Sydney-based firm eyes €200m of Irish industrial property

Arrow Capital Partners, a Sydney-headquartered international real-estate investment firm, has said it plans to invest over €200 million over the next two years on warehouses and other logistics property assets in Ireland.

The company has hired Cormac Dunne, a former senior executive with loan management company Pepper Asset Servicing in Ireland, as its country adviser on deals in Ireland, it said in a statement.

The money being targeted at Ireland comes from Arrow’s $3 billion (€2.7 billion) so-called strategic industrial real estate investment business. It will be targeting industrial and logistics assets with a rental yield more than 5 per cent together with assets with development opportunities, mainly in Dublin, Cork and Galway.

"As an investor and operator in real estate, we have flexibility around the type of acquisitions we can target," said Christian Bearman, a partner of Arrow, which manages property assets across Europe and Asia-Pacific.

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“We have a longer-term investment horizon than most funds and a flexible approach to the way we consider our investments. We believe there are considerable opportunities for logistics investment in Ireland driven by the move towards e-commerce.”

Property used for storage and distribution of goods has been the “sector du jour” during the Covid-19 crisis in Ireland, as ecommerce burgeoned on the back of movement restrictions, consultancy firm BNP Paribas Real Estate (BNPPRE) said this week, even as it noted that overall Irish commercial property transactions have slumped in recent months.

“We believe that, in the medium to long term, changes in consumer behaviour could now normalise more toward online shopping here,” said BNPPRE Ireland’s managing director and head of capital markets, Kenneth Rouse.

The team at Arrow has been active in the market for strategic industrial and urban logistics assets in Europe over the last 15 years, notably in Holland, Germany, UK, Italy, Spain and Poland, the firm said.