KKR and Palm Capital acquire new 453,000 sq ft (42,000 sq m) Grade A logistics development in Dublin
KKR, a global investment firm, and Palm Logistics, a dedicated affiliate of pan-European real estate private equity and special situations firm Palm Capital, have agreed to forward fund the development of two prime, Grade A logistics warehouses at Greenogue Business Park, Dublin by Jordanstown Properties.
The transaction is thought to be the largest logistics forward funding in Dublin post the financial crisis with a gross development value of approximately EUR85 million.
The c42,000 sq m development, which is situated on one of Ireland’s biggest logistics campuses at c350 acres, is being undertaken speculatively with completion due in 2021. Located just off the M7, the development is just 20 minutes’ drive from Dublin Airport and offers direct access to the M50 Dublin orbital motorway network, connecting it to the rest of Ireland.
In line with the strong focus on sustainability from both investors, the building is targeting LEED certification and, if certified, would be one of the first logistics developments in Ireland to receive this accreditation.
Guillaume Cassou, Partner and Head of European Real Estate at KKR, says: “Greenogue Business Park is a quality, well-located development in a market with favourable structural growth drivers. Logistics is a key area of focus for our European real estate platform and a part of the market where we continue to see positive momentum, and this transaction builds on our track record in the space following recent investments across Italy and Spain.”
Reda Khatim, Managing Partner at Palm Capital, says: “We have been monitoring the Irish market for some time and this transaction presents a fantastic opportunity to expand our portfolio into one of Europe’s fastest growing economies. Compared to the UK and Northern Europe, the logistics market in Ireland is less mature and structurally undersupplied, with pent-up demand for high quality space being fuelled, in part, by the rise of e-commerce as well as the general supply chain rationalization.”
KKR’s investment is being made through its Real Estate Partners Europe fund.
Palm Capital and KKR were advised by Savills whilst JLL acted for Jordanstown Properties.