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Kennedy Wilson And Partners Pay €113M For 6-Acre PRS And Office Site In North Docklands

Dublin Land
Artist's rendering of the PRS element of City Block 3 in Dublin's north docklands

Kennedy Wilson and its joint venture partners AXA Investment Managers and Cain International have paid €113M for a 6-acre mixed-use development site in Dublin’s north docklands in two separate deals.

City Block 3 of the Docklands SDZ was put on the market in May by receiver David Carson of Deloitte on behalf of Nama with an overall guide price of €110M. Joint agents Cushman & Wakefield and Savills were quoting €45M for the 3.55-acre residential and €65M for the 2.35 acre office elements of the site.

The residential component, which has planning permission for 347 units, has been bought by Kennedy Wilson and AXA IM through their Irish private rented sector joint venture. Set up at the end of June, that partnership made its first acquisition a couple of weeks later when it bought 274 units at the Grange in Sandyford and an adjacent 4-acre PRS site for €161M, also from Nama. 

And a 50/50 joint venture between Kennedy Wilson and U.K. and U.S. real estate investor Cain International has been set up to buy the 2.35-acre commercial part of the site, which has planning permission for more than 300K SF of office space.

Kennedy Wilson will be the development and asset manager of the overall scheme. The company said it had made an initial equity investment of €68M and would have 50% ownership of City Block 3, which fronts onto Mayor Street Upper, Castleforbes Road, Sheriff Street Upper and New Wapping Street.

Kennedy Wilson Europe President Peter Collins said the development plans for CB3 will bring "the next visionary, city-centre, mixed-used campus to Dublin".

The purchase represents Cain’s first investment in Ireland. “With its strong economic growth, high occupier demand and low Grade A vacancy, Dublin is an attractive market for commercial real estate investment,” Cain International Managing principal Richard Pilkington said.