Franklin Templeton has emerged as a cornerstone investor in a new fund focusing on Irish residential property.
The Irish Residential Properties REIT is seeking to raise €200 million (£165 million), of which Franklin Templeton has committed €25 million (£20.7 million).
The fund currently has a portfolio valued at £37.6 million, consisting of 338 residential units across four properties in the greater Dublin area.
Once fully invested, the fund will target a total shareholder return of 10-15% a year including a dividend yield of 4.5-5%.
The fund will be managed by a division of Capreit, a Canadian property specialist founded in 1997 that now has a market capitalisation of £1.3 billion.
It will charge an annual management fee of 0.5% of net asset value and 3% of the gross rental income.
The fund’s chair Colm Ó Nualláin said: ‘The opportunity presented by the availability of favourable investment prospects in the Irish multi-unit residential sector in the context of the improving Irish economy, the wealth of experience and support available from Capreit in an investor-friendly REIT structure is a compelling one.’