Saturday 19 October 2019

Marlet sells Dublin offices to Korean firm in €145m deal

Sold: Charlemont Exchange was sold by Pat Crean’s Marlet to Vestas Investment Management
Sold: Charlemont Exchange was sold by Pat Crean’s Marlet to Vestas Investment Management
John Mulligan

John Mulligan

Vestas Investment Management has completed the €145m purchase of Charlemont Exchange in Dublin from Marlet.

The deal, first revealed by the Irish Independent last February, was the first €100m-plus property transaction of 2019 in Ireland.

The Korean firm was represented by Savills Investment Management.

Marlet, whose CEO is Pat Crean, assembled the Charlemont Exchange development through the acquisition of Charlemont Blocks A, B and C in March 2017, followed by the purchase in December 2017 of Charlemont Block D.

The combined footprint of the four-building scheme was extended from its original 94,968 sq ft to 121,270 sq ft in the course of refurbishment works. Blocks A, B and C have already been refurbished, while block D is being refurbished.

The acquisition by Vestas is structured as a purchase of blocks A, B and C, and a forward commitment to purchase block D upon completion of the refurbishment work. That work is expected to be completed in the fourth quarter.

In October last year, Marlet agreed a 20-year lease with WeWork, the world's biggest provider of flexible work space, for all four blocks at a rent of €55 a square foot.

WeWork has signed a deal with Amazon where the tech giant will be the scheme's anchor tenant on flexible terms.

Amazon is subletting between 40,000 and 50,000 sq ft of the available space to WeWork.

Separately, Amazon agreed earlier this year to rent all 200,000 sq ft of office space the McGarrell Reilly Group is developing at its Charlemont Square scheme as part of the wider Charlemont Street Regeneration Project.

The value of commercial property deals in Ireland is expected to top €2.1bn this year, Knight Frank said last week.

The property group said that there were €505.7m of investment transactions during the first quarter of 2019, which was nearly half the figure recorded in the first three months of 2018.

But Knight Frank said that the decline in investment volumes is expected to be temporary.

Dublin remained the primary destination for investment activity in the quarter, with a market share of 95pc or €482.2m of deals.

Irish Independent

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