RediResi Icorp, a joint venture between RediResi in the UK and Irish investors, has bought 51 residential properties in two Dublin locations as the first stage of its acquisition of units for refurbishment and letting to local authorities.
It has paid around €3.4m for 19 units dispersed among the 400-unit development at Mayeston Hall, St Margaret's Road, Dublin 11.
Conor Steen of agents Hooke & MacDonald had guided €2.8m on behalf of receiver George Maloney of RSM Ireland for the 19. RediResi has also acquired all 32 units in the crescent-shaped block on a 0.83-acre site at the Round Garden Citywest. Savills had been guiding €7.25m for these.
The joint venture has secured funding of €91m from NatWest Markets PLC and the global investment boutique Alvarium Investments to procure and refurbish up to 500 units nationwide for long-term leasing to local authorities.
In addition it aims to provide more than 2,000 social housing units over the next two years through 25 year leases with rent reviews. The local authorities will pay 85pc of market rent for the units as part of the government's plan to supply 50,000 social housing homes before the end of 2021.
Gary Lawlor, managing director of quantity surveyors Lawlor Burns, is one of the partners in the joint venture and the firm will also undertake refurbishment work on the units. Over the last two years, Lawlor Burns has rehabilitated over 200 units for long-term leasing to local authorities.