Aviva Investors, the global asset management business of Aviva plc, has announced that it has acquired a hotel building currently under construction in the heart of Dublin, on behalf of its European Real Estate Long Income (E-RELI) Fund.
The property, which is scheduled for completion at the end of 2022, occupies a corner site position within the Dublin 2 postcode. It has been pre-let to Premier Inn under a long-term lease. Located at the junction of Gloucester Street and Princes Street South, the property is within the south docklands business district of the city centre, is well served by public transport, and, from a leisure perspective, is located within walking distance of Trinity College, Temple Bar, O'Connell Street and most of the city’s main leisure attractions.
Statement By E-RELI Fund Co-Fund Manager
Isabel Gossling, co-fund Manager of the E-RELI Fund at Aviva Investors, stated, "We are pleased to have secured such a high-quality asset in a prime location within this dynamic city and to be working with Red Rock Developments in delivering the project to a best-in-class operator such as Premier Inn. In line with the overall strategy of the fund, we expect this asset to provide investors with consistent long-term income which is underpinned by an investment-grade covenant and, importantly, linked to inflation. Current market conditions are reinforcing investor demand for assets of this nature, which we expect will continue to grow over this year."
Statement By Chief Investment Officer At Red Rock Developments
David Carroll, chief investment officer at Red Rock Developments, stated, "It has been a pleasure dealing with Aviva Investors' European Real Estate Long Income Fund on their first transaction in Ireland which we hope will deliver secure long-term returns for their investors. The Gloucester Street building is a unique asset offering inflation-linked long-term income, an FTSE-listed occupier/operator, and delivering the requisite ESG credentials required by long-income investors. We look forward to completing the development later this year."
Aviva Investors was advised by Dan O'Connor and Brian Shields of JLL.
Red Rock was advised by Fergus O'Farrell of Savills and Byrne Wallace Solicitors.
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