American Oaktree Capital Management LP is looking for an equity partner to finance a housing development in Dublin set to be worth billions of euros.
Oaktree plans to build 3,800 homes in the Irish capital’s Glass Bottle site along a skyscraper with an office and life science space. The coastal plot to the east of the city centre measures about 15 hectares.
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Rising lending and construction costs have led some developers to seek partners to add liquidity to their property developments. Professionals in the homebuilding industry claim that a 2% cap on yearly rent increases in some parts of Ireland makes projects more difficult to finance.
The cap is determined by the rate of general inflation, or 2% a year, depending on whichever is lower.
Joan Henry, chief economist at Knight Frank’s Irish Unit, says there is an expectation “to see an increase in equity deals as liquidity returns to the market, but it has been low to date.”
The development could help ease the housing crisis in the city. A government report estimated a deficit of an estimated 212,500 residential properties two years ago.
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