Harrison Street, GSA to invest €60m in Dublin student digs

US investor Harrison Street Real Estate Capital and developer Global Student Accommodation (GSA) have unveiled plans for the largest student accommodation complex in central Dublin.

The partners have acquired a site, formerly occupied by the Irish business development agency IDA, at Gardiner Street in the Irish capital. The joint venture plans to invest €60 mln in the site to create accommodation for almost 500 students in a seven-storey building.

Tim Mitchell, CEO of GSA Europe said: 'This development is the latest phase in GSA and Harrison Street’s commitment to invest €250 mln in student accommodation in Dublin to provide much-needed homes and new accommodation choices for students studying in the city. We believe that this will be a real catalyst to the redevelopment of the Gardiner Street area.'

The site, within close walking distance of Trinity College and Dublin Institute of Technology, has already been granted planning permission and the seven-storey building will house 491 beds, arranged as flats with ensuite bathrooms.

Carrowmore Property will be responsible for the construction and delivery of the project, which will be ready for the September 2017 student intake.

In December last year, GSA and Chicago-based real estate private equity firm Harrison Street announced an agreement to invest €250 mln in student accommodation in Dublin over the next five years.

At the same time they revealed plans for the first development of the joint venture, a 400-bedroom development in Mill Street, Dublin 8 – along with shops, a restaurant and office space for local businesses.

Founded in 2005, Chicago-based privately-held Harrison Street last year launched its maiden European student housing opportunity fund, which raised €135 mln in equity capital at first close. The vehicle, Harrison Street European Property Partners I, counts both US and European institutions among its investors. It is targeting equity of €300 mln in total which it hopes to raise over the course of the first six months of 2016.

To spearhead investments in the European student housing market, Harrison Street has opened an office in London and just made its first European appointment with the hire of AIG’s former managing director, Daniel Gorzawski. Prior to opening the London office, Harrison Street operated solely within the US, focusing on niche real estate segments including healthcare, student housing and storage.

In the US, Harrison Street has acquired, developed and sold more than 60,000 beds, representing over $4 bn in gross student housing real estate throughout over 80 universities. The group has $7.6 bn in assets under management.