Insurance company buys Citypoint building for €22 million

Galway daily news Citypoint building up for sale with guide price over €20 million

The Citypoint building on Prospect Hill has been sold to Insurance company Friends First for an estimated €22 million.

The 76,500sq ft building generates roughly €1.5 million in rent a year from a mix of offices, retail outlets, and residential tenancies.

The ground floor is a TK Maxx store, with Galway Health and Fitness operating out of the basement.

Some businesses occupying offices in the building include Mathworks and Ipswitch, two US technology companies that set up their European headquarters in Galway.

The building also includes a variety of self-catering apartments operated by the Western Hotel Citypoint Apartments.

According to the Irish Times the sale of the ten year old building was brokered by BNP Paribas Real Estate and QRE Real Estate Advisors.

Claire Salon, head of property at Friends First, said the acquisition represents the growing opportunities for real estate and asset management in regional cities.

“Citypoint represents the first acquisition which the fund has made in the Galway market and is representative of the balanced approach we are taking to asset purchases,”

“This property has a solid income profile with upcoming asset management opportunities which we can leverage to create additional value for our policy holders.”

Citypoint was the last property to be sold in a portfolio known as the Axis Portfolio, which had an initial asking price of €50 million for the lot.

Other properties within it included the Cruises Street Car Park in Limerick which sold for €2.7 million, and Boroimhe Shopping Centre in Swords, which fetched €9.25 million.

Friends First is a primarily Dublin-based fund. Other projects they’re currently undertaking include refurbishing the Royal Hibernian Hotel on Dawson street.