Irish insurance and pensions giant Irish Life has acquired a 16,000 m2 distribution centre in the greater Dublin region for a price understood to be around €28 mln, representing a yield of 6.25%.
The seller, a private investor, was represented by WIlliam Harvey & Co. BNP Paribas Real Estate Ireland advised Irish Life.
'The international trend of increased institutional allocation to the logistics sector is now being seen in the domestic market, with investors attracted by the strong income yield and future growth potential from technology led retailing,' commented Kenneth Rouse of BNP Paribas Real Estate. 'This acquisition by Irish Life Assurance serves to highlight the continuing growth of the sector and its growing importance as retailing models continue to evolve and adapt to changing consumer patterns.'
Unit Q1 Aerodrome Business Park, Rathcoole, is fully let to Culina Logistics Ireland on a long lease, subject to upward-only rent reviews.
'With the trend towards online shopping and the move to a centralised distribution model by many large supermarket retailers, the demand for distribution space should inevitably lead to increasing market rents and, in turn, capital values,' concluded Rouse.
