Tuesday 21 May 2019

Green REIT strikes €155m deal to acquire Central Park

Central Park block H
Central Park block H

Paul O'Donoghue

Irish property investment firm Green REIT has reached a conditional deal worth €155m with its joint venture partner to acquire full control of Central Park in Leopardstown in south Dublin.

Central Park is made up of six modern office buildings covering approximately 691,000 square feet in Leopardstown. Tenants include Vodafone, Merrill Lynch and Ulster Bank.

The deal will increase Green REIT's stake in the building from 50pc to 100pc. It is acquisition is conditional on the approval of the Competition and Consumer Protection Commission.

The €155m purchase price is a 2.7pc higher than the building was valued at in a valuation carried out at the end of June.

Green REIT also announced it is deploying an additional €20m towards the construction of a new office block at the complex,  block H.

Block H is an office building of 147,000 square feet over eight floors. Construction on the block started in April.

Green REIT said the additional €20m will cover 100pc of the costs to complete the building. It will be funded from the Company’s revolving credit facility with Barclays Bank.

Chief executive Pat Gunne said: “We are delighted to acquire full control of Central Park, which is widely acknowledged as Ireland’s premier business park.

"The development of Block H is now well underway and the park is fully occupied following our latest lease deal to Sage for 45,000 square feet.

"We are excited to be delivering this building into the market in the early stages of the Dublin office development cycle, with estimated completion in December 2016.

He added: "Our intention, on the back of this acquisition, is to sell a number of assets in 2016 in order to stay within our intended total gearing level of 25pc."

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