Development 8, a Dublin-based developer, has purchased a major portion of the industrial investment and development properties at Jamestown Business Park in Finglas, Dublin 11, for more than its €10.75m guide price.
JP McDonagh, of sales agent Knight Frank, says that the deal was the largest industrial investment deal during the first quarter of this year.
Development 8 has previously purchased similar industrial portfolios with residential development potential in the Naas Road area of the capital.
However, Jamestown Business Park's potential is considered to be longer term.
In the meantime Development 8, whose directors include Pádraig Kehoe, plans to improve some of the existing premises and build out some of the unfinished units. These include one unit with a floor area of 18,000 sq ft.
The Jamestown portfolio includes 20 units, mainly industrial units as well as a few own door offices with a total external floor area of 167,205 sq ft.
With only four units vacant, its 16 tenants generate annual rents of €919,421 of which about 75pc is derived from blue-chip tenants including the OPW, An Post and GKN Chep.
Its rent roll included income from six tenanted land plots with a total area of 4.5 acres.
The deal also included a six-acre site with partially completed warehouse units.
Mr McDonagh pointed out that as the properties are zoned Z6, they may have potential for residential development.
Meanwhile, Knight Frank's first quarter review says the industrial market's strong performance belies the current turmoil that Covid -19 has inflicted on industrials.
"Letting and investment deals in Q2 will be substantially down while commencement dates for upcoming developments will also be re-evaluated. Due to the uncertainty, we could see some softening in prime rents and yields from their current levels of €105 per sq m and 5.25pc," says its analyst John Ring.
However, he said Covid-19 could boost demand for space as occupiers transform their supply chains to accommodate increased stock levels in order to withstand future shocks while demand for logistics space will be increased by online shopping.