Irish real estate fund IPUT has acquired a portfolio of commercial property assets from the Bank of Ireland Staff Pension Fund in an off-market transaction valued at €115 mln.
Irish real estate fund IPUT has acquired a portfolio of commercial property assets from the Bank of Ireland Staff Pension Fund in an off-market transaction valued at €115 mln.
The deal will provide IPUT with a blended income yield of 7% and increases the value of assets under management by IPUT to over €1 bn, the company said in a statement.
The ‘Salix’ portfolio comprises 13 institutional-grade investment properties situated throughout Dublin and extending to over 70,000 m2. Significant tenants include IDA Ireland, Ericsson, BWG Foods, Topshop and B&Q, with the assets generating €8.4 mln per annum.
Key retail assets include 6/7 St. Stephens Green, Dublin 2, which extends to 2,500 m2 and is occupied by Topshop; a 50% interest in a 9,940 m2 retail warehouse in Liffey Valley Retail Park which is occupied by B&Q plc under a long term lease.
The portfolio also includes North Dublin Corporate Park in Swords which comprises of five industrial units and extends to over 9,940 m2, and two adjoining high bay warehouse units in Kilcarberry Distribution Park on the Nangor Road, Dublin 22, which offer 22,294 m2. Office buildings include Ericsson’s Dublin head office in Clonskeagh, Dublin 14.
JLL advised the vendor on the transaction.
Commenting on the deal, Niall Gaffney, Chief Executive of IPUT, said: 'The acquisition will further strengthen the long term income returns for IPUT investors.'
IPUT
IPUT is the longest established property fund in Ireland with returns stretching back almost 50 years. It manages a €1 bn debt-free portfolio of commercial real estate. IPUT is regulated by the Central Bank as an internally managed QIAIF (Qualifying Investor Alternative Investment Fund).
According to Domhnaill O’Sullivan, investment director at Savills Ireland, one of the defining features of the investment market in the country has been the return of the Irish institutions. 'Demand from Irish institutions was bolstered by the introduction of Ireland's first REIT, which invested €202 mln during the course of 2013. With others likely to follow, we expect that REITs will form a significant part of overall market demand going forward. This, in tandem with increased demand from established institutions such as IPUT, will further underpin an already strong investment market.'