Hamburg-based real estate manager Union Investment is expanding its international presence and marking its entry into the Irish retail sector. On behalf of an open-ended real estate special fund launched for institutional investors, the company acquired the retail park "Gulliver’s Retail Park" in the north of the Irish capital. The vendor of the property is Ambercrest Limited Partnership. The parties involved agreed not to disclose the purchase price.
The retail park was constructed in 2006 and successively expanded in subsequent years. The property comprises a total lettable area of approximately 14,590 square metres and is currently fully let. Jacob Thompson, Senior Investment Manager UK & Ireland at Union Investment in London, classified the acquisition as a core investment that aligns with the firm's long-term investment strategy. The supply of retail parks in the Dublin area remains heavily constrained, and subdued development activity is expected to continue for the foreseeable future in his assessment.
Full occupancy and long-term leases
The tenant structure of the park relies on established convenience retailers and specialist stores. A key anchor tenant is a Lidl supermarket with a rental area of approximately 1,860 square metres. Along with Irish chain The Range, which specialises in home, garden and leisure products, the retail business has committed to the property long-term under newly signed lease agreements.
- —Eurospar and EZ Living Interiors
- —McDonald’s and Costa Coffee
- —Danish furniture retailer Jysk
Michael Kammerzell, the responsible fund manager at Union Investment, highlighted the property's pronounced income security. Given strong demand, the infrastructural qualities of the location and the restrictive conditions for new construction in Greater Dublin, fund management considers the potential for future rental growth to be considerable.
Location factors and expansion of the Dublin portfolio
The location is distinguished by its high visibility and direct access to the M50 motorway. The immediate neighbourhood includes branches of Decathlon, a Tesco distribution centre and the country's only IKEA flagship store. The current catchment area of more than 400,000 residents is expected to expand further with the planned opening of a nearby Metrolink station.
Union Investment has been active in the Dublin property market since 2015. With the acquisition of Gulliver’s Retail Park, its local portfolio grows to eleven properties, meaning the Hamburg fund manager now covers retail alongside the office, hotel and residential sectors.
