Hundreds of residential housing units are to come on the market in south Dublin following the acquisition of a €161 million site from Nama by a joint venture involving property company Kennedy Wilson.
Kennedy Wilson and AXA Investment Managers - Real Assets, acting on behalf of clients, said they had completed the acquisition of 274 units and a four acre development site at the Grange in Stillorgan, south Dublin.
The 274 units are 95 per cent occupied, but the group said it would “substantially grow” the unit count across the site to meet the “strong demand” in the area.
The joint venture described the area as “a prime employment hub with great connections to public transport in and around Dublin”. The four acre site is expected to accommodate an additional 263 apartments.
The joint venture aims to develop both additional private rented sector units and resident amenities including a gym, lounge area, business centre and an on-site management office.
The development is subject to planning permission, which is expected to be submitted early next year. Construction is expected to begin soon after with new units and the resident amenities to be delivered in 2021.
The original 11.3-acre site at the Grange was bought by Ray Grehan’s Glenkerrin Homes for about €85 million in 2004. Grehan built and sold 323 apartments before the property crash.
Kennedy Wilson also recently sold a 50 per cent interest in three wholly-owned assets to AXA, totalling 411 units at Liffey Trust and North Bank in Dublin’s north docks sub-market and the Elysian, a premium private rented sector project in Cork.
The units are a part of the joint venture, which now has more than 1,850 existing units with the potential to add in more than another 1,000 in currently owned future development sites.
Peter Collins, president of Kennedy Wilson Europe, said the Grange “complements the joint venture’s portfolio of market leading, high-quality private rented sector projects”.
“We aim to fulfil the market’s demand for professionally managed, prime units with first-rate amenities, delivering strong net operating income growth through our asset management plans across the existing units and our ambitious development plans on the adjoining site,” he said.
“This puts Kennedy Wilson on track to meet our target of 5,000 private rented sector units, including those under management and on behalf of the joint venture, solidifying our position as one of the top private rented sector landlords in Ireland.
“The joint venture portfolio has grown almost 60 per cent by existing unit numbers, since completion just under four months ago, with a promising pipeline of developments and further acquisition opportunities.”
Mr Collins added that the Irish private rented sector market “continues to be underpinned by attractive fundamentals, including strong employment growth, desirable demographics and positive economic indicators”.
“We remain confident in our ability to deliver a pipeline of top quality private rented sector projects with appealing local amenities, good public transport and the potential to deliver great homes for residents,” he said.