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AXA Investment Managers - Real Assets enters Irish PRS market and forms joint venture with Kennedy Wilson, investing into a 1,173 unit portfolio

AXA Investment Managers - Real Assets enters Irish PRS market and forms joint venture with Kennedy Wilson, investing into a 1,173 unit portfolio

Press Release
08 May 2018

AXA Investment Managers - Real Assets enters Irish PRS market and forms joint venture with Kennedy Wilson, investing into a 1,173 unit portfolio

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 entered into a 50/50 Joint Venture (the “JV”), on behalf of clients, targeting the Irish Private Rented Sector (PRS), with Kennedy Wilson (NYSE: KW), the global real estate investment company, investing in a 50% stake in three prime Dublin PRS schemes comprising 1,173 units.  Kennedy Wilson owns the remaining 50% interest and the investment marks AXA IM - Real Assets entry into the Irish PRS market.

The JV’s initial portfolio comprises the Alliance, Sandford Lodge and Clancy Quay PRS assets which are all in prime city locations. The JV also has a strong pipeline of additional investment opportunities that are in line with its strategy of seeking PRS developments or operating assets across Ireland, targeting Dublin and other large urban centres. Kennedy Wilson will act as asset manager for the JV.

There is a strong supply-demand imbalance in Dublin due to a chronic housing shortage in recent years (post-2008 economic contraction), a growing population and decreasing household sizes. Furthermore, the PRS sector in Dublin remains underdeveloped and highly fragmented, in a city where there is a housing deficit that stands at around 50,000 units(2).

John O’Driscoll, European Head of Transactions at AXA IM - Real Assets, commented: “We are long term investors in the private rented sector and this transaction adds to our existing global residential portfolio which is valued at over €9 billion(3). At the same time, we are pleased to be forming a new joint venture with Kennedy Wilson, one of the biggest PRS investor/operators in Ireland.”

“The portfolio is well placed to benefit from Dublin’s continued and growing position as an attractive destination for global companies’ European HQs, whilst the market also offers strong supply-demand dynamics. We believe that these supportive underlying market dynamics will allow us to extend our already strong pipeline of Irish PRS opportunities and we look forward to working with the team at Kennedy Wilson to execute these.”

Mary Ricks, President and CEO of Kennedy Wilson Europe, said: “The Kennedy Wilson Residential proposition of professionally managed, high quality PRS units and premium tenant amenities has cemented our brand in the Dublin PRS market. We have further proven our credentials as a pioneer in PRS developments, where we have already built or are under construction on 778 units across our Dublin PRS portfolio and have an attractive pipeline of future opportunities.”

“The Dublin residential market has undergone significant structural change in the last five years leading to demand outstripping supply and making today’s announcement a milestone for our business in delivering much-needed rental housing. We are thrilled to be partnering with AXA IM - Real Assets, a global leader in real assets investment, and its team, who add extensive experience and significant value to our partnership. We are like-minded in sharing our positive vision and long-term outlook for the Irish PRS market and look forward to building out a premier PRS portfolio and capitalising on the exciting opportunities for future growth.”

– ENDS –

1 Source: INREV/ANREV Fund Manager Survey – May 2017 – in terms of asset under management
2 Source: Government of Ireland, DHPCLG, JLL
3 AXA IM – Real Assets’ data (unaudited)

 

Press Contacts

AXA Investment Managers – Real Assets
Charline Coué, Media Relations Manager
Jocelyne Tamssom, Head of Communications
Tel: +33 1 44 45 97 95
PressOfficeAXAIMRealAssets@axa-im.com

FTI Consulting Inc.
Richard Sunderland, Richard Gotla, Ellie Sweeney
Tél: +44 20 3727 1000
AXAIMRealAssets@fticonsulting.com

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 €746 billion(1) in assets under management as at end of December 2017, AXA IM employs over 2,390 employees around the world and operates out of 30 offices across 21 countries.

AXA Investment Managers - Real Assets has €76 billion in assets under management, including €57.9 billion in direct property & infrastructure and €14.2 billion in real asset finance as of end of December 2017(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 13 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.

Visit our websites: www.axa-im.com / https://realassets.axa-im.com

Follow us on Twitter @AXAIM / @AXAIMRealAssets to get our latest information

 

1 Source: AXA IM unaudited data

2 Source: AXA IM - Real Assets’ unaudited data

3 Source: INREV/ANREV Fund Manager Survey – May 2017 in terms of assets under management

 

This document is aimed solely at the media and is for information purposes only. The opinions expressed here are the views of the author and do not constitute investment advice. This is not a recommendation to purchase, sell or subscribe to financial instruments, an offer to sell investment funds or an offer of financial services. This press release is as dated. They do not necessarily represent the views of any company within the AXA Investment Managers Group and may be subject to change without notice. This does not constitute a Financial Promotion as defined by applicable laws and regulation and is for information purposes only.  No financial decisions should be made on the basis of the information provided. Information regarding the background and personnel of AXA IM - Real Assets is provided for information purposes only.

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