Ardstone secures additional €135m for Irish social housing fund

Ardstone has raised an additional €135m for its open-ended Irish social and affordable rental housing fund and aims to double the fund’s portfolio, which currently has a gross asset value of €1bn. 

The fund manager said the Ardstone Residential Income Fund (ARIF), which is expected to hold further closings this year, has initiated a new round of investment with a plan to double the size of its core, social and affordable housing portfolio in Ireland to €2bn. 

As previously reported, CBRE Investment Management made a €450m commitment to ARIF. Bouwinvest Real Estate Investors also made a €75m commitment on behalf of its European mandate to the fund.

IPE Real Assets understands that Bouwinvest increased its commitment to the core open-ended fund from €75m to €100m back in 2021.

ARIF’s current portfolio comprises 2,500 A-rated homes. Just under 40% of the portfolio is social housing, offering government-backed, inflation-linked income for 25 years, Ardstone said, adding that the remainder of the portfolio targets the subsidised and mid-market rental segments of the market.

Jessica Crowley, investment director at Ardstone, said: “Net yields in Ireland have now pushed out to approximately 4.75%, and we are confident now is the right time to deploy capital again.

Crowley said there is an opportunity now to acquire “repriced core” assets, adding that Ardstone had a significant pipeline in this category.

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