Sunday 15 December 2019

Glenveagh sells 90-unit Herbert Hill in Dundrum to cuckoo fund for €55m

Developer’s shares surge 3pc on news of sale

Glenveagh's Stephen Garvey
Glenveagh's Stephen Garvey

Shawn Pogatchnik

Publicly-listed Glenveagh Properties has sold a 90-apartment development, Herbert Hill near Dundrum Town Centre, to an unidentified cuckoo fund for a price exceeding €55m.

Shares in Glenveagh rose more than 3pc to €0.81 in late trading today on the news.

"Herbert Hill has been a major priority for the company over the past two years," said Glenveagh chief executive Stephen Garvey.

"We are delighted to have brought this project to such a successful conclusion as part of our ongoing suburban and urban residential home-building programme."

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Over the summer, Dún Laoghaire-Rathdown County Council had signalled its interest in securing the entire 90-unit development for use as social housing.

But Glenveagh’s announcement made no mention of this, instead noting that Herbert Hill had attracted substantial interest from institutional property funds, "demonstrating the appetite for accommodation delivered by a well-capitalised counterparty with strong construction experience".

Today’s sale is the latest in a swathe of purchases this year by international property funds exceeding €1.3bn, mainly in Dublin.

Last month Cushman & Wakefield said institutional investors spent €638.2m in the first nine months of the year buying residential assets, including September’s €52m sale of a 214-apartment portfolio to Chicago-based Heitman Capital.

The report said these global property companies also had struck deals totalling €697.6m to acquire apartment developments still under construction, with most not due for completion until 2020 or beyond.

The biggest deals this year include the €175.5m paid by US property company Greystar to Singapore-based developer Oxley for the 268-apartment Dublin Landings development on North Wall Quay, and the €94m paid by Starwood Capital unit Urbeo to Cairn Homes for The Quarter at CityWest.

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