IPUT plc announces it has pre-let the entire of One Wilton Park to LinkedIn, the world’s leading professional network and a subsidiary of the Microsoft Corporation. One Wilton Park will be a Grade A office development of 150,000 sq. ft. (13,000 sq m) constructed on the site of the former Fitzwilton House which IPUT has owned since 1982. Construction commenced on site in June 2018 with Sisk appointed as the main contractor. The building is scheduled to be completed in the fourth quarter of 2020.
Later this year, IPUT intends submitting a planning application for the re-development of the remainder of its estate at Wilton Park which includes Wilton Park House and Gardner House, plus their associated public spaces. IPUT has already concluded an initial programme of improvements to the park itself which also comes within its ownership. Upon completion, IPUT’s estate in the area will total to 600,000 sq ft of office space and a range of local amenities.
Commenting, IPUT Chief Executive Officer, Niall Gaffney, said:
“The pre-letting of One Wilton Park to LinkedIn is hugely significant for us and represents one of the largest pre-lets in the Dublin office market. One Wilton Park will deliver a projected income yield on cost of in excess of 9% and brings the total value of new leases signed over the last 12 months to over €20.5 million. This pre-letting is an important milestone in the delivery of the plans we have for Wilton Park and will support continued growth in the dividend we pay to our shareholders.”
IPUT has pre-let Unit 103 Northwest Business Park, Dublin 15 comprising 12,494 sq m (135,000 sq ft) of high quality distribution space to Sonas Bathrooms. Sonas Bathrooms have signed a long-term lease on the building and will take occupation later this month following the completion of a substantial refurbishment of the building by IPUT.
Unit 103 Northwest Business Park, was acquired with vacant possession by IPUT in January 2018 for € 12.15m and a programme of works commenced in February. The 135,000 sq ft modern facility is situated on a secure 6.45 acre self-contained site and is strategically located close to Dublin Airport with excellent links to the motorway network including the M2, M3 and M50 motorway. The building has been modernised to the highest standards and provides a clear internal height of 12m, 21 dock levellers, 3 level access doors and generous yard depths of up to 60m which are particularly attractive to logistics operators.
Michael Clarke, Head of Investment at IPUT plc said: “This acquisition and subsequent pre-letting demonstrates the ability of our team to identify assets which have the potential to generate enhanced returns for our investors. We have successfully repositioned the asset which is secured under a long-term lease delivering an attractive income return on cost of 7.3% and generating a profit on cost in excess of 20%.”
Philip Harvey of William Harvey & Company and Gavin Butler of Savills advised IPUT plc on this transaction. JP McDonagh of Knight Frank acted on behalf of the tenant.
IPUT’s performance in the 2018 GRESB Real Estate Assessment underlines our continuing leadership in Sustainability and responsible Property Management in Ireland.
IPUT has realised its ambition of attaining a 3-star Green Star rating in the 2018 GRESB Real Estate Assessment, in only our 3rd year of participation. Our 2018 score of 67 is a marked improvement on 2017 and was one of the key objectives stated in our 2017 Sustainability Report which is available here.
GRESB (Global Real Estate Sustainability Benchmark) is the global standard for ESG benchmarking and reporting for the real estate sector, which this year included a record 903 property companies, REITs, funds, and developers, jointly representing more than $3.6 trillion in assets under management.
The GRESB assessment evaluates a fund’s performance against seven sustainability factors including the measuring and disclosure of information on performance indicators (such as energy, GHG emissions, water and waste) at an asset level, management policies and practices at a corporate level together with occupier, supplier and investor engagement.
IPUT Chief Executive, Niall Gaffney, commented; “We were the first Irish real estate fund to participate in GRESB and the achievement of a 3-star Green Star Rating was a stated target for 2018. IPUT is leading the way in sustainable real estate investing in Ireland and our 2018 GRESB score of 67 positions us alongside our peer group at a global level in terms of ESG performance.”