Lone Star, the US private equity firm, has confirmed the sale of its Irish property business Quintain to fellow Texas firm TPG for an estimated €200 million.
The deal, which has been in the works for several months, will include the Quintain Developments Ireland (QDI) platform – led by Michael Hynes – and its land holdings in Adamstown, Clonburris and Portmarnock in Dublin.
The financial details of the deal have not been disclosed, but The Irish Times reported in July that TPG was on track to pay some €200 million for the land bank, an estimate confirmed by market sources on Thursday.
TPG said the Quintain sites can accommodate the development of more than 7,700 residential units across prime locations in the greater Dublin area.
Lone Star, meanwhile, will retain control of Quintain’s Cherrywood project, which has the potential to deliver an estimated 3,000 homes, sources confirmed. Quintain will continue to progress the scheme with Lone Star as an investor.
The deal will see TPG invest additional capital resources into the Irish platform to “accelerate and expand its housing delivery”, the company said in a statement. The Irish entity has delivered some 2,300 homes since its foundation in 2015, it said.
“We are excited to partner with TPG Real Estate, who recognise the quality of our platform and the value of working closely together as we continue to deliver on our ambition to create exceptional and affordable places to live,” said Mr Hynes, chief executive of Quintain. “TPG shares our conviction in Ireland’s residential market, and we believe their experience will be critical as we work to support and facilitate a high-quality standard of living for homeowners in Ireland.”
Commenting on the deal, James Piper, business unit partner with TPG Real Estate, said: “Ireland continues to benefit from strong fundamentals, driven by a diverse economy and young, growing population, which has created continued demand for quality new homes.
“We look forward to working with QDI’s talented management team to continue delivering modern, high-quality homes for communities and families,” he said.
QDI was initially set up with Mr Hynes and fellow industry veteran Eddie Byrne as joint managing directors.
Mr Byrne left the business late last year and subsequently became chief executive of Ires Reit, the Dublin-listed apartments owner.
Meanwhile, TPG, cofounded by David Bonderman, a former chairman of Ryanair, was known for some months to have been circling Quintain Ireland.
The firm has been active in the UK homebuilding sector in recent times having partnered with Ridgeback Group to invest in developer HarperCrewe earlier this year. In June, the firm sold a 180,000 sq m logistics park in Germany to Elite Capital Partners.
