Hines Global Pockets $196M on Dublin Office Sale
- Apr 23, 2020
GLL Real Estate Partners has acquired a Class A office building in Dublin’s central business district for 181.6 million euros ($196 million) from Hines Global. Earlier in April, Hines also sold a 160,000-square-foot office building in Stuttgart, Germany, on behalf of its Hines European Value Fund.
Located at 42-53 Kevin St. Lower in Dublin’s city center, the 180,000-square-foot Bishop’s Square was completed in 2001. The six-story office is 100 percent leased to tenants including IFDS, News International and the Office of Public Works, with a weighted average lease term of 11 years. Bishop’s Square features a six-story atrium and is also located near Dublin’s main retail area, Grafton Street, and the 22-acre Stephen’s Green.
Alfonso Munk, Hines’ president & chief investment officer of the Americas division, said in prepared remarks that the research team identified Dublin’s office market as an attractive location due to strong office fundamentals. Hines then acquired Bishop’s Square in an off-market transaction in March 2015 for 92 million euros ($99 million) from King Street Capital.
Adding class with an atrium
Following the acquisition, Hines began an extensive renovation program that included improving energy conservation, building improvements and an expansion that added 27,000 square feet.
“In addition to adding 27,000 square feet to the building, from the beginning, Hines planned a design focused on changing the perception of Bishop’s Square to that of a Class A office building, bringing light and modern design into the lobbies, WCs and making the reception area an important piece of the building,” Niall Ryan, Hines’ director of asset management, told Commercial Property Executive.
Ryan also told CPE that Hines installed new elevators, upgraded the basement area and cut the energy bills in half by replacing the boilers and pumping systems in the building. The upgrades also included revamping the atrium into a more welcoming space.
“Later in the project, we decided to turn the unused atrium in the center of the property into a communal tenant area that could be used as a break-out area for tenants,” Ryan also told CPE. “The transformation was a huge hit with our tenants, and we get the most positive feedback on this area.”