Ireland: Developer Hines and Dutch pension investor APG Asset Management have formed a JV to develop and hold the Build-to-Rent resi element and retail at Cherrywood.
Cherrywood is a government-designated Strategic Development Zone project to build a new town in the borough of Dun Laoghaire-Rathdown. It will consist of more than 7,700 new homes, six schools, three major parks and leisure facilities, supported by an existing light rail system and serving an eventual planned population of 25,000 people.
The JV represents a milestone for the Town Centre aspect of the project which will be the first purpose-designed Build-to-Rent project in Ireland.
Hines will co-invest alongside APG into the joint venture which will fund both the land and the construction of 1,221 fully serviced Build-to-Rent apartments, along with street level shops and cafes in the new Cherrywood Town Centre. The total development cost for this project is approximately €450 million, representing the largest investment by APG into the Irish market to date. Subject to planning permission, construction of Cherrywood Town Centre will commence in mid-2018, with the first apartment blocks expected to be completed by mid-2020.
Senior managing director at Hines’ Dublin office, Brian Moran, said: “This deal is a major endorsement for the Cherrywood Project. Hines has a strong existing relationship with APG in the development of real estate projects throughout Europe. We are delighted to join again with such a trusted and highly regarded international investment partner in launching the first purpose-designed Build-to-Rent joint venture in Ireland. Cherrywood Town Centre is tailor made for this model and when complete will set a new standard in modern urban living for the residents of this new town in South Dublin.”
Head of European property investments at APG, Robert-Jan Foortse, said: “In a severely undersupplied market such as Dublin, we are pleased that this investment addresses this unserved demand in a meaningful way by enabling the development of over 1,200 dwellings. Hines is a best-in-class global property developer and investor. Having them as our partner, we believe will drive Cherrywood to become a high-quality, sustainable place to live, work and play and a new destination in its own right. With a focus on Built-to-Rent housing, we are keen on making Cherrywood a core, long-term holding in our global real estate portfolio and we aim to pursue more residential-led opportunities in the Dublin market going forward.”
Martijn Vos of APG is speaking at Serviced Apartment Summit Europe Recharge, which takes place at Zoku Amsterdam on January 23 and 24. Click here for details and to buy tickets.</p
