IPUT has acquired the €115m (£91m) Salix portfolio of commercial property assets from the Bank of Ireland Staff Pension Fund.
The all-cash deal by the Irish commercial real estate fund reflects a blended income yield of 7% and increases the value of assets under management by IPUT to more than €1bn.
The 13-strong mixed portfolio extends to more than 700,000 sq ft, with tenants including IDA Ireland, Ericsson, BWG Foods, Topshop and B&Q.
Current rental income from the portfolio is approximately €8.4m pa.
Key retail assets include 6/7 St Stephens Green, Dublin 2; 72 Grafton Street, which is occupied by Karen Millen; and a 50% interest in a retail warehouse in Liffey Valley Retail Park, which is occupied by B&Q under a long lease.
The portfolio also includes North Dublin Corporate Park in Swords, which comprises five modern industrial units and extends to over 100,000 sq ft, and two adjoining high-bay warehouse units in Kilcarberry Distribution Park on the Nangor Road, Dublin 22, which extend to 250,000 sq ft and are occupied by BWG Group.
Office buildings include Ericsson’s head office in Clonskeagh, Dublin 14, a 50,000 sq ft office building in EastPoint Business Park, Dublin 3 and a 33% interest in the IDA headquarters, Wilton Park House, Dublin 2 which extends to 130,000 sq ft.
IPUT chief executive Niall Gaffney said: “IPUT has an established record in assisting larger institutional investors consolidate their investment in property as an asset class.
“Today’s announcement follows on from previous IPUT acquisitions of the property assets of other leading institutional investors such as the ESB, Diageo and Irish Airline Staff Pension Funds, which amounted to portfolio acquisitions of close to €200m.
“The acquisition of the Salix portfolio of institutional-grade properties will further strengthen the long-term income returns for IPUT investors.”
JLL advised Bank of Ireland Staff Pension Fund.
bridget.o’connell@estatesgazette.com
