German investor in €40m deal for Dublin city office block

Deka Immobilien has seen off competition from several other international investors to secure ownership of 40 Molesworth Street. The German-headquartered company is understood to have paid State Street Global Advisors about €40 million for the property, a prime office building located in the heart of Dublin’s central business district.

While Deka’s purchase of number 40 should provide a fillip to Dublin’s office market, the level of competition for the property is being viewed by the market as significant also. Two other German investors, namely HIH Real Estate and MEAG are understood to have submitted offers to Savills for the building, as did Australian-headquartered Macquarie Asset Management.

The Irish Times understands the vendors had earlier rejected a lesser offer submitted by another party. The investor in question did not partake in the final bidding process.

State Street purchased 40 Molesworth Street in 2018 as part of a multimillion-euro asset swap in which it ceded ownership of Deloitte House on Earlsfort Terrace to Irish property company, Iput. Iput had acquired the building for its part, in March, 2013 for €8.4 million and spent €13 million transforming it into a modern grade office building with LEED Gold certification and an A3 BER rating.

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Today, the former home of the European Commission comprises 2,770 sq m (29,820 sq ft) of office space over six floors, along with a ground and basement retail unit extending to over 339 sq m (3,649 sq ft).

The offices are occupied in their entirety by global law firm, DLA Piper who took an assignment in 2021 of the 20-year lease which had been entered into originally by US online retailer Jet.com in 2017 with the building’s previous owner, Iput.

The lease which is due to expire 2037 has a term certain of 12 years and has a headline rent of about €60 per sq ft. Specsavers occupies the retail element of the building, and the property is generating overall rental income of €2.175 million annually.

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