Invesco Real Estate acquires student housing development in Dublin
Invesco Real Estate (Invesco) has acquired The Brickworks, a forward funded, purpose-built student accommodation (PBSA) development in Dublin, Ireland for EUR47 million from Bain Capital Credit.
The transaction marks Invesco’s first acquisition on behalf of a European account in Ireland, specifically for one of the firm’s long-standing German separate account clients.
Alicia Edgar, Associate Director – Transactions at Invesco, says: “We are very excited about this prosperous student housing project; it further grows our operational real estate programme in Europe, which is now at EUR1.8 billion, and enables us to diversify into both student housing and the Irish market. Dublin is the largest student destination in Ireland, and specifically for international students looking to study in Europe. With a significant undersupply of student beds, supportive demographics and a resurgent economy in Dublin, the investment offers an attractive opportunity to enter this market.”
The Brickworks is situated within Dublin 8, a location offering good access to a number of higher education institutions and developing into a new student housing hub in Dublin. Located within the Liberties District, the asset benefits from convenient transport to the nearby city centre. Once completed, which is expected in July 2019, the development will comprise 276 student rooms along with amenities which meet today’s students’ needs such as an onsite gym, common room areas, roof terrace social space, cycle storage and a laundry area.
Tobias Simon, Senior Director – Fund Management at Invesco, adds: “This off-market opportunity to forward fund a prime PBSA scheme in a market with historical low vacancy risk and compelling rental growth opportunity helps us to further diversify the client’s portfolio with an attractive income-oriented asset. We are looking forward to working with our operating partner Fresh Student Living, a leading expert in student accommodation property management, to create additional value and provide NOI growth for our investor.”
Jane Crouch, Chief Operating Office of Fresh Property Group, notes: “We are delighted to have been appointed to manage The Brickworks, which extends our range of student accommodation in Dublin to 964 beds across four schemes. The scheme will offer students a high standard of accommodation in a great location within easy reach of key universities. We look forward to working with Invesco Real Estate to bring the building to life and make it a fantastic home for students from September 2019.”
On this transaction, the advisers to Invesco were Cushman and Wakefield. The asset was acquired from Bain Capital Credit, who developed The Brickworks project with Carrowmore Property.