Kennedy Wilson acquires four Dublin offices for €24.9 million
Kennedy Wilson, the US property investment group, has acquired four offices in Dublin for €24.9 million.
Kennedy Wilson acquired Bank of Ireland’s real-estate business in 2011. The company said it had bought the offices from an unnamed British bank and from the National Asset Management Agency (Nama).
The four offices total 72,200 sq ft with a capital value per square of €633, a 54 percent discount to prime. The yield on cost is 5.7 percent but Kennedy Wilson said the portfolio was currently under-rented.
Kennedy Wilson said it had bought two properties in Dublin’s South Docks on Sir John Rogerson’s Quay from Nama for €11.8 million. It said it had also completed on two South Dublin suburban office assets from a UK bank for €13.2 million reflecting a capital value of €245 per square foot.
“This portfolio is well located, increasing our footprint in both South Docks and the attractive South Dublin suburbs, where we see increased supply demand pricing tension. The portfolio benefits from asset management angles with relatively short term income to expiry and a number of near term leasing events where the current rents are materially below market rents,” said Peter Collins, head of Ireland at Kennedy Wilson Europe.
“We expect to grow the portfolio rent by c. 14 per cent through a combination of leasing up of void space and growing in place rents to closer to estimated rental values, generating a stabilised yield on the portfolio of c. 6.5 per cent,” he added.
Kennedy Wilson Europe meanwhile reported progress on a number of developments in its Irish portfolio, which include The Shelbourne Hotel, Stillorgan Shopping Centre, Baggot Plaza, Portmarnock Hotel and Golf Links and Central Park in Dublin 18.
Kennedy Wilson have over 450 employees in 25 offices throughout the United States, the United Kingdom, Ireland, Jersey, Spain and Japan and work with over 4,000 operating associates.