Fine Grain Property expands Plassey Innovation Campus in Limerick to 260,000 sq.ft.

Fine Grain Property, the Irish-owned property investor backed by Grosvenor alongside prominent European and Singaporean family offices, is pleased to announce that it has acquired The Three Building, a 47,000 sq.ft office building at Plassey Innovation Campus just outside Limerick city, for a total cost of €7.5 million. This acquisition brings Fine Grain’s holdings at the strategically important location next to the University of Limerick to five buildings and close to 260,000 sq.ft.

Fine Grain Property is an Irish-owned property investor and operator, established in Singapore, which has invested more than €300 million in Ireland since 2016 across three funds. It is backed by the Grosvenor Estate and a number of prominent European and Singaporean family offices.

Fine Grain’s objective is to buy overlooked or undermanaged assets and proactively drive value through strong tenant engagement, ESG enhancements, and innovative asset repositioning. In the six years since its first acquisition at Plassey Innovation Campus, Fine Grain has steadily grown its presence, creating value through greenfield development and refurbishments while enhancing the tenant experience by delivering high quality workspaces (including one of Limerick’s only LEED Gold offices) and amenities.

Fine Grain is almost unique in the Irish market being an institutional investor where the majority of its assets are located outside of the Greater Dublin Area. Their properties play an important role in balanced regional development for the Irish economy, by providing high quality business space for global employers looking to locate and grow in global innovation clusters across Ireland, taking advantage of proximity to tertiary education, excellent infrastructure, and skilled employees.

Fine Grain’s portfolio now consists of approx. 1.2 million square feet of commercial real estate in 20 buildings hosting more than 68 global employers at locations across Ireland. The latest acquisition of The Three Building consolidates Fine Grain’s position as the most significant institutional investor in the Mid-West of Ireland, providing workspaces to accommodate 2,600 jobs in Limerick alone.

The pricing of this acquisition represents an attractive net initial yield of 7.80%, with a long-term blue chip tenant base. This provides secure income (a Weighted Average Unexpired Lease Term of 9.2 years), at a level of income return well in excess of that in the core Dublin market. The property offers considerable upside potential for Fine Grain, who will work closely with Three to upgrade the building up to a modern, carbon efficient standard.

The Vendor was advised by Stephen Aherne of TWM.

Kevin Mahony, Chief Financial Officer of Fine Grain Property, said “This latest acquisition consolidates our position at Plassey Innovation Campus and grows our workspace offering in Limerick to over 260,000 sq.ft. Once we have carried out our asset enhancement plans, we are confident that the property will deliver further high-quality, long-term rental income, while providing considerable capacity for future growth.”