Friday 28 October 2016

Dundrum Town Centre sold by NAMA: Five things you need to know

Published 29/09/2015 | 08:53

A busy Dundrum shopping centre. Picture credit; Damien Eagers 2/12/2014
A busy Dundrum shopping centre. Picture credit; Damien Eagers 2/12/2014

NAMA has just sold Dublin's landmark shopping centre in Dundrum in its biggest deal ever. Here are five things you need to know about the transaction.

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1. What is Allianz Real Estate?

Allianz Real Estate is the German wing of insurance giant Allianz.

It is responsible for investment and asset management in Germany, Austria, Eastern Europe and Scandinavia. However, the Dundrum deal, in which it has 50pc stake in, was not its first venture into Irish real estate. Earlier in the month the German institutional investor helped finance a Dublin city office block deal by Starwood.

2. What is Hammerson?

Hammerson is a UK-based property group that specialise in improving the return on investment in retail properties.  It currently has a 14pc stake in Kildare Village and also has a 50pc stake in the Dundrum deal. Across Europe Hammerson has a portfolio value of £7.9bn (€10.67bn) which is made up of stakes in 20 major shopping centres and 22 major retail parks.

3. Why is today's sale such a big deal?

Dundrum Town Centre is not only one of the country’s most popularshopping destinations but this deal is NAMA's biggest ever. It has just been sold as part of a €1.85bn deal under a transaction known as Project Jewel. It was built by developer Joe O Reilly.

4. What else is in the portfolio besides Dundrum?

While Dundrum will grab the headlines as being the primary acquisition in the deal it wasn’t the only shopping destination that fell under the Project Jewel umbrella. The deal also included 50pc stakes in both the Ilac Shopping Centre and the Pavilions in Swords.

5. So what now for NAMA?

NAMA is already cutting staff numbers and a goal of reducing staff numbers from over 300 to 125 by the end of 2016 has been set.

It has a target to repay 80pc of its senior debt by the end of 2016 and it could also have its senior debt repaid by the end of 2018.


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