German-based real estate investment manager Union Investment has acquired 2 Grand Parade, Dublin, from Hines and Peterson Group.
The building, which comprises of around 9,600 sq m of rental space, is currently being constructed and is scheduled for completion by end of 2022.
The price paid for the acquisition has not been disclosed, however following the transaction Union Investment will hold seven commercial property assets in Dublin collectively worth around €770m.
Martin Schellein, head of investment management Europe at Union Investment Real Estate, said: “Dublin’s vibrant office market is currently attracting the interest of international investors.
The influx of international companies and the expansion plans of office users already based in Dublin are creating excellent conditions for letting speculative developments and for achieving corresponding value growth.”
The company said it will continue to monitor the Dublin market for potential acquisitions this year.
The development at 2 Grand Parade consists of two building sections.
Around a third of the rental space is located in a historic existing building dating from 1964, known as the Carroll’s Building because it was used by PJ Carroll’s Tobacco for many years. This building is being “extensively” upgraded as part of the development.
The remaining two thirds of the rental space is located in a new build linked to the existing building.
Union Investment was commercially advised on the deal by HWBC and legally by A&L Goodbody.
Founded by over a dozen co-operative and a number of private banks, Union Investment manages a €359bn fund.
Its real estate assets under management currently stand at €46.6bn.