IPUT has paid €36m for logistics facility at Damastown Business Park in Dublin 15

IPUT plc has paid €36 million for a high-specification logistics facility at Damastown Business Park in Dublin 15 in an off-market transaction that will provide an initial return of 6.7 per cent.

Damastown is off the M3 Navan motorway, and within direct access to the M50, Dublin Port and Dublin Airport.

The property is occupied by global supply chain provider Geodis Logistics, with over 12 years remaining on the lease and no break options. Current rental income is €2.5 million per annum, and the rent is to be adjusted annually throughout the remaining term in line with any movement in the consumer price index.

The 30,250sq m (325,000sq ft) building, purpose-built by Geodis in 2003, extends over three separate bays, and was designed to UK institutional standards including an 11.5m eaves height and 44 dock levellers.

Geodis Logistics is fully owned by the SNCF French national rail company, and is a global supply chain provider operating in 120 countries with a workforce of over 47,500. Last year the Geodis Group had a turnover of over €7 billion.

Over the past six months IPUT has continued to target logistical and industrial investment opportunities to rebalance its portfolio after a number of high-profile acquisitions in the office market.

The Damastown facility is the fourth large logistics building acquired this year by the fund, and brings the total spend in this sector to €95 million, showing a blended income yield of 7.15 per cent.

The latest acquisition increases the value of the assets under management by IPUT to over €1.15 billion.

London investment agent Kieran Cotter and Dublin industrial specialists William Harvey and Company advised IPUT in relation to the latest deal.