Developer Pat Crean’s Marlet Property Group has agreed a €384 million financing facility with AIG and Activate Capital to fund the construction of more than 1,100 apartments in Dublin.
The transaction represents the largest financing deal completed in the capital so far this year and will be used for the delivery of 596 apartments at Grand Canal Harbour in Dublin 8 and 512 apartments at Claremont in Howth village. The funding will also provide for the construction of 10,000sq m of retail and co-working space and 3,000sq m of amenity areas across the two schemes.
Grand Canal Harbour, next to the Guinness Storehouse on the site of the original Grand Canal terminus, is due to be completed in the first quarter of 2024. The Claremont development is due for completion in 2025. Both developments are being built in accordance with Marlet’s commitment to sustainability, with the aim of securing HPI (Home Performance Index) certification upon completion.
Commenting on the completion of the financing deal, Marlet chief executive Pat Crean said: “We are delighted to be working with the AIG and Activate Capital teams on these developments. We view this record transaction as a significant vote of confidence in Marlet as a leading developer of exceptional residential and commercial real estate.”
Robert Gallagher, chief executive of Activate Capital, said: “We are pleased to expand our funding commitments with Marlet Property Group. This financing partnership with AIG comes at an opportune moment, facilitating the progression of scale apartment development in less certain times. The delivery of over 1,000 high-quality, well-located apartments, is going to make a meaningful and near-term contribution towards Dublin’s significant housing need.”
Established in 2015 in partnership with Ireland’s Sovereign Investment Fund (ISIF) and global investment firm KKR, Activate Capital has grown to become the leading specialist provider of development finance in Ireland. Activate offers funding for traditional housing, social housing, private rented sector (PRS), student accommodation and mixed-use and office schemes. Its clients include developers, family-owned businesses, public companies and institutional sponsors. Since being established, Activate has lent in excess of €1.75 billion to its customers, supporting development projects with capacity for 19,500 new homes.
Since acquiring its first site in 2014, Marlet Property Group has sourced and acquired more than €1.2 billion of assets and developed an extensive range of commercial and residential schemes in Dublin. The Sorting Office in the city’s south docklands is arguably Marlet’s best-known development to date. Acquired by Singapore-headquartered Mapletree Investments for €240 million in 2019, the 18,766sq m (202,000sq ft) scheme serves as TikTok’s main Dublin office.