A New York investment company is to sell its majority stake in the partnership behind three new housing developments in the Dublin suburbs after receiving a number of approaches from prospective buyers.
Centerbridge Partners, a $25 billion private equity firm, has appointed London-based financial advisers Eastdil Secured to handle the sale of its interests in new housing developments at Hollywoodrath in Hollystown, Scholarstown Wood, Rathfarnham, and a site yet to be developed at Station Manor in Portmarnock.
About 100 houses in the first two schemes were sold within days of being launched. The three sites were assembled at a cost of about €60 million and have planning permission for 874 homes.
New homes market
Centerbridge set up a joint venture in 2013 with Dublin-based partners Avestus Capital Partners and property developers
Regency
, a company co-founded by former financial director of Sean Dunne’s Mountbrook Homes,
Aodan Bourke
, and
Patricia Hinch
, formerly of
GE Capital
.
Contacted yesterday, a spokesman for Centerbridge said it “does not comment on market speculation.” However, sources close to the project said there was apparently “no issue” between the three partners involved.
Neither Aodan Bourke nor Avestus returned phone calls.
Centerbridge’s decision to put the planned sale on a formal footing by appointing Estdil is likely to be seen as a setback for the new homes market.
This turn of events comes shortly after the three companies decided to accelerate work on all three residential schemes following the early success of the selling campaigns.
The joint venture was purposefully structured as a development project, with Regency nominated to acquire top class sites, secure planning permission and embark on the construction phase.
The Scholarstown site, which cost in the region of €37 million, has planning permission for 314 mid- to high-end homes priced from €460,000 to €700,000.
The first two phases of Hollywoodrath, launched in the spring and again in the autumn this year, have sold out at prices ranging from €300,000 to €360,000 for three- and four- bedroom semis. The €14 million site has planning permission for 450 homes.
Selling agents expect an equally successful launch of the first phase next spring of the 60 houses and 50 apartments planned for Station Manor in Portmarnock.
The infill site was bought towards the end of 2015 for about €9 million.
