With a quite obvious and serious oversupply of office buildings still in evidence in central Dublin, it is not surprising to learn that Californian real estate investment company, Kennedy Wilson has snapped up Brooklawn House in Ballsbridge for a total of €15m – Kennedy Wilson says that it is going 50:50 in the building with an unnamed partner, so Kennedy Wilson’s share of the purchase price would have been €7.5m. The net operating income from the building in the past 12 months was €2.2m, indicating a yield on the purchase of 15%. The building had been on the market through Savills for €17m – the MyHome.ie property listing and brochure are available here.
The 45,000 sq ft 5-storey 3rd-generation building with 39 car parking spaces is rented to blue chip tenants including Citibank, IG International Management and Irish state agencies Eirgrid and the Higher Education Authority. It was owned by a consortium of investors including Sean FitzPatrick, the bankrupt former chairman of Anglo Irish Bank, and indeed it was Anglo’s successor, IBRC that has receivers Kieran Wallace appointed to sell the building.
Kennedy Wilson is taking on a considerable exposure in Ireland, with the €40m acquisition of the Alliance Building complex of 210 apartments beside Barrow Street in Dublin 2, as well as a 50% stake in Lloyds Bank/BoSI “Project Prince” portfolio of loans secured by Irish commercial property – this latter deal was announced during the week, but had been flagged by UK commercial property portal CoStar in June 2012. Kennedy Wilson was joined by Deutsche Bank in the acquisition of the €360m Lloyds portfolio. In 2011, it acquired Bank of Ireland’s Real Estate Investment Management (BofIREIM) company for an undisclosed sum, which was the US company’s first foray into the EuroZone – BofREIM has €1.8bn of real estate assets under management. At the start of 2012, it again partnered with Deutsche Bank to buy a €1.5bn-nominal-value Bank of Ireland UK loan portfolio, for which it paid €900m. Last year, Kennedy Wilson was one of four investors in a consortium which acquired 34.9% of Bank of Ireland.
It is understood that nearby office block, St Martin;s House is still on the market after sources claimed a 13% yielding sale had fallen through.