney said: “We are investing over €500 million in the development and regeneration of our portfolio over a five-year period to create buildings and spaces which contribute to vibrant neighbourhoods, are attractive places to work, and which will enhance the resilience of our portfolio for our investors.”

Iput secured a €200 million green finance facility, which it says is the largest in the Irish real estate market, to fund its sustainability goals.

Among the measures being pursued, the group is targeting a 40 per cent reduction in greenhouse gas emissions by 2030, while all offices are to have a minimum building energy rating (BER) rating of B3 by then. It also plans to move to renewable energy sources at its various sites.

Iput achieved 97 per cent rent collection last year, and €2.9 million in new lettings, in spite of the impact of Covid-19 on the economy. Shareholders were paid a cash dividend of €102.5 million last year, down from €106.7 million in 2019.

Iput owns and manages a portfolio comprising more than 5.2 million sq ft, with a value of more than €2.7 billion.