The US-based global property developer Hines has bought the Montrose Student Residence beside University College Dublin for €37.6 million.
The 205-bed purpose-built student accommodation, on the grounds of the former Montrose hotel, was put up for sale last year with a guide price of €41.5 million.
UK student accommodation provider Ziggurat acquired the site in 2012. The gross rent roll for the development is expected to reach €2.91 million a year.
Hines and its investor partners entered the Ireland student housing market with the acquisition of a major portfolio from Threesixty Developments last December. This transaction comprised four sites in Dublin which will provide a combined 1,500 new beds for the city’ s growing student population.
The Binary Hub, in the Liberties, was completed in July 2016 and provides 470 beds.
North city
Developments in Dorset Street and Summerhill are due for completion in 2017 and 2018, providing 450 and 400 beds respectively. The fourth scheme in the portfolio, on Cork Street, is subject to planning approval and could be delivered by 2019. The projects are intended to be held on a long-term basis once complete.
The Montrose development and Binary Hub are to be managed by Aparto, a new team established by the Texan-based property group to manage its operations across its sites.
Hines, which also has student accommodation projects in the UK, said it now has 12 developments with a combined gross development value of more than £500 million (€583m), having entered the market less than a year ago.
