Hines Global REIT II Buys Montrose Student Residences in Dublin
Hines Global REIT II Inc., a publicly registered non-traded real estate investment trust, purchased the Montrose Student Residences for €37.7 million (approximately $40.6 million assuming a rate of $1.08 per EUR as of the contract date).
Montrose was originally developed as a hotel in 1964 and was fully renovated and converted into student housing between 2013 and 2015. It achieved 100 percent occupancy within a year of completion.
The 200-unit property is located across from The University College Dublin, Ireland’s largest university with more than 21,000 full‐time students. The property is a five-minute walk to the center of campus and is the only private student housing asset within a two-mile radius.
“Ireland continues to be an exciting growth market, so we are pleased not only to add to our holdings there but to further diversify our portfolio with our first student housing acquisition,” said Sherri Schugart, president and CEO of Hines Global REIT II.
Alex Knapp, Hines’ managing director responsible for student housing investment and development, noted that Dublin is home to 11 universities and 73,000 students, with a potential rise to 80,000 students by 2020, which would represent 2.3 percent annual growth. “The Dublin student housing market is significantly under‐supplied given the city’s current and anticipated student population,” said Knapp.
The Montrose Student Residences represents Hines Global REIT II’s seventh portfolio acquisition.
Hines Global REIT II, sponsored by global real estate firm Hines, commenced operations in August 2014, and as of March 17, 2017, Hines Global II had raised $307.3 million in investor equity since inception. The company invests in commercial real estate properties located in the United States and internationally, and owns a portfolio of seven properties with a total acquisition cost of approximately $624.2 million.
