Two foreign private equity firms have agreed to fund development of warehouses in Rathcoole, Co Dublin, which they anticipate will be worth about €85 million when completed.
US group KKR and UK private equity firm Palm Capital will forward fund development of two prime, grade A logistics warehouses at Greenogue business park. A purchase price for the development was not disclosed.
The 42,000sq m development, situated on a 350-acre logistics campus, is being undertaken speculatively by a company called Jordanstown Properties which was incorporated in 2017 . The warehouses, located off the M7 motorway and about 20 minutes from Dublin Airport, are expected to be completed by 2021.
"Compared to the UK and northern Europe, the logistics market in Ireland is less mature and structurally undersupplied, with pent-up demand for high quality space being fuelled, in part, by the rise of e-commerce," said Reda Khatim, managing partner at Palm Capital.
KKR’s investment is being made through its “real estate partners’ Europe fund” which, in 2016, raised $739 million (€668 million) to focus on opportunistic investments in western Europe.
Guillaume Cassou, head of European real estate at KKR, said the logistics is a key area of focus for the fund, "and a part of the market where we continue to see positive momentum".