Irish Residential Properties REIT

M&A Activity • Nov 16, 2018

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16 November 2018

This announcement of the Merrion Transaction described below contains inside information regarding Irish Residential Properties REIT plc for the purpose of the Market Abuse Regulation (Regulation (EU) No 596/2014)

I●RES to invest up to €77.16 million in pre-purchase contracts to acquire up to 164 residential units in Dublin

69 Residential Units on the Merrion Road, Dublin 4 in a transaction valued at up to €47.16 million

Irish Residential Properties REIT plc (“I•RES” or the “Company”) announces that it has entered into a share purchase agreement (the “Share Purchase Agreement”) with DHGL Limited (“DHGL”), a subsidiary of Dalata Hotel Group plc (“Dalata”) to acquire the shares of Bayvan Limited (“Bayvan”), a subsidiary of Dalata (the “Merrion Transaction”). Bayvan owns a prime development site located at Merrion Road, Dublin 4 (part of the former Tara Towers Hotel site) which has the benefit of planning permission for 69 residential units. Pursuant to a development agreement, Bayvan has engaged DHGL to develop 69 residential units on the site and the Company will acquire the shares in Bayvan on practical completion of the units, which is expected to be on or around Q4 2020 with a long-stop date of Q4 2021. The overall value of the transaction is expected to be up to €47.16 million (including VAT but excluding other transaction costs). The overall value of the transaction and number of residential units acquired will vary dependent on how the Part V obligations (Social and Affordable allocation) is settled with Dublin City Council. The obligations of DHGL are guaranteed by Dalata.

The development site is located on the south side of Dublin City on the Merrion Road adjacent to the Elmpark development where I•RES currently owns and operates 201 existing apartments. The Merrion Road development provides a unique opportunity to expand the I•RES asset base in Dublin 4, Dublin’s premier residential address.The apartments will be highly specified including many with sea views across Dublin Bay and will appeal to a wide range of prospective tenants including executives, foreign embassies and those seeking to trade down. The scheme is surrounded by excellent infrastructure and amenities including road and rail transport (15 mins to Dublin city centre by DART rail line), schools, hospitals, retail and leisure facilities. Significant employers in the immediate area include Novartis, Allianz and Willis.

By residential unit type, the scheme will comprise a mix of townhouses, studio apartments, 2-bed apartments, 2 bed-duplexes and 3 bed apartments. The scheme is expected to be handed over turn-key and available for leasing in Q4 2020 (long-stop Q4 2021).

Based on management’s expectations of rents at the time of letting and the fixed price cost of completion, the residential units are expected to have a year 1 gross yield of c. 5.6% growing to 6.09% in year 3.

95 Apartments in Hansfield Wood, Dublin 15 for €30 million

In a separate transaction, I-RES announces that it has acquired a 1.3 acre development site in Hansfield Wood, Dublin 15 (the “Hansfield Site”) for a total purchase price of €3.325 million (including VAT, but excluding other transaction costs) from Garlandbrook Limited (trading as Alanna Homes).

The Company has also entered into a development agreement with Garlandbrook Limited, as developer, and Newline Homes Limited, as building contractor, to develop 95 apartments on the Hansfield Site for a total consideration of €26.675 million (including VAT, but excluding other transaction costs).

Located on the west of Dublin City, Hansfield Wood is a significant residential development located off the Ongar Road, Dublin 15. The Hansfield Site is surrounded by excellent infrastructure and amenities including road and rail transport, schools, hospital, retail and leisure facilities. The Hansfield Train Station which sits next to the development offers a quick and regular rail link to Dublin City Centre (Connolly Station), a journey time of circa 30 minutes. Significant employers in the immediate locality include EBay, Paypal, Xerox, Amazon and the Connolly Memorial Hospital.

By apartment type, the apartments will comprise 10 1-bed apartments, 67 2-bed apartments and 18 3-bed apartments. Construction of the self-contained apartment block commenced in July 2018. The apartments are expected to be completed by the end of July 2020.

Based on management’s expectations of rents at the time of letting and the fixed price cost of completion, the apartments are expected to have a gross yield of c. 6.58% growing to 7.11% by year 3.

Further to the Company’s announcement on 15 November 2017, the Company previously entered into a development agreement to acquire 99 residential units at Hansfield Wood. To date, the Company has taken delivery of 91 residential units at Hansfield Wood with the remaining 8 residential units to be delivered by the end of November 2018.

Declan Moylan, I•RES’ Chairman, commented:

“We are very pleased to be bringing further supply to the market. I•RES continues to play a very important role in the Irish housing market and this latest announcement will bring our overall portfolio of professionally managed units to 2,842. Investment in supply is key to addressing the current housing shortage and I•RES is committed as a long term investor to helping to address the supply deficit. The new apartments on the Merrion Road will appeal to a host of prospective tenants including executives, professionals, foreign embassies and those seeking to trade down from larger homes in the area. Our partnership with Garlandbrook (trading as Alanna Homes) will deliver an additional 95 apartments at Hansfield Wood. The initial phase of 99 apartments acquired by I●RES at Hansfield Wood will shortly be fully available to the market. Phase 2 offers the opportunity for I●RES to provide additional homes in the area which will be easily assimilated and managed by the existing I●RES Operations team. ”

For further information please contact:

For Investor Relations:

Irish Residential Properties REIT plc

Declan Moylan, Chairman

• (353) 86 242 3509

For Media Requests:

Q4PR

Gerry O’Sullivan

• 353 87 2597644

About Irish Residential Properties REIT plc

Irish Residential Properties REIT plc is an Irish Real Estate Investment Trust (“REIT”) listed on Euronext Dublin. The Company is the first REIT established in Ireland primarily focused on residential rental accommodations. The Company will continue to seek to acquire, hold, manage and develop investments primarily focused on residential rental accommodations in Ireland. The Company currently owns 2,678 residential units. Further information in respect of the Company can be obtained from the Company’s website at www.iresreit.ie.

Note on forward-looking information

This note applies if and to the extent that there are forward-looking statements in this Announcement.

This Announcement may contain forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements referred to in this paragraph speak only as at the date of this Announcement. The Company will not undertake any obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise except as required by law or by any appropriate regulatory authority.