Union Investment is entering the Irish logistics market with the acquisition of a distribution centre in Newbridge, County Kildare.
The international clothing retailer Primark, which operates as Penneys in the Republic of Ireland, is aiming to open the new distribution centre by the end of summer 2024.
The project will be developed by means of a forward funding structure by Barola Capital DAC. Primark is investing an additional €75 mln and the facility will comprise of a distribution centre, warehouse and office space on a 38-acre site.
The acquisition is being made on behalf of institutional real estate fund UniInstitutional European Real Estate. The parties have agreed not to disclose the purchase price.
‘Ireland has become an attractive location for logistics investment due to its increased transaction volumes and enhanced liquidity. Despite concerns about the impact of Brexit and the coronavirus pandemic, demand from tenants remains high in the Irish logistics market. The shortage of suitable space is a key driver of the market,’ said Stephan Riechers, head of logistics investment at Union Investment Real Estate.
Union Investment’s European logistics portfolio is worth around €1.6 bn and comprises 29 properties across Germany, France, the Netherlands, Ireland and Switzerland.
Union Investment was advised by Knight Frank, A&L Goodbody and Drees & Sommer. Barola Capital DAC was advised by JLL, Savills, Arthur Cox and Quartz Project Services.
