UK investor pays €31.5m for south Dublin social housing scheme

UK-headquartered investor M&G has paid €31.3 million for a portfolio of 67 social housing apartments in the south Dublin suburb of Blackrock. The units at the Butter Yard scheme, which are fully let to Dún Laoghaire Rathdown County Council on a 25-year term, represent the second investment by M&G’s European Secured Property Income Fund in Dublin’s residential rental sector.

Earlier this year, the same fund paid €99.5 million for a portfolio of 148 high-end apartments being developed by Richmond Homes at Eglinton Place in Donnybrook, Dublin 4. The price paid on that occasion represented an average of €672,297 per unit. M&G is paying the Barina Property Group an average of €467,164 per unit for the social-housing apartments it has developed at the Butter Yard.

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Located at the junction of Newtownpark Avenue and Annaville Terrace and within a short distance of Blackrock village and its Dart station, the Butter Yard comprises 67 one and two-bedroom apartments distributed across two blocks. The development has an A3 or better Ber rating and has been completed to ESG (environmental, social and governance) standards that comply with the EU’s Energy Performance of Buildings Directive.

The scheme’s sustainability also aligns with M&G’s aim to achieve net zero carbon across its global portfolio by 2050 and features a green roof, electric vehicle charging points with heat pumps providing energy-efficient heating and hot water to individual apartments. The development has a landscaped courtyard, children’s play area and 83 bicycle spaces.

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Commenting on M&G’s purchase of the scheme, Lee McDowell, manager of the European Secured Property Income Fund said: “This acquisition adds exposure to a well-performing sector in a growing European city, while increasing portfolio diversification. The European residential sector has good fundamentals and Dublin has a strong demand for high-quality, sustainable housing alongside limited supply.

“The long-term lease agreement with Dún Laoghaire Rathdown County Council follows our strategy of securing reliable, long-term cash flows, which grow in line with inflation. We will continue to target similar opportunities as we grow the fund.”

Barina CEO Adrian Langan said: “The Butter Yard is the culmination of a number of years of hard work behind the scenes in planning, design and securing Dún Laoghaire Rathdown County Council as a long-term occupier. We would like to thank all of our professional team, consultants and subcontractors who worked on the project and we wish all its occupiers, Dún Laoghaire Rathdown County Council and M&G Investments the very best with the development in the future.”