Patrizia has agreed to forward purchase a Dublin build-to-rent scheme for €93m (£83m) from Marlet Property Group.
The firm is funding the scheme in Harold’s Cross, Dublin 6, on behalf of Bayerische Versorgungskammer (BVK), Germany’s largest public pension fund group.
The transaction increases Patrizia’s portfolio in Ireland to €650m.
The 156,000 sq ft scheme will comprise a mix of one, two and three-bedroom apartments.
Antonio Marin-Bataller, director, transactions UK and Ireland at Patrizia, commented: “This acquisition aligns perfectly with our strategy to grow our build-to-rent investments in Dublin. We have a long track record in Ireland, as well as in the residential sector across Europe, and remain committed to this fast-growing market.”
Patrizia is putting its riskier UK BTR developments on the market and favouring forward-funding deals and income-producing stock in locations such as Dublin.
Patrizia first emerged on the Dublin scene around four years ago, when it bought a new development of 63 flats in 2015 close to the North Circular Road entrance to Phoenix Park for €15m.
In 2017, the firm acquired a BTR development in Dún Laoghaire, County Dublin, for around €130m. The project was funded by Ireland’s National Asset Management Agency and developed by the Cosgrave Property Group as part of its exit strategy from Nama.
More recently, it emerged earlier this year that Patrizia was in talks to buy the Benson Building in Dublin for €51.4m (£43.9m).
Targeted Investment Opportunities instructed Savills and Owen Reilly to sell the residential development at 76 Sir John Rogerson’s Quay for €52.5m in August last year.
Patrizia previously sought to forward-fund, build and sell BTR schemes. However, it has been looking to realign its portfolio after the 2017 acquisition of Rockspring. The firm is now shedding development exposure in favour of built asset management, and is still looking at different at-scale opportunities for growth.
To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette
