Sunday 17 December 2017

Double deal for Kennedy Wilson Europe worth €0.5bn

Central Park in Leopardstown
Central Park in Leopardstown

Peter Flanagan, Commercial Property Editor

An investment fund controlled by US giant Kennedy Wilson plans to take over a host of properties in Dublin and Cork for nearly half a billion euro.

Kennedy Wilson Europe (KWE), which was set up last year, said it will spend €472m on two commercial property portfolios in Ireland.

One portfolio includes the residential units at the Central Park business estate in south Dublin, pictured, for €88.1m, while KWE will fork out about €391.4m for the Opera Portfolio, which comprises seven office and six retail assets. One of those is located in Cork with the other 12 in Dublin. Among the properties included are Stillorgan Shopping Centre in Dublin, Merchants Quay Shopping Centre in Cork, and a plethora of high-end office blocks that include Bank of Ireland's headquarters on Mespil Road.

In a convoluted deal, the two portfolios are at least part- owned by other entities within the Kennedy Wilson group.

The firm, along with Green REIT, paid €311m for Central Park early this year, while it teamed up with investment firm Varde to take on the Opera Portfolio last June.

In a sign of how far the Irish property market has moved in that time, Opera will change hands now for 22pc more than the €306m it cost 11 months ago.

Davy's Ray Crowley welcomed the deal.

"This will expose the group to a rapidly recovering Dublin office market and a retail market where occupier demand has returned.

Irish Independent

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