A $285 million investment is to be made in student accommodation projects in Dublin over the next five years by two private equity firms based in the US and UK.
The first development as part of the venture has been announced, with 400 beds for students, as well as shops, restaurants and office spaces for local businesses to be developed on Mill Street in Dublin 8 – roughly a 20 minute walk from Trinity. The development on the 2.5 acre site has already received planning permission.
The joint venture will be undertaken by private real estate equity firm Harrison Street Real Estate Capital (HSRE), based in Chicago – the biggest private equity investor in the US student housing market – and London-based Global Student Accommodation Investment Management.
In a press statement, Christopher Merrill, co-founder, president and CEO of HSRE, stated: “Dublin offers a unique opportunity to generate attractive risk-adjusted returns for investors similar to those experienced over the past decade in the US.”
Nicholas Porter, Executive Chairman of GSA Group, further stated that the Mill Street development “has been designed especially to meet the needs of today’s hyper-connected, hard working university students with all the spaces needed to forge a real sense of community within the accommodation.”
The news comes in the context of rising rents and a lack of housing available for students in Dublin. In response, Trinity has set up an accommodation steering group, chaired by Provost Patrick Prendergast, and, in November, had shortlisted six city centre properties with “promise” or “likelihood” for student accommodation. The College has lost potential sites, the Dean of Students told The University Times, because of the rent levels proposed are not much higher than those charged on campus. The financial models of projects done in conjunction with private companies usually take into account the proposed rent levels.
Trinity has also submitted a planning application for the Oisín House project, which will include 280 beds. The €52 million project will see the existing Oisín House building, which houses some functions of the Department of Social Protection, demolished. The proposed design also includes space for both the disability service and the health centre, and for the sports clubs that will be displaced by the demolition of Luce Hall.
Since July 2015, over 3000 students have used the Trinity College Dublin Students’ Union (TCDSU) Accommodation Advisory Service in an attempt to find accommodation in the city.
In September, the Minister for Education, Jan O’Sullivan, announced the creation of an intergovernmental steering group to investigate ways to tackle the crisis. A a grant of €30,000 was also given to the Union of Students in Ireland (USI) to help promote their rent a room scheme.
