Global investment firm KKR and Palm Logistics, an affiliate of private equity firm Palm Capital, have agreed to forward-fund the development of two prime logistics warehouses at Greenogue Business Park in Dublin.
The transaction represents one of largest logistics forward-funding deals in Dublin post the financial crisis with a gross development value of approximately €85 mln, according to KKR.
The 42,000 m2 development, which is situated on one of Ireland’s biggest logistics campuses, will be carried out by Jordanstown Properties. The project is being undertaken speculatively with completion due in 2021. Located just off the M7, the development is a 20-minute drive from Dublin Airport.
Guillaume Cassou, partner and head of European real estate at KKR, said: 'Greenogue Business Park is a quality, well-located development in a market with favourable structural growth drivers.
'Logistics is a key area of focus for our European real estate platform and a part of the market where we continue to see positive momentum, and this transaction builds on our track record in the space following recent investments across Italy and Spain.'
The building is targeting LEED certification and, if certified, would be one of the first logistics developments in Ireland to receive this accreditation.
Reda Khatim, managing partner at Palm Capital, said: 'We have been monitoring the Irish market for some time and this transaction presents a fantastic opportunity to expand our portfolio into one of Europe’s fastest growing economies.
'Compared to the UK and Northern Europe, the logistics market in Ireland is less mature and structurally undersupplied, with pent-up demand for high quality space being fuelled, in part, by the rise of e-commerce as well as the general supply chain rationalisation.'
KKR’s investment is being made through its real estate partners Europe fund.
Palm Capital and KKR were advised by Savills whilst JLL acted for Jordanstown Properties.