Kennedy Wilson sells Baggot Plaza for $165m

German investor will acquire Baggot Street development which is let to Bank of Ireland

Global real estate investment company Kennedy Wilson has completed the sale of one of its key Irish properties, Baggot Plaza in Dublin's city centre, for $165.4 million (€141 million) to a German property investor.

Deka Immobilien, the specialist real estate investments arm of the Deka Group, has acquired the 129,700sq ft building on Upper Baggot Street, with the sale reflecting a net initial yield of 4 per cent.

Kennedy Wilson said the proceeds of the deal will be “ recycled into new opportunities”, including European acquisitions and developments as part of its investment management platforms.

Baggot Plaza was originally a 1970s building of some 90,000sq ft before being acquired by Kennedy Wilson as part of the Project Opera non-performing loan portfolio in 2013. It subsequently redeveloped and extended the site, and in May 2015, the Bank of Ireland signed a 25-year lease agreement generating a stabilised yield on cost of 8.6 per cent.


Ali Rohan, head of Ireland, Kennedy Wilson Europe, said the group "opportunistically acquired" the building as part of a larger non-performing loan portfolio.

“We saw the market timing potential of a comprehensive refurbishment versus a knock down and rebuild strategy, and delivered a significant, long-term lease to a credit worthy occupier,” she said.

Fiona Reddan

Fiona Reddan

Fiona Reddan is a writer specialising in personal finance and is the Home & Design Editor of The Irish Times