Nordic, German and Irish institutions have backed Avestus Capital Partners’ new Irish private rented sector (PRS) property fund.
The Irish-based asset manager said its newly launched fund has achieved a first close with equity commitments of €160m, resulting in total capital for an investment of up to €290m.
The fund is backed by a consortium of Nordic and German institutional investors, as well as a sovereign wealth management institution based in Ireland, Avestus said.
Avestus said the amount raised came from international long-term investors who were attracted by the positive fundamentals of the Irish economy and the opportunities for stable, sustainable growth in the rental sector, which by international standards is underdeveloped in Ireland.
The fund will look to make long-term investments in income-producing assets in attractive locations, close to major employment hubs and key transport links. It will also identify and commit to forward purchase newly developed rental properties, supporting the construction of new homes in Ireland.
Thomas Dowd, a principal at Avestus, said: “We believe that the private rented sector in Ireland will become more significant in the future as the market evolves and institutional investors increase their ownership.
“We are confident that our experience, expertise and professional approach will deliver attractive returns for our investors, significantly enhance services and standards for tenants and contribute to the Government’s efforts to create new and improved accommodation for those that choose to rent.”
Avestus has over €1bn in assets under management and currently manages a portfolio of over 800 privately rented properties in Ireland.