26 Mar 2021

  • The newly formed joint venture will focus on the ‘Single-Family Rental’ (SFR) market across Ireland, bringing much needed new homes to the Irish market
  • Set to complete first two major deals in Dublin in Q1 2021, providing high-quality, suburban family homes
  • Reflective of institutional investors’ appetite for the resilient long-term investment opportunities offered by build-to-rent

SFO Capital Partners, a global real estate investment management firm and Round Hill Capital a leading real estate developer, investor and asset manager, have today announced the establishment of a new joint venture (“The Venture”), targeted at the Irish Single-Family rental (SFR) market.

SFO Capital Partners and Round Hill Capital will use their combined expertise in global real estate investment to target high-quality deals that will bring much-needed new homes to the Irish market, where demand for quality, affordable rental accommodation continues to outstrip supply. Multinational companies taking residence across Ireland in recent years has led to both economic and population growth; driving demand for new homes for employees attracted to the country – yet only c. 21,000 dwellings were constructed across the country in 2019, well below the estimated 35,000 new homes needed per annum.

The strong appeal of the Irish build-to-rent sector for institutional capital attracted by its resilient, long-term yields is reflective of the wider growth of the residential investment market in Ireland over the past three years. The newly formed joint venture is set to complete two major deals in Q1/Q2 2021 in Dublin, and intends to build on these over the coming years to expand its housing strategy across Ireland.

Mohamad Abouchalbak, CEO at SFO Capital Partners, said: “We are thrilled to enter into this joint venture with Round Hill Capital with a focus on Dublin, a city with robust macroeconomic fundamentals, dynamic demographics, and a clear growth outlook. This Venture marks a key milestone in the expansion of our residential investment program from the USA into Europe as we continue to actively pursue the acquisition of high-quality residential communities across key European cities.

We particularly like Dublin given its critical need for institutional quality residential stock that can cater for a rapidly growing and a high-skilled workforce. Our conviction was reinforced by the resilience of the city during the COVID-19 pandemic”.

Michael Bickford, Founder and CEO at Round Hill Capital, said:We’re delighted to announce this new joint venture with SFO Capital Partners, as we continue to expand our portfolio of high quality accommodation assets in Ireland. The venture will have the ability to operate swiftly and effectively to secure high-quality SFR investments, providing much-needed new homes to address the long-standing supply / demand imbalance that continues to prevail in the Irish residential market.

“The counter-cyclical nature of the rental housing market means it is resilient to market cycles, as has been proven amid the economic uncertainties caused by the Covid-19 pandemic. We have a strong pipeline in place to meet demand from institutional investors for resilient, long-term investment opportunities and a trusted partner with a strong track record in successfully investing in, developing and operating residential assets. We look forward to further expanding our portfolio in Ireland, as well as across Europe and the US.”

About SFO Capital Partners

SFO Capital Partners is a London-based global real estate investment management firm focused on investing in high quality assets acquired at attractive valuations with a clear path to value creation.  SFO Capital Partners adopts disciplined investment strategies organized by asset classes and geographies. SFO Capital Partners hands-on approach to investing combines entrepreneurial agility with best-in-class practices, consistently delivering superior risk adjusted returns to its private and institutional investors.  As of February 2021, SFO Capital Partners has acquired a diversified portfolio comprising more than USD1.4 billion in assets located primarily in the USA and Europe, including 5,600 apartments and more than 7.0 million sqft of commercial real estate under management.

About Round Hill Capital

Round Hill Capital is a leading global specialist real estate investment, development and asset management firm.  Since inception in 2002, Round Hill Capital has acquired and repositioned for long-term institutional ownership over 135,000 residential units and student housing beds. Round Hill Capital is a responsible landlord of assets offering housing to a range of occupants, from students through to senior citizens.

Round Hill Capital has an established track record of generating high risk-adjusted returns and invests in and asset manages real estate on behalf of some of the world’s leading institutions and private investors. Further information on Round Hill Capital is available at: www.roundhillcapital.com