31 January 2020
Union Investment acquires planned office property in Dublin
Via a forward funding deal Union Investment has acquired a planned office property at 2 Grand Parade, Dublin, from Hines and Peterson Group. The building, which comprises around 9,600 sq m of rental space, is being constructed on a speculative basis and is scheduled for completion by mid of 2022. The developer is Hines and all parties agreed not to disclose a purchase price. The acquisition is being made on behalf of open-ended real estate fund Unilmmo: Deutschland. The fund previously acquired a planned office property in Dublin in 2015. Offering approximately 16,000 sq m of space, the Shannon Building on Burlington Road was let on a long-term lease to Amazon prior to completion in 2017.
Martin Schellein, Head of Investment Management Europe at Union Investment Real Estate GmbH
“This is our first transaction with Union Investment in Ireland and we very much welcome this exciting new partnership. The project incorporates an imaginative restoration of a landmark building combined with a sensitively designed extension to the rear, all of which will combine to deliver a modern office complex at 2 Grand Parade,” said Brian Moran, Senior Managing Director of Hines “The demand for new office space remains very buoyant in Dublin city centre with the market characterised by strong and consistent take-up of new developments and high pre-lettings of developments currently under construction. 2 Grand Parade will be a grade-A office development in a prime location, with excellent connectivity to the city’s public transport networks.”
The development at 2 Grand Parade consists of two distinct building sections. Around a third of the rental space is located in a historic existing building dating from 1964, known locally as the Carroll’s Building because it was used by Carroll’s Tobacco Group for many years. This building is being extensively upgraded as part of the development. The remaining two thirds of the rental space is located in a new build linked to the existing building. This property is being constructed in a cascade design which will allow it to accommodate attractive roof terrace areas and other features. LEED Gold certification will provide proof of the property’s sustainability. The building is located right next to Charlemont tram stop. This is also expected to be the site of an underground station for Dublin’s planned MetroLink system at a later date, with initial preparations already having been made.
Including the forward funding of the 2 Grand Parade development, Union Investment currently holds seven real estate assets in Dublin worth around EUR 770 million. The Hamburg-based real estate investment manager will continue to monitor the Dublin market for potential acquisitions in 2020.
On the transaction Union Investment was commercially advised by HWBC and legally by A&L Goodbody.