Irish firm plans $300m Beverly Hills project

A little-known Irish investment firm is planning a $300 million (€217.2 million) residential and retail project in Beverly Hills, one of the wealthiest enclaves in the Los Angeles area.

In anticipation of the development, First Equity Group said it had spent $87 million on the acquisition of two sites with full planning permission.

The Dublin company, which was established in 1995 by former tax inspector Tom Dowling, said the gross development value of projects in which it had been involved currently stood at some $3 billion. It also said it was involved in more than 20 "live" deals at present.

Like others in the asset management and investment arena, First Equity packages property investment proposals for wealthy clients. Having raised some €120 million from clients in the year to June for other projects, it is now seeking $60 million in mezzanine finance from investors to co-fund the Beverly Hills deal.

"The investment will offer investors a return of 30 per cent per annum over a maximum period of three years. The likely investment time horizon is two years, and investments are asset-backed by the development sites," First Equity said.

First Equity specialises in providing finance for real estate transactions in Ireland, Britain, mainland Europe and the US.

International projects include a $150 million residential development at Studio City in Los Angeles and a £50 million (€73.8 million) residential project at South Woodford, London. Dublin projects include a €4 million equity investment in aapartment complex at Shelbourne Park.

First Equity sees a big opportunity in Beverly Hills because of a shortage of sites for new development and restrictions on high-density and high-rise projects.

The company and its US development partner plan a 54-unit residential and 1,300sq m (14,000sq ft) retail project on its Wilshire Boulevard site in central Beverly Hills, and a 35-unit residential development on North Palm drive. Each of the developments will target the "superprime" market. "Both sites present prime development opportunities located in the heart of one of the world's most affluent and renowned cities," the firm said.

"We have an established presence in the west coast of the US and this represents our fourth transaction in this market, representing a total gross development value of $600 million," managing director Alan Barry said.