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Thursday 28 August 2014

Three shopping centres to hit the market as commercial property sales ramp up

Peter Flanagan Commercial Property Editor

Published 01/05/2014 | 19:09

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THREE shopping centres around the country are set to go on the market, as the sell off of commercial property in Ireland ramps up.

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UK lender Lloyds is understood to be preparing to sell the Bloomfield shopping centre in Dun Laoghaire, the Douglas Court shopping centre in Cork and part of Eyre Square centre in Galway.

Lloyds financed the shopping centres during the boom but is now off loading its “non-core” assets, including most of the property it controls in Ireland.

While a final sale date has yet to be agreed on, the properties are expected to be formally put on the market before the end of next month.

Any sale is likely to cost Lloyds. The bank will likely have to offer the centres at a significant discount to the original value of the loans if it is to find a buyer quickly.

A spokesman for Lloyds declined to comment on the possible sale.

The shopping centres’ sale is the latest deal involving major retail properties.

The National Asset Management Agency on Wednesday put Blackpool Shopping Centre and Blackpool Retail Park in Cork, Millfield Shopping Centre in Balbriggan, Dublin and The Showgrounds Shopping Centre in Clonmel, County Tipperary.

The so called “Acorn Portfolio” is expected fetch upwards of €130m

Lloyds yesterday posted a 22pc rise in first-quarter profit after cost cuts and a decline in bad loans as the housing market soars and the UK economy rebounds. The London-based bank plans to reduce the amount of its non-essential assets by around a third.

(Additional reporting by Bloomberg)

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