German investor Union Investment has confirmed a €200 million deal to acquire 435 apartments and a health centre being developed by Sean Mulryan's Ballymore Group at Royal Canal Park in Ashtown, Dublin 15.
The deal for the planned 8th Lock residential quarter, which was first reported by The Irish Times last month, is the first in the Irish residential segment to involve forward funding by an end investor.
The 8th Lock residential project comprises five sections which are between four and 13 storeys high and due for completion between October 2023 and March 2025.
Altogether the site will offer approximately 31,000sq m of rental space, with 435 furnished apartments accounting for some 28,000sq m. The rest of the space is earmarked for commercial use.
In addition to the rental space, future tenants can expect “attractive communal areas” that could be used as shared offices or as a fitness studio, for example. There will be shared underground parking beneath the development with room for 242 cars and 960 bicycles.
The future residential quarter is located in Ballymore’s already established Royal Canal Park northwest of Dublin’s city centre.
It is about 300 metres from the new Pelletstown railway station, which is due for completion this summer and which will make it possible to get to the International Financial Services Centre in about 12 minutes.
The city centre is about 25 minutes away while Dublin Airport can be reached in around 20 minutes by car.
“The purchase is part of our strategic focus on further expanding the share of residential investments in selected European core markets with the aim of ensuring long-term diversification and stabilisation of our portfolio,” said head of investment management Europe Martin Schellein.
“Ireland has the youngest population in Europe and is experiencing strong demographic growth. With multinational companies continuing to base themselves here, there is high demand for affordable housing, especially in Dublin.
“On the other hand, the rental sector is not yet professionalised and construction activity has been comparatively low in the past. The rental housing market will benefit from our professional management approach.”
Sean Mulryan, Ballymore chief executive, said: "We are delighted that Union Investment, one of the most experienced and respected real estate investment managers in Europe, has agreed to acquire 8th Lock.
“From project conception through to delivery, Ballymore projects are renowned for best-in-class design and innovation. We are committed to providing Union Investment the high-quality development that attracted them to partner with Ballymore.”