The developer behind Ireland’s first purpose-built co-living scheme is planning European expansion with a €400m (£333m) fundraise.
Bartra Capital will launch the fund later this year to fuel its growth into major European cities, following on from success in Ireland.
The residential developer was the first to receive consent under new planning guidelines for its 208-bed scheme on Eblana Avenue in Dun Laoghaire, Dublin (pictured), last year, and has amassed a portfolio of six sites and 1,000 units in the city.
Michael Flannery, Bartra’s chief executive, said: “Bartra Capital is in the process of putting together its own fund to go to other European cities. It will happen in the second and third quarters of this year.”
Flannery said the €400m equity investment could see the developer invest at least €1.2bn across cities including London, Paris, Madrid, Amsterdam and Copenhagen over the next three to five years.
“We will target buying our own sites, but we will also partner with existing property owners and lease their properties for occupation by our operator Niche. There is an accommodation requirement in all of those cities.”
He said the asset-light strategy would seek to deliver returns driven by the operating model that Bartra is currently building out.
“This is a long-term business; it is not a build-and-sell business, where you need high equity returns for the risk you are taking. You build it, operate it well and earn your returns over a 25-year period,” he said.
The developer has hired former Kennedy Wilson hotel manager David McGuinness to head up Niche and brought on board former McDonald’s property director Nigel McGuire to develop the brand, targeting young single people, tech professionals and key workers.
Flannery added: “Accommodation is a problem in all major cities now. We need to find rapid solutions. People need the ability to have private space when they are single. This should not be, and cannot be, a dominant type of accommodation, but it should be part of the continuum.”
As Bartra Capital spreads to new markets it will look to employ approximately 10 to 15 people to support the operations. While it pursues European growth, the developer will also seek to invest €200m-€300m across Dublin, developing around 2,000 units.
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