According to Arabian Business, the sale being conducted by NAMA is for the loans secured against the shopping centres, as opposed to the centres themselves.
They have been sold to a joint venture of the United Kingdom property company Hamerson, and Allianz Real Estate – the property division of the giant German insurance company.
Hammerson will also assume control of Project Jewel’s other assets, which include a 50% share in the Ilac Centre on Henry St, a 50% stake in the Pavilions Shopping Centre in Swords, and full ownership of a development site in the city centre.
Ireland’s largest shopping centre is set to change hands as part of thebiggest Nama deal ever.
It expects to repay at least 80 percent of its senior debt by the end of the year, two years earlier than forecast, and is hopeful of making a profit of up to 1 billion euros by the time it winds down.
Hammerson and Allianz triumphed over USA investment group, Hines, and the oldest sovereign wealth fund in the world, the Kuwait Investment Authority, to become NAMA’s preferred bidders.
“The competitive tension throughout the loan sales process is continuing evidence of the strong investor appetite for property-related loans in Ireland”, Mr McDonagh added.
“We believe that our offer represents a compelling mixture of global and local real estate investment expertise together with leading asset and development management skills, and we look forward to playing our part in ensuring that the underlying assets meet their future potential for the surrounding communities”.
This agreement provides Hammerson with exposure to a significant new platform of high quality, well-let retail property as well as strategically located development opportunities in Ireland, Europe’s fastest growing economy.
Annette Kröger, the CEO of Allianz Real Estate Germany, said, “our investment into Project Jewelis an important step to a further diversification of Allianz’s real estate portfolio”. “We are pleased to co-operate again with Hammerson as our JV partner”.