Home > Ireland > Union Investment acquires planned office property in Dublin

Union Investment acquires planned office property in Dublin

Written by Robert McHugh, on 31st Jan 2020. Posted in Ireland

article headline

It was announced today that 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 end of 2021. 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.

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 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.

Speaking this week, Head of Investment Management Europe at Union Investment Real Estate GmbH, Martin Schellein said, "Dublin’s vibrant office market is currently attracting the interest of international investors. This is particularly true with regard to Union Investment. The 2 Grand Parade development is the fourth office property we have acquired in Dublin in the last months. The influx of international companies and the expansion plans of office users already based in Dublin are creating excellent conditions for letting speculative developments and for achieving corresponding value growth"

Source: www.businessworld.ie 

More articles from Ireland

image Description

Vodafone Ireland announces 120 jobs and €35m investment

Read more
image Description

Infineon Technologies to create 100 Irish jobs

Read more
image Description

Buymedia to create 100 jobs in Galway

Read more
image Description

Accenture Opens New Generative AI Studio in Dublin

Read more
image Description

63% of businesses in Ireland to increase AI spend in 2024

Read more