Green Reit’s move into development is progressing well, the property investment company said on Monday, noting that it is now on site in four of its five development projects, with marketing for some, including Central Park in south Dublin, expected to commence in early 2016.

In an interim management statement the property investment company said that it has increased its annual rental income by € 1 million and reduced overall vacancy rate from 2 per cent to 1 per cent in the period from July 1st 2015.

Pat Gunne, chief executive, at Green Reit's investment manager, said: "We are making good progress on our development programme against a background of rising rents and our focus continues to be on delivering as early as possible into the development cycle to reduce our exposure to market risk and rising construction costs. Our asset management has also been a great success with our estate at almost full occupancy."

Other moves during the period included the renegotiation of the lease to its fourth largest tenant (by passing rent), Pioneer Investments, increasing the term certain by ten years to 2027 at a rent of € 51 per square foot;

With respect to specific developments, Green Reit said that its office project at Central Park in Dublin 18 is "progressing well", and is on schedule to complete by December 2016. It will formally commence marketing the building in early 2016.

On Dawson Street in Dublin’s city centre, Green Reit has demolished its building at 13-17 Dawson Street. It expects marketing of the new building to take place from mid-2016, with an expected completion date of Q3 2017.

In Cork, the development of an office block at One Albert Quay “is progressing well”, the company said, and the overall letting level of the building is now at 68 per cent (by income), following Investec’s agreement to lease 3,717 square feet of accommodation on the ground floor for 15 years with a tenant break option in year 10 at a rate of €25 per square foot.