Irish

Wednesday 20 August 2014

BoI lends €150m to buy Central Park

Donal O'Donovan

Published 29/03/2014 | 02:30

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Bank of Ireland is understood to have provided €150m of debt financing for a deal to buy the Dublin industrial estate Central Park
Bank of Ireland is understood to have provided €150m of debt financing for a deal to buy the Dublin industrial estate Central Park

Bank of Ireland is understood to have provided €150m of debt financing for a deal to buy the Dublin industrial estate Central Park.

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It's thought to be among the biggest new loans advanced by a domestic lender for a real-estate transaction since the start of the financial crash.

Property data specialist Co-Star says the interest on the new five-year bank loan is 2.95pc over euribor and is regarded as a very low cost of debt for borrowers Green REIT and PIMCO. According to Co Star, the pricing on the loans is the lowest from an Irish bank since the crash.

Irish Stock Exchange listed Green REIT and Bill Gross's California-based PIMCO have teamed up to form a joint venture to buy the office park from receivers appointed by NAMA.

As part of the same overall transaction, US investor Kennedy Wilson is paying around €80m for a separate set of Central Park assets.

Green REIT has said the deal, which was announced in February, has now closed.

The assets bought are made up of six modern office buildings covering approximately 691,000sq.ft in Leopardstown.

In addition there are approximately 7.4 acres of development land with planning permissions for a further 700,000 square feet of development, Green REIT said.

The portfolio is 87pc occupied. Tenants include Vodafone, Merrill Lynch, Ulster Bank, Tullow Oil, Leaseplan and Salesforce. Discussions are under way with a number of additional prospective tenants, according to Green REIT.

Irish Independent

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