Swiss Life Asset Managers (SLAM) has acquired a new-build mixed-use property in Dublin for €27 mln.
Located at 47-51 South Richmond Street in the Irish capital, the Lennox Building was completed in March this year. It covers a total of 10,195 m2 across three floors, comprising office space and a restaurant.
SLAM made the acquisition via a fund, reflecting a net initial yield of 4.8%. All capital was provided by Mayfair Capital, which is a subsidiary of the Swiss company.
The transaction marks the fund's first Irish deal, in a sign of Dublin's attractiveness to overseas investors navigating Brexit uncertainty.
'We are pleased to have acted for the Swiss Life fund in making its first purchase in Ireland; the first since Mayfair Capital became part of Swiss Life in November 2016.,' noted Mayfair Capital chief executive James Thornton. 'This follows two acquisitions we made for the same fund in Oxford and Leeds in early 2018 and total some £100 mln.'
Welcoming the purchase, Renato Piffaretti, head real estate Switzerland at SLAM, said: ‘The acquisition fits perfectly to our investment strategy with focus on properties with stable value in European metropolitan regions. Therefore, we offer institutional investors access to a real estate portfolio broadly diversified by country and sector.’
Phil Sturdy, investment director at Mayfair Capital, said: ‘Dublin has had strong take-up levels in recent years and attracted a range of expanding tech businesses. The Lennox Building is located in an improving business area of the city, opposite the proposed Charlemont Square mixed-use development.’
The Lennox Building was built by developer Oakmont with financial backing from Core Capital. The majority of the building is occupied by an office space provider, under a 25-year lease. The restaurant is occupied by on a 25-year lease.
JLL advised Mayfair Capital and Knight Frank advised the vendor, Oakmount and Core Capital.
