German fund closes €93m Harold’s Cross build-to-rent deal

Patrizia pays average of €560,240 for 166 units at Mount Argus

An artist’s impression of the Mount Argus apartment scheme in Harold’s Cross, Dublin 6W

An artist’s impression of the Mount Argus apartment scheme in Harold’s Cross, Dublin 6W

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The German fund, Patrizia AG, has completed its acquisition for €93 million of 166 apartments being developed by the Marlet Property Group at Mount Argus in Harold’s Cross, Dublin 6W.

The deal represents one of four investments made by Patrizia in the capital’s private rented sector since its arrival here five years ago, and brings the value of its overall Irish portfolio to about6 €713 million. While the fund had agreed to forward purchase the Mount Argus units in July of last year, The Irish Times understands the transaction was concluded last Friday.

Located next to Mount Argus Park and within close proximity to Rathmines and Rathgar, the Mount Argus scheme extends to 14,500sq m (156,076sq ft) and comprises a mix of one-, two- and three-bedroom apartments, as well as amenities including a gym, residents lounge, cinema, games area and concierge service. The development also includes a 201-space basement car park, and landscaped open spaces along with children’s play areas.

Patrizia’s €93 million acquisition of the 166 apartments within the Mount Argus portfolio equates to an average of €560,240 per unit.

But while that figure may appear to be substantial, it is still significantly less than the average of €729,166 per unit Patrizia committed to last August, when it agreed to pay €52.5 million for the 72 apartments at the Benson Building in Dublin’s south docklands.

Umbrella fund

The apartments form part of an extensive office and residential development under way at 76 Sir John Rogerson’s Quay by Targeted Investment Opportunities, an umbrella fund involving Nama, Los Angeles-based Oaktree Capital and Bennett Construction. The 11-storey-over-basement Benson Building comprises 14 one-bedroom apartments, 43 two-bedroom apartments and 15 three-bedroom apartments, as well as two ground-floor retail units, accommodation for a gym, concierge facilities and underground parking for 72 cars.

Patrizia’s first Irish purchase in 2015 saw it secure ownership of 63 apartments at the Park Lodge scheme on the North Circular Road for €15 million, or an average of €238,095 per unit.

In 2017, the company grew its Dublin portfolio substantially when it paid €132 million, or an average of €413,000 per unit, for 319 apartments in the Leona and Charlotte buildings at Cosgrave Property Group’s Honeypark development in Dún Laoghaire.

Outside of its involvement in Ireland’s private rented sector market, Patrizia AG manages more than €40 billion of real estate assets, primarily as an investment manager for insurance companies, pension fund institutions, sovereign funds, savings and co-operative banks and as co-investor.