DTZ Investors has acquired Tesco’s Irish Distribution Centre in Dublin, Ireland, on behalf of a South Korean client.
KTB Investment & Securities and KTB Asset Management bought the warehouse for €160m (£136m) in what is thought to be the largest ever single-asset logistics transaction in Ireland.
The 788,000 sq ft warehouse is a purpose-built facility and benefits from a lease guaranteed by Tesco until 2032 and annual upwards-only indexation in line with CPI.
David Peacock, of DTZ Investors, said: “The income profile, in terms of length and escalation, and strength of the Tesco 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.”
The deal is DTZ Investors’ third acquisition in 2019 on behalf of South Korean clients, following the acquisitions of Main Point Pankràc, Prague (€130m), and Queens Towers, Amsterdam (€130m), earlier this year.
KTB and DTZ Investors were advised on the deal by Cushman’s capital markets and debt & structured finance teams.
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