BCP International Property Fund and its investment partners, London-based Meyer Bergman, have secured a loan of over €100 million to finance the development of Grafton Place in Dublin city centre.
It is on the site of the former Nassau House building at the junction of Dawson Street and Nassau Street, immediately across from Trinity College Dublin. The mixed-use scheme will, upon completion in 2022, comprise 117,000sq ft of grade A office space and 72,000sq ft of prime flexible retail space.
CBRE’s debt and structured finance team, part of CBRE Capital Advisors, acted as debt advisor in obtaining the loan.
Commenting on the agreement of the facility, Andy Tallon of CBRE said: “The outlook for Irish commercial real estate remains strong, supported by low unemployment and an exceptionally robust occupational market. As such, competition to lend is high, even for speculative opportunities. This development is a prime location in Dublin and demonstrates investors’ long-term view of Dublin.”
Spent millions
BCP and Meyer Bergman paid more than €90 million to purchase the Nassau House site from British insurance group Aviva in 2015 and subsequently spent further millions of euro on further property along Nassau Street.
Earlier this year BCP and its partners paid the country's main banking lobby group, the Banking & Payments Federation Ireland, around €20 million to vacate its offices in the building. Following negotiations and the agreement of the payment, the BPFI surrendered the remaining 50 years on its lease and relocated to new offices on the third floor of Green Reit's nearby One Molesworth Street office scheme.
BCP declined to comment at the time, but a spokesman for the company pointed out that it had since secured planning permission for an additional floor at the Grafton Place scheme.
“We achieved vacant possession in 2018, and have since received a decision to add an additional floor to the development. The additional floor increases lettable space by over 17,000sq ft, and adds well in excess of €20 million of capital value to the project,” the spokesman said.
