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Ardstone holds first close for residential fund – Exclusive

The Dublin-based firm raised €110 million for its debut fund in a new strategy.

Dublin real estate manager Ardstone Capital has held a first close on its debut residential fund, PERE has learned.

The firm launched Ardstone Residential Partners, its first residential vehicle, in December and collected €110 million from four investors in the first close. Ardstone has a €200 million hard cap for the fund, which focuses on homebuilding around Dublin. Steve Cassidy, who joined Ardstone 18 months ago, is overseeing the fund after running the Savills development land department for 15 years.

Ardstone is targeting a 15 percent triple net annual rate of return for the vehicle and plans to deploy capital to home construction in Dublin’s commuter belt. The firm has invested in two projects with capital from the fund, which will build a combined 215 starter homes.

“With Ireland’s strong gross domestic product growth and the chronic residential supply shortage, investors are viewing Ardstone’s strategy as very astute,” the firm said in a statement.

Since 2013, Ardstone has raised three funds. The firm’s second fund, Ardstone Value Partners, was formed with CBRE Global Investment Partners (GIP). The €100 million vehicle was fully invested within a year of its November 2013 launch, with capital deployed into seven Dublin office and retail assets. Ardstone began selling assets from the fund in the fourth quarter of 2015.

The firm’s first vehicle since 2013, Ardstone Regional Office Fund, launched in June 2013 and has acquired 13 assets in the UK. That fund had a £160 million equity commitment from CBRE GIP.

Ardstone, which was founded in 2005, has more than €700 million in assets under management, according to the firm.