Hamburg-based real estate investment manager Union Investment has acquired the 8th Lock, a residential project in Dublin from British and Irish developer Ballymore for €200 million.
“The purchase is part of our strategic focus on further expanding the share of residential investments in selected European core markets with the aim of ensuring long-term diversification and stabilisation of our portfolio,” said Martin Schellein, Head of Investment Management Europe at Union Investment Real Estate GmbH.
“Ireland has the youngest population in Europe and is experiencing strong demographic growth. With multinational companies continuing to base themselves here, there is high demand for affordable housing, especially in Dublin. On the other hand, the rental sector is not yet professionalised and construction activity has been comparatively low in the past. The rental housing market will benefit from our professional management approach. We are delighted to be making this ambitious project a reality with our partner Ballymore”, said Schellein.
”As well as seeing Union Investment enter the Irish residential market, this deal is the first ever in the Irish residential segment to involve forward funding by an end investor. Up to now, only forward purchase structures have been used for residential projects in Ireland,” said the company in a statement.
The 8th Lock residential project in Dublin comprises five sections which are between four and thirteen storeys high and due for completion between October 2023 and March 2025. Altogether the site will offer approximately 31,000 sq m of rental space, with 435 furnished apartments accounting for some 28,000 sq m.The rest of the space is earmarked for commercial use.
There will be shared underground parking beneath the development with room for 242 cars and 960 bicycles.
The future residential quarter is located in Ballymore’s already established Royal Canal Park northwest of Dublin’s city centre. It is just 300 metres from the new Pelletstown railway station, which is due for completion this summer and will make it possible to get to the International Financial Services Centre in just twelve minutes. The city centre is only 25 minutes away and Dublin Airport can be reached in under 20 minutes by car.