Business Irish

Monday 20 November 2017

Stillorgan mall near sale as venture firms make offers on loans

Neil Callanan

Stillorgan Shopping Centre in south Dublin and several other high-profile buildings could be sold soon as three venture capital companies offer competing restructuring plans today to buy the loans behind the buildings.

TPG Capital, Northwood Investors and London & Regional Properties will all make offers for a €373m loan backing the 16 properties, according to Bloomberg.

The original loan to buy the properties was taken out by Real Estate Opportunities, which was once a unit of Treasury Holdings. The company is now so poor that it cannot even afford a liquidation, according to its website.

The winning bidder among the shortlisted companies will take control of the buildings which also include Bank of Ireland's head quarters on Mespil Road, FAS's offices on Baggot Street and KPMG's offices.

Potential buyers

Six potential buyers made initial restructuring offers, according to Commerzbank, which is administering the process on behalf of investors in Opera Finance (CMH) Plc's commercial mortgage-backed securities. The loan wasn't repaid after the buildings' value fell to €270.5m last year from €570m in 2008.

Investors in Irish property are buying debt being offloaded by lenders exiting from western Europe's biggest property crash.

Lloyds Banking Group agreed to sell £1.5bn (€1.76bn) of Irish commercial real estate loans to Apollo Global Management LLC for 1pc of face value in November.

Northwood bought the lowest-ranking part of the Opera finance (CMH) loan from the National Asset Management Agency earlier this year. It's being advised by Brookland Partners.

REO was 70pc owned by Richard Barrett and Johnny Ronan's embattled Treasury Holdings Group but as a listed investment vehicle in its own right, small investors were also able to buy and sell shares in the business. (Bloomberg)

Irish Independent

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