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NAMA selling Dundrum Town Centre loans in deal worth more than €1bn

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NAMA is preparing to sell loans tied to Dundrum Town Centre in a deal which could be worth more than €1bn.

The state bad bank took full control of the shopping centre, which was developed by Joe O’Reilly’s Chartered Land, last April.

Industry sources believe the property will be put on the market by early summer at the latest.

The 150,000 square foot property will probably sell for around €1bn, according to property experts. A previous valuation of the landmark mall had pegged its worth at closer to €700m prior to a recovery in the market.

The shopping centre's tenants generate a retail income of €50m a year, meaning its new owners can expect a return of around 5pc a year. Opened in 2005, it has an annual footfall of 19 million.

The Dundrum loans are likely to be sold along with 50pc stakes in the Pavilions shopping centre in the Swords in north Dublin and the Ilac Centre in the city centre.

Just two major retail developments have been sold since the start of the financial crisis. These are Liffey Valley Shopping Centre in west Dublin, which HSBC and international property fund Hines bought a majority stake in earlier this year for €235m, and the Acorn portfolio - consisting of shopping centres in Blackpool, Balbriggan and Clonmel - which was bought for €170m by Minneapolis-based Varde Partners.

Dundrum is seen as the jewel in the Irish retail crown at present, and is likely to attract a range of international bidders.

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