Property giant gets huge discount on €45m loan for 900 Dublin apartments
Property investment giant Kennedy Wilson is paying just over 2pc on a €45m construction loan attached to a development of almost 900 apartments in Dublin - a huge discount to the rate homeowners themselves are charged by banks for their mortgages.
US-based Kennedy Wilson, which owns assets in Ireland including the Shelbourne Hotel, said it had refinanced the existing construction loan on phase two of the huge Clancy Quay project in Dublin.
The new €45m loan was secured following full delivery of phase two of the scheme, which was completed during the summer. The Clancy Quay project will include a total of 845 units when it's finished.
It's the largest apartment project in the country. It also includes the conservation and refurbishment of the former Clancy Barracks. The main contractor is Glenbeigh Construction. Kennedy Wilson said the new loan it had secured matured in 2025 and carried a 2.03pc interest rate.
That compares to rates of between 2.95pc and 5.05pc that homebuyers taking out an average €200,000 mortgage over 30 years on a €265,000 property could expect to pay.
The refinanced loan that Kennedy Wilson has secured is cheaper than the previous €45m loan attached to the Clancy Quay phase.
"The new loan will enable us to maximise property cash flow as we work to complete the largest apartment community in Ireland," said Mary Ricks, president and CEO of Kennedy Wilson Europe.
"Kennedy Wilson's multifamily portfolio now includes 2,000 units in Ireland and we remain committed to investing and growing that portfolio for the long-term."
Kennedy Wilson acquired Clancy Quay in 2013 for €82.5m. The first phase of development at the site included 423 full-furnished units. Phase two included 163 apartments, townhouses and courtyard homes with exclusive interior design finishes. Phase three of the Clancy Quay scheme will see 259 units built. They are expected to be finished in 2020.