The American real estate investment firm, Hines, has acquired a student living facility in Dublin. The purchase further expands its holdings in this sector.
Located in Dublin 2, near the Royal College of Surgeons Ireland (RCSI), Scape Dublin is a 298-bed student living establishment that opened its doors in 2020. It is located at the junction of Golden Lane and Aungier Street. Initially managed by the international student housing organisation Scape, the facility was put up for sale earlier this year with a nearly €80 million price tag.
Hines plans to transform the building into Stephen’s Quarter and manage it under the brand name Aparto. The property features a Lidl supermarket on the ground floor, on the side facing Aungier Street.
It was reported that a 51-week leasing agreement was in place with RCSI. This agreement assured an income of €5.2 million for the 2024/25 school year.
This acquisition is a part of Hines’s ongoing expansion in the student living centres sector in the Republic where it currently oversees five buildings under the Aparto brand such as Dorset Point, Beckett House in Dublin, and the Loom on Cork Street in Dublin 8.
Jorge Duarte, the senior managing director and fund manager at Hines European Property Partners (Hepp) expressed his contentment with this acquisition, noting the Republic as one of their preferred investment markets.
He commented, “The expanding number of students opting for higher education and the scarcity of purpose-built student accommodation in cities with prominent universities like Dublin has been clearly established. So, we are thrilled to add yet another asset in a key city location.”
The significant news comes in the wake of a government decree to prohibit large-scale student landlords from offering only 51-week agreements at their properties in the Republic. This move, which mandates landlords to offer the standard 41-week contracts in alignment with the academic calendar, has raised concerns amongst industry insiders who worry it could stifle investment in the sector.
However, the market climate in the Republic continues to be extremely favourable for investors in student living centres. There is a reported deficiency of approximately 65,000 bed spaces in contrast to the demand in Dublin alone, as per the Department of Higher Education’s calculations.