Investment in Higher Return Development Projects
- Green Reit sells Westend Retail Park in Dublin for €147.7m
- Sale amount is in line with the most recent valuation from December 2017
- Retail park comprises 230,742 sq ft of retail space and 71,249 sq ft of office space
- Annual contracted rent is €8.5m from tenants like Next, Heatons, New Look, Lidl, Nike, Argos
- Proceeds will be used to reduce revolving credit facility for future development projects
Irish property management group Green Reit has sold the Westend Retail Park in Blanchardstown, Dublin, to a DWS real estate fund for €147.7m (£128.9m). The sale amount is in line with the most recent valuation of the property, which was €147.1m (£128.4) in December 2017. The retail park comprises 230,742 sq ft of retail space and 71,249 sq ft of office space, and was acquired by Green Reit in October 2014. Its annual contracted rent is €8.5m (£7.4m), from tenants including Next, Heatons, New Look, Lidl, Nike, and Argos, which represent 11% of the firm’s current total annual contracted rent. The net proceeds from the sale will be applied in reducing the company’s revolving credit facility, providing access to debt capital for future investment in development projects. Pat Gunne, CEO of Green Reit, said: “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.”
Factuality Level: 10
Factuality Justification: The article provides accurate information about the sale of Westend Retail Park by Green Reit to DWS real estate fund for €147.7m and its impact on the company’s balance sheet. It also includes details about the property’s size, tenants, and CEO’s statement regarding their strategy.
Noise Level: 3
Noise Justification: The article provides relevant information about a specific business transaction without any unnecessary filler content or misleading statements.
Financial Relevance: Yes
Financial Markets Impacted: The sale of Westend Retail Park by Green Reit to DWS real estate fund impacts the commercial property market and the company’s financial position.
Financial Rating Justification: This article discusses a significant property transaction between two companies, involving a large sum of money and impacting the company’s balance sheet. It also mentions the use of net proceeds for future investments, which affects their financial strategy.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
www.retailsector.co.uk 
