French Funds Continue To Flex Financial Muscle In Dublin Office Market
Value-seeking French funds have continued to target the Irish commercial real estate market, with the latest deals increasing the presence of French investors in the office sector.
A fund managed by French real estate investor Arkéa REIM increased its Irish exposure with office acquisitions in the Waterside Innovation Campus in Citywest, Dublin, and the Parkmore East Business Park in Galway. The value of the deals was not disclosed but was understood to be more than €20M combined, The Irish Times reported.
The fully let Block 5 in the Parkmore East Business Campus in Galway and Block 5 of the Waterside Innovation Campus in Citywest were sold by Fine Grain Property and represented the third and fourth Irish acquisitions for the French fund SCPI Transitions Europe. During the summer, it also acquired Plantation House in Dublin and the mixed-use Citypoint in Galway.
The circa 17K SF Citywest property was acquired by Fine Grain Property in early 2023 and has since been upgraded and fully let to Hidden Hearing and SAP. The 46K SF Galway property is a three-storey LEED Gold office block that Fine Grain Property developed in 2018 after acquiring the land from IDA Ireland. Fine Grain subsequently leased the building to Cardiac Booster, Fotonation and Veryan Medical.
In September, French investor Atland Voisin made two investments in Dublin, paying about €11M for the circa 16K SF Kingram House on Dublin’s Fitzwilliam Place, which had been put up for sale along with 10 other properties owned by developer Ronan Group Real Estate in April.
Atland Voisin also paid €24M for 20 on Hatch, a prime office building on Lower Hatch Street in Dublin, comprising a six-storey-over-basement office building of 45K SF, with the majority of the space leased to global financial services provider MetLife.
Meanwhile, French fund Inter Gestion REIM made its second investment in Ireland’s commercial real estate market earlier this year, paying €16M for an office and retail property at 21-24 Capel Street in Dublin city centre.
Last year, French investors were behind two of the biggest deals completed in Dublin.
The 53K SF Dublin offices of law firm Byrne Wallace were snapped up by French investor Corum Asset Management after German investor AM Alpha withdrew its €43M offer. Corum eventually paid €34M at a yield of 6.6%.
Corum Asset Management debuted in the Irish market in 2016 and was one of 2023’s most active actors. It grew its Irish portfolio to 21 properties in July with an overall value of circa €575M when it acquired George’s Quay House and the F1 Building in Cherrywood for €81M and €30M, respectively. Corum purchased George’s Quay House, which spans five floors and was upgraded in 2016, at a yield of 6.2% from UK-based Henderson Park.
