Acquisition of Dublin residential development for €161 million
AXA Investment Managers - Real Assets and Irish JV partner Kennedy Wilson sign acquisition of Dublin residential development for €161 million
AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), a global leader in real asset investments and the leading(1) real estate portfolio and asset manager in Europe, announces that it has agreed, on behalf of clients and alongside its 50:50 Irish PRS joint venture partner Kennedy Wilson (NYSE: KW), a global real estate investment company, the acquisition of 274 residential units at The Grange, South Co. Dublin, as well as an adjacent four-acre PRS development site for €161 million.
The Grange is a residential complex totalling 506 units spread across nine separate blocks of between four and eight storeys set on a landscaped four-acre site in Sandyford, South Dublin. 174 of the 274 units acquired by the JV are located in 100% controlled blocks with over 60% of these having been completed in the last five years, with the remainder completed in 2007 and recently refurbished. The newly acquired units have a current occupancy of 95% and are considered to present attractive reversionary potential.
Further to the standing assets, the JV intends to apply for planning permission to substantially increase its holdings at The Grange through the development of additional residential units on an adjacent four acre site. High quality resident amenities will be developed as part of this new scheme which may include a gym, lounge area, business center and an on-site management office, serving both the existing and new JV-owned units. Construction is expected to commence next year, allowing for the new units to be expected to be delivered to the market in 2021.
The Grange is located in the affluent South County Dublin suburb of Sandyford which is just off the M50 motorway and benefits from good public transport links via the LUAS tram line. There are a number of reputable multinational companies operating within a 10 minutes’ walk of The Grange and a continuous flow of corporate occupiers increasingly relocating to the area, driving demand for rentable residential accommodation locally.
John O’Driscoll, European Head of Transactions at AXA IM - Real Assets, commented: “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. We look forward to bringing our JV’s best-in-class approach to incorporating this latest investment into our wider PRS platform, while we continue to review new opportunities to build scale across large urban centres in Ireland.”
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1 Source: INREV/ANREV Fund Manager Survey – May 2018 – in terms of assets under management
AXA Investment Managers - Real Assets
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Note to editors
AXA Investment Managers is an active, long-term, global, multi-asset investor. We work with clients today to provide the solutions they need to help build a better tomorrow for their investments, while creating a positive change for the world in which we all live. With approximately €745 billion(1) in assets under management as at end of March 2018, AXA IM employs over 2,390 employees around the world and operates out of 30 offices across 21 countries. AXA IM is part of the AXA Group, a world leader in financial protection and wealth management.
AXA Investment Managers - Real Assets has €76 billion in assets under management, including €58.1 billion in direct property & infrastructure and €14.5 billion in real asset finance as of end of March 2018(2). We offer a 360° approach to investing in real assets, which comprises opportunities in equity or debt, across different geographies and sectors, as well as via private or listed instruments. We are a global leader in real assets investment, the number one property portfolio and asset manager in Europe(3), and one of the largest worldwide. Our teams have been managing funds and mandates for over 30 years and comprise about 650 people in 14 offices that operate in over 20 countries around the world, which provide us with in-depth knowledge of countries, cities and sectors.
AXA Investment Managers is part of the AXA Group, a global leader in financial protection and wealth management.
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1 Source: AXA IM unaudited data
2 Source: AXA IM - Real Assets’ unaudited data
3 Source: INREV/ANREV Fund Manager Survey – May 2018 in terms of assets under management
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