ISIF backs new Quadrant Fund to invest up to €120m in office developments in Cork city

The Ireland Strategic Investment Fund (ISIF) has announced backing for a new Quadrant managed fund (the Fund) that will provide financing of up to €120m for the development of high-quality office space in Cork city.

ISIF has committed to investing €35m in the Fund, in line with the priority theme of regional investment set out in its recently-announced refocused investment strategy. Quadrant clients will co-invest alongside ISIF as opportunities arise for the Fund, with Quadrant planning to raise additional funding in subsequent fundraising rounds for additional investment in Cork.

An existing Quadrant fund, in which ISIF invested in 2015, has successfully deployed over €230m in financing for office and commercial property and hotel investments in Dublin – including in Dublin Docklands, the Sandyford business district and Donnybrook.

ISIF’s €35m investment is expected to co-finance the development of up to three large prime office blocks in Cork city, meeting demand from employers that are setting up new operations in Cork or expanding their existing presence in the area.

ISIF’s expectation is that the Fund will act as a catalyst for wider urban regeneration investments in Cork city and its environs, supporting a key goal of the Government’s Ireland 2040 plan.

This investment is aimed at addressing a demonstrable shortage of modern, Grade A office space in Cork city and is designed to draw in financing from institutional and other investment sources to help meet this demand.

Eugene O’Callaghan, Director of ISIF, said:

“We are pleased that this new investment with Quadrant aligns with our regional investment priority focus and builds on our ongoing investment activities in Cork city and county. This Fund will bring much-needed supply of office accommodation to Cork city, meeting growing demand among employers for more office space to cater for their growing workforces. We have worked very effectively with Quadrant since 2015 in funding major office developments in Dublin and we look forward to repeating that success in Cork.”

Kurt Wright, Chief Executive Officer of Quadrant Real Estate, said:

“Quadrant is very pleased and appreciative of this opportunity to grow our very strong and successful relationship with ISIF. We remain very positive on urban property in the Republic of Ireland and particularly Cork. Market conditions will allow us to pursue prudent investments and achieve solid risk-adjusted returns into the foreseeable future.”

Ireland Strategic Investment Fund