German fund manager Union Investment has acquired an office property in Dublin's South Docklands district for €190 mln from the property's developer, TIO South Docks Fund.
'The Docklands area of Dublin is one of the most dynamic office markets in Europe at the moment,' said Martin Schellein, head of investment management Europe at Union Investment Real Estate.
The asset, 5 Hanover Quay, was built in 2018 and offers some 15,000 m2 of rental space, fully let to technology companies DocuSign International and Aptiv Global Operations. It is LEED Gold certified.
'The existing tenants, DocuSign International and Aptiv Global Operations, are both well-established, successful businesses, which lends added investment security. We also rate the quality of the building as outstanding,' Schellein added.
The acquisition is being made on behalf of open-ended real estate fund UniImmo: Europa and marks the fund’s third office deal in Dublin. In 2015, UniImmo: Europa purchased 4 and 5 Grand Canal Square, also in South Docklands, which are currently occupied by Facebook.
Vacancy rates in the Dublin office market are currently under 6%, according to Union Investment, and under 3% in the South Docklands submarket. Planned construction projects such as the Grand Canal Innovation District - due to be built as part of Trinity College - will further enhance the value of the location.
Following the acquisition of 5 Hanover Quay, Union Investment now holds five commercial properties in Dublin worth over €620 mln in total, the fund manager said, with the market being monitored for further opportunities.
In June 2019, the Hamburg-based firm announced the acquisition of Ballast House for UniInstitutional European Real Estate.
Union Investment was advised on the legal aspects of the deal by A&L Goodbody.