SOUTH KOREAN INVESTORS ACQUIRE IRELAND'S LARGEST BUILDING FOR €160m - Ireland's largest building, the Tesco distribution centre in Donabate, Co Dublin, has been sold to a South Korean investor for about €160 million.
The off-market acquisition of the 73,207sq m (788,000sq ft) warehouse by KTB Investments & Securities and KTB Asset Management represents the largest single-asset logistics transaction to have taken place in the Irish market. The vendor, a South African property fund, is set to secure a significant return on the €129 million it paid to secure ownership of the property in 2014. The uplift in the facility's value in the intervening period reflects both the strength of the tenant covenant offered by Tesco, and the current strength of the Irish economy, says the Irish Times. Following its original development by Tesco in 2007, the Donabate distribution centre was sold immediately in a sale-and-leaseback deal to Abatewood, a consortium assembled by the professional services group KPMG. Abatewood took out loans of about €125 million from Bank of Ireland at the height of the then economic boom to finance its purchase of the property. Notwithstanding the challenges presented by Brexit now, KTB's acquisition of the facility should prove to be more lucrative given the essential role it plays in providing dry-goods distribution to Tesco's growing network of Irish stores. The warehouse benefits from a lease guaranteed by Tesco Plc until 2032 with annual upwards-only rent reviews in line with the consumer price index (CPI).
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TIKTOK EYES DUBLIN FOR GLOBAL HEADQUARTERS TO ACCESS MARKETS OUTSIDE CHINA - Social media app TikTok, a video-sharing service popular amongst 14-24-year-olds, is considering Ireland as the location for a new global headquarters.
The Chinese company Bytedance, which runs TikTok, is also considering London and Singapore, sources told Bloomberg. No American cities are on its shortlist, according to reports. TikTok has come under intense scrutiny in recent months over alleged censorship of Hong Kong protest content, even when posted by users outside China. Dublin stands out as it pairs a favourable tax environment with a deep talent pool. The capital is already the site of Facebook's largest office outside of California, and the European base for companies including Google and Twitter. TikTok currently doesn't have a headquarters, although its most-senior executive is based in Shanghai and its main office is in Los Angeles, says the Irish Independent. Senior executives at Beijing -based Bytedance - a startup valued at $75 billion (€67.6 billion), which owns numerous apps including TikTok - have been brainstorming ideas to rebrand TikTok as it comes under mounting scrutiny, particularly from US authorities. A headquarters outside of China would also bring TikTok closer to growing markets in Southeast Asia, Europe and the US. Known for its viral short videos of lip-syncing teenagers and funny pet antics, TikTok rose from obscurity to top app store download charts in early 2019. Its popularity has since spread to India and Japan.
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FLUTTER'S US FANTASY SPORT RIVAL TO FLOAT - Flutter Entertainment's main rival in the US fantasy sports market is set to be taken public.
DraftKings will be taken public by an entity founded by Hollywood executives Jeff Sagansky and Harry Sloan in a deal valuing the company at $3.3 billion (€3 billion), says the Irish Examiner. Under the deal, Diamond Eagle Acquisition Corporation - a publicly-traded special-purpose acquisition company founded by Mr Sagansky and Mr Sloan - will merge with DraftKings and SBTech, a sports betting technology firm. Diamond Eagle said it would change its name to DraftKings, reincorporate in Nevada and remain Nasdaq-listed under a new ticker symbol. Paddy Power-Betfair - now Flutter Entertainment - acquired FanDuel, DraftKing's main rival in the US fantasy sports gaming market, last year. That deal followed a failed merger plan between the two US rivals.
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LLOYD'S OF LONDON WHISTLEBLOWING HOTLINE WAS CUT OFF - Bosses at Lloyd's of London have been left embarrassed after it emerged that the whistleblowing hotline used by the insurance market's staff to anonymously report fraud and other misconduct went down for 16 months.
The Prudential Regulation Authority (PRA) said yesterday that Lloyd's will have to provide a detailed audit of its whistleblowing systems for the next three years as a result of the debacle, reports The Times. The group has been trying to change its culture after a sexual harassment and bullying scandal - a recent campaign encouraged staff to make complaints about unacceptable conduct. Lloyd's is the world’s biggest insurance market encompassing about 100 underwriters and more than 300 broking firms, where anything from shipping cargo to fine art can be insured. It traces its roots back 333 years.
