DTZ Investors has acquired €160m Tesco Irish Distribution Facility off-market on behalf of a South Korean investor. Located in Dublin, Ireland, the 788,000ft² warehouse is a purpose-built facility and benefits from a lease guaranteed by Tesco Plc until 2032 and annual upwards only indexation in line with CPI. The transaction marks the company's third acquisition in 2019 on behalf of South Korean clients, following the successful acquisitions of Main Point Pankràc, Prague (€130m) and Queens Towers, Amsterdam (€130m) earlier this year.
David Peacock of DTZ Investors commented: “This off-market acquisition is an exceptional example of identifying a suitable investment opportunity that meets our client’s investment objectives and executing successfully on what is the largest single-asset logistics transaction in Ireland. The income profile, in terms of length and escalation, and strength of the Tesco plc credit provides for very attractive income investment characteristics. The transaction profile is further enhanced when considered against the backdrop of the very restricted supply of logistics assets of scale in Ireland and the building’s importance to Tesco’s Irish operations.”
