Global investment firm KKR and Palm Capital have agreed to forward-fund two logistics warehouses at Greenogue Business Park, in Dublin, with an end value of €85m (£72m).
The deal is thought to be the largest logistics forward funding commitment in Dublin since the financial crisis.
KKR’s investment is being made through its Real Estate Partners Europe fund. The acquisition is Palm Capital’s first logistics deal in Ireland, made through the Palm Logistics business arm.
The partners will acquire the 450,000 sq ft development at the 350-acre logistics campus from Jordanstown Properties.
The site is located close to the M7, a 20-minute drive from Dublin Airport. Development is expected to complete in 2021.
Guillaume Cassou, partner and head of European real estate at KKR, said: “Logistics is a key area of focus for our European real estate platform and a part of the market where we continue to see positive momentum, and this transaction builds on our track record in the space following recent investments across Italy and Spain.”
Reda Khatim, managing partner at Palm Capital, said: “Compared to the UK and Northern Europe, the logistics market in Ireland is less mature and structurally undersupplied, with pent-up demand for high quality space being fuelled, in part, by the rise of e-commerce as well as the general supply chain rationalisation.”
Palm Capital and KKR were advised by Savills and JLL acted for Jordanstown Properties.
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