The European real estate division of global alternative investment firm Investcorp has acquired two retail warehouses in Ireland.
Located in Letterkenny, northwest Ireland, Letterkenny Retail Park is one of the country's largest retail parks, comprising 24,433 m2, and was built in phases throughout the 2000s. It is fully leased to 34 tenants including TK Maxx, Homebase, Home Store & More, Boots, and JD Sports.
The Deerpark Retail Park in Killarney, southwest Ireland, was built in 2006 and sits next to a Tesco supermarket. Extending over 6,874 m2, the property boasts a 94% occupancy rate with tenants like Boots, Marks & Spencer, Maxi Zoo, and Dealz.
Investorp highlights the high occupancy rates, stable rentals, strong tenants, and durability of this investment in the Irish retail market.
US investment group Davidson Kempner had put the two retail parks, together with Tullamore Retail Park in Tullamore, for sale in 2022 at a guide price of €67.5 mln.
Neil Hasson, head of Investcorp European Real Estate, said: ‘This acquisition marks an expansion of our already growing real estate business in Europe, both into a new vertical of retail warehouse, but also our first transaction in Ireland. Retail continues to create attractive investment opportunities with strong return potential for investors and supports local economies and communities.’
Tom Martin, Investcorp European Real Estate, added: ‘Our first retail warehouse transaction marks an important step in the next phase of Investcorp’s real estate business in Europe. Having been investing in European real estate for several years, our entry into the retail warehouse sector will allow us to further expand and diversify our portfolio of income generating assets.’
Since starting its European real estate business in 2017, Investcorp has acquired approximately €1.4 bn of real estate assets across the UK and Europe. The portfolio includes two retail warehouse properties in Ireland, 10 office properties across Germany, the Netherlands, Belgium, Italy and the UK, as well as 34 industrial assets and over 1,250 student beds in the UK.
