Cairn to build 300 homes in Cherrywood after Hines deal

Group to purchase two lots for €21.5m from Hines, option to acquire a third lot for €9.2m

Map of the €280m site at Cherrywood acquired by Hines in November 2014

Map of the €280m site at Cherrywood acquired by Hines in November 2014

 

Listed-Irish housebuilder Cairn Homes has reached an agreement with the US property investment firm Hines to purchase two lots in Cherrywood, Dublin for €21.5 million, with an option to acquire a third lot for €9.2 million.

Subject to planning approval, the deal with Cairns will see the provision of over 300 new homes on a portion of the site, which is located in the Strategic Development Zone at Cherrywood, an has been earmarked as the location of a new retail-led, mixed-use town centre.

Hines Ireland and King Street Capital acquired the 400-acre site in Cherrywood in November 2014 from receivers working for the National Asset Management Agency (NAMA) and a number of banks.

Hines was previously reported as being the top bidder with an offer in the region of €280 million.

The 400-acre site has approval for the construction of up to 3,800 apartments and houses. It also has zoning capacity to expand what is already the second-largest office park in Dublin to three times its current size.

The Cherrywood site is on both sides of the M50 and is the terminus for the Luas Green Line service. It is expected to be a major focus for housing and commercial development in Dublin over the coming years. Cherrywood was originally a project of the since-collapsed Liam Carroll property group.

In a note to investors, Davy said Cairn has acquired “some very attractive sites”.

It said the deals, if completed in full, will take the group’s land acquisitions to over €550 million, leaving it well positionsed for future growth plans.

Hines, which has $87 billion in assets under management, is a global property investment firm with a presence in 199 cities in 19 countries. The firm has 104 developments currently underway around the world. The firm’s current property and asset management portfolio includes 531 properties representing over 186 million square feet.