Dublin property investment company IPUT Real Estate has launched a new logistics sub-fund, raising €115m in new capital to develop the first 1.5 million square feet of the Nexus Logistics Park.
IPUT has raised €115m in new capital from two new investors, the Ireland Strategic Investment Fund (ISIF) and a European institutional investor via CBRE IM's Indirect Strategies, to develop the first phase of Nexus.
The remaining €115m is being invested by IPUT through a combination of capital and its zoned logistics landbank.
Work on the site will start this month.
Nexus Logistics Park, located at the Cherryhound Interchange off the M2 motorway and adjacent to Dublin's M50 and near Dublin Airport, aims to become the country's most sustainable logistics hub.
The entire development will span 2.5 million square feet across 17 buildings and will be built to the highest development standards, including BER A2, and LEED Gold certifications.
The first phase will comprise 1.5 million square feet across nine units ranging in size from 53,000 square feet to 460,000 square feet.
IPUT has pioneered the use of glue-laminated timber logistics development in Ireland and each unit - subject to occupiers' preference - can reduce embodied carbon by up to 30%.
The units will have on-site renewable energy production using roof-mounted photovoltaic solar panels, while daylight cladding will draw natural light into the units, it added.
The development will also include amenities for occupiers and the local community such as an outdoor multi-use games area, a public pavilion, a café and retail amenities.
It will also include forest walking routes and cycling paths, which will be accessible to the public, offering recreational, health, and well-being benefits. About 1,500 large native trees, saplings, and shrubs will be planted; a native meadow will be introduced, and an area of native woodland will be expanded.
Niall Gaffney, chief executive of IPUT Real Estate, said that Nexus offers a compelling investment opportunity given the significant and sustained demand for logistics in Ireland, particularly in Dublin.
"The factors driving demand include the rapid growth of e-commerce, the impacts that Covid-19 and Brexit have had on trade patterns, a rapidly changing shift in storage and distribution channels, and the resultant increase in demand for sustainable buildings," the CEO said.
"Having our strategy endorsed with the support of the Ireland Strategic Investment Fund as a new investor in IPUT and being able to grow our relationship with a leading global investor of the calibre of CBRE Investment Management, is testament to our track record and team," he added.
