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Allianz Real Estate, Hammerson JV acquires Irish loans portfolio
Posted On Sep 29 2015
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The joint venture gives Hammerson and Allianz a 50% share each in the centrepiece of the portfolio, Dundrum Town Centre as well as a planned extension known as Dundrum Phase 2.
Part ownership in the Ilac Centre and Swords Pavilions are also included in the deal, as well as a number of strategic development sites and other assets.
Project Jewel, a loan portfolio that includes debt secured on Dundrum Town Centre, a 12 ha shopping centre in Dublin, among others, is controlled by Ireland’s National Asset Management Agency (NAMA), the government body that took over the country’s distressed real estate assets during the downturn.
The discount of 29 percent on the retail centre, anchored by Irelands only House of Fraser department store, represents a relatively lower cut than numerous European loans being offloaded at knockdown prices, particularly in Ireland where commercial prices fell by more than half after the bursting of the property bubble.
Following the deal, Hammerson has announced its intention to establish an office in Dublin and now has Irish interests in Kildare Village.
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.
The face value of the loans is €2.57bn.
The sales process was handled for Nama by Eastdil Secured.
“The transaction provides a unique opportunity to increase our exposure to Europe’s fastest growing economy, creating a platform for significant investment and employment opportunities going forward”.
The transaction is expected to complete before the end of October.
Annette Kröger, chief executive at Allianz Real Estate Germany, said: “Our investment into Project Jewel is an important step to a further diversification of Allianz’s real estate portfolio”.
“In partnership with Allianz, I believe we are well positioned to maximise the future potential of these properties and deliver consistent returns for our shareholders”.
