Union Investment has acquired a planned office property at 2 Grand Parade, Dublin, from Hines and Peterson Group. The building, which comprises around 9,600m² of rental space, is being constructed on a speculative basis and is scheduled for completion by mid of 2022. The developer is Hines and all parties agreed not to disclose a purchase price. The acquisition is being made on behalf of open-ended real estate fund Unilmmo: Deutschland.
The development at 2 Grand Parade consists of two distinct building sections. Around a third of the rental space is located in a historic existing building dating from 1964, known locally as the Carroll’s Building because it was used by Carroll’s Tobacco Group for many years. This building is being extensively upgraded as part of the development. The remaining two-thirds of the rental space is located in a new build linked to the existing building. This property is being constructed in a cascade design which will allow it to accommodate attractive roof terrace areas and other features. LEED Gold certification will provide proof of the property’s sustainability. The building is located right next to Charlemont tram stop. This is also expected to be the site of an underground station for Dublin’s planned MetroLink system at a later date, with initial preparations already having been made.
“Dublin’s vibrant office market is currently attracting the interest of international investors. This is particularly true with regard to Union Investment. The 2 Grand Parade development is the fourth office property we have acquired in Dublin in the last months. The influx of international companies and the expansion plans of office users already based in Dublin are creating excellent conditions for letting speculative developments and for achieving corresponding value growth,” said Martin Schellein, Head of Investment Management Europe at Union Investment Real Estate.
“This is our first transaction with Union Investment in Ireland and we very much welcome this exciting new partnership. The project incorporates an imaginative restoration of a landmark building combined with a sensitively designed extension to the rear, all of which will combine to deliver a modern office complex at 2 Grand Parade,” said Brian Moran, Senior Managing Director of Hines. “The demand for new office space remains very buoyant in Dublin city centre with the market characterised by strong and consistent take-up of new developments and high pre-lettings of developments currently under construction. 2 Grand Parade will be a grade-A office development in a prime location, with excellent connectivity to the city’s public transport networks.”
