EUROPE – Ardstone Capital has set up a separate account strategy targeting Irish property for CBRE Global Multi-Manager, having launched a similar joint venture focused on UK regional offices earlier this year.
Ardstone has acquired Fleming Court in Dubin for €9.75m for the Ardstone Value Partners Fund, a vehicle set up exclusively for clients of CBRE Global Investors’ multi-manager arm.
The fund will target office, retail and industrial assets, primarily in Dublin, with a view to generating value-added levels of return.
In September, Ardstone announced it had acquired the Citymark office building in Edinburgh for £33.7m (€40.4m) on behalf of its UK Regional Office Fund, another vehicle set up specifically for CBRE GMM. In July it acquired the Sentinel office building in Glasgow for £25.2m for the same fund.
Ardstone avoided the Irish property market from 2002, preferring to focus on the UK and European markets, but has since returned to its domestic market.
Jeremy Plummer, CEO of CBRE GMM, said: “We see great opportunities in the Irish market and are pleased to have joined up with Ardstone again who are able to find quality, off-market deals like Fleming Court. They have the know-how in the Irish market which is consistent with our approach of investing with local specialists.”
Donal O’Neill of Ardstone said: “We are delighted to team up with CBRE GMM again to execute our Irish strategy. This asset is located in a highly sought after market, which has seen significant investment and letting activity recently. Fleming Court is very well rented at current market rents and gives our Fund a 7% annual income return.
The acquisition of Fleming Court in Dublin for €9.75m was agreed and completed before the asset was due to come to market and is the third acquisition that Ardstone has made in Dublin since March 2013.
The 29,800 sqft multi-let office building was built in 2002 and is let to six tenants including Beachcroft Solicitors, Kennelly Tax Advisors and St James Place Capital.
“We also see great asset management potential to improve the asset which will not only add value to the property but will benefit our tenants in the long-term,” said O’Neill.
“We are buying into the beginning of the rental growth cycle in Dublin and we hope to add further investments to this one very soon.”