IPUT acquires 13-strong Salix portfolio for €115m from Bank of Ireland Staff Pension Fund

IPUT, Ireland’s largest unleveraged indirect commercial real estate fund, has won the 13-strong Salix portfolio, comprised of institutional-grade investment properties throughout Dublin for €115m from the Bank of Ireland Staff Pension Fund.

IPUT017_Logo_Final_Square_CMYKThe Salix portfolio was sold in an off-market trade with the €115m price reflecting a blended income yield of 7.0% for IPUT, based on a current rental income of approximately €8.4m per annum.

IPUT’s Salix portfolio acquisition takes the fund’s total portfolio to 92 which are valued at more than €1bn, including 43 prime office property in Dublin’s central business district valued at €775m.  In a little over the last 18 months, IPUT has invested €515m of capital in the improving Dublin office market.

The 70,000 sq m Salix portfolio includes:

  • 6/7 St. Stephens Green, Dublin 2, which extends to 2,500 sq m and is occupied by Topshop (pictured);
  • 72 Grafton Street which extends to almost 930 sq m and is occupied by Karen Millen;
  • and a 50% interest in a 9,940 sq m retail warehouse in Liffey Valley Retail Park which is occupied by B&Q plc under a long term lease.
  • The North Dublin Corporate Park in Swords which comprises of five modern industrial units and extends to over 9,940 sq m,
  • two adjoining high bay warehouse units in Kilcarberry Distribution Park on the Nangor Road, Dublin 22, which extend to 22,294 sq m and which are occupied by the BWG Group.
  • Office buildings include Ericsson’s Dublin Head Office in Clonskeagh, Dublin 14, a 4,645 sq m;
  • office building in EastPoint Business Park, Dublin 3; and
  • a 33% interest in the IDA Headquarters, Wilton Park House, Wilton Place, Dublin 2 which extends to 12,354 sq m.

St. Stephens GreenIn a statement, Niall Gaffney, chief executive of IPUT, said: “IPUT has an established record in assisting larger institutional investors consolidate their investment in property as an asset class.

“Today’s announcement follows on from previous IPUT acquisitions of the property assets of other leading institutional investors such as the ESB, Diageo and Irish Airline Staff Pension Funds, which amounted to portfolio acquisitions of close to €200m.

“The acquisition of the ‘Salix’ portfolio of institutional grade properties will further strengthen the long term income returns for IPUT investors.”

JLL advised the Bank of Ireland Staff Pension Fund on the transaction.

In January, IPUT converted to an internally-managed Qualifying Investor Alternative Investment Fund (QIAIF), opening the fund up to a potential global investor base. 

IPUT is understood to have already gained traction in diversifying its investor base outside its domestic market, including Aviva, through its £254.6m Aviva Investors European Property fund, and US pension fund clients of CBRE Global Investors.

In mid-July, former NAMA director John Mulcahy joined as a non-executive director of the IPUT board.

jwallace@costar.co.uk

About CoStar News

Finance Editor, CoStar News
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