Kennedy Wilson/AXA PRS JV buys Dublin JV out of receivership

By Paul Norman - Thursday, July 12, 2018 10:50

Kennedy Wilson and AXA Investment Managers - Real Assets’ recently formed Irish PRS joint venture has entered into a contract to buy 274 units at the Grange, in South Dublin alongside an adjacent four-acre PRS development site for €161m out of receivership.

The site has been bought from Grant Thornton Receiver, acting on behalf of Ireland’s bad bank the National Asset Management Agency. The joint venture said it anticipates that the acquisition will close by the end of Q3-2018.

The acquisition comprises 274 PRS units, 275 car parking spaces and a four-acre development site, all forming part of the 506-unit signature Grange project, in south Dublin suburb Sandyford. Over 60% of the units under contract were completed in the last five years, with the remainder completed in 2007. The units are 95% occupied and, the partners said, are significantly under-rented compared to prevailing market rents.

The joint venture said it intends to lodged plans to increase its holdings at the Grange through development of additional units on the adjacent development site. Construction will begin next year with new units and the resident amenities delivered during 2021.

Mary Ricks, President and CEO of Kennedy Wilson Europe, said: “The Grange is a market leading high-quality residential community in the rapidly expanding Sandyford area that fits very well into our new joint venture portfolio. We anticipate strong NOI growth as we have ambitious plans to add further units to the development over the next three years.

“We are big believers in the Sandyford market, where robust market dynamics prevail, with new office developments, continued employment growth, excellent public transport and great local amenities make this the top PRS location in south Dublin. We look forward to bringing our best-in-class approach to managing the units and delivering great homes for residents.”

John O’Driscoll, European Head of Transactions at AXA IM - Real Assets, said: “This investment is directly in line with the stated strategy of our JV and increases its portfolio of designated PRS units in the attractive Dublin market to a meaningful scale. The Grange is a high-quality scheme in a well-connected and desirable location that benefits from increasing occupier demand in line with local employment growth and supportive underlying market dynamics. Furthermore, there is attractive long-term prospects to increase the rental intake, both through the currently under-rented units and the significant on-site development potential.”

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