Thursday 29 September 2016

O'Reilly backer believed to be bidding for Dundrum loans

Published 29/07/2015 | 02:30

Investors from around the world believed to be interested in loans tied to Dundrum Town Centre.
Investors from around the world believed to be interested in loans tied to Dundrum Town Centre.
The Clarion Hotel, Cork

A shortlist of US, German and Middle East investors are believed to have submitted bids for the loans tied to Dundrum Town Centre.

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US firms JP Morgan and Hines, along with Germany's Allianz Real Estate as well as the Abu Dhabi Investment Authority (ADIA), have made offers for the loans, which are being sold by Nama as the portfolio Project Jewell. The €1.7bn portfolio also contains loans tied to a 50pc stake in Dublin's Ilac and Pavilions shopping centres. The State bad bank is expected to finalise its shortlist of bidders this week, according to CoStarNews.

ADIA is already set to buy the Jurys and Berkeley Court Hotels in Ballsbridge for €155m, in conjunction with developer Joe O'Reilly, whose Chartered Land built Dundrum Town Centre.

Meanwhile the Clarion Hotel in Cork will become the latest big-ticket hotel to be put on the market this year when it is formally put up for sale today with an asking price of €30m.

Savills and JLL have been named as agents for the property, which opened in 2005. The city centre hotel is being offered subject to existing occupational leases with Merzolt Ltd, and operated by Choice Hotels Ireland under the Clarion brand.

According to the agents, the 191-bedroom hotel represents a "rare opportunity to acquire a modern and very high quality leased hotel investment". "The hotel has extensive conference and leisure facilities," the agents added, saying "at €30m, the current annual rent of €2.4m represents a net initial yield of 7.66pc". Savills Ireland's head of hotels, Tom Barrett, said the sale was a "a great opportunity".

Irish Independent

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