AXA Investment Managers - Real Assets (AXA IMRA) has entered into a 50/50 joint venture with Kennedy Wilson to target the Irish Private Rented Sector (PRS).
The partners have signed the first acquisition with the purchase of three prime Dublin PRS schemes comprising 1,173 units. The JV’s initial portfolio comprises the Alliance, Sandford Lodge and Clancy Quay PRS assets which are all in prime city locations.
The JV is targeting further PRS developments or operating assets across Ireland, particularly in Dublin and other large urban centres. Kennedy Wilson will act as asset manager for the JV.
The investment marks AXA IMRA's entry into the Irish PRS market. 'We are long term investors in the private rented sector and this transaction adds to our existing global residential portfolio which is valued at over €9 bn,' said John O’Driscoll, European head of transactions at AXA IMRA.
He added: 'The portfolio is well placed to benefit from Dublin’s continued and growing position as an attractive destination for global companies’ European HQs, whilst the market also offers strong supply-demand dynamics. We believe that these supportive underlying market dynamics will allow us to extend our already strong pipeline of Irish PRS opportunities and we look forward to working with the team at Kennedy Wilson to execute these.'
Mary Ricks, president and CEO of Kennedy Wilson Europe, said: 'The Dublin residential market has undergone significant structural change in the last five years leading to demand outstripping supply and making today’s announcement a milestone for our business in delivering much-needed rental housing.'