theretailrealestate by Retailtrend (Dublin) – Green REIT Plc, (“Green REIT”, or “the Company”), announces that it has today exchanged contracts for the sale of Westend Retail Park in Blanchardstown, Dublin 15, to a DWS real estate fund. The cash consideration of €147.7 million is broadly in line with the most recent valuation of the property of €147.1 million at 31 December 2017. The sale is expected to complete by the end of June 2018.
Westend Retail Park comprises 21,437 square metres (230,742 square feet) of retail space and 6,619 square metres (71,249 square feet) of office space, and was acquired by the Company in October 2014. Its annual contracted rent is €8.5 million, from tenants including Next, Heatons, New Look, Lidl, Nike and Argos, representing 11% of the Company’s current total annual contracted rent. Based on the 31 December 2017 valuations and interim results of the Company, Westend Retail Park represents 10.2% of the Company’s portfolio valuation and 12.6% of its IFRS Net Asset Value.
The net proceeds from the sale will be applied in reducing the Company’s revolving credit facility, thereby providing access to debt capital for future investment in development projects at the Company’s strategic land holdings, namely its Central Park office park in South Dublin and at Horizon Logistics Park, adjacent to Dublin Airport.
Pat Gunne, Chief Executive of Green Property REIT Ventures, commented: “The disposal of Westend Retail Park, representing a 55% profit on cost, is in line with our stated strategy of recycling a portion of our capital to invest in higher return development projects in Horizon Logistics Park and Central Park, while maintaining balance sheet discipline below our self-imposed 25% gearing level.