Capitol bought for €45m by German investment fund

Capitol bought for €45m by German investment fund
The Capitol has been sold for €45m. Picture Dan Linehan

THE landmark Capitol development has been bought by a leading German real estate investment fund for more than €45 million.

The Real IS Group has completed a €45.6 million transaction for the centre, which was developed by John Cleary Developments (JCD) and was completed in July.

The German investment firm now boasts assets worth more than €7.5 billion worldwide.

The move has been hailed as a vote of confidence for the new wave of office developments planned for Cork, establishing Cork as 'a viable alternative to Dublin.'

The redevelopment of the Capitol site on a .75 acre location fronting Grand Parade and Patrick St was one of the most significant retail projects in Cork city in recent times.

Its retail offering includes Lifestyle Sports, HomeSense and the redeveloped Oyster Tavern, while its office space is currently home to AlienVault, Huawei and Facebook's Oculus virtual reality operation.

Just one floor of offices remain unoccupied in the building, with developers claiming that there is 'a significant level of interest' in the space.

A spokesperson for JCD welcomed the sale.

"We believe this is an important endorsement for the commercial property market in Cork to have an international institutional investor such as Real I.S. invest in the city.

"Cork has proven itself to be an attractive location for both occupiers and investors and is a viable alternative to Dublin and other markets. 

"Cork city centre is experiencing a significant revival with strong footfall levels and a number of new developments helping to increase the vibrancy of the city.” 

Meanwhile, JCD has confirmed that it will commence construction on a new grade A office building on the South Mall next week.

Planning permission was recently approved for the development, which is expected to be completed by December 2018.

The 46,000 sq ft office development will be located at the heart of the city's traditional business district and will include frontage on Crane Lane, Phoenix Street and Smith Street, as well as South Mall.

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