German fund to finance Dublin office development
A German asset manager will fund the construction of one of the highest profile office blocks in Dublin.
Union Investment, which has operations around the world, has agreed terms to provide financing for a new office building at Burlington Road on the capital's southside.
The block is being developed by UK firm Development Securities in partnership with the develoers Johnny Ronan and Paddy McKillen as well as hedge fund Colony Capital.
The consortium bought the site, which formally had a 1970s office building, a year ago. That building has since been demolished and work has been ongoing to clear the site ahead of new construction since that time.
The block, which is being built on a speculative basis, will ultimately provide around 172,000 sq ft of space when it is complete.
In a statement, Union Investment's head of investment management Europe Philip La Pierre commented: "After having made our debut in the Irish market this year, buying the 4+5 Grand Canal complex in Dublin's South Docklands, we are delighted to team up with Development Securities and its partners for our first forward funding deal in Dublin, adding to our extensive track record in European investment regions. This is one of the best buildings in Dublin with excellent leasing prospects."
Development Securities Matthew Weiner said: "We are delighted to be joining forces once again with Union Investment along with our partners to be continuing to build our record in the delivery of high quality office-led developments."