Avestus Capital Partners has launched a new fund dedicated to investment in residential property in the Irish private rented sector (PRS) having raised total capital of €290m at first close.
The new fund is backed by a consortium of Nordic and German institutional investors, as well as a sovereign wealth management institution based in Ireland, and raised equity commitments of €160m as part of its total capital planned to invest in the growing PRS sector in Ireland.
Avestus said the PRS fund will look to make long-term investments in “high-quality, income producing assets in attractive locations, close to major employment hubs and key transport links” across Ireland. It will also commit to forward purchase newly developed rental properties with the aim to support a more structured PRS sector in Ireland and enable further construction. Avestus currently has a portfolio of over 800 privately rented properties in Ireland.
It is the latest recent fund launched to target the Irish PRS in recent months with Kennedy Wilson announcing a joint venture with AXA IM - Real Assets last month to target the sector and a new fund, Urbeo Residential, planning to raise €300-400m to target PRS as well.
Alongside its PRS interests,Avestus currently has more than €1bn invested in assets under management on behalf of blue chip institutional investors across more than 40 residential, office, retail and hospitality assets in Ireland and continental Europe.
Thomas Dowd, principal at Avestus, said: “We believe that the private rented sector in Ireland will become more significant in the future as the market evolves and institutional investors increase their ownership. We are confident that our experience, expertise and professional approach will deliver attractive returns for our investors, significantly enhance services and standards for tenants and contribute to the government’s efforts to create new and improved accommodation for those that choose to rent.”
CBRE Capital Advisors advised Avestus.