Alongside its maiden set of financial results, IRES REIT has announced that it is exchanging contracts to acquire a portfolio of 761 apartments from NAMA.

IRES will pay €211.3m (excluding transaction costs) for The Orange Collection, equating to a gross yield of 5.2% (c.5.9% based on projected rents).

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The acquisition will bring IRES’ portfolio to 1,202 units, making it the largest professional residential landlord in Ireland. Increasing gearing to 50% would imply remaining spending power of c.€60m. Today’s results cover the period from incorporation (July 2013) to June 2014 and thus solely reflect the performance of the seed portfolio.

Net operating income was strong in the period, at €2.6m, translating to a margin of 75.0%. H114’s implied margin of 77.7% compares to an initial expectation of 70%.

The value of the seed portfolio increased from €45.5m at end-2013 to €51.6ms at end-June 2014. Following the completion of the Orange deal, IRES will have achieved a blended cap rate of “approximately 5%” on announced acquisitions.