Walkers Ireland & Walkers London have advised on the acquisition of Ireland's largest building
Walkers is pleased to have acted for KTB Investments & Securities together with KTB Asset Management on the €160 million acquisition of Ireland's largest building by way of share sale. The acquisition of the company holding the Tesco distribution centre in Donabate, Co Dublin, represents the largest single-asset logistics transaction to have taken place in Ireland.
Walkers worked with Ashurst LLP on this landmark deal. The Walkers team was led by Tax and Real Estate partners Jonathan Sheehan and Rachel Rodgers, and involved a multi-disciplinary and cross-jurisdictional team including Corporate partner, Brendan O'Brien, Investment Funds partner, Jennifer Fox with Finance partner, Andrew Traynor and of counsel, Ronan McNabb, advising on the Irish aspects of the complex cross-border financing and capital stack arrangements. Mark Galazzi, Finance partner, and Dina Anastas based in Walkers London office, provided the deal team with time-zone sensitive British Virgin Islands legal advice in relation to certain BVI aspects of the transaction.
Commenting on the deal, David Peacock of DTZ Investors said: "This off-market acquisition is an exceptional example of identifying a suitable investment opportunity that meets our client's investment objectives and executing successfully on what is the largest single-asset logistics transaction in Ireland. The income profile, in terms of length and escalation, and strength of the Tesco plc credit provides for very attractive income investment characteristics. The transaction profile is further enhanced when considered against the backdrop of the very restricted supply of logistics assets of scale in Ireland and the building's importance to Tesco's Irish operations."
Clive Roche of Cushman & Wakefield said, "Cushman & Wakefield are delighted to have sourced and advised on this landmark off-market acquisition. With steady occupier demand and ongoing supply constraints, particularly for larger units, the sector is expected to witness strong rental growth, and with investor appetite for the sector at an all-time high, additional yield compression is also likely."
Writing in the Irish Times on this transaction, Ronald Quinlan said that "The uplift in the facility's value (since it was purchased by a South African property fund in 2014 for €129 million) in the intervening period reflects both the strength of the tenant covenant offered by Tesco, and the current strength of the Irish economy." To read the full Irish Times article click here.