Dublin's Charlemont Exchange office complex has been acquired by Korean institutional investors for €145 mln in Ireland's largest office transaction of the year so far.
Savills Investment Managment (Savills IM) completed the purchase from Market Property Group on behalf of investors managed by Vestas Investment Management. It is understood that Hana Financial Group took a 100% share after turning down a proposed joint bid with Daishin Securities. The underbidder was another Korean investor, Meritz Securities.
Phase 1 of the building (blocks A-C) has undergone a full refurbishment with LEED Gold certification, while a revamp of Phase 2 (block D) is expected to be completed in Q4 2019. The deal has been split between an acquisition of Phase 1 and a forward commitment to buy Phase 2, for a total outlay of €145 mln. As well as being the first €100 mln-plus transaction in Ireland's office market this year, the deal reflects a yield of 4.5%.
Savills agreed to lease the building in October last year to flexible office space provider WeWork on a 20-year term.
Alistair Ennever, transaction manager at Savills IM, said: 'The asset is uniquely positioned to benefit from ongoing developments in the immediate vicinity as well as future infrastructure improvements. This, combined with the quality of the building delivered by Marlet, made it an attractive opportunity for our investors.'
Hana has been active in European markets since the start of 2019, having also acquired Le Cristalia, an office building west of Paris let to US pharmaceutical firm Bristol-Myers Squibb, for €172 mln last month. That deal was closed just after a consortium between Hana Financial and NH Investment & Securities lost out on the Tour Majunga office tower in the French capital's La Défense district.
Savills IM and Vestas were advised by A&L Goodbody, while Savills and Mason Hayes Curran acted for Marlet on the sale and leasing transactions.