Key Takeaways
- • The Ireland Strategic Investment Fund (ISIF) is providing €100m to property company IPUT Real Estate to develop an office building at 29 Earlsfort Terrace in Dublin city centre, according to the Irish Independent.
- • IPUT's broader €500m Dublin office plan also includes the redevelopment of the Charlotte Building on Harcourt Street, with both projects holding planning permission and providing a combined 350,000 sq ft of office space.
- • IPUT says it has raised more than €400m from investors so far this year, including the ISIF commitment, and has secured €300m in new borrowing from Bank of Ireland, ABN AMRO, ING, alongside existing lenders AIB and Barclays.
- • IPUT has appointed a main contractor for Earlsfort Terrace and expects construction to begin before the end of the year.
- • CEO Niall Gaffney says demand for best-in-class Dublin offices continues to outpace supply, which he expects to drive strong prime rental growth.
Summary
The Ireland Strategic Investment Fund (ISIF) is set to invest €100m in a new office development in Dublin city centre, according to the Irish Independent. The funding goes to property company IPUT Real Estate, which will use it to develop an office building at 29 Earlsfort Terrace. IPUT said it has appointed a main contractor and expects construction to begin before the end of the year.
The investment is part of IPUT's €500m plan to develop additional office space in Dublin. The plan also includes the redevelopment of the Charlotte Building on Harcourt Street. IPUT said both projects have received planning permission and will together provide 350,000 sq ft of office space, aimed at Irish and international businesses seeking modern city-centre offices.
IPUT, which owns and manages office buildings across Dublin, said it has raised more than €400m from investors this year, including the latest ISIF commitment. It has also secured €300m in new borrowing arrangements from Bank of Ireland and Dutch lenders ABN AMRO and ING, alongside existing lenders AIB and Barclays. The company said it currently owns 30 properties in Dublin city centre totalling more than 2m sq ft. Its existing Wilton Park complex, a 600,000 sq ft office development, is home to EY, LinkedIn and Stripe.
This is not the first collaboration between ISIF and IPUT. Last year, ISIF joined CBRE Investment Management as an investor in IPUT's Nexus Logistics Fund, which raised €115m to invest in logistics properties.
IPUT chief executive Niall Gaffney said demand for modern Dublin office buildings continues to outpace available suitable space. He described the ISIF investment as "a strong endorsement of our strategy" that provides capital to advance the first stage of the development pipeline at 29 Earlsfort Terrace.
The investment is part of IPUT's €500m plan to develop additional office space in Dublin. The plan also includes the redevelopment of the Charlotte Building on Harcourt Street. IPUT said both projects have received planning permission and will together provide 350,000 sq ft of office space, aimed at Irish and international businesses seeking modern city-centre offices.
IPUT, which owns and manages office buildings across Dublin, said it has raised more than €400m from investors this year, including the latest ISIF commitment. It has also secured €300m in new borrowing arrangements from Bank of Ireland and Dutch lenders ABN AMRO and ING, alongside existing lenders AIB and Barclays. The company said it currently owns 30 properties in Dublin city centre totalling more than 2m sq ft. Its existing Wilton Park complex, a 600,000 sq ft office development, is home to EY, LinkedIn and Stripe.
This is not the first collaboration between ISIF and IPUT. Last year, ISIF joined CBRE Investment Management as an investor in IPUT's Nexus Logistics Fund, which raised €115m to invest in logistics properties.
IPUT chief executive Niall Gaffney said demand for modern Dublin office buildings continues to outpace available suitable space. He described the ISIF investment as "a strong endorsement of our strategy" that provides capital to advance the first stage of the development pipeline at 29 Earlsfort Terrace.
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