Addleshaw Goddard, has advised Luxembourg-based real estate investor REInvest Asset Management SA on its first investment in the Irish commercial real estate market, with the €65 million purchase of prime office space in Dublin.

The 4,700 sq m property at 5 Harcourt Street is currently fully let to co-working giant WeWork, the world’s biggest provider of co-working and serviced office space, on a 20-year lease with no break options from July 2018. Annual rent on the office space is €3 million.

This purchase brings the total number of countries that REInvest has holdings in to 13, with the company noting the investment return opportunities presented by the commercial real estate market in Dublin as they announced the deal.

REInvest have purchased the property for the DEREIF SICAV-FIS fund which invests in European real estate. The main investor in the Luxembourg-based real estate special fund is a major German insurance company.

Addleshaw Goddard advised on all legal elements of the deal, led by real estate partner and head of the Irish Property and Construction department, Kathí Ó Riain. 

Noting the significance of the investment firm’s entrance to the Irish market, Kathi Ó Riain said: “The decision by REInvest to expand into the Irish market demonstrates the continued appeal of Ireland as an investment location for foreign investors in the commercial real estate market. Despite slowdowns in other markets, Ireland offers attractive investment yields, and is recognised for its good value in terms of investment returns compared to other European capitals.”

Kathi also noted the significance of the deal with regards to confidence in the co-working model: “The acquired property is subject to a 20-year lease to co-working giant, WeWork, with no break options from July 2018. The decision by REInvest to make such a high-level investment in a property with a tenant covenant suggests continued confidence in the co-working model, even as some businesses are slow in returning to the office full or parttime.”