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German asset manager MEAG has agreed to acquire the 18 Newmarket Square build-to-rent project in The Liberties, Dublin 8, for close to €80M, according to Green Street News.
MEAG, which is the asset manager for reinsurance giant Munich Re, is in exclusive talks to acquire the prime residential asset from the development joint venture of Revelate Capital and Valpre Capital.
The German investor is advancing the deal for one of the few BTR complexes to come to market in Dublin this year, which had been expected to attract widespread investor interest, and the purchase price reflects a net initial yield in the region of 5%.
Newmarket Square totals 134 apartments and includes 79 one-bed units, 46 two-bed homes, seven three-bed homes and two studios. The asset will be a nearly zero-energy building and is aiming to achieve BREEAM In-Use, WiredScore Silver and HPI Silver accreditation.
CBRE is advising Revelate Capital and Valpre Capital on the deal.
MEAG is also in negotiations to buy 2 Dublin Landings, a 100K SF office building that is majority leased to WeWork. It was marketed for sale by Savills earlier this year with a €60M guide price, on behalf of receiver Deloitte Ireland, but the agreed price is expected to be closer to €50M.
WeWork occupies all of the building other than the two penthouse floors, and the asset generates more than €4M of rent annually, with 12.2 years to the next lease event.
Located in Dublin’s North Docklands, it is part of the Dublin Landings scheme, which includes offices, residential, retail and hotels. Negotiations have been going on for some months, and the price is a significant reduction on the €106.5M that the building sold for in 2018.
The circa €50M sale price also falls short of the €60M loan German bank Helaba provided to the building’s previous owners, South Korean REIT JR AMC and Hana Financial Investment, when they acquired the property in November 2018 through German investor KanAm Grund. Helaba appointed Deloitte as receiver to recover the money owed to it in February last year.
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