German Investor Union Investment Buys Dublin Apartments for €75 Million

In a significant move, German investor Union Investment has recently acquired a portfolio of 140 apartments in the north Dublin suburb of Sutton. The price paid for the Seafield Strand development amounts to approximately €75 million, with each unit averaging at €535,714.
 

This marks Union Investment's third investment in Ireland's private rented sector (PRS) market, reflecting their commitment to expanding their real estate portfolio in the region.

The Investment by Union Investment

Union Investment, a well-established real estate investor based in Hamburg, has been actively seeking opportunities in Ireland's residential investment market. By purchasing the Sutton new homes scheme, they have further strengthened their presence and demonstrated their confidence in the Irish property market. This acquisition is part of their open-ended real estate fund, UniImmo: Europa.

Overview of the Sutton New Homes Scheme

The Seafield Strand development in Sutton comprises six residential blocks, housing a total of 140 apartments and a preschool. With a variety of layouts available, the apartments consist of 108 two-bedroom units, while the remainder are a combination of one and three-bedroom apartments. Situated between Church Road and Offington Park, the development offers modern and high-quality living spaces in a sought-after location.

Description and Features of the Seafield Strand Development

Seafield Strand is designed to provide residents with a comfortable and convenient lifestyle. The apartments boast contemporary architecture and stylish interiors, combining functionality with aesthetics. The development's prime location offers easy access to essential amenities, including schools, shops, and transport links, making it an attractive choice for both homeowners and tenants.

Union Investment's Strategy in the Private Rented Sector (PRS) Market

Union Investment's investment in the private rented sector (PRS) market aligns with their long-term strategy to diversify their real estate holdings. The PRS market provides stable rental income, making it an appealing sector for investors seeking sustainable returns. This strategic move allows Union Investment to tap into the growing demand for rental properties, providing them with a reliable income stream.

Union Investment's Entry into the Irish Residential Investment Market

In 2021, Union Investment made its initial foray into the Irish residential investment marketwith the acquisition of the 8th Lock scheme. Developed by Sean Mulryan's Ballymore Group, the portfolio comprised 435 apartments and a health center at Royal Canal Park in Ashtown, Dublin 15. The purchase price of approximately €200 million translated to an average of €459,770 per unit, further solidifying Union Investment's commitment to the Irish market.

The 8th Lock Scheme in Royal Canal Park

The 8th Lock scheme, located in Ashtown, offers a mix of modern and well-designed apartments. With a focus on providing high-quality living spaces, the development caters to the evolving needs of residents. The inclusion of a health center within the scheme adds further value and convenience for residents. Union Investment recognized the potential of this development and seized the opportunity to establish a foothold in the Irish residential market.

Newtown Gardens in Blackrock

Union Investment further expanded its presence in the Irish market with the acquisition of Newtown Gardens, a development by Glenveagh Properties. Located in the highly sought-after suburb of Blackrock, the portfolio consisted of 140 apartments. The purchase price of €76.25 million averaged at approximately €544,642 per unit. Notably, this portfolio included underground and surface parking spaces, enhancing the attractiveness of the development to potential tenants.

Comparison of Average Prices per Unit in the Three Developments

When comparing the average prices per unit in the three developments, a clear trend emerges. While the Seafield Strand scheme commanded an average price of €535,714 per unit, the 8th Lock scheme in Ashtown had an average price of €459,770 per unit. Newtown Gardens in Blackrock surpassed both, averaging at approximately €544,642 per unit. This variation in prices can be attributed to factors such as location, amenities, and additional features included in each development.

Union Investment's Expansion in the Irish Market

Union Investment's successive investments in the Irish residential investment marketdemonstrate their confidence in the country's growth potential. Their strategic focus on diversifying their portfolio includes targeting key areas of demand, such as the private rented sector. By capitalizing on market opportunities and acquiring high-end developments, Union Investment maintains its position as a reputable investor in the Irish real estate market.

Benefits of the Sutton New Homes Scheme

The Sutton new homes scheme offers numerous benefits to both residents and investors. Its prime location in a desirable Dublin suburb ensures access to a range of amenities and convenient transportation options. The high-quality apartments, coupled with contemporary designs and functional layouts, create an appealing living environment. For investors, the Sutton scheme presents an opportunity to capitalize on the robust demand for rental properties in the area.

Impact on the Dublin Property Market

Union Investment's substantial investment in the Sutton new homes scheme contributes to the ongoing growth and development of the Dublin property market. The expanding rental sector, driven by rising demand, presents attractive opportunities for investors. This transaction highlights the confidence that foreign investors have in Ireland's real estate sector, which in turn boosts the overall market conditions and stimulates further investment.

The acquisition of the Sutton new homes scheme by Union Investment emphasizes their commitment to the Irish residential investment market. With a portfolio spanning various developments in key locations across Dublin, Union Investment strategically positions itself to benefit from the growing demand in the private rented sector. As Ireland's property market continues to thrive, investment opportunities like this reinforce the positive trajectory and potential for further growth.

FAQs

1. Q: Who is the German investor that acquired the Sutton new homes scheme?

   A: The German investor is Union Investment.

2. Q: How much did Union Investment pay for the Seafield Strand development?

   A: Union Investment paid approximately €75 million for the Seafield Strand development.

3. Q: How many apartments are included in the Seafield Strand development?

   A: The Seafield Strand development comprises a total of 140 apartments.

4. Q: What is the average price per unit in the Seafield Strand development?

   A: The average price per unit in the Seafield Strand development is €535,714.

5. Q: What is Union Investment's strategy in the private rented sector (PRS) market?

   A: Union Investment aims to diversify its real estate holdings and benefit from stable rental income in the private rented sector.

German Investor Union Investment Buys Dublin Apartments for €75 Million

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