12 August 2019
Union Investment acquires office property in Dublin’s South Docklands
Union Investment has acquired the 5 Hanover Quay office property in Dublin’s fast-growing South Docklands district. The property was built in 2018 and offers some 15,000 sq m of rental space. It is fully let to two established technology companies. The vendor is development company TIO South Docks Fund Limited and the purchase price is just over EUR 190 million. Union Investment was advised on the legal aspects of the deal by A&L Goodbody.
LEED Gold certification has been achieved, demonstrating the building’s eco-credentials. The acquisition is being made on behalf of open-ended real estate fund UniImmo: Europa and marks the fund’s third office property in Dublin. In 2015, the two properties at 4 and 5 Grand Canal Square were acquired for the fund. They are used by Facebook as its European headquarters and are likewise located in South Docklands.
Martin Schellein, Head of Investment Management Europe at Union Investment Real Estate GmbH
Vacancy rates in the Dublin office market are currently under six per cent, and under three per cent in the South Docklands submarket. Planned construction projects such as the Grand Canal Innovation District that is due to be built as part of Trinity College will further enhance the value of the location.
The lower four floors of the seven-storey new build at 5 Hanover Quay are occupied by DocuSign International. The company specialises in digitisation of business processes and provides solutions for digital transaction management. The top three floors are let to Aptiv Global Operations. Aptiv is a global automotive supplier focusing on automotive electronics. One of the company’s core areas of expertise is connecting vehicles to their environments, which makes autonomous driving possible.
Following the acquisition of 5 Hanover Quay, Union Investment now holds five commercial properties in Dublin worth over EUR 620 million in total. In June 2019, the Hamburg-based real estate investment manager announced the acquisition of Ballast House for UniInstitutional European Real Estate. Union Investment manages a range of funds for both private and institutional investors, and intends to monitor the Dublin office market for further acquisition opportunities.