O’Callaghan school project pays back €19m Starwood loan early
AN almost €19m loan from a finance arm of US investment giant Starwood used to help build the new international school in south Dublin has been repaid early.
The Leopardstown school, aimed at children of multinational executives, is located in a former Microsoft building and is backed by tech entrepreneur Barry O’Callaghan.
Please log in or register with Independent.ie for free access to this article.
In 2017, Starwood European Real Estate Finance made the three-year, floating rate loan to the company behind the school project. The finance was for the acquisition of the school site and its development.
“On 8 May 2019 the group received full repayment of €18.85m on the loan to an Irish school following completion of the borrower’s business plan,” said Starwood European Real Estate Finance yesterday as it released interim results.
The private Dublin school, which can accommodate 800 pupils, is operated by Hong Kong-based Nord Anglia Education. It opened last year and is the most expensive school in Ireland.
For the current academic year, its fees are €24,000 for pupils aged between 14 and 16.
For children aged three to five, the year will cost €15,900. For primary school children aged seven to 11, the school costs €19,900 for the current academic year.
Nord Anglia operates 43 other international schools around the world, in countries including China, the United States, Mexico, France and Poland.
Mr O’Callaghan enlisted former education minister Ruairí Quinn to help establish the school.
Starwood said that in March it also received repayment in full of €10.6m that had been loaned for a separate student accommodation project in Dublin.
The chairman of the Starwood investment vehicle, Stephen Smith, also warned shareholders about the possible impact from Brexit.
“The United Kingdom’s imminent departure from the European Union, with or without an agreement, may represent a potential threat to the UK economy as well as wider Europe,” he said.
“On a cyclical view, national economies across Europe appear to be heading at best towards lower growth and in some cases towards recession,” he added. “The potential impact of Brexit could have a further destabilising effect.”