Irish Residential Properties REIT has indicated that it would recommend a €727M cash takeover proposal from investment manager Barings, potentially taking Ireland’s largest private residential landlord off the stock market.

The Dublin-listed company said it had received five proposals from Barings since an initial approach on 5 August, with the latest valuing its shares at €1.39 each. On the news, its share price increased by around a fifth, peaking at circa €1.30, a 52-week high.

IRES said its board had unanimously concluded that it “would be minded to recommend” a formal offer on those financial terms, subject to satisfactory due diligence and agreement on the remaining terms and documentation.

However, the company stressed that there could be no certainty that a firm offer would emerge. Under Irish takeover rules, Barings must announce its intention to make an offer or walk away by 5pm on 9 November unless the deadline is extended with the consent of the Irish Takeover Panel.

IRES has spent much of the past few years addressing shareholder concerns over its performance, cost structure and valuation while seeking to improve operational efficiency and portfolio quality. Having successfully repelled activist investors, it has posted strong results over recent quarters.

Goodbody said the proposal was broadly in line with the company’s most recently reported European Public Real Estate Association net tangible assets, although below the broker’s current valuation assessment.

“Shareholders will need to weigh the certainty of cash today against the potential value that could be realised through continued operational execution and rental growth in the years ahead,” Goodbody said in a note.

The broker added that the approach highlighted continued interest from global institutional capital in Irish residential real estate and the attractiveness of the sector’s long-term fundamentals.

The valuation debate comes as IRES has continued to pursue operational improvements and capital recycling. Its portfolio was valued at €1.3B at 30 June, up 2.4% from the end of 2025, with net rental income increasing 1.2% year-on-year to €33.7M in the first half.

Analyst commentary before the latest proposal had pointed to further potential upside. Davy analyst Colin Grant said in a 14 September research note that he had upgraded net-tangible-asset-per-share forecasts by 1% to 2% each year following the interim results, while highlighting the potential for further gains from yield compression and what he described as a significant valuation opportunity.

A transaction would also extend the retreat of Irish property companies from public markets. Goodbody noted that IRES would follow Green REIT, Yew Grove REIT and Hibernia REIT in leaving the listed market, as Irish property companies have ultimately been acquired by private capital.