Oaktree Plans to Seek Partner for 3,800 Home Project in Dublin
An Oaktree Capital Management LP venture plans to seek an equity partner to help develop a Dublin project that’s expected to be valued at billions of euro when it’s completed, according to people with knowledge of the matter.
No formal process has been launched at this stage but there has been interest from investors, the people said, asking not to be identified as the process is private.
About 3,800 homes will be constructed on the city’s Glass Bottle site, together with the equivalent of a skyscraper of office and life science space. The coastal plot, near where the Liffey flows into Dublin Bay just east of the city center, measures about 15 hectares (37 acres). A spokeswoman for Oaktree declined to comment.
Some developers have been seeking partners after rising borrowing and building costs boosted the need for additional equity to help progress many property developments across Europe. Lobbyists for homebuilders say an annual cap of 2% on rental increases in parts of Ireland also makes projects more difficult to finance.
“We do expect to see an increase in equity deals as liquidity returns to the market, but it has been slow to date,” said Joan Henry, chief economist at Knight Frank’s Irish unit, who was speaking generally. “We are seeing preferred equity starting to happen across Europe as a means to bridge debt gaps.”
Home values in the capital city rose by more than 9% in the year through June, according to the Central Statistics office, amid a shortage of rentals. It’s one of the small, open economy’s major constraints, as it grapples with accommodating a rapidly growing population.
Housing Shortage
Bringing in new equity could help the country increase housing output, Henry said.
Almost 33,000 new dwellings were completed in 2023, according to government data. While that’s more than double the 2017 total, much more stock is needed to meet demand, after the economy grew strongly in recent years. A government housing commission estimated that there was a deficit of at least 212,500 residential properties two years ago.
Earlier this month, a unit of TPG Inc. agreed a partnership with management of Quintain Developments Ireland, a large residential developer, to provide capital to allow the construction of more homes. The transaction includes existing sites and ongoing projects in suburban Dublin, according to a statement.
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