KKR has teamed up with Palm Capital’s logistics real estate arm to fund an €85m development in Dublin.
KKR’s Real Estate Partners Europe fund and Palm Logistics have agreed to forward fund the development of two logistics warehouses at Greenogue Business Park by Jordanstown Properties.
The companies said the 42,000sqm development, which is situated on one of Ireland’s biggest logistics campuses at 350 acres, is being undertaken speculatively with completion due in 2021.
Guillaume Cassou, partner and head of European Real Estate at KKR, said: “Greenogue Business Park is a quality, well-located development in a market with favourable structural growth drivers.
“Logistics is a key area of focus for our European real estate platform and a part of the market where we continue to see positive momentum, and this transaction builds on our track record in the space following recent investments across Italy and Spain.”
Reda Khatim, managing partner at Palm Capital, said: “We have been monitoring the Irish market for some time and this transaction presents a fantastic opportunity to expand our portfolio into one of Europe’s fastest-growing economies.
“Compared to the UK and Northern Europe, the logistics market in Ireland is less mature and structurally undersupplied, with pent-up demand for high-quality space being fueled, in part, by the rise of e-commerce as well as the general supply chain rationalisation.”