Business Irish

Sunday 25 February 2018

US firm Kennedy Wilson paying $152m for Shelbourne Hotel loans

Dublin's Shelbourne hotel
Dublin's Shelbourne hotel
Donal O'Donovan

Donal O'Donovan

US investor Kennedy Wilson says it is paying $152m (€111m) for debt secured on Dublin's iconic Shelbourne Hotel building.

It is understood the debt -- in the form of loan notes -- is being acquired from Bank of Ireland and the liquidators of Irish Bank Resolution Corp (IBRC).

Back in 2004, Bank of Ireland and the former Anglo Irish Bank provided €200m of debt to a group of businessmen and developers to finance the acquisition of the building.

The new price is well ahead of the €86.5m valuation placed on the building at the end of 2011, in filings made to the Companies Registration Office.

INVESTMENTS

The Shelbourne Hotel deal is part of the total of $700m that Kennedy Wilson is contracted to pay for 48 separate property-linked investments in the United States, Ireland, the United Kingdom and Spain.

In a filing with the US stock market authority, the SEC, California-based Kennedy Wilson said it expected half the consideration being paid for the Shelbourne loans to come from debt, and said it would potentially bring in a third party to help finance the equity element of the finance.

The Shelbourne deal will close on January 17, according to a report on the Bloomberg newswire.

Located on Stephen's Green in the centre of Dublin, the Shelbourne is probably Ireland's best known hotel. The first post-independence Irish Constitution was signed in an upstairs room in the hotel in 1922.

Over the years, guests have included everyone from Charlie Chaplin to US presidents John F Kennedy and Bill Clinton. (Additional reporting Bloomberg)

Irish Independent

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