BNP Paribas Real Estate Investment Managers has emerged as the purchaser for 8 Hanover Quay in Dublin – soon to be occupied by Airbnb.
The purchase heralds the entrance of yet another new investor to the Irish market in BNP Paribas Real Estate Investment Management – the first French buyer to acquire a Dublin property adding further gravitas to the latest real estate recovery.
8 Hanover Quay is a new build two-storey over basement modern office building located in the heartland of Dublin’s South Docks. The building, which will extend to net internal area 3,574m2 upon completion is being developed by a sub-fund of Targeted Investment Opportunities ICAV (a joint venture between funds managed by Oaktree Capital Management, L.P. (Oaktree), Bennett Group and NAMA) and constructed by Bennett Construction Limited.
This unique building provides a standalone corporate HQ and comprises a modern architectural design within the retained and restored warehouse envelope. It is designed and built to the very highest standards with an emphasis on green sustainability and energy efficiency.
This transaction is the latest in a series of pan European deals for BNPPREIM for their second Next Estate Income Fund (NEIF II). Kenneth Rouse, BNP Paribas Real Estate commented: “This is an important acquisition for our colleagues in REIM and gives them exposure to a new jurisdiction. BNPPREIM have been very encouraged by the Irish recovery particularly with the robust employment growth which is having a positive impact on office take-up. Additionally from a relative value perspective, Dublin remains at an attractive point in the cycle with rental and capital values below their pre-crisis peak compared to other continental markets.”
According to Savills there was significant local and international interest in the sale of 8 Hanover Quay. Brendan Delaney of Savills commented: “The sale is a further endorsement of the Irish investment market and continued strong performance within the Dublin office market. The initial yield of 4.41%, capital value of €832 per sq.ft illustrates that core investors and new entrants are attracted to Ireland which is now seen as entering into a period of stability in the current cycle.”
Justin Bickle, Chairman of TIO ICAV and Managing Director of Oaktree commented: “With the construction of 8 Hanover Quay, our vision to develop quality office space in the heart of Dublin’s Docklands is now becoming a reality. We’re delighted that BNP Paribas has chosen this unique building for their first Irish investment which is a clear endorsement of Dublin as a thriving hub for foreign direct investment. As the Irish economy continues to grow, demand for office space in the South Docks will remain strong; we remain committed to office development in the area and look forward to bringing more projects to market in the coming years.”
Kenneth Rouse echoed a number of the same points and highlighted “the strong location, the green element of the new build, excellent public transport links and the international covenant” were principally appealing to BNP Paribas Real Estate Investment Management.
