Ires Reit snaps up Marker apartment block for €50.1m

Irish Residential Properties Real Estate Investment Trust (Ires Reit) is to acquire a block of 84 luxury apartment suites adjacent to the five-star Marker Hotel in the Grand Canal Dock area of Dublin for €50.1 million.

The Marker Residences are being sold by Dublin-based real estate private equity firm Brehon Capital Partners and Midwest Holdings, which acquired the vacant hotel and apartments in 2011.

The 84 two-bedroom apartments are laid out over six storeys with two units per core on each floor. Rents range from €1,900 to €2,400 per month, accounting for a gross rental income of almost €2.1 million. The block also has six fully-occupied commercial units at ground floor level and 119 basement car parking spaces.

The six commercial units extend to 1,263sq m (13,559sq ft) and are producing rents of €275,000 with an average unexpired lease term of 8.33 years. The tenant mix includes office and retail occupiers Lolly & Cooks, Smiles Dental Clinic, KBC Bank, GSN Pharmacy and Hanover Medical.

Brehon Capital Partners, which recently acquired the Mount Juliet resort in Kilkenny and also owns the Powerscourt Hotel in Wicklow, is to retain ownership of the Marker Hotel.

"We are delighted to acquire this prestigious property. Together with our existing 338 apartment portfolio in Dublin, we are beginning to build the diversified portfolio which is part of our investment strategy," said David Ehrlich, chief executive of Ires Reit.

“The Marker Residences are luxury properties which we believe have significant upside potential, particularly given their strategic location and the exciting redevelopment proceeding in the Dockland district. We see this property positioned right at the hub of what will become one of Dublin’s most vibrant communities for years to come,” he added.

Ires Reit is primarily focused on the residential rental sector and according to its prospectus, is seeking to acquire 2,300 apartments. Ires Reit already owns four apartment blocks in Dublin, which were bought in September 2013.

is the third such company to launch on the Dublin market over the last 12 months. The other two trusts, Green and Hibernia, both launched last year. Green is focused on commercial property, Hibernia has invested in commercial and residential.