Green REIT sees Cork office demand
Pat Gunne said that, currently at €62 to €65 per sq foot, the pace of rent increases for prime office space is slowing in Dublin and predicted that top rentals in the capital will firm to €65 sq foot by the end of next March.
The outlook for top office rents in Cork, which currently stand at between €27.50 to €30, was also favourable because like Dublin the city is tapping foreign direct investment. Green REIT said it has reached almost 100% occupancy across its existing portfolio. Its holdings include Dublin’s One Molesworth Street, Central Park and Horizon Logistics Park. In Cork, it owns One Albert Quay.
It has signed up Barclays Bank at One Molesworth Street and AIB at Central Park. Mr Gunne said acquisitions were not a priority as it planned to inject capital into existing projects.
The valuation of its holdings rose to over €1.38bn at the end of June, an increase of 11% from a year earlier. Its basic net asset value rose 8% to 166.9 cent per share and it plans a 5 cent per share dividend, an increase of 9% in the year.
It said rates in Dublin: “We are seeing lettings concluding quickly and tenant incentives flat or reducing”, while in Cork, “the lack of takeup continues to be due to the limited amount of Grade A buildings available.”
The shares rose almost 2.5% to €1.54. Darren McKinley, senior equity analyst at Merrion Capital, said it increased its 12-month price target to €1.70.
