Appian Burlington Property Fund Acquires Two New Properties30 May 2018
The Appian Burlington Property Fund has completed the purchase of properties in Clonskeagh and Swords in recent weeks and has now invested over €40 million in seven transactions over the past twelve months.
The fund is a Joint Venture between Appian Asset Management (Appian) and Burlington Real Estate. The fund targets properties in the €5m to €15m range. Appian manages the fund itself while Burlington Real Estate provides property investment advice and management services for properties in the fund.
Recently completed purchases include:
· Beaver House in Clonskeagh in South Dublin – 29,500 sq. ft, 3 storey modern office block with 84 car parking spaces... let to a quoted US multinational and 2 private Irish companies. Initial net yield of 5.75% with strong upward potential at rent review in 2020.
· Boroimhe Shopping Centre in Swords in North Dublin– 33,350 sq. ft and 75 car parking spaces ... a well-established local shopping centre with 10 retail tenants including Super-Value as the anchor tenant. Initial net yield over 7.5%.
The fund now includes the following properties which are currently valued at over €43 million and, based on an annual rent roll of €3 million, are currently producing a net income yield of 7%.
Fenward House, Sandyford, Dublin
Bank of Ireland, Drogheda
Tuansgate, Tallaght Town Centre, Dublin
73 Patrick Street, Cork
74/75 Patrick Street, Cork
Boroimhe Shopping Centre, Swords, Dublin
Beaver House, Clonskeagh, Dublin
The fund is set up as a sub-fund of the Appian Investments ICAV (Irish Collective Asset Management Vehicle) which was set up by Appian Asset Management (Appian) in late 2016. The fund is focussed on opportunities in the commercial property market in a mix of office, retail and industrial units in the Dublin suburbs and in other large cities.
John Bruder, Managing Director of Burlington Real Estate, said that the recent deals confirm the continued availability of attractive assets outside of the super-prime end of the Dublin market; “We established the fund to look beyond the obvious property hotspots in Dublin and to target relatively high yielding properties with good tenants in less obvious locations. There is good value to be got once you look beyond the obvious locations and we’re very happy with the quality of investment opportunity which is being presented to us. There remains good value in the Irish market as evidenced by the fact that the best measure of the commercial property market in Ireland, the IPD Index is still down 43% relative to capital values prior to the downturn in 2008 ”
Kevin Menton, Director of Appian, said; “The fund is designed to produce an income yield to investors of at least 5% p. a together with capital value growth in the medium term* and it is delivering exactly that. We’re delighted with the performance so far.”
The Fund is restricted to qualifying investors and the minimum investment is €100,000.
NOTE TO EDITOR –
This is a target return only and not a profit forecast. There can be no assurance that the target can or will be met and it should not be seen as an indication of the Fund’s expected or actual results or returns.
About Appian Asset Management and Burlington Real Estate:
- Appian Asset Management, which was founded in 2003 by Patrick Lawless, manages a range of funds on behalf of private clients, charities, and corporates.
- Burlington Real Estate was set up in 2012 by the former Treasury Holding management team, John Bruder, and Niall Kavanagh. The company is a property investment and development management company operating across all sectors: office, retail, residential and industrial.
Issued on behalf of Appian Asset Management by Gordon MRM