City Block 3 Office rendering in Dublin.
DUBLIN—Beverly Hills, CA-based Kennedy Wilson and partners AXA Investment Managers – Real Assets and Cain International, have acquired one of the last remaining mixed-use development sites, City Block 3 in Dublin's thriving North Docks, totaling. 5.9 acres.
The companies state the site will feature the development of PRS (private rented sector) and office accommodation. The acquisition was completed through two purchases from David Carson of Deloitte, acting as Receiver on behalf of the National Asset Management Agency for a total price of €113 million or approximately $130.5 million in separate ventures between AXA IM – Real Assets, acting on behalf of its clients, and Cain International.
Kennedy Wilson's ownership in CB3 is 50%, with an initial equity investment of €68 million or approximately $79 million. Kennedy Wilson will act as the development and asset manager of the property.
Cain International is a diversified real estate company investing in both debt and equity in the UK, the US and Europe and has offices in London and New York City. AXA Investment Managers is the leading real estate portfolio and asset manager in Europe and is headquartered in Puteaux, France.
Kennedy Wilson and AXA IM – Real Assets acquired the 3.6-acre residential component of the development site through their Irish PRS joint venture, with planning permission already in place. The site benefits from its proximity to existing projects at North Bank and Liffey Trust which, when combined with the potential new apartments at CB3, will provide in excess of 650 units.
Separately, Kennedy Wilson and Cain International, through a 50/50 joint venture, acquired the adjoining 2.3-acre commercial component of the development site, with planning permission for more than 300,000 square feet of office space.
CB3 comprises an entire city block (fronting Mayor Street Upper, Castleforbes Road, Sheriff Street Upper and New Wapping Street). The land also benefits from being in the Strategic Development Zone.
Peter Collins, president of Kennedy Wilson Europe, states, “Our development plans for CB3 will bring the next visionary, city-center, mixed-used campus to Dublin, following the ongoing success at our iconic Capital Dock development on the South Docks. We are confident in our ability bring forward this major new scheme for Dublin, given the breadth of our local development experience.”
He adds, “We are excited to be growing our Irish PRS joint venture with AXA IM – Real Assets as well as partnering with Cain International, an experienced global investor, to deliver another leading project for the city and its residents.”
Kennedy Wilson notes that Dublin's PRS and office markets are underpinned by Ireland's position as one of the fastest growing economies in Europe. With 74,700 new jobs added in the last year along with strong net immigration, office take-up tracking is 75% above its 10-year average. Dublin PRS vacancy is at a record low of 1.4%, buoyed by a continued strong demand for city-center apartments.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
