Irish property investor Derek Quinlan has paid €103m (£69m) to KBC Asset Management for its remaining Irish property portfolio.
John Moran, Capital Markets Director of Jones Lang LaSalle, who handled the sale for KBC, said the price achieved represents a yield of 3.8% and an equivalent yield of 4.3%, a record price for this type of portfolio.
The portfolio produces a current rent of €5.6m a year (£3.8m) and has reversionary potential.
It includes six offices in prime locations in Dublin, a retail building in Cork and a well-situated warehouse near the M50, Dublin’s outer ring road.
Frank Close, director of property investment at KBCAM said: “We intend to use some of the proceeds to diversify into Europe and will be launching a fund of funds product for this purpose next spring.”
The most valuable of the properties is Oldbrook House, a Dublin office block located across the road where a 2.05-acre brownfield site last week sold for a record €171.5m (£116m).
The 2,941 sq m (31,656 sq ft) Oldbrook House is currently generating almost €1.3m (£800,000 pa) from a lease to IBM which is due to expire in less than four years.
It had been guided by JLL at €23.75m (£16.6m).
KBC is the latest fund manager to announce its plans to diversify from the Irish to the European property investment market.
However KBC will retain some exposure to the Irish property market indirectly through the Irish Property Unit Trust.
KBC Asset Management is the Irish subsidiary of Belgian bank KBC.
References: EGi News 07/12/05
