Kennedy Wilson and AXA IM - Real Assets complete EUR161m PRS acquisition in Ireland
Global real estate investment company Kennedy Wilson and AXA Investment Managers - Real Assets’ (AXA IM - Real Assets) Irish private rented sector (PRS) joint venture has completed the acquisition of 274 units and a four-acre development site at the Grange, in the South Dublin suburb of Sandyford.
The purchase was made from Grant Thornton Receiver, on behalf of the National Asset Management Agency (NAMA) for EUR161 million.
The Joint Venture anticipates substantially growing the unit count across the four-acre development site to meet the strong demand in Sandyford, a prime employment hub with great connections to public transport in and around Dublin. Sandyford boasts more than 1,000 companies, including the top technology, financial and industrial firms. Subject to planning permission, expected to be submitted in Q1-2019, the Joint Venture aims to develop both additional PRS units and Kennedy Wilson’s signature resident amenities, to include a gym, lounge area, business centre and an on-site management office. Construction is expected to begin next year with new units and the resident amenities delivered in 2021.
Kennedy Wilson also recently sold a 50 per cent interest in three wholly-owned assets totalling 411 units to AXA IM – Real Assets, at Liffey Trust and North Bank in Dublin’s North Docks sub-market and the Elysian, a premium PRS project in Cork, Ireland. These units are a part of the Joint Venture, which now totals more than 1,850 existing units with the potential to add in excess of 1,000 units in currently owned future development sites.
Peter Collins, President of Kennedy Wilson Europe, says: “The Grange complements the Joint Venture’s portfolio of market leading, high-quality PRS projects. We aim to fulfil the market’s demand for professionally managed, prime units with first-rate amenities, delivering strong NOI growth through our asset management plans across the existing units and our ambitious development plans on the adjoining site. This puts Kennedy Wilson on track to meet our target of 5,000 PRS units, including those under management and on behalf of the Joint Venture, solidifying our position as one of the top PRS landlords in Ireland.
“The Joint Venture portfolio has grown almost 60 per cent by existing unit numbers, since completion just under four months ago, with a promising pipeline of developments and further acquisition opportunities. The Irish PRS market continues to be underpinned by attractive fundamentals, including strong employment growth, desirable demographics and positive economic indicators. We remain confident in our ability to deliver a pipeline of top quality PRS projects with appealing local amenities, good public transport and the potential to deliver great homes for residents.”