• IPUT is committing capital and its logistics landbank to the sub-fund combined with an equity investment of €115 million from two new investors
• CBRE Investment Management’s (CBRE IM) Indirect Private Real Estate Strategies and the Ireland Strategic Investment Fund (ISIF) to co-invest with IPUT in the new Article 9 sub-fund, the IPUT Nexus Logistics Fund
• With full planning in place, construction will commence in March 2025 on 105 acres of zoned land near Dublin Airport, delivering 1.5 million sq. ft. across nine buildings
• The first two buildings at Nexus, units 4 & 8 comprising 112,000 sq. ft. and 53,000 sq. ft. respectively, will be constructed using the latest glulam timber structural frame technology
• Amenities and public realm will be prioritised in the first phase of the development, with the Fund committed to the construction of two outdoor padel courts, a full-size multi-sport astro pitch, an amenity pavilion, open to park occupiers and the local community
• The development of Nexus has the potential to create over 200 new roles in the construction phase and up to 4,000 direct and indirect jobs upon completion

IPUT Real Estate (“IPUT’), Dublin’s leading property investment company, has launched a new logistics sub-fund, the “IPUT Nexus Logistics Fund” raising €115 million in new capital to develop the first 1.5 million sq. ft. of Nexus Logistics Park (“Nexus”). The IPUT Nexus Logistics Fund will operate as a sub-fund within IPUT Real Estate and is classified as an SFDR Article 9 fund, ranking it among the most sustainable real estate funds in Europe.

IPUT has raised €115 million 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 €115 million is being invested by IPUT through a combination of capital and its zoned logistics landbank.

IPUT intends to capitalise on the absence of meaningful large-scale institutional investment in Irish logistics parks, and the pent-up demand from major global and domestic occupiers looking to establish modern distribution hubs, particularly in the Dublin region.

Research undertaken by IPUT indicates that there is a clear shortage of modern building stock capable of accommodating the ongoing structural shift in global trade patterns to and from Ireland resultant of Brexit and the increased e-commerce penetration in the economy. Over the last decade, we have seen a 100% increase in freight volumes direct from Europe and according to CBRE, there is over 5.5 million sq. ft. of active demand for logistics space. With a vacancy rate close to 2% in Dublin, there is a clear opportunity for the provision of sustainable logistics solutions.

Niall Gaffney, Chief Executive of IPUT Real Estate, commented:

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.

We continue to create leading workplaces in Ireland and will bring our track record in sustainability, occupier amenities, and people-led design to the development of Nexus which, will be classified as an Article 9 Fund, and will aim to be among the greenest real estate funds in Europe. Nexus will set a new benchmark for innovative logistics design and is strategically located near the Dublin Port, Dublin Airport, and motorway network.

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.

Sarah Hickey, Senior Investment Director at ISIF, said:

ISIF’s investment in Nexus will catalyse the development of new commercial infrastructure necessary to support increased levels of trade and economic growth. This investment is an example of how ISIF’s impact investment approach can support sustainable development and placemaking to deliver modern new workplaces alongside community spaces in a fully integrated way.

Robert Muilwijk, Senior Director, at CBRE IM Indirect Strategies, said:

This investment underscores our strong conviction in the industrial sector and our commitment to sustainable development. The Nexus Logistics Park represents a significant opportunity to meet the growing demand for modern, sustainable logistics solutions in Ireland. We are confident that this collaboration will deliver substantial value for our client while also contributing to a more sustainable supply chain network in Dublin. We look forward to a successful partnership with IPUT and ISIF and the continued growth of this innovative project.

About Nexus Logistics Park

Nexus Logistics Park, strategically located at the Cherryhound Interchange off the M2 motorway, adjacent to Dublin’s M50 and near Dublin Airport, is set to become Ireland’s most sustainable logistics hub. The entire development will span 2.5 million sq. ft. across 17 buildings, built to the highest development standards, including BER A2, and LEED Gold certifications.

The first phase will comprise 1.5 million sq. ft. across nine units ranging in size from 53,000 sq. ft. to 460,000 sq. ft. 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.

The development will also include a significant investment in the public realm and amenities for occupiers and the local community such as an outdoor multi-use games area, a public pavilion, a café, and retail amenities. The development will also include forest walking routes and cycling paths, which will be accessible to the public, offering recreational, health, and well-being benefits. Biodiversity also plays an important role in the development of Nexus. Approximately 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.

Construction will commence in March 2025, with two speculative units; Unit 4 (112,000 sq. ft.) and Unit 8 (53,000 sq. ft.). The remaining seven units are scheduled for completion over the next five years. IPUT has full planning permission for an additional 1 million sq. ft. which will bring the entire size of the development to 2.5 million sq. ft. IPUT has appointed CBRE (Garrett McClean) and Harvey (Philip Harvey) as leasing agents on phase 1 Nexus.

To learn more about Nexus Logistics Park visit: nexuslogisticspark.com