Ires chiefs rule out any rapid sell-off but could raise income from parking fees

Ires Reit has reported an accelerated sale of the company’s portfolio would prove “challenging” in the short-term due to current market conditions. This includes a sale to occupiers or to social providers, such as the Government.

The country’s biggest private sector landlord pointed to “historically low” levels of liquidity in European real estate assets, including in Ireland.

Irish residential sector investment volumes last year stood at around €240m, according to Savills. This is around 73pc below historical 10-year average volumes.

In an update on the findings of an ongoing strategic review, the company also pointed to higher interest rates, widening yields, restrictive regulation and an upcoming election as short-term headwinds in the private rental sector.

Ires Reit said all options, including a potential sale of the company, will continue to be explored in the strategic review.

It will also consider the potential for revenue generation from car parking.

In a statement in January, the board announced that a review would take place to consider a “full range of strategic options” to maximise value for shareholders.

These include consolidation, mergers, a review of the company as a listed Reit, the sale of the entire issued capital of the company and the sale of assets and returning value to shareholders.

Ires Reit added in a statement yesterday that it has not received any proposals to acquire the company’s portfolio, in whole or in part, or to purchase the company’s share capital.

Ires Reit owns 3,734 apartments and houses for private rental in Dublin and Cork.

The company added that analysis shows the medium-term outlook for Ires Reit is positive, with a rise in population set to increase demand for private rental properties.

The review is also exploring the possibility of “selective asset recycling” to achieve value through the sale of individual houses or apartments.

A review of the Reit structure is also ongoing, with the outcome of this analysis set to be published in the second half of the year.

The board is also exploring “potential consolidation opportunities” in the Irish market but said shareholders should note the company has not received any proposals to acquire the assets, in whole or in part, or the entirety of the share capital of the firm.