Beverly Hills-based Kennedy Wilson owns or manages more than 2,000 high-end apartments in the capital
It remains higher than the rents the Beverly Hills-headquartered company generates at luxury apartment developments in Los Angeles that boast swimming pools and hot tubs, or in the home of Amazon, Microsoft and Boeing, where its Seattle apartment complexes can feature fitness centres, a resident pub and outdoor barbeque and entertainment areas.
Kennedy Wilson currently has a portfolio of 2,526 apartments in Dublin and said the “structural imbalance” in Ireland’s housing market “creates opportunity”.
It told investors on Wednesday that the average monthly rent its apartments in Ireland command is $2,683 (€2,472). That compares to $ 2,270 (€2,091) in southern California, or 18pc less than in Ireland.
The group’s share of rents generated from apartments it manages and owns in Ireland was $36.9m (€34m) last year. It generated a net operating income – effectively its profit – of $28.4m from that revenue.
All but one of Kennedy Wilson’s residential interests in Ireland are in Dublin. It also owns the Elysian in Cork, with just over 200 apartments, which is also included in calculations for the average rent generated in Ireland.
In the Pacific Northwest – which includes Seattle and its surrounds, and Vancouver, the average monthly rent Kennedy Wilson generate from its apartments is $2,059 (€1,897).
Last autumn, construction of three developments in Dublin was completed by Kennedy Wilson. They include Coopers Cross, The Grange and Sanford Lodge. That added about 800 units to its apartment portfolio in the capital. Kennedy Wilson has a 50pc stake in Coopers Cross and 50pc of The Grange.
The completion of The Grange in Stillorgan added 287 apartments, bringing the total holding at the location to 539.
At The Grange, amenities include a gym, a concierge, a games room, a business centre and rental car availability. A studio apartment at the development costs about €2,100 a month, a one-bed apartment €2,150 and a two-bedroom apartment €2,650 a month.
Today’s News in 90 Seconds – 22nd February 2024
At Kennedy Wilson’s Capital Dock development in Dublin’s docklands, a two-bedroom apartment can cost about €3,500 a month. Kennedy Wilson also owns Alto Vetro apartment block in Dublin city centre with the building’s height matched by sky-high rents.
The company also owns commercial assets including the Shelbourne Hotel, which it acquired in 2014.
Debt attached to the hotel was bought from Bank of Ireland and the liquidators of Irish Bank Resolution Corporation, formerly Anglo Irish Bank. They also own Stillorgan Shopping Centre in South Dublin.
It was reported before Christmas that Kennedy Wilson was considering a sale of the hotel for about $283m.
The historic hotel is the property group’s number one asset across its entire portfolio in terms of the net operating income it derives every year from it. That amounts to $20.6m. Capital Dock generates $10.1m and its Clancy Quay apartment development in Dublin generates $9.6m.
In a presentation to investors on Wednesday, Kennedy Wilson pointed out that just 9.8pc of people in Ireland live in apartments, compared to 46.3pc across the EU. It also pointed out that less than 5pc of the 342,612 private rental units in Ireland are owned by institutions.
