Fine Grain Property has acquired The Three Building, a 47K SF office at Plassey Innovation Campus just outside Limerick city centre, for €7.5M.

The acquisition by the Irish-owned property investor, backed by Grosvenor and several European and Singaporean family offices, brings Fine Grain’s holdings at the location next to the University of Limerick to five buildings and close to 260K SF.

The deal represents a net initial yield of 7.8%, with a tenant base providing a weighted average unexpired lease term of 9.2 years at a level of income return exceeding that in the core Dublin market, Fine Grain said.

Fine Grain added that it will upgrade the building to a modern, carbon-efficient standard.

Fine Grain Property has invested more than €300M in Ireland since 2016 across three funds, with a mandate to buy “overlooked or under managed assets and proactively drive value through strong tenant engagement, ESG enhancements, and innovative asset repositioning,” the company said.

In the six years since its first acquisition at Plassey Innovation Campus, Fine Grain has been growing its presence in the location with greenfield development and refurbishments. It has also developed workspaces, including one of Limerick’s only LEED Gold offices.

Fine Grain’s portfolio now consists of approximately 1.2M SF of commercial real estate across 20 buildings hosting more than 68 tenants across Ireland.

“This latest acquisition consolidates our position at Plassey Innovation Campus and grows our workspace offering in Limerick to over 260K SF,” Fine Grain Property Chief Financial Officer Kevin Mahony said in a statement.

“Once we have carried out our asset enhancement plans, we are confident that the property will deliver further high-quality, long-term rental income, while providing considerable capacity for future growth.”