Deka Immobilien has acquired Baggot Plaza office building in central Dublin, paying Kennedy Wilson $165.4 million (€141.6 million) for the asset.
The sale reflects a net initial yield of 4%. Kennedy Wilson said in a statement that the $165.1 million net proceeds will be recycled into new opportunities, including European acquisitions and developments.
Kennedy Wilson acquired the 92,000 sq ft (8,547 sq m) 1970s building on Upper Baggot Street as part of the Project Opera non-performing loan portfolio in 2013.
A ‘back to frame’ redevelopment added 37,700 sq ft to the building which was transformed into a Grade A office building with LEED Gold certification. It was let to Bank of Ireland which signed a 25-year lease running from July 2016, generating a stabilised yield on cost of 8.6%.