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AXA IM - Real Assets and Kennedy Wilson acquire Dublin residential development for EUR161m

AXA Investment Managers - Real Assets (AXA IM - Real Assets) has agreed, on behalf of clients and alongside its 50:50 Irish PRS joint venture partner Kennedy Wilson the acquisition of 274 residential units at The Grange, South Co Dublin, as well as an adjacent four-acre PRS development site for EUR161 million.

The Grange is a residential complex totalling 506 units spread across nine separate blocks of between four and eight storeys set on a landscaped four-acre site in Sandyford, South Dublin. 174 of the 274 units acquired by the JV are located in 100 per cent controlled blocks with over 60 per cent of these having been completed in the last five years, with the remainder completed in 2007 and recently refurbished. The newly acquired units have a current occupancy of 95 per cent and are considered to present attractive reversionary potential.
Further to the standing assets, the JV intends to apply for planning permission to substantially increase its holdings at The Grange through the development of additional residential units on an adjacent four acre site. High quality resident amenities will be developed as part of this new scheme which may include a gym, lounge area, business centre and an on-site management office, serving both the existing and new JV-owned units.  Construction is expected to commence next year, allowing for the new units to be expected to be delivered to the market in 2021.
The Grange is located in the affluent South County Dublin suburb of Sandyford which is just off the M50 motorway and benefits from good public transport links via the LUAS tram line. There are a number of reputable multinational companies operating within a 10 minutes’ walk of The Grange and a continuous flow of corporate occupiers increasingly relocating to the area, driving demand for rentable residential accommodation locally. 
John O’Driscoll, European Head of Transactions at AXA IM - Real Assets, says: “This investment is directly in line with the stated strategy of our JV and increases its portfolio of designated PRS units in the attractive Dublin market to a meaningful scale. The Grange is a high-quality scheme in a well-connected and desirable location that benefits from increasing occupier demand in line with local employment growth and supportive underlying market dynamics. Furthermore, there are attractive long-term prospects to increase the rental intake, both through the currently under-rented units and the significant on-site development potential. We look forward to bringing our JV’s best-in-class approach to incorporating this latest investment into our wider PRS platform, while we continue to review new opportunities to build scale across large urban centres in Ireland.”

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