Developer Pat Crean's Marlet Property Group has secured its first financing facility with State-backed lender Activate Capital.
The loan for €101 million will be used by Marlet to fund the construction of its Shipping Office scheme on Sir John Rogerson’s Quay in Dublin’s south docklands.
The Shipping Office, due for completion in the third quarter of 2022, will comprise 16,500sq m (177,000sq ft) of grade A office space and 530sq m (5,700sq ft) of retail space. The six-storey office-led development will be located immediately adjacent to the 216 apartments Marlet is in the process of delivering at its One Lime Street residential scheme.
The Activate Capital transaction represents the fourth financing facility to have been agreed by Marlet since the onset of the Covid-19 pandemic.
The latest deal comes just three weeks after the developer secured €74 million from another State-backed entity, Home Building Finance Ireland, to fund the construction of the 253 apartments it has planned for Green Acre Grange at Dundrum, south Dublin.
Earlier this year Marlet signed two financing facilities with AIB, for €33 million and €65 million respectively. The first of the two loans is being used to fund the construction of another Dundrum apartment scheme, the 142-unit Walled Garden, while the second facility is being used to finance the delivery of the 216 apartments at One Lime Street.
Marlet's latest funder, Activate Capital, has since its establishment in 2015 lent more than €1.05 billion to fund the delivery of 14,500 new homes along with mixed-use projects including Amazon's new offices at Charlemont Square in Dublin. Activate is backed by the Ireland Strategic Investment Fund and KKR Credit.
Decision
Commenting on his company’s decision to provide finance for the Shipping Office scheme, Activate Capital chief executive Robert Gallagher said: “We are delighted to be partnering with the Marlet team on this significant opportunity, which leverages their successful development track record and strong local knowledge. ”
“The Shipping Office is near key transport nodes, as well as established employment hubs in the technology and professional services sectors. We are excited to be supporting this project, designed with the flexibility to accommodate future workspace needs, and co-located with Marlet’s One Lime Street apartment development.”
Marlet chief executive Pat Crean said: "We are particularly pleased with this new financing facility, and I want to thank the team at Activate Capital for their support, which exhibits a strong confidence in our approach to commercial development."
