Kennedy Wilson and AXA IM – Real Assets complete €161m PRS acquisition in Ireland

Kennedy Wilson and AXA Investment Managers – Real Assets, acting on behalf of its clients, announced that their Irish private rented sector (PRS) joint venture has completed the acquisition of 274 units and a four-acre development site at the Grange, in the South Dublin suburb of Sandyford.

The purchase was made from Grant Thornton Receiver, on behalf of the National Asset Management Agency, for €161 million ($183 million).

The joint venture anticipates substantially growing the unit count across the four-acre development site to meet the strong demand in Sandyford, a prime employment hub with great connections to public transport in and around Dublin. Sandyford boasts more than 1,000 companies, including the top technology, financial and industrial firms. Subject to planning permission, expected to be submitted in first quarter 2019, the joint venture aims to develop both additional PRS units and Kennedy Wilson’s signature resident amenities, to include a gym, lounge area, business center and an on-site management office. Construction is expected to begin next year with new units and the resident amenities delivered in 2021.

Kennedy Wilson also recently sold a 50 percent interest in three wholly-owned assets totaling 411 units to AXA IM – Real Assets, at Liffey Trust and North Bank in Dublin’s North Docks submarket and the Elysian, a premium PRS project in Cork, Ireland. These units are a part of the joint venture, which now totals more than 1,850 existing units with the potential to add in excess of 1,000 units in currently owned future development sites.

“The joint venture portfolio has grown almost 60 percent by existing unit numbers, since completion just under four months ago, with a promising pipeline of developments and further acquisition opportunities,” said Peter Collins, president of Kennedy Wilson Europe. “The Irish PRS market continues to be underpinned by attractive fundamentals, including strong employment growth, desirable demographics and positive economic indicators. We remain confident in our ability to deliver a pipeline of top quality PRS projects with appealing local amenities, good public transport and the potential to deliver great homes for residents.”