Irish property company Iput has secured the largest logistics leasing deal in Dublin since 2010, with an agreement to rent 325,000sq ft of space to Dunnes Stores at Damastown Business Park in Mulhuddart, Dublin 15.
In negotiating the transaction, Iput facilitated a lease assignment from global logistics specialist, Geodis, to the retailer. Dunnes Stores will now occupy the Damastown unit on a 20-year lease.
While a spokesman for Iput declined to comment on the terms of the letting agreement, the deal is set to deliver a significant return for the company on its investment in the property. Iput acquired the Damastown unit for €36 million in 2014. At the time of the sale, Geodis was paying a rent of €2.5 million per annum for the premises, and had more than 12 years remaining on its lease with no break options.
News of the Dunnes Stores deal comes just three months on from Iput's letting of its 185,000sq ft logistics facility at Unit 1, Dublin Airport Logistics Park to Geodis Ireland. As part of that agreement, Geodis has committed to paying an initial rent of €1.6 million per annum on a 20-year lease.
Unit 1 had served previously as the main warehouse facility for Eason. Iput acquired the property from the books and stationery retailer with vacant possession for €19 million in January 2019.
Logistics portfolio
Commenting on Iput’s latest transaction, the company’s head of investment, Michael Clarke, said: “We are pleased to have been able to successfully facilitate the move of one of our existing occupiers and the expansion of another within our portfolio. These two transactions, which have provided Geodis with a new state-of-the-art logistics facility, while also satisfying the growth requirement of our valued occupier, Dunnes Stores, are a result of the relationship we have with our occupiers and the diversity of our logistics portfolio.
“As the largest owner of logistics assets in Dublin, and with a strong development pipeline, we are well positioned to meet the demands of our existing occupiers and attract further multinational companies over the coming years.”
Iput owns a substantial logistics portfolio extending to over 2.4 million sq ft, comprising 30 properties distributed across Dublin. Existing occupiers include DB Schenker, DHL, Dunnes Stores, Geodis, Ikea, Musgraves, BWG, Nightline Logistics, Sonas Bathrooms and Uniphar.
