Wednesday 22 May 2019

Starwood Capital to create €1bn Irish build-to-rent platform

Luxury developments being prioritised as families struggle to secure mortgages Stock Image: Bloomberg
Luxury developments being prioritised as families struggle to secure mortgages Stock Image: Bloomberg
Ellie Donnelly

Ellie Donnelly

US investment giant Starwood Capital has announced that a controlled affiliate has formed a €1bn build-to-rent (‘BTR’) residential platform in Ireland with Urbeo Residential and the Ireland Strategic Investment Fund (‘ISIF’).

The platform, which will be known as Urbeo, will acquire rental accommodation in Dublin and other Irish cities.

Of the €1bn in funding, ISIF, which is formerly the National Pensions Reserve Fund, is investing up to €60m.

The platform will start with a portfolio of three assets totalling 334 private and social units in Dublin, with a pipeline of over 2,500 units in negotiation or exclusivity.

Urbeo, founded by Frank Kenny and Bill Nowlan, will seek to partner with builders, developers, and housing associations to deliver new rental housing projects in well-serviced locations.

"We are excited to be partnering with Urbeo and ISIF to address the need for high quality and professionally managed rental accommodation in Dublin," Matthew Parrott, VP of Starwood Capital, said.

"The Irish multifamily sector, particularly in Dublin, provides our investors exposure to a market exhibiting a structural supply shortage and compelling growth prospects."

To-date Starwood has invested in more than 30 countries around the world. Its portfolio includes approximately 74,000 multifamily units under management.

Goodbody Stockbrokers, A&L Goodbody, McCann Fitzgerald, William Fry and Sherry Fitzgerald advised on the transaction.

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