Irish Life Assurance Plc and ESB Pension Fund have paid £25 million for three logistical centres in a sale and leaseback deal with a major freight company at Robinhood Road and Airport Business Park.
The deal is one of the most significant sale and lease-backs concluded in the industrial sector and reflects continuing confidence in industrial investments. New leases have been agreed on the units with initial rentals of over £6 per sq ft which are reported to indicate yields of 6.5 per cent to 7 per cent.
Irish Life has acquired a 13,700 sq ft facility at Robinhood Road along with Unit D2 at Airport Business Park which has some 51,766 sq ft of accommodation.
ESB Pension Fund acquired Unit D1 Airport Business Park which has some 91,780 sq ft of accommodation.
Commenting on the deal, Sean O'Brien, property investment manager with Irish Life, said "The fund welcomes the opportunity to acquire these strategically located logistical centres. The fund is targeting well-let high yielding properties and this acquisition gives a well-secured, attractive income return."
Brendan Donohue, property advisor to ESB Pension Fund added "The acquisition fits well with the fund's policy of holding high quality properties in strategic locations and with strong covenants. It provides a valuable addition to the fund's existing diversified portfolio."
Manus Agnew, of Chartered Surveyors Quinn Agnew, acted for both Irish Life and ESB in the purchase. He said that the three buildings were purpose built by the occupiers, Tibbett & Britten (Ireland) Ltd and Neptune Freight for their own occupation and provide modern, detached high bay warehouses with large office content and associated truck marshalling and parking areas.
Mike Arrowsmith, Finance Director of Tibbett & Britten said "Following a strategic review of our property assets we have taken the opportunity to liquidate part of our portfolio and enter into sale and leaseback agreements with Irish Life Assurance Plc and ESB Pension Fund.
"These transactions release cash for alternative, more productive investments which are expected to generate greater shareholder value."
Tibbett & Britten is based in the UK and with 31,000 employees in 32 countries is one of the world's leading logistics companies.
