Wednesday 16 October 2019

Kennedy Wilson to invest €530m in Irish projects

High hopes: Kennedy Wilson president Mary Ricks, chairman and CEO William J McMorrow and Finance Minister Paschal Donohoe at the firm’s Capital Dock Campus
High hopes: Kennedy Wilson president Mary Ricks, chairman and CEO William J McMorrow and Finance Minister Paschal Donohoe at the firm’s Capital Dock Campus
John Mulligan

John Mulligan

US property giant Kennedy Wilson will spend more than $600m (€530m) between now and 2022 for its share of key office and residential projects being completed in Ireland by the group and its partners.

The tally includes land acquisition costs.

The company's latest annual report also shows that the total development cost of the so-called City Block 3 site in Dublin - excluding the land acquisition - is expected to amount to about $370m (€326m). Kennedy Wilson's share is currently estimated at $183m.

A consortium including Kennedy Wilson acquired the high-profile City Block 3 site last autumn for €113m. Kennedy Wilson is a 50pc shareholder in the consortium, with Axa Investment Managers and Cain Capital.

The 5.9-acre site was bought from Nama, and is located on streets including New Wapping Street, Mayor Street Upper and Sheriff Street Upper.

In its annual report, Kennedy Wilson confirms that its share of the total acquisition cost for the site was $70m (€62m). It expects the site to feature up to 332,000 sq ft of space, including offices, and about 452 apartments.

The company is also advancing plans for a development on a 2.2-acre Leisureplex site that it bought for €15m in 2016 in Stillorgan, south Dublin. It remains involved in planning for the site, which it expects to be developed by 2022 and to feature 180 apartments and commercial space.

Kennedy Wilson expects the development cost to be $84m (€74m). The US property group also owns the Stillorgan Shopping Centre directly across the road from the Leisureplex site.

Last year, Kennedy Wilson paid €160m for 274 of 507 completed apartments on a four-acre site in Stillorgan, called Grange. The property group notes in its annual report that it expects to build an additional 235 apartments at the site, for a development cost of roughly $47m (€41m).

Kennedy Wilson has acquired at least €1.5bn worth of assets in Ireland since the downturn. It currently has $16bn (€14bn) of assets under management.

Kennedy Wilson owns properties in Ireland including the Shelbourne Hotel, which it said had performed well during 2018.

The group is also building an office block at Dublin's Hanover Quay in conjunction with Nama.

Irish Independent

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