Patrizia closing in on €200m purchase of 475 Dublin apartments

German fund set to pay average of €421,052 per unit at Hartfield Place in Drumcondra

A computer-generated image of the proposed Hartfield Place apartment scheme.

A computer-generated image of the proposed Hartfield Place apartment scheme.

 

The German fund Patrizia AG is understood to be closing in on the forward purchase of a new residential development comprising up to 475 apartments on Dublin’s northside for a figure in excess of €200 million.

Located on the Swords Road between Drumcondra and Santry, Hartfield Place, as it will be known, is being developed by Kieran Gannon’s Eastwise Group with funding for construction provided by Castlehaven Finance.

Upon completion, the scheme will comprise up to 475 apartments distributed across seven blocks ranging in height from four to eight storeys. The development is set to include a mix of studios, and one-, two- and three-bedroom apartments along with underground and surface parking capable of accommodating 352 cars and 522 bicycles.

The proposed €200 million purchase price equates to an average of €421,052 per unit. That average is in line roughly with the €457,413 per unit the MKN Property Group secured from its €145 million sale of 317 units to German investor DWS in July of last year. The Prestige portfolio, as it is known, includes a mix of existing and new-build apartments and houses distributed across four schemes in the north Dublin suburbs of Swords, Raheny, Clontarf and Killester.

Aimed towards the upper end of the residential rental market, Hartfield Place will offer a concierge service along with numerous on-site amenities including an indoor/outdoor rooftop lounge, private gym, co-working space and lounge area. The 6.75 acre (2.73 hectare) site will also feature mature landscaped grounds, communal gathering spaces, grill areas and a playground, as well as a standalone creche facility. The scheme is well located 4km north of Dublin city centre, 2km from the M50 and wider motorway network, and within a short commute of East Point Business Park, the Dublin docklands, the IFSC and St Stephen’s Green. The scheme’s connectivity is expected to be improved further by the proposed delivery by 2027 of the MetroLink with a stop at nearby Collins Avenue.

Patrizia’s forward purchase of Hartfield Place will represent its fifth acquisition in the Irish private rented sector market since its arrival here six years ago.

Last April, the German investor completed the acquisition for €93 million of 166 apartments being developed by the Marlet Property Group at Mount Argus in Harold’s Cross, Dublin 6W.

Prior to that, the fund paid €52.5 million in August 2019 for the 72 apartments developed by Targeted Investment Opportunities at the Benson Building in Dublin’s south docklands.

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

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.

The expected completion of the Hartfield Place deal will bring the value of Patrizia’s overall Irish portfolio to about €913 million.