ACQUISITION
BNP Paribas Real Estate Ireland advised Irish Life Investment Managers in what was the largest logistics deals of 2017 on Unit Q1 Aerodrome Business Park Rathcoole. The property is a high quality purpose built distribution centre extending to a gross external area of 16,006.8 sq m. The Unit is fully let to Culina Logistics Ireland Ltd – a JV between Culina Group Ltd and SHS Group Ltd. The warehouse was specifically designed for the tenant for the storage of food in a mix of ambient and temperature controlled environments. The property is let on 25 Year FRI Lease to the current tenant from 2010 with an annual rent of €1.81m at transaction date, the purchase price was €28.1 million which reflected Net Initial Yield of c. 6.2%. This transaction propelled a series of deals in the logistics sector which has transformed the ownership structure of large scale distribution units from private to institutional in recent years which serves to highlight the continuing growth of this sector and its overall importance as retailing models continue to evolve and adapt to changing consumer patterns with the growth of e-commerce.
