Sunday 19 November 2017

Mall sale biggest ever in Ireland - Paribas

Blanchardstown Shopping Centre
Blanchardstown Shopping Centre
Michael Cogley

Michael Cogley

The sale of the Blanchardstown Shopping Centre in Dublin to US investment giant Blackstone for €945m was the most expensive single property deal ever, research by BNP Parisbas Real Estate says.

Last year the Dundrum Town Centre was sold to Hammerson and Allianz, however the exact value is unclear as it was sold as part of the massive Nama Project Jewel loans portfolio.

That entire portfolio, which included stakes in the Ilac Centre and Swords Pavilions, was sold for €1.85bn in September last year.

Private equity firm Blackstone tied up the deal for Blanchardstown back in June in what was viewed at the time as one of the biggest deals ever.

The centre was sold by Green Property for just under the original asking price of €1bn set back in January.

It is understood that Blackstone beat competition from the likes of the Canada Pension Plan Investment Board and Joe O'Reilly's Chartered Land. It's widely believed Blackstone will invest further into the property and develop some of its 1.6 million sq ft capacity for extra space.

Elsewhere the Irish commercial property market performed strongly in the second quarter of the year with €2.1bn transacted, the strongest single quarter in the Irish market ever.

The backbone of the activity was office investments, with €717m of assets changing hands between April and June.

BNP Real Estate head of research Joan Henry said the quarter was a landmark for the Irish commercial property sector. "Our research revealed that the sale of Blanchardstown Shopping Centre represented the largest single asset ever traded in the market, and with over €2.1bn of assets transacted in the period, we are seeing the largest quarterly turnover ever," Mr Henry said.

"If turnover reaches the forecasted €3.5bn for 2016, the 10-year average will have increased significantly to €1.7bn, compared to €1bn in 2013."

The positive second quarter follows research from CBRE that pointed to 238 commercial property deals in the first six months of the year. The deals from the opening half of the year amounted to around €2.95bn, CBRE claimed.

During the period PwC's headquarters at One Spencer Dock was sold for €242m to international investment group AGC Equity Partners in the single biggest office spend ever.

Irish Independent

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