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Dunnes Stores signs 325,000sqft logistics rental deal with Iput

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Dunnes Stores signs 325,000sqft logistics rental deal with Iput

Dunnes Stores signs 325,000sqft logistics rental deal with Iput
April 24
09:26 2020
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Irish property company Iput has secured a rental deal with Dunnes Stores, to take a 325,000sqft logistics unit in Damastown Business Park, Mulhuddart, Dublin. This is the largest logistics leasing deal in Dublin since 2010.

The move comes as agents report a spike in demand for logistics rental property, especially from food and pharmaceutical companies.

Demand also appears to have been boosted by the increase in online retail activity and e-commerce as delivery companies are playing an increased role in this sector of consumer trade.

IPUT, one of Ireland’s leading property companies, facilitated the letting to Dunnes by providing Geodis with an alternative unit at IPUT’s Unit 1 Dublin Airport Logistics Park (DALP). IPUT previously announced in January that the 20-year lease on the 185,000sqft DALP unit will generate an initial rent of €1.6m a year. This rent will equate to an attractive income yield on cost of 6.6pc and a profit on cost of 12.6pc.

This letting followed on from IPUT completing an extensive upgrade to the building. IPUT acquired the Damastown property in 2014 for about €36m by way of a sale and leaseback deal with Geodis, which originally developed it to meet its logistics requirements.

Michael Clarke, head of investment at IPUT, 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.”

The fund’s logistics portfolio extends to over 2.4 million sq ft and accounts for more than 10pc of Dublin’s modern logistic stock. It acquired more than 202,000sqft of these assets in 2019, has planning for an additional 280,000sqft of high bay logistics space and has potential for a further 620,000sqft on its existing land bank.

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