Irish Life fund pays €49m for 94 Dalkey apartments

Irish Life's Irish Residential Property Fund has acquired 94 luxury apartments developer Francis Rhatigan's Winterbrook is developing at Dalkey in south Dublin.

While the value of the off-market deal has not been disclosed, The Irish Times understands Irish Life has agreed to pay about €49 million, or an average of €521,276 per unit, to secure ownership of the Harbour Road scheme in advance of its scheduled completion in the second half of 2022.

Designed by Henry J Lyons Architects, the development will comprise a mix of one-, two- and three-bedroom apartments distributed across two blocks overlooking Dalkey Island.

Scheme

Aimed towards the upper end of the private rented sector market, the apartments will offer tenants what Irish Life describes as “best-in-class” amenities and concierge facilities along with extensive bicycle parking and electric car charging stations.

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The Harbour Road scheme is being built on the grounds of Charleville, a large building occupying a 1.77-acre site which Mr Rhatigan’s company acquired for €5.5 million in 2017. Beyond its planned delivery of the Dalkey apartment complex, Winterbrook is completing projects in Foxrock and in Enniskerry, Co Wicklow.

Irish Life secured the acquisition of the Harbour Road development in an off-market deal which it negotiated during the first coronavirus lockdown and completed this week.

The company’s Irish Residential Property Fund now has more than 500 apartments in its Dublin portfolio, having acquired 262 apartments at Fernbank in Churchtown for €100 million in 2018, and 160 apartments at Glencairn in Leopardstown for €80 million last year. JLL advised Irish Life on this transaction.

Commenting on the completion of the Harbour Road deal, Irish Life's head of residential property, Duncan Lyster, said: "We are really pleased to add another A-rated, efficient scheme to our growing portfolio further demonstrating our commitment to high-quality residential property.

Fund

“We are looking forward to working closely with Winterbrook as another development partner to the fund. The fund is providing diversification for investors who want exposure to the private rented sector market, which is currently the strongest sector in the property market and is displaying its defensive qualities in this most difficult of years.

“We believe that the private rented sector is a key part of the property mix for capital cities like Dublin bringing long-term stability for tenants.”

Winterbrook’s managing director Mr Rhatigan said: “Irish Life has been long been one of the most astute investors in the Irish property market and we are delighted to partner with them on this landmark development. We have worked with great care and attention on this wonderful site and we know that the finished development will be a valued addition to the very special town of Dalkey.”