AXA Investment Managers - Real Assets has entered into the Irish private rented sector (PRS) by way of a partnership with Kennedy Wilson.

AXA IM - Real Assets said it has formed the joint venture, on behalf of clients, with the New York-listed real estate investment company, investing in a 50% stake in three prime Dublin PRS schemes comprising 1,173 units.

Kennedy Wilson will continue to hold its current 50% interest in the three assets and will act as asset manager for the venture.

The joint venture’s initial portfolio comprises the Alliance, Sandford Lodge and Clancy Quay PRS assets which are all in prime city locations.

The companies said the joint venture also has a strong pipeline of additional investment opportunities that are in line with its strategy of seeking PRS developments or operating assets across Ireland, targeting Dublin and other large urban centres.

John O’Driscoll, European head of transactions at AXA IM - Real Assets, said: “We are long-term investors in the private rented sector and this transaction adds to our existing global residential portfolio which is valued at over €9bn.

“At the same time, we are pleased to be forming a new joint venture with Kennedy Wilson, one of the biggest PRS investor/operators in Ireland.”

The investment marks AXA IM - Real Assets entry into the Irish PRS market.

Mary Ricks, president and CEO of Kennedy Wilson Europe, said: “We have further proven our credentials as a pioneer in PRS developments, where we have already built or are under construction on 778 units across our Dublin PRS portfolio and have an attractive pipeline of future opportunities.”

Last week, Kennedy Wilson extended its residential offering in Ireland by acquiring a multifamily asset from real estate funds managed by Blackstone. The asset was made up of 206 multifamily/PRS units with 67,600sqft of retail and office space over 550 car parking spaces.