South Korean REIT Pays €106M For Dublin Landings 2
South Korean REIT JR AMC has acquired Dublin Landings 2 for €106.5M.
Hana Financial Group was previously reported to have been on the verge of acquiring the building and it is understood that the Seoul-headquartered banking holding company will still be involved in the sell down.
Developed by Ballymore and Oxley Holdings, the eight-storey, 100K SF building is let to WeWork on a 20-year lease with no break options. Neighbouring occupiers in Dublin Landings include the Central Bank of Ireland and the NTMA.
According to Colliers, which acted on behalf of the purchaser, the initial rent is €4.87M per year (around €50/SF), with a fixed uplift to €5.38M (€55/SF) in year five. The sale price equates to a 4.21% net initial yield and reversionary yield of 4.65% at year five.
The acquisition is JR AMC’s first in the Irish market. Earlier this year, the REIT completed its first investment in Europe, when it bought a 327K SF office building in Vienna for €60M.
“Strong public transport links, long lease, reversionary rent and the quality of the adjoining occupiers all contributed to the acquisition strategy for Dublin Landings 2,” Colliers Director, Investment Michele McGarry said.
“JR AMC really like Ireland and in general the Koreans like Ireland and I think we’re going to see a lot more of them here in 2019.”