Recently CAPREIT has acquired the Taylor portfolio in PEI, nine quality low-rise properties consisting of a total of 213 apartment suites. With this purchase, we have increased our Prince Edward Island portfolio to a total of 453 apartment suites and 500 land lease sites. With increasing economies of scale in PEI, we expect cash flows to increase over time to both reinvest in the company and to give back to investors. As we implement our proven operating programs, energy management and purchasing systems, we expect cash flows contributed by the total PEI portfolio will increase over time.
CAPREIT’s newest large-scale acquisition in Ireland, dubbed ‘Project Orange,’ has played a role in the expansion of IRES REIT, the first REIT established in Ireland that is primarily focused on the residential rental sector. Seeing as we have such a strong competitive advantage in the apartment rental sector, IRES is proving that we can use our expertise internationally. The focus so far has been on acquiring high quality property assets in primarily Dublin and the surrounding areas, and the acquisitions keep rolling in. The National Asset Management Agency (NAMA), created by the Irish government in response to the ailing real estate market during the recent recession, purchased many residential and commercial portfolios and is now deciding to sell off its assets in order to rediversify the business environment.
What started with 338 residential units across four properties has now grown to 1,202 apartment suites in just under a year, making us the largest residential landlord in Ireland. The most recent acquisition was announced on August 29th which brought 761 apartment suites in four properties into the company portfolio. The buildings (Charlestown, Landsdowne Gate, Beacon South Quarter and Bakers Yard), also comprise 3,180 square meters of commercial space. To achieve economies of scale in Ireland and to create a desired precense, it is said that IRES has the potential to grow to 5,000-7,000 units over the months and years to come.