Funds controlled by French insurer Axa and US investor Kennedy Wilson, which own almost €300 million of commercial property in Dublin, recorded a €15 million decline in the value of their office portfolio last year.
A property fund equally owned by Axa and Kennedy Wilson controls close to 36,000sq m (391,000sq ft) of office space in Dublin’s docklands area.
Offices in the portfolio include 78 Sir John Rogerson’s Quay, a 174,655sq ft complex in Dublin’s docklands, and nearby offices that are part of the mixed-use Capital Dock development Kennedy Wilson built with Nama.
New filings for Claypole Limited, Axa’s holding company for its commercial property interests in Ireland, showed the properties’ combined values fell from €315.1 million to €299.6 million last year.
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In 2025, the value of 78 Sir John Rogerson’s Quay fell from €107.3 million to €102.2 million, despite rental income from the building remaining steady at €7.8 million.
Directors of Claypole Limited said the decline was linked to current tenant State Street announcing plans to exercise a break option in its lease in 2028.
Last month, State Street confirmed it has agreed a deal to move its Dublin office to 2 Grand Canal Quay, a 15-storey office building developed by billionaire Denis O’Brien.
The financial services firm’s decision to leave will result “in a projected lease void, nonrecoverable costs and assumed capital expenditure for re-letting”, the directors said.
Further details in the accounts showed rental income from blocks 100 and 300 Capital Dock fell from €11.2 million to €10.9 million in 2025, which contributed to the value of the assets falling from €207.8 million to €197.4 million.
These buildings “experienced a modest reduction” following a rent review that achieved “no rental uplift”, directors added.
“These factors reflect a cautious investment environment and evolving market expectations around pricing and returns.”
News of the valuation hit to Axa’s commercial property assets has come as many pockets of Dublin’s office market have faced strain in recent years due to changing work practices and limited tenant demand.
Workday, Facebook, Intercom and LinkedIn, among others, have advertised large amounts of office space surplus to their requirements, called grey space, as available to sublet.
Commercial agents have said there is demand for specific office types in Dublin, but most tenants looking for space are keen only on grade-A space located near the city centre.
Last month, a market analysis report by JLL Ireland said the office sector’s vacancy rate peaked at 16 per cent in 2024, but has now fallen to almost 12 per cent.
At the end of 2025, Axa’s entity Claypole Limited valued its investment in the joint venture with Kennedy Wilson at €67.9 million, which represented the value of its 50 per cent stake in the net asset value of the investments.
This was an increase on the previous year, when Axa valued its investment at €50.7 million. The year-on-year rise was recorded due to the Claypole Limited entity contributing €22.55 million of equity to the joint venture in 2025.
A note in the directors’ report said the firm had “adequate resources to continue in operational existence for the foreseeable future” due to its strong equity position and “robust rental performance”.
