Wells Fargo has provided Hines and APG Asset Management (APG) c.€81m financing for their new Cherrywood Town Centre development project in Dublin, Ireland. The facility will finance the first stage of the sponsors’ three-phase Build-to-Rent development for the new Cherrywood Town Centre, which is planned to deliver over 1,200 fully serviced “Build-to-Rent” apartments over the next five years. Wells Fargo’s facility will facilitate Hines and APG in delivering the first 384 apartments over the next three years.
“We have a well-established relationship with Hines, and we are delighted to have worked with them and APG by delivering a tailored financing solution that supports this significant development in Dublin,” said Stacey Flor, co-head of Origination for the UK & Ireland Commercial Real Estate team at Wells Fargo. “We have a long-standing history in Ireland, and we are excited to support the country’s growing Build-to-Rent sector. Furthermore, in line with our strategy, our facility demonstrates Wells Fargo’s continued commitment to the Build-to-Rent sector in both the UK and Ireland.”
“The confirmation today by Wells Fargo to provide the debt financing for this initial phase of construction is another positive step for the Cherrywood Project,” said Gary Corrigan, managing director at Hines Ireland. “The equity for the project as a whole was confirmed in early 2018 with the announcement of a joint venture between Hines and Dutch pension investor APG Asset Management to develop and hold the “Build-to-Rent” residential element and ancillary retail at Cherrywood. We are delighted now to partner with Wells Fargo in providing the debt for this initial phase of what will be the largest single urban development in Ireland.”
“While we received various expressions of interest from potential debt providers in respect of this Build-to-Rent project opportunity, we are especially pleased to partner with an international bank of the standing of Wells Fargo for the entire TC2 facility,” said Paul van Stiphout, senior portfolio manager at APG Asset Management. “We take great comfort from this outcome and we look forward to securing the required future facility agreements in due course for the upcoming phases of the Cherrywood Town Centre development and other build-to-rent projects Hines and APG will be developing in the Dublin market.”
