Singapore’s Mapletree Mulls Selling TikTok’s Dublin Office For €320mil
IRELAND – Mapletree, a real estate investment trust (REIT) based in Singapore, is understood to be considering to offload a 202,000 sq ft office building in Dublin’s south docklands that is currently leased by TikTok, according to a recent report from the Irish Times.
If the REIT decides to proceed with the divestment, the commercial property known as the Sorting Office is anticipated to have an indicative price of around €320 million, up from the €240 million Mapletree forked out when it acquired the office asset from Marlet Property Group and its funding partner M&G Investments in 2019.
Mapletree’s investment in Sorting Office was rewarded soon after the office development’s completion in late-2020 when TikTok agreed to lease the entire commercial property as part of its plans to increase its Dublin-based manpower to 5,000.
Thereafter, the Chinese tech firm inked a 15-year lease in December 2021. Under the deal, TikTok agreed to occupy the Cardiff Lane office for 10 years term-certain, in addition to a rent-free period of around 1.5 years.
The Sorting Office’s rental rate is believed to range from €55 psf and €60 psf per month.
The news of Mapletree weighing a sale of the commercial property comes at a time of major transactions in Dublin’s office market.
In June, Blackstone paid more than €500 million to acquire the under-construction European headquarters of Salesforce at Spencer Place in Dublin’s north docklands. The sellers are US fund Fortress Investment Group and property developer Ronan Group Real Estate (RGRE).
Furthermore, Fortress is said to be presently in negotiations with the family office of Zara founder Amancio Ortega regarding a potential sale of Fibonacci Square, a 375,000 sq ft office building that RGRE is building as part of Facebook’s new European HQ in Ballsbridge.