Wednesday 28 June 2017

Cherrywood office blocks to be put up for sale for €160m

Johnny Ronan was one of the Cherrywood bidders in 2014
Johnny Ronan was one of the Cherrywood bidders in 2014
Ronald Quinlan

Ronald Quinlan

US real estate giant Hines is understood to have appointed Eastdil Secured, a subsidiary of the Wells Fargo Bank, to manage the sale of five office blocks at Cherrywood Business Park for a sum in the region of €160m.

The proposed disposal of the properties represents the first major asset sale of 2017, and comes just over two years after Hines purchased the 400-acre Cherrywood Business Park in partnership with another American fund, King Street Capital, for more than €270m.

In acquiring the 'Project Cherry' portfolio, Hines and its partners secured the largest and most-valuable development site in south county Dublin. They also managed to fend off bids from three other consortia that made it through to the final round of the sales process, which was conducted by Stephen Tennant and Paul McCann of Grant Thornton, who were acting as receivers on behalf of Nama, Danske Bank, Bank of Scotland (Ireland) and AIB.

All three of the final-round underbidders for Project Cherry saw Irish involvement.

Johnny Ronan, former Treasury Holdings chief and founder of Ronan Group Real Estate (RGRE), bid for the portfolio with the backing of the US-headquartered Colony Capital and the UK property group, Development Securities (since renamed U+I following its merger with Cathedral Group).

Developer Michael Cotter, whose Park Developments has had a major presence in the south Dublin market for several decades, joined forces with Delancey and Brehon. The third and final underbidder was Ardstone Capital and Davy Hickey Properties, which is best known for its development of the hugely-successful Citywest Business Campus.

While Hines is now selling five existing office blocks at Cherrywood's Business Park, it is proceeding with its plans to develop 4,000 homes with a capacity to house 15,000 on the lands it owns at the site. The scheme will form part of the new town of Cherrywood, which will have 8,000 homes and a projected population of 30,000 upon its completion. Hines declined to comment on its proposed sale of the five office blocks at Cherrywood.

Sunday Indo Business

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