Developer Pat Crean’s Marlet Property Group has landed the first major commercial real estate deal of 2019, after securing an agreement to sell his company’s Charlemont Exchange office scheme to South Korean-based fund, Vestas Management for €150m.
While the transaction marks the first ‘mega deal’ (value in excess of €100m) to be completed this year, it is arguably far more notable for the 4.5pc yield it represents. The figure sets a record for Dublin’s refurbished office building market.
Marlet assembled the Charlemont Exchange development through the acquisition of Charlemont Blocks A, B and C in March 2017, followed by the purchase in December 2017 of Charlemont Block D. The combined footprint of the four-building scheme was extended from its original 94,968 sq ft to 121,270 sq ft in the course of its refurbishment.
The attractiveness of the project for potential buyers received a significant boost last October after Marlet agreed a lease with WeWork, the world’s biggest provider of flexible work space, for all four blocks at a rent of €55 per square foot. The Irish Independent understands from market sources that the sale of Charlemont Exchange to Vestas Management was completed in recent days.
In agreeing to rent Charlemont Exchange in its entirety, WeWork, for its part, has joined forces with Amazon, in a deal where the tech giant will be the scheme’s anchor tenant on flexible terms. Market sources said it was their understanding that Amazon will sub-let between 40,000 and 50,000 sq ft of the available space to WeWork.
Separately, Amazon has, as revealed by the Irish Independent previously, agreed to rent all 200,000 sq ft of office space the McGarrell Reilly Group is developing at its Charlemont Square scheme as part of the wider Charlemont Street Regeneration Project. It is understood Amazon has agreed to pay McGarrell Reilly, which is headed up by developer Sean Reilly, a rent of €55 per square foot.