Aviva Investors has acquired a hotel project in Ireland on behalf of its European Real Estate Long Income (E-RELI) fund.
The asset manager invested an undisclosed amount to buy the asset located at the junction of Gloucester Street and Princes Street South in Dublin.
The hotel, whose delivery is scheduled for the end of the year, is leased to the Premier Inn hotel chain.
Aviva Investors will work with Red Rock Developments to complete the project.
Isabel Gossling, co-fund manager of the European Real Estate Long Income Fund at Aviva Investors, said: “In line with the fund’s overall strategy, we expect this asset to provide investors with consistent, sustained long-term income. by a covenant of superior quality and, above all, linked to inflation.
“Current market conditions are bolstering investor demand for assets of this nature, which we believe will continue to grow over the course of this year.”
David Carroll, CIO at Red Rock Developments, said: “It was a pleasure to deal with Aviva Investors European Long Term Property Income Fund on their first transaction in Ireland which we hope will deliver secure returns. long-term to their investors.
“The Gloucester Street building is a unique asset offering long-term inflation-linked income, a FTSE-listed occupier/operator and offering the ESG credentials required by long-income investors. We look forward to completing development later this year.
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