Fully let retail park in Dublin acquired for a specialist institutional fund
Union Investment has acquired “Gulliver’s Retail Park” in the north of Dublin. This investment marks the Hamburg-based property manager’s entry into the Irish retail market. Union Investment is placing the property in an open-ended specialist property fund for institutional investors. The seller is Ambercrest Limited Partnership. The parties have agreed not to disclose the purchase price.
“We are delighted to have made our first acquisition in the Irish retail market with this core investment, which fits perfectly with our long-term strategy,” says Jacob Thompson, Senior Investment Manager for the UK & Ireland at Union Investment, based in London. “The supply of retail parks in Dublin remains extremely limited, and this subdued trend is likely to continue for the foreseeable future.”
The retail park, which was built in 2006 and has been gradually expanded, comprises around 14,590 m² of lettable space and is currently fully let. “The property offers the fund a high degree of income security. Furthermore, we consider the potential for rental growth to be exceptionally high, given the strong tenant demand, the excellent location, the promising prospects for the site and the restrictions on the development of new retail parks in the Greater Dublin area,” says Michael Kammerzell, fund manager at Union Investment.
The shopping centre’s anchor tenant is a Lidl store covering an area of around 1,860 m², which – like the second major tenant, the Irish retail chain The Range, which specialises in household goods, garden and leisure items – has committed to the site for the long term through a new lease. Other tenants include, amongst others, Eurospar, EZ Living Interiors, McDonald’s, Costa Coffee and Jysk.
“Gulliver’s Retail Park” is situated in an established, highly visible location near the M50 motorway, where well-known retailers such as IKEA – with its only flagship store in Ireland –, Tesco – with a distribution centre – and Decathlon have set up shop. With the planned opening of a Metrolink station in the immediate vicinity of the retail park, the catchment area – which currently comprises over 400,000 residents – is set to expand further.
Union Investment’s open-ended property funds have had a presence in Dublin since 2015. The regional portfolio comprises eleven properties and covers the main property sectors: offices, hotels, residential and, now, retail.
