PGIM provides €91.5m to Hines and APG JV for Cherrywood BTR

The PGIM Real Estate financed Cherrywood scheme will deliver essential Build to Rent housing to an undersupplied area in Dublin.

Cherrywood Square and Grand Parade in Dublin | PGIM Real Estate | Hines | APG | BTR News
Cherrywood Square and Grand Parade in Dublin. Image credit: Hines.

Real estate investment management arm of global asset management business PGIM, PGIM Real Estate, has provided €91.5m in financing to Hines and APG for a new Build to Rent scheme in Dublin, Ireland.

Located in Cherrywood, Dublin, the 431-unit development is owned by a joint venture between Hines and APG. The scheme, which is currently at 99% occupancy, has been arranged over two blocks with retail units on the ground floor, including residential amenity space and excellent transport links to the Luas (Dublin City Tramline).

“There continues to be a chronic undersupply of housing in all markets with rental demand only set to increase. Our conviction in the living sector and Build to Rent remains strong as it continues to demonstrate strong operational fundamentals and attractive investment opportunities, especially in prime cities such as Dublin, where rental pressure zones are expected to continue to constrain new supply and support occupancy.”

James Mathias, Senior Portfolio Manager for European Core Debt, PGIM Real Estate

The transaction was led by Laura Denenga in the Originations team at PGIM Real Estate. The financing was provided on behalf of the firm’s core debt platform, which can provide solutions across Europe for both fixed and floating rate borrowers.

PGIM Real Estate’s European debt platform provides alternative financing, including senior debt, whole loans and mezzanine with co-invest equity.

“With Cherrywood setting a new benchmark in Dublin for sustainable residential communities, we are delighted to be partnering with the highly regarded PGIM Real Estate and its European debt platform for phase one of Cherrywood Town Centre. We’re seeing great progress across the Cherrywood Town Centre project with phase two completing late last year and phase three set to complete this summer. This will mean that a total of 1,269 apartments including 127 social housing homes will have come on stream over the past two years.”

Gary Corrigan, Managing Director, Hines

Completed in 2022, the Cherrywood scheme has been developed with strong ESG credentials, which includes a high proportion of energy produced renewably onsite. The scheme is a part of the Cherrywood project – a government-designated Strategic Development Zone project to build a new town centre in the borough of Dun Laoghaire-Rathdown in South Dublin.