Deka acquires Dublin Baggot Plaza for €141.8m (IE)

Deka acquires Dublin Baggot Plaza for €141.8m (IE)

Kennedy Wilson has completed the sale of Baggot Plaza, a wholly-owned, unlevered Grade A office building located in Dublin’s city centre, for €141.8m ($165.4m) to Deka Immobilien. The sale reflects a net initial yield of 4%.

 

Kennedy Wilson acquired the 92,000ft² 1970s building on Upper Baggot Street as part of the Project Opera non-performing loan portfolio in 2013. After securing vacant possession, the company received planning consent for a ‘back to frame’ redevelopment. This added 37,700ft² to the building, including a signature triple-height atrium, and transformed the building into a Grade A, corporate HQ with LEED Gold certification. In May 2015, the Bank of Ireland signed a 25-year lease agreement for occupation in July 2016 at market-leading rents for the time, generating a stabilized yield on cost of 8.6%. 

 

Ali Rohan, Head of Ireland, Kennedy Wilson Europe, said: “Baggot Plaza showcases the breadth of our investment, development and asset management capabilities. Having opportunistically acquired the building as part of a larger NPL portfolio, we saw the market timing potential of a comprehensive refurbishment versus a knock-down and rebuild strategy, and delivered a significant, long-term lease to a creditworthy occupier. Smart reuse of the existing structure allowed us to achieve a LEED Gold rating while working with Bank of Ireland to help create an innovative new space for its city centre staff.”

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