Irish housing fund Urbeo Residential is planning to raise between €300m and €400m to invest in the private rented accommodation sector here.
Goodbody and Deutsche Bank have been retained by Urbeo to advise on the fund-raising which will target long-term institutional investors.
The fund said its pilot scheme - the 131-unit New Bancroft development in Tallaght - which it acquired last July for €33m, is now fully let.
Urbeo said it aims to provide accommodation for low and middle income households - mainly in Dublin but also in other cities throughout the country.
Urbeo's backers include the state through the Ireland Strategic Investment Fund and the ISIF - subject to certain conditions being met - will be the anchor investor in the new fund with capacity to commit up to €100m on a co-investment basis.
Urbeo has also recently signed an agreement with Glenveagh Living, a subsidiary of housebuilder Glenveagh Properties.
Under the terms of the deal, both companies have committed to collaborate on the sourcing, acquisition and development of residential communities, with Urbeo acting as a potential buyer of Glenveagh built developments.
"We believe there is a clear gap in the market to provide a quality rental housing option to low and middle-income households," commented the company's chief executive Felix McKenna.
"Our aim is to create balanced and sustainable communities where the long-term stable tenant base is aligned with the requirements of investors for steady, secure income," he added.
Mr McKenna said that the residential rental sector has become an increasingly important asset class in recent years because it can provide a reliable income stream and diversification from other real estate asset classes.
"We are providing the first opportunity to invest in scale in European-style rental developments in Ireland, the type of which are long overdue in a market that has seen extremely rapid increases in residential rents in recent years," he added.
