Abrdn Looks Beyond City Centre For More BTR Opportunities
Dublin remains a key target for Abrdn’s Pan European Residential Property Fund, or aPER, after it completed the purchase of Roselawn, a multifamily/build-to-rent scheme in Dublin for €70M.
The development is the first BTR asset purchased by the fund in Dublin after being acquired on a forward commitment basis in July 2021 from Richmond Homes. The scheme is now complete and being leased up so the deal has completed.
M&G Real Estate also entered the Irish BTR market recently, and Abrdn remains keen to look for further BTR opportunities in Dublin and its outer suburbs.
“The supply-and-demand fundamentals remain very attractive and while this is our first purchase in Dublin, the city is very much on our radar as part of our overall pan-European strategy,” Abrdn Fund Manager Robert McDonnell told Bisnow in an interview.
However, despite examining the market for some time before making its first purchase, Abrdn has eschewed the city centre, preferring instead a scheme that meets its ‘three A's’ criteria of accessibility, amenity and affordability.
Roselawn is a development of 142 units located in the South Dublin suburb of Blackrock, providing a mix of one-, two- and three-bedroom apartments. Tenant amenities include a resident’s lounge, a gym and coworking facilities as well as gardens and recreation areas.
The development sits fronting the N11 and is in close proximity to the suburban office market of Sandyford, which is an established tech hub.
“One of the key elements for us is a sustainable rental profile and that means we are happy to look at good-quality developments that sit outside the central Dublin area," McDonnell said. "Roselawn met our core criteria, has been designed to a high level and from an operational perspective it performs well, so those things led us to this project.”
Currently being let, McDonnell added that rents had continued to grow since Abrdn’s 2021 acquisition and that although more unpredictable construction costs had slowed development in Ireland, the fund would continue to look for opportunities.
“The fundamentals are still strong and so we will continue to assess the opportunities. Hopefully construction costs will plateau but ultimately Dublin meets our demographic requirements and, having looked at a number of potential schemes in the past, we remain active in seeking projects that meet our investment profile.”
From a sustainability perspective, Abrdn said that Roselawn has been constructed to a very high standard and features PV solar panels, green roofs, electric car charging and 284 bicycle spaces.
“Roselawn continues our strategy of delivering best-in-class, sustainable multifamily accommodation in great locations,” Richmond Homes Chief Operating Officer Fergus Farrell added.
Abrdn’s advisers were Arthur Cox and Knight Frank’s residential capital markets team, while Richmond Homes’ advisers were Eversheds Sutherland and Hooke & MacDonald.
