16 December 2015

I•RES to Acquire 442 Apartments and Completes the Acquisition of 48 Apartments

Irish Residential Properties REIT plc (“I•RES” or the “Company”), an Irish multi-residential property investment company, announces today that it has entered into an agreement to acquire 442 apartments and has completed the acquisition of 48 apartments in , Ireland.

442 Apartments at ‘ Cross West’, Tallaght, Dublin 24

The Company has entered into an agreement to acquire 442 apartments, 18,344 sq. m. (197,460 sq. ft.) of commercial space and associated underground car parking at ‘Tallaght Cross West’ located in Tallaght, Dublin 24 for a total purchase price, including commercial, of €83 million (including VAT, but excluding other transaction costs). Closing is expected to occur in mid-January 2016.

Tallaght Cross West has recently undergone significant capital expenditures to complete the fit out of the apartments. The vendor commenced a residential leasing programme for all 442 units in September 2015 and 15% of the apartments remain unleased, which the vendor anticipates completing before closing. The 442 apartments currently have annualised passing residential rents of c. €5.1 million at 85% occupancy, generating a gross yield of c. 7.0%. The current commercial annualised passing rent is €0.63 million at 10% occupancy.

Based on current annualised passing residential rents and lease up of the remaining 15% unleased apartments at market rents, it will generate a gross yield of c. 8.4%.

The gross yield is calculated by dividing the residential rents by the purchase price (including VAT, but excluding other transaction costs) apportioned to the apartments.

By unit type, the apartments comprise 161 1-bed, 237 2-bed and 44 3-bed apartments.

Tallaght Cross West forms a modern urban quarter situated in an established residential and commercial location approx. 1km from Tallaght Village, approx. 11km from Dublin City Centre and approx. 3km from the . Tallaght is one of the largest residential and commercial areas of south west Dublin and is Ireland’s third largest population centre after Dublin City and Cork.

The development is in an excellent location adjacent to Tallaght Hospital (625 beds and 3,000 employees), the offices of South Dublin County Council and The Square Shopping Centre (220,000 average weekly footfall). Additionally, Tallaght IT (3rd level education institute with 4,000 students) is a short walk from the property. Tallaght Cross is within easy reach of the City West Business Campus, City West Hotel and conference facility, Tallaght Stadium and the Belgard Retail Park. In addition to the residential and retail accommodation, Tallaght Cross West includes 3 office buildings totaling 130,000

sq. ft. and a 186 bed hotel. Two of the office buildings have recently been sold to the Health Service Executive and the third to Talacare which will provide a Trinity College Dublin medical school facility in addition to a primary care centre. The hotel has recently been acquired by new owners and is expected to open in early 2015. Tallaght Cross is served by excellent infrastructure including the , the M50 motorway and numerous bus routes.

Tallaght Cross West presents an excellent opportunity for the Company to acquire 442 apartments in a market that is known to us having previously acquired apartments at both Priorsgate and the Laurels.

40 Apartments at Bessboro, Road West, Dublin 6

The Company completed the acquisition of 40 apartments and 64 secure underground parking spaces at Bessboro located on Terenure Road West, Dublin 6 on 11 December 2015 for a purchase price of €12.2 million (including VAT, but excluding other transaction costs).

Bessboro currently has annualised passing residential rents of c. €0.64 million at 93% occupancy, generating a gross yield of c. 5.2%. The yield profile is anticipated to improve as c. 82% of the existing leases, which are currently well below market rents, will be renewed within the next 12 months.

By unit type, the apartments comprise 6 1-bed, 32 2-bed and 2 3-bed apartments.

Bessboro is in an excellent location on Terenure Road West, Dublin 6 and offers a unique opportunity to acquire 100% ownership of an impressive multifamily development in a strong suburban location located only 7 kilometers from Dublin’s City Centre and 4.6 kilometers from the M50 motorway. The location provides a range of amenities including shops, schools bars and restaurants all within walking distance of Bessboro. The scheme is also in close proximity to Bushy Park, golf and rugby clubs.

Eight Apartments at Beacon South Quarter, Sandyford, Dublin 18

The Company recently completed the acquisition of an additional 8 apartments and 8 car parking spaces at Beacon South Quarter located in Sandyford, Dublin 18 on 6 November 2015 for a purchase price of €2.24 million (including VAT, but excluding other transaction costs).

The eight apartments currently have annualised passing residential rents of c. €0.12 million at 88% occupancy, generating a gross yield of c. 5.6%. Each apartment is a 2-bedroom duplex apartment with one parking space. The yield profile is expected to increase on letting the currently vacant unit.

David Ehrlich, the Company’s Chief Executive Officer commented:

“These acquisitions represent an excellent opportunity for I•RES to expand its portfolio in strong locations within the Dublin market. The Tallaght Cross West acquisition offers an unrivaled opportunity to acquire 442 essentially brand new apartments in a high quality development having been recently completed by the vendor. The Bessboro scheme offers I•RES 100% control of a quality development in a very strong south Dublin suburban location with significant upside potential with active management whilst the Beacon South Quarter acquisition adds to the significant number of apartments already owned in this impressive and successful mixed-use location. The I•RES team looks forward to improving the management of these acquisitions to ensure the best level of service for our tenants.”

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For further information please contact: Irish Residential Properties REIT plc David Ehrlich, CEO +1 (416) 861-2467

About Irish Residential Properties REIT plc

Irish Residential Properties REIT plc is an Irish Real Estate Investment Trust (“REIT”) listed on the Irish Stock Exchange. The Company is the first REIT established in Ireland primarily focused on the multi-unit residential rental sector. The Company will continue to seek to acquire, hold and manage investments primarily in multi-unit rental residential real estate in Ireland. I•RES currently owns 1614 apartments. Further information 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 contains 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.

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