Avestus Capital Partners announces the launch of a new Fund which is dedicated to investment in residential property in the Irish Private Rented Sector (“PRS”). The Fund has up to €290 million to invest and is supported by Nordic and German institutional investors, as well as the Ireland Strategic Investment Fund (“ISIF”).
Investors were attracted to the Fund by the positive fundamentals of the Irish economy and the opportunities for stable, sustainable growth in the rental sector, which by international standards is underdeveloped in Ireland.
Avestus Capital Partners has a fully operational and dedicated PRS team in place who has established a strong track record of success. The Firm currently manages a portfolio of over 800 privately rented properties in Ireland, making it one of the largest participants in this sector in Ireland.
Demand for rented accommodation in Ireland has doubled over the past five years driven by demographic growth and increasing urbanisation, trends that are set to continue. The Irish rental market is very fragmented and under-invested with over 95% of rental portfolios comprising less than five properties. The Fund aims to support a more structured and professionally-managed rental sector, as is the norm in many other European countries.
The new Fund will look to make long-term investments in high-quality, income producing assets in attractive locations, close to major employment hubs and key transport links. It will also identify and commit to forward purchase newly developed rental properties, supporting the construction of new homes in Ireland.
We believe that the private rented sector in Ireland will become more significant in the future as the market evolves and institutional investors increase their ownership. We are confident that our experience, expertise and professional approach will deliver attractive returns for our investors, significantly enhance services and standards for tenants and contribute to the Government’s efforts to create new and improved accommodation for those that choose to rent.