Real Estate Opportunities (REO), the property investment company which is controlled by Treasury Holdings, said its property portfolio is now worth €1.136 billion, following strong growth in the first half of the year.
Net assets per share rose by 29 per cent from 72.9p per share to 94.4p for the six months to June 30th.
The strong performance was driven by the disposal of the group's interest in the Aldi site in Sandyford in Dublin at a substantial profit and a significant increase in the value of the company's investment properties, prompted in particular by tightening of yields in the Dublin office market.
Other significant transactions during the first half included the disposal of the company's interest in the Allegro site, also in Sandyford, and the acquisition of land zoned for a town centre development in Collinstown in west Dublin. The total rent roll of REO's Irish property portfolio rose from €32.65 million to €35.59 million in the six months, due largely to the letting of its 60,000sq ft office development at Barrow Street in Dublin to legal firm Mason Hayes & Curran, which provides rent of €2.88 million. The disposal of the Aldi site led to a reduction of €840,000 in rent.
Following this sale and the repayment by Heavenview Investments of a £40 million (€59 million) loan to REO, its cash balances at the end of the June was £141 million. Overall, bank indebtedness amounted to £467 million.
The group recently received planning permission to refurbish and extend the Stillorgan Shopping Centre in Dublin which is one of its major assets.
Given its property development opportunities, REO said it was examining the potential benefits of converting from an investment company into a property company.
