AXA Investment Managers - Real Assets and Kennedy Wilson have acquired 274 flats and a four acre development site at The Grange in Dublin for €161m (£142m) on behalf of their newly formed Irish PRS joint venture.
The property was acquired from receivers at Grant Thornton, acting on behalf of the National Asset Management Agency (NAMA).
The JV intends to apply for planning permission to substantially increase its holdings at The Grange by developing on the four acre site. As well as flats, the duo plan to build a gym, lounge area, business centre and an on-site management office.
The Grange, which currently has 506 flats spread across nine tower blocks, is located in the south Dublin suburb of Sandyford, which is just off the M50 motorway.
The acquisition of the PRS units and 275 car parking spaces is expected to close by the end of Q3 2018. It is anticipated that construction will begin next year with new units and the resident amenities delivered during 2021.
Mary Ricks, president 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.”
John O’Driscoll, European head of transactions at AXA IM - Real Assets, added: “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.”
As part of the joint venture agreement last month,AXA acquired a 50% interest in a KW portfolio of Irish PRS assets (Alliance, Clancy Quay and Sandford Lodge), comprising a total of 1,173 units.