Union Investment has acquired a Grade-A office development at 2 Grand Parade in Dublin, from Hines and Peterson Group. The developer is Hines and all parties agreed not to disclose a purchase price.
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 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.
”Dublin’s vibrant office market is currently attracting the interest of international investors.”
“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,” said 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, Dublin with excellent connectivity to the city’s public transport networks,” he added.
On the transaction Union Investment was commercially advised by HWBC and legally by A&L Goodbody.