US privately held investor-developer Hines has entered into a joint venture with Dutch investor APG Asset Management (APG) to develop and hold the Build-to-Rent multifamily residential element and ancillary retail space at Cherrywood in Dublin.
Hines will co-invest alongside APG into the joint venture which will fund both the land and the construction of 1,221 fully serviced Build-to-Rent apartments along with street level shops and cafes in the new Cherrywood Town Centre. The total development cost for this project is around €450 mln.
Cherrywood is a government-designated Strategic Development Zone project to build a new town in the borough of Dun Laoghaire-Rathdown comprising over 7,700 new homes, six schools, three major parks and leisure facilities, supported by an existing light rail system and serving an eventual planned population of 25,000 people.
Welcoming the development, Brian Moran, senior managing director with Hines’ Dublin office said 'This deal is a major endorsement for Cherrywood. We are delighted to join again with such a highly regarded international investment partner in launching the first purpose-designed Build-to-Rent joint venture in Ireland.'
Robert-Jan Foortse, head of European Property Investments of APG added 'Having made comparable long-term residential investments in other markets such as The Netherlands, London, Madrid, and Helsinki, we are continuously looking for attractive real estate investments that help us realize stable and long-term returns for our pension fund clients and their participants.'
This is APG's largest investment into the Irish market to date.
Subject to planning permission, construction of Cherrywood Town Centre will commence in mid-2018, with the first apartment blocks expected to be completed by mid-2020.
