Saturday 16 February 2019

Glenveagh in talks with Patrizia for sale of Herbert Hill

Dundrum apartments could secure €50m

Prime pitch: Herbert Hill is located on Sandyford Road directly opposite the Dundrum Town Centre and within a short walk of the Balally stop of the Luas green line
Prime pitch: Herbert Hill is located on Sandyford Road directly opposite the Dundrum Town Centre and within a short walk of the Balally stop of the Luas green line
The Fairways portfolio is set to sell for over €100m
Ronald Quinlan

Ronald Quinlan

Glenveagh Properties is engaged in talks with German fund, Patrizia, in relation to the sale of all 90 units the publicly-quoted builder is developing at its Herbert Hill apartment scheme at Dundrum in south county Dublin, the Irish Independent has learned.

While a spokesman for Glenveagh declined to comment on the matter, it is understood the parties have yet to enter into exclusive negotiations for the scheme which comprises a mix of one, two and three-bedroom homes. A number of other prospective purchasers remain interested in acquiring the portfolio, a source familiar with the process said. The portfolio is expected by market sources to command a selling price in the region of €50m.

Glenveagh's move to sell the Herbert Hill development in one lot to a large investor rather than offering it by the unit to individual buyers isn't entirely surprising. The company had flagged it as a possibility at its debut AGM last June.

Herbert Hill is well-located on Sandyford Road directly opposite the Dundrum Town Centre and within a short walk of the Balally stop of the Luas green line.

The news of Glenveagh and Patrizia's negotiations comes just a week after this newspaper's report that the Cosgrave Group had entered into negotiations with an as-yet unidentified investor in relation to the sale of 214 apartments they are developing at the Fairways, in Cualanor, Dun Laoghaire. It is understood the Fairways portfolio attracted several offers in excess of €100m from up to six competing parties, having been offered for sale last November by selling agent Hooke & MacDonald at a guide price of €95m.

Elsewhere on Dublin's southside, an overseas investor recently acquired a portfolio of 54 apartments at the Hazelbrook Square scheme in Churchtown for €18.25m. The sale of the portfolio was completed by selling agent Cushman & Wakefield on behalf of Nama-appointed receivers Mazars shortly before Christmas. Commercial real estate advisers TWM acted for the purchaser.

Further evidence of the rapid rise of Dublin's PRS and Build-to-Rent market came last week with confirmation from Singapore-listed developer Oxley of its agreement to sell the 268 luxury apartments it is delivering in partnership with Sean Mulryan's Ballymore at Dublin Landings to the US-headquartered property giant Greystar for €175.5m. The deal was first reported by the Irish Independent on January 24 last.

A report from Hooke & MacDonald illustrates how the BTR sector consolidated its position in the Irish construction industry last year, with investment in the private rental market in Dublin amounting to 30pc of all transaction activity. In the final quarter of 2018, that percentage climbed to 40pc of the Dublin investment market, pushing office transactions into second place on 26pc. To put those figures in perspective, Hooke & MacDonald points out how PRS investment transactions constituted just 6pc of the overall Dublin investment market in 2016, and 17pc in 2017.

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