The Aviva Irish Property Fund has acquired the Zeus Packaging Group headquarters at Greenogue Business Park in Co Dublin for €12 million.
The sale and leaseback deal involving the 9,290sq m (100,000sq ft) building will run for a 20-year term with fixed rental uplifts and an initial rent of €750,000. The starting yield will be around 5.7 per cent.
Last month the same Aviva fund paid €17.5 million for a 35-year lease of 49 apartments in Ballsbridge owned by the Prem Group. The investment is expected to show a return of around 5 per cent. Rental uplifts will be limited to the Consumer Price Index.
Rhys Evans, fund manager with Aviva, said that acquiring assets within the long income sector was one of their strategic aims.
They were happy to be working with both Zeus Packaging and Prem Group with these two purchases, he said, adding that the transactions delivered a good income yield for the fund’s investors and represented an opportunity to acquire defensive assets at this point in the real estate cycle.
Ann O’Keeffe, head of individual life and pensions at Aviva, said the transactions further improved the income credentials of the fund.
The occupiers provided the fund with income backed with good corporate credit, both “very established in their respective sectors and in locations with sound fundamentals for long-term performance”.
Peter Flanagan of Knight Frank advised Aviva on the Zeus deal while Max Reilly of JLL acted for the company in the Premier suites acquisition.
