DTZ investors have acquired a distribution facility from Tesco in Dublin, Ireland for €160 million on behalf of South Korean investment firm KTB.
According to the press release, the acquisition marks the largest ever single-asset logistics transaction in Ireland.
The 788,000 square-foot warehouse provides dry-goods distribution to the entire Tesco portfolio of stores across Ireland.
Investors will also benefit from a lease guaranteed by Tesco until 2032.
David Peacock, DTZ investors associate, said: “This off-market acquisition is an exceptional example of identifying a suitable investment opportunity that meets our client’s investment objectives and executing successfully on what is the largest single-asset logistics transaction in Ireland.
“The income profile, in terms of length and escalation, and strength of the Tesco plc credit provides for very attractive income investment characteristics. The transaction profile is further enhanced when considered against the backdrop of the very restricted supply of logistics assets of scale in Ireland and the building’s importance to Tesco’s Irish operations.”
The deal marks DTZ investors’ third acquisition in 2019 on behalf of South Korean clients.
KTB Investment & Securities and KTB Asset Management, as well as DTZ investors were advised by Cushman & Wakefield, parent company of the latter firm.
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