Irish property fund IPUT has borrowed for the first time, securing a €150m revolving credit facility from Wells Fargo.
IPUT will use the financing, which is over a three year term, to help fund its office redevelopment projects in Dublin.
It has already drawn down €52.7m from the facility, which was put in place in January.
Chairman Frank Close said IPUT first considered borrowing because of “unprecedented” low interest rates.
“This will assist in managing the dividend policy, which is to provide a consistently strong income yield for IPUT’s shareholders, while the redevelopment projects are in progress,” he said in a statement accompanying the firm’s annual general meeting.
The fund has been highly acquisitive in recent years, spending €163 million on properties in 2015.
IPUT has a number of projects in the Dublin office market that it began work on last year, including 47-49 St. Stephens Green and 10 Molesworth Street.
The fund’s rents last year amounted to €85.8m, an increase of 36% on 2014.
Dividend payments to shareholders totalled €79.2m, almost €19 million more than 2014.
Close also announced that he would step down as chairman after 10 years in the role, to be replaced by deputy chairman John Mulcahy.
Mulcahy is a former executive with the National Asset Management Agency.
15 April 2016