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