The development represents the first investment in Ireland for the joint venture between developer Chancerygate and specialist sustainable and impact investor Bridges Fund Management, which has successfully delivered similar projects in the UK for over 10 years.
With a total floor area extending to 119,500 sq ft, the finished project will provide 14 units ranging from 3,600 sq ft to 22,370 sq ft in size.
Named Airport Trade Park, the Grade A units on the five acre site will be available for lease with construction due to commence in Autumn 2024.
Once complete, the scheme will have a projected gross development value of around €40m.
The partnership acquired the site from construction company Carey Building Contractors in May 2022 for €4.5m. Carey previously used the site for office accommodation and civil engineering yard space. It is around 1km south of Dublin Airport and 8km north of the city centre.
Boosted by demand due to a combination of ecommerce, the pandemic and Brexit, prime rents for the Dublin logistics market have been increasing, with the best buildings achieving €135 per sq m at the end of the opening quarter of this year, up from €117 per sq m for the same period in 2023.
Furthermore, agents have been forecasting that they could exceed €151 per square metre by the end of this year.
But the sector has not been immune from recent investor caution as the authoritative MSCI/SCSI IPD index showed capital values fell 1.7pc during the first quarter of this year.
The Santry site benefits from good connectivity, thanks to its proximity to the airport, M50 and M1 arterial routes, several bus routes and a proposed future MetroLink station at Dardistown, linking Dublin Airport to the city centre.
In addition to Dublin, Chancerygate has operations in London, Birmingham, Bristol, Warrington, Madrid and Lisbon.
The company currently has around 1.16 million sq ft of urban logistics space under construction or ready for development across ten sites.
Bridges is a specialist sustainable and impact investor. Its property funds focus on sectors that are well placed to benefit from the transition to a more sustainable and inclusive economy, including healthcare, lower-cost housing and sustainable logistics.
