US Investment Firms List Development Lands in Cherrywood for €40 Million

Global investment firms Hines and King Street Capital Management have placed a significant land parcel in Cherrywood, South Dublin, on the market with an asking price of approximately €40 million. The site, which holds planning permission for residential development, represents a strategic move by the joint venture to realize value from their long-term holdings in the Dublin commuter belt, according to reports from The Irish Times.

What is included in the Cherrywood sale?

The land parcel, known as “Plot 10,” covers roughly 6.5 acres within the Cherrywood Strategic Development Zone (SDZ). According to planning documents filed with Dún Laoghaire-Rathdown County Council, the site is zoned for high-density residential use. The current permissions allow for the construction of over 300 apartment units, catering to the ongoing demand for rental and purchase stock in the Dublin market.

The sale is being managed by commercial real estate firm Savills. The price tag reflects the site’s “shovel-ready” status, meaning the successful bidder can bypass the lengthy planning process that often stalls residential projects in the Irish capital.

Why are Hines and King Street selling now?

The decision to divest follows years of coordinated development by the two firms. Since acquiring the Cherrywood land bank in 2012, the partnership has transformed the area from a series of undeveloped fields into a mixed-use district featuring retail, office space, and thousands of homes.

Market analysts suggest the sale is part of a broader strategy to recycle capital. By selling a permitted residential site, the firms can liquidate assets to fund new acquisitions or future phases of their global real estate portfolios. This cycle of “build, permit, and sell” is a standard practice for institutional investors looking to maximize internal rates of return (IRR) in European markets.

How does this impact the Dublin housing market?

The availability of a site with existing planning permission is significant for the local supply chain. While the Irish government has introduced various initiatives to bolster housing delivery—such as the Housing for All plan—large-scale sites remain limited by infrastructure costs and high interest rates.

A buyer for the Plot 10 lands will likely be another institutional investor or a large-scale residential developer. Because the land is already permitted, the timeline from purchase to ground-breaking could be significantly shorter than a typical greenfield development. This could provide a much-needed boost to the housing pipeline in South Dublin within the next 24 to 36 months.

Market Context: Cherrywood Development

• Partnership: Hines and King Street Capital Management.
• Location: Cherrywood, Dún Laoghaire-Rathdown, Dublin.
• Asset Type: Residential development land with planning permission.
• Estimated Value: €40 million.
• Agent: Savills Ireland.

What happens next?

The sale process will likely involve a formal tender, allowing interested developers to submit bids over the coming months. The final sale price will depend on current construction costs, which have remained elevated throughout 2024, and the projected rental yields for the completed apartments. Industry observers will monitor the transaction closely as a barometer for investor appetite in the Irish residential sector, where high borrowing costs have previously cooled demand for large development sites.