Patrizia Immobilien has acquired a €130 mln project to develop rental apartments in the prosperous Dún Laoghaire-Rathdown borough of Greater Dublin.
The German real estate company acquired the two-building development on behalf of two of its pan-European funds. The vendor was Cosgrave Developments.
The construction of the two properties, Charlotte Building and Leona Building, is scheduled for completion in stages between June and November 2018. The two proeprties combined will add 319 high-quality residential units to a rental market with strong demand and limited supply.
This acquisition is part of Patrizia's strategy to increase its investment in the build-to-rent sector and takes residential units under management in Dublin to around 400.
James Muir, Patrizia's UK & Ireland managing director, described the investment as a rare opportunity. 'We have been able to secure these attractive, well-located residential properties for our clients with the support of our team on the ground in Dublin. This investment follows our strategy to increase our footprint in the build-to-rent sector, particularly in European cities such as Dublin with strong fundamentals as well as its growing appetite for high-quality rental properties and record low vacancy rates.'
Due to heavy investment in local infrastructure, Dún Laoghaire has one of the fastest-growing populations in the Dublin metropolitan area – 5.7% between 2011 and 2016 – and is expected to grow by a further 30,000 inhabitants by 2030, to almost 250,000. Current estimates suggest 4,000 new residential units would have to be built each year to meet housing needs in Dún Laoghaire; however, only 1,000 are currently under construction.
Image: Honey Park, Dublin
