A planned 9,600 sq m office building in Dublin has been acquired on behalf of a German real estate fund, despite significant withdrawals from two big property funds here in recent months.

The Hines and Peterson Group is constructing the office property at 2 Grand Parade in Dublin 6 that has been advance purchased by Union Investment, on behalf of Unilmmo: Deutschland, which already owns the 16,000 sq m Shannon Building on Burlington Road.

The development includes two sections, with around a third of the rental space located in the former Irish Nationwide HQ. The remaining two thirds of the rental space will be in a new, linked building.

Union Investment is a Hamburg-based real estate investment manager and at present holds seven real estate assets in Dublin worth around €770m.  The company was advised on the deal by HWBC and law firm A&L Goodbody.

The move comes as the Irish Life Irish Property Fund and the Friends First Irish Commercial Property Fund have advised fund investors that fund assets are now being priced on a disposal basis.

In Association with

Press reports indicated that most withdrawals were effected by smaller investors and brokers, who have taken their cue from Pat Gunne and veteran investor Stephen Vernon (pictured) selling out of Green REIT last year.

The price agreed for the Hines development at Grand Parade was not disclosed.