Developer Johnny Ronan’s Ronan Group Real Estate (RGRE) and US fund Fortress Investment Group are understood to have secured in excess of €500 million from the sale to Blackstone of the European headquarter offices RGRE is developing for Salesforce at Spencer Place in Dublin’s north docklands.
The Irish Times understands the parties have entered into an agreement which will see Blackstone Real Estate’s Core + funds secure ownership of the entire 413,000sq ft campus.
The development comprises three grade-A office buildings, all of which are fully leased to Salesforce for its European headquarters for a term of 15 years, along with a 204-bedroom hotel let to Ireland’s largest hotel operator, Dalata Hotel Group, on a 35-year term-certain lease.
News of Blackstone’s acquisition of the Spencer Place scheme comes just over four months on from its completion of its €395 million purchase of 31,536sq m (339,456sq ft) of office space across four existing blocks occupied by Facebook to the rear of its new European headquarter campus, which is under development in Ballsbridge, Dublin 4. The four blocks had been owned by the Serpentine consortium, a syndicate of private individuals and companies assembled by AIB Private Banking and Goodbody Stockbrokers. Blackstone’s overall Irish office portfolio now extends to more than 1.3 million square feet, while its European portfolio extends to a massive 46 million square feet.
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Located in a prime position overlooking the river Liffey in Dublin’s north docklands, Spencer Place is set to become one of Dublin’s most sustainable developments, with LEED Platinum certification. The scheme will use 100 per cent renewable energy sourced from onsite solar panels, while its amenities will include 165 car- and 620 cycle-parking spaces, a gym and a private roof terrace with panoramic views over the city.
While RGRE purchased the Spencer Place site with its then funding partners Colony Capital in 2016, Fortress Capital acquired Colony’s share together with the fund management rights in relation to the property in 2021. RGRE, for its part, was instrumental in acquiring the site, obtaining planning permission, securing Salesforce and Dalata as tenants and successfully completing the development.
Commenting on his company’s purchase of Spencer Place, Blackstone’s head of European real estate, James Seppala, said: “Dublin is one of Europe’s most sought-after cities for tech and media companies and we are delighted to add this high-quality and well-located campus to our portfolio. This investment further demonstrates our long-term conviction in the sector where demand for modern and flexible office space continues to grow.”
Fortress managing director Noah Shore said: “Spencer Place is an exceptional property in the heart of Europe’s fastest-growing capital city. The building is one of the most sustainably designed in Dublin and boasts world-class amenities that reflect the Ronan Group’s meticulous attention to all phases of development. We are pleased that this outstanding property will move forward under Blackstone’s stewardship.”
