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Hines completes €165m purchase of high-profile Dublin city centre site

International real estate investor Hines has completed the acquisition for €165m of Chatham & King, a high-profile mix of offices, shops and apartments next to the Gaiety Theatre on South King Street in Dublin city centre.

In acquiring the scheme from US private equity giant Lone Star, Hines fended off three rival bids.

Two of the competing offers came from German funds, while the third bid came from the billionaire founder of the Zara fashion chain, Amancio Ortega.

Hines’s purchase of Chatham & King sees it take control of a mixed-use building with retail units comprising 33,500 sq ft occupied by Zara, H&M and Warehouse.

The leading data analytics management firm Qualtrics occupies the 31,000 sq ft office space above the scheme’s retail units as its European headquarters.

Also included in the sale is the Chatham Court building, the second phase of the asset to be developed by Lone Star and delivered in the next 24 months.

Upon completion, this phase will include five retail units totalling 15,597 sq ft and ranging from 495 sq ft to 12,680 sq ft. Qualtrics has agreed to pre-let 26,000 sq ft in the building.

The €165m paid by Hines includes €40m to cover the cost of this redevelopment.

Chatham & King has a projected rent roll of €6.8m and a retail weighting of 50pc.

All told, the centre will ultimately incorporate 4,566 sq m (49,158 sq ft) of retail space and 5,568 sq m (56,936sq ft) of office accommodation.

Hines senior managing director in Ireland, Brian Moran, said: “Hines is delighted to close the Chatham & King acquisition, a marquee mixed-use property at the centre of Dublin’s most fashionable shopping, restaurant and commercial district.

“We have acquired both a strongly-performing asset along with a new phase of additional retail and office which will come online in 2020.”