Irish developers Ardstone and Hardwicke have sold a Dublin office project named Velasco to insurer Irish Life.
The deal, believed to be at a figure in the region of €58m, comprises the vacant building, due for delivery in the first half of 2017.
The asset is located on the corner of Grand Canal Street and Clanwilliam Place and will provide eight storeys of Grade A offices over nearly 5,000 m2. It is targeting a LEED Gold and BER A3 rating.
'After many years of no new development stock being constructed, the first schemes are now coming out of the ground and changing the landscape of Dublin’s skyline. Irish Life is delighted to take ownership of a new Dublin City landmark,' commented Martin OReilly, head of property at Irish Life.
'Velasco will offer a fantastic opportunity for occupiers to locate in the heart of Dublin and enjoy all the benefits that brings for their staff. This acquisition represents another active 'enhance to core' play by Irish Life in the Central Dublin office market. Other notable examples include the ongoing development of 1GQ at Georges Quay and refurbishment at 2-4 Merrion Row, following successful refurbishment and releasing projects such as Georges Dock in the IFSC and 30 Herbert Street.'
John Moran, CEO of JLL Dublin who advised Ardstone and Hardwicke on the sale said that 'the price achieved is reflective of the both the quality of the building and its pivotal location at the axis of the traditional city core and the South Docks'.
Ardstone and Hardwicke, who collaborated on the development, have lately completed a number of Dublin deals. In November, Ardstone disposed of 2 Habourmaster Place in the IFSC to German fund Real IS. Ardstone and Hardwicke also recently completed the refurbishment of 100 Mount Street, which is fully leased and is believed to be under offer to an international purchaser.
Irish Life has been very active in the Irish market over the last three years having acquired €800 mln of direct property, including the ‘Sovereign Portfolio’ in 2015 for more than €150 mln and Hume House Ballsbridge this year for €35 mln.
'The office investment market remains attractive to core Irish and European investors due to the dynamics in the market at present,' noted Johnny Horgan, executive director, Capital Markets, CBRE who advised Irish Life. 'The pipeline of Grade A office accommodation is positive and the ability to deliver excellent accommodation, such as Velasco, is an attractive proposition for any investor.'
