Kennedy Wilson has acquired The Elysian in Cork, Ireland for €87.5 million from real estate funds managed by Blackstone.
The acquisition comprises 206 multifamily/PRS units, 67,600 sq ft of retail and office space over 550 car parking spaces. The residential element is 98% leased and the commercial space is 61% leased.
Construction was completed in 2008 with 70% of the multifamily unit fit-outs and leasing completed in 2015 and 2016. The Elysian sits in the rapidly expanding docklands area in Cork city centre.
Cork is Ireland’s second largest city after Dublin and is home to over 150 global companies, including Apple, EMC, Dell, Deutsche Borse, Boston Scientific and Pfizer, with a strong foreign direct investment track-record across information and communication technology, biopharma and energy. Cork’s industries are supported by well-established universities and leading R&D centres and are expected to further benefit from major investments across social, economic and cultural developments planned by Project Ireland 2040.
Mary Ricks, President and CEO of Kennedy Wilson Europe, said: “The Elysian is a clear leader in the Cork multifamily/PRS market and one of Ireland’s most prestigious and high-specification schemes. We are thrilled to add it to the Kennedy Wilson Residential offering. We see good near-term and medium-term prospects to grow NOI by leasing up the vacant commercial space and implementing the Kennedy Wilson Residential package of amenities to drive unit rental growth.
“The Elysian is an excellent first entry for our multifamily business into Cork; it has virtually no residential projects in direct competition. The same strong fundamentals across the Dublin multifamily/PRS market exist in Cork and we see exciting future opportunities to continue investing in both markets with a goal to double our PRS portfolio in the next few years.”