Deutsche Finance International makes first Irish real estate investment
London-based fund manager Deutsche Finance International (DFI) has made its first Irish investment with the acquisition of a hotel and a car park.
DFI, which specialises in operational real estate, has teamed up with BCP Capital to buy the Central Hotel on Exchequer Street and Trinity Street Car Park in Dublin for an undisclosed amount.
In a joint statement, the companies said the joint venture intends to undertake a capital expenditure programme to refurbish the hotel, add rooms and improve the food and beverage offering.
Windward Management has been hired as the hotel operator.
Trinity Street Car Park, which is walking distance from the Central Hotel, comprises 171 car-parking spaces with ancillary retail and office use over five floors.
The companies said they plan to enhance the asset’s income through the activation of potential alternative uses within the property.
Earlier this month, DFI raised €436m for DFI European Value-Add Fund, its debut fund, enabling it to assemble a portfolio of European real estate worth €856m.
Paul Nearchou, Director at DFI, said: “These are our first investments for the fund in Ireland, allowing us to create value in prime locations and benefit from highly supportive structural trends, including an undersupplied commercial real estate market; strong GDP growth; and high levels of foreign direct investment.”
Gavin Neilan, co-founder and co-managing partner at DFI said: “Following the recent close of our €436m inaugural fund, we are in a strong position to take advantage of the opportunities we see in markets across Europe, such as this one, which is consistent with our strategy to focus on operational real estate where we identify an exciting opportunity for value creation.”
Nick Cullen, CEO at BCP Capital, said: “By leveraging our expertise of the Dublin market, along with DFI’s experience in operational real estate, these initial investments are expected to deliver significant returns through an active asset management programme.”