Friday 20 October 2017

Final bids for Dundrum loans due in September

A busy Dundrum shopping centre
A busy Dundrum shopping centre
Sarah McCabe

Sarah McCabe

Final bids for "Project Jewel", the portfolio which includes huge loans attached to Dundrum Town Centre, are due by September 15.

The sale of loans attached to the shopping centre and other smaller retail assets is expected to fetch upwards of €1.5bn.

The loan portfolio is considered the jewel in Nama's crown, one of its biggest and best-performing assets.

As well as Dundrum town centre, it includes half of Dublin's Ilac Shopping Centre, half of the Pavilion in Swords and a site on Dublin's O'Connell street. Because of its size, Dundrum Town Centre rivals Dublin city centre as a retail hub.

Even during the economic downturn, it rarely saw a vacant unit. Tenants range from luxury retailers such as Harvey Nichols and BT2 to Tesco and Penneys.

The final bidders have already been narrowed down to a group of five.

They are US real estate investment company Hines, shopping mall investor Hammerson, insurer Allianz, investment firm Colony Capital - which has reportedly teamed up with local developer Paddy McKillen - and hedge fund Davidson Kempner.

Parties who expressed interest but did not progress to the final stage include the Simon Group, the biggest shopping centre owner in the US, and shopping centre giants Intu and Westfield.

A bid by the Abu Dhabi Investment Authority and thought to involve Dundrum's developer, Joe O'Reilly, is also not amongst the shortlist of five.

Dundrum town centre was developed in partnership by the deceased developer Liam Maye (who owned 40pc of it), O'Reilly (40pc) and John Fitzsimons (20pc). The State bad bank took full control of loans attached to it last year.

Irish Independent

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