Aviva Investors has acquired a hotel project in Ireland on behalf of its European Real Estate Long Income (E-RELI) Fund.
The asset manager has invested an undisclosed amount to buy the asset located at the junction of Gloucester Street and Princes Street South in Dublin.
The hotel, which is scheduled for completion at the end of the year, is let to hotel chain Premier Inn.
Aviva Investors will be working with Red Rock Developments in delivering the project.
Isabel Gossling, co-fund manager of the European Real Estate Long Income Fund at Aviva Investors, said: “In line with the overall strategy of the fund, we expect this asset to provide investors with consistent long-term income which is underpinned by an investment-grade covenant and, importantly, linked to inflation.
“Current market conditions are reinforcing investor demand for assets of this nature, which we expect will continue to grow over the course of this year.”
David Carroll, CIO at Red Rock Developments, said: “It has been a pleasure dealing with Aviva Investors’ European Real Estate Long Income Fund on their first transaction in Ireland which we hope will deliver secure long-term returns for their investors.
“The Gloucester Street building is a unique asset offering inflation-linked long-term income, a FTSE-listed occupier/operator, and delivering the requisite ESG credentials required by long-income investors. We look forward to completing the development later this year.”
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