M&G Real Estate has acquired 67 social housing apartments in Blackrock, Dublin, for €31.3 million.
The deal was made by the M&G European Secured Property Income Fund.
Located close to the city centre on the ‘The Dart’ tram network, The Butter Yard is at the heart of the sought-after suburb of Blackrock.
Let to Dun Laoghaire Rathdown County Council for social housing use on a 25-year term, the recently completed, 42,068 sq ft development comprises two apartment blocks of 67 one and two-bedroom homes.
Designed and built by Dublin-based developer Barina Property Group, the Butter Yard is completed to leading ESG standards, complying with the EU’s Energy Performance of Buildings Directive and aligning with M&G’s ambitions to increase the availability of low carbon and energy efficient housing across Europe – a key part of its target to achieve net zero carbon across its global portfolio by 2050. With an Irish Building Energy Rating of A3 or better, its features include a green roof, EV charging points with heat pumps providing energy efficient heating and hot water to individual apartments. Residents will also have use of a landscaped courtyard, children’s play area and 83 bicycle spaces.
This follows M&G’s recent acquisition of Eglinton Place in Dublin for €99.5 million which will provide 148 high-quality, sustainability-led private rented sector homes.
”Home ownership in Dublin remains out of reach for most of the younger generation with around 65% of those under 35 living in rental accommodation. Both developments will provide much needed new homes for Dublin, with the city expected to reach 1.76 million people by 2036 as the success of the growing tech and finance sector continues to increase demand for high-quality and affordable housing,” the company said in a press release.
Lee McDowell, Manager of the M&G European Secured Property Income Fund, said: “This acquisition adds exposure to a well-performing sector in a growing European city, while increasing portfolio diversification. The European residential sector has good fundamentals, and Dublin in particular has a strong demand for high-quality, sustainable housing alongside limited supply.
“The long-term lease agreement with Dun Laoghaire Rathdown County Council follows our strategy of securing reliable, long-term cash flows, which grow in line with inflation. We will continue to target similar opportunities as we grow the Fund.”
Adrian Langan, Barina CEO, adds: “The Butter Yard is the culmination of a number of years of hard work behind the scenes in planning, design and securing DLR as a long term occupier. We would like to take this opportunity to thank all of our professional team, consultants and sub-contractors who worked on the project, and we wish all its occupiers, Dun Laoghaire Rathdown County Council & M&G Investments the very best with the development in the future.”
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