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PRS Deals Add Up To 29% — Or More Than €1B Worth — Of Investment Spend In 2018

CGI of 6 Hanover Quay, a build-to-rent scheme being developed by Cairn Homes, and bought by Carysfort Capital
Artist's impression of 6 Hanover Quay, which was bought by Carysfort Capital

It may still be the new kid on the block in terms of investment asset classes in Ireland, but PRS managed to corner a 29% slice of last year’s €3.6B spend, figures from Lisney show.

That is up from a 5% share of overall spend in 2017 and an average 13% share since 2012.

In its outlook report for 2019, Lisney said a significant amount of capital — from Irish and international investors — will continue to chase PRS schemes in 2019. The agency believes that this will start to reduce in 2020 as the occupational market becomes more balanced.

“That said, we expect PRS to remain a significant element of the investment market as it is in most other mature investment markets — in the U.S. it is about 50% of the market,” the agency said.

According to Lisney, forward sales accounted for €288M of spend in 2018.

Some of the significant transactions completed last year included Round Hill Capital’s purchase of a 216-unit scheme in Northwood, Dublin 9 for around €84M; Carysfort Capital’s acquisition of the 120-unit Six Hanover Quay for €101M; the €161M sale of the Grange scheme — comprising 274 residential units and a development site — to Kennedy Wilson and Axa Investment Managers - Real Assets for €161M; and Irish Life Investment Managers acquiring 262 apartments at Fernbank in Churchtown for €138.5M.

Last year also saw the biggest ever PRS deal done outside Dublin when Kennedy Wilson bought the Elysian in Cork — comprising 206 apartments and 68K SF of office and retail space — from Blackstone for €87.5M in April.