Kennedy Wilson Lands Anchor at Dublin Project
- May 16, 2017
By Barbra Murray, Contributing Editor
Kennedy Wilson has reeled in an anchor tenant for the office segment of Capital Dock, a 660,000-square-foot mixed-use project the global real estate investment company is in the midst of creating in Dublin, Ireland. J.P. Morgan Bank (Ireland) plc will be the first big name on campus, with the bank having committed to acquiring a 130,000-square-foot office building at the multi-structure development through a forward-funding sale agreement. The sale price: $137 million, according to a report by Bloomberg.
“Securing such a prominent occupier to anchor the office component of Capital Dock is a significant endorsement of the value and our vision for this vibrant iconic scheme,” Mary Ricks, president & CEO of Kennedy Wilson Europe, said in a prepared statement. KW is developing Capital Dock in a joint venture with Fairfax Financial Holdings Ltd. and the National Asset Management Agency, and holds a 43 percent ownership stake in the project.
Capital Dock is located in the Docklands area of Dublin on a 4.8-acre site bordered on three sides by canal and riverside promenades. Designed by architectural firm O’Mahony Pike, the LEED Gold-certified property will consist of an aggregate 345,000 square feet of office space at 100, 200 and 300 Capital Dock, as well as 190 residential apartments encompassed in three additional structures, and 25,000 square feet of retail space. J.P. Morgan will occupy 200 Capital Dock, an eight-story tower featuring 130,000 square feet of office space.
Capital Dock was designed to appeal to expanding international businesses, and it appears the property’s target audience is taking note. “The Dublin occupier market is buoyant and we are in active and advanced dialogue with both Irish and international companies attracted to our visionary Capital Dock development and looking to base themselves in the heart of Dublin,” Ricks added. Demand for premier office space is strong in the Irish capital, and the numbers tell the story. The vacancy rate in the city center is just 4.8 percent, according to a first quarter 2017 report by commercial real estate services firm JLL, which is marketing office space at Capital Dock.
The lending community is looking kindly upon Capital Dock, too. KW announced that Deutsche Bank has provided a construction loan of €125 million, or approximately $137.3 million, for the development. Together, the loan and J.P. Morgan’s commitment cover the remaining costs for completion of the entire waterfront project.
J.P. Morgan will close the acquisition of its new office building in tandem with the delivery of Capital Dock, which is scheduled for the third quarter of 2018.
Image courtesy of Kennedy Wilson