Ardstone Capital is set to pay €177 million to acquire Spencer Place, the high-end residential scheme developed by Johnny Ronan‘s Ronan Group Real Estate (RGRE) in Dublin’s north docklands.
The company, which maintains offices in Ireland, the UK, Germany and Spain, is understood to be in the process of finalising its acquisition of the portfolio of 393 apartments from the US-headquartered Fortress Investment Group, having seen off competition from several parties.
Another US real-estate investor, Hines, had been in the lead to acquire the Spencer Place scheme until recently, before being overtaken by Ardstone. The first round of bidding saw a total seven parties either bidding or expressing their interest in the scheme. While the initial stage of the process saw bids from Hines, Irish investment manager Carysfort Capital, German investor MEAG and one other party, Ardstone Capital limited its involvement at that point to an expression of interest, as did Ares Management and Axa. Offers for the portfolio are understood to have come in at €160 million-€170 million in the first round.
Should Ardstone Capital complete its acquisition of Spencer Place for €177 million, it stands to secure a yield of 4.9 per cent on its investment. The proposed deal is understood to be in legals at present. The disposal of the portfolio is being handled by joint agents Eastdil Secured and CBRE.
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The apartments at Spencer Place already came close to being sold on a number of occasions over recent years.
In 2020, US real estate investor Cortland is understood to have been prepared to pay some €315 million to fund and acquire a larger scheme of 550 apartments and coliving units RGRE had been proposing for the site. The proposed deal with Cortland was abandoned, however, following repeated legal challenges from Dublin City Council in relation to An Bord Pleanála’s approval of RGRE’s plan to accommodate the additional units by increasing the height of the two blocks within the development from seven to 11 and 13 storeys respectively.
In July 2021 the UK-headquartered property investor Round Hill Capital engaged in discussions with RGRE in relation to the potential purchase for about €220 million of a development comprising 349 apartments and a 100-bed aparthotel on the Spencer Place site.
The portfolio that is now being sold comprises 393 apartments arranged across three blocks along with a range of facilities that include a 24-hour concierge, coworking area, bookable kitchen, gym, cinema, top-floor communal areas with views over the city, 78 car-parking spaces and 828 bicycle parking spaces.
