It was announced today that international real estate firm, Hines, has entered into a joint venture with the Dutch pension investor APG Asset Management (APG) to develop and hold the “Build-to-Rent” multifamily residential element and ancillary retail at Cherrywood in Dublin.
Cherrywood is a government-designated Strategic Development Zone project to build a new town in the borough of Dun Laoghaire-Rathdown comprising over 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.
Today’s announcement represents a milestone for the Town Centre aspect of the project which will be the first purpose-designed “Build-to-Rent” project in Ireland.
In a significant development for the Cherrywood project, 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.
While involved in a number of property projects in Ireland, today’s joint venture announcement with Hines is 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.
Speaking this week, Senior Managing Director with 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 of APG, Robert-Jan Foortse added, "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."