Iput, Ireland’s largest unlisted fund, saw rental and capital values rise in 2017, even as its growth rate slowed in the final quarter.

The fund's net asset value per share increased by 5% in 2017, in spite of a rise in stamp duty from 2% to 6%.

In the final quarter it said its net asset value had increased by 2.7% compared to an increase of 5.9% between the second and third quarter. The fund has a net asset value of €2.3B and invests in offices, retail and industrial properties.

The main driver of value for the fund was an increase in rental income, which rose 6% in 2017. Capital values were flat. Overall the fund produced a total return of 9.5%.

The key drivers of growth in the fourth quarter were the added value developments at 10 and 40 Molesworth St., Dublin 2.

AIB signed a lease at 10 Molesworth St. in October. The bank, which is still largely owned by the taxpayer, will occupy the entire seven-storey, 114K SF building on a 20-year lease. Rent for the building, is reported to be €57.50/SF.

Specsavers have signed a 15-year lease for 3,837 SF of retail space on the ground floor of 40 Molesworth St.

These developments as well as other value-added projects delivered 46% of the total increase in 2017, a trend which is expected to continue in the medium term.

Iput also said demand for office space at the Exchange development in the IFSC was reported to be strong with a number of deals in the final stages. Once completed these lettings will add €1.2M to the fund’s rental income.

The fund completed the €63M off-market acquisition of Gardner House in Dublin 2 in the fourth quarter. The building is currently occupied by LinkedIn. This acquisition has allowed the fund to take full control of the entire Wilton Estate scheme.

The fund also acquired a unit in the Northwest Business Park in Dublin 15 for €12.3M and it sold 73, 74 and 75 on Patrick Street, Cork, for €6.5M.