Kennedy Wilson has completed its $165.4m (£126m) sale of Dublin office block Baggot Plaza to Deka.
The sale price for the 134,700 sq ft building reflects a net initial yield of 4%. It is occupied by the Bank of Ireland, which signed a 25-year lease in May 2015.
The bank took occupation in July 2016 at “market-leading rents for the time, generating a stabilised yield on cost of 8.6%”, Kennedy Wilson said.
Kennedy Wilson said it planned to use the proceeds from the sale to acquire assets and developments in Europe.
The firm acquired the 1970s building on Upper Baggot Street as part of the Project Opera non-performing loan portfolio in 2013. A subsequent redevelopment of the 92,000 sq ft property increased the floorspace by 37,700 sq ft.
Ali Rohan, head of Ireland for Kennedy Wilson Europe, said: “Having opportunistically acquired the building as part of a larger NPL portfolio, we saw the market timing potential of a comprehensive refurbishment versus a knock-down and rebuild strategy, and delivered a significant, long-term lease to a credit worthy occupier. Smart reuse of the existing structure allowed us to achieve a LEED Gold rating while working with Bank of Ireland to help create an innovative new space for its city centre staff.”
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