Dundrum Town Centre bought by UK funds

UK property group Hammerson and its joint venture partner Allianz Real Estate have secured the ownership of Dundrum Town Centre.

Hammerson and Allianz paid €1.85 billion last year for a portfolio of National Asset Management Agency loans to developer Joe O'Reilly's Chartered Land.

The portfolio, known as Project Jewel, also included loans attached to 50 per cent stakes in the Ilac Centre in Dublin city and the Pavilions Shopping Centre in Swords.

Hammerson and Allianz will also take over direction of the Ilac and the Pavilions pending a pre-emption process with the co-owners and regulatory approvals.

Joe O’Reilly, executive chairman of Chartered Land said: “We are very pleased that this transaction has concluded successfully. I am confident that Hammerson and Allianz Real Estate will continue to invest in, and develop, these assets in the coming years, building on the strong Chartered Land legacy.”

He said Chartered Land is now focussed on the development of the former Clyde Court Hotel in Ballsbridge and the Elm Park Urban Campus on Merrion Road, Dublin 4.

On completion, Hammerson’s total consideration for its share of the Project Jewel portfolio, including fees, taxes and transaction costs, will be €1.23 billion.

Hammerson chief executive David Atkins said acquiring Dundrum is a game-changing step for the property group and increases the diversification of its prime European retail property portfolio.

He said Ireland stands out from other European territories for its powerful economic growth and dynamic consumer recovery.

“Against the current backdrop of UK market volatility and political uncertainty, the Irish economy continues to hold a number of competitive advantages as a European hub for business activity in a wide range of sectors.”

“This will provide us with immediate scale and market leadership from which to capitalise on the strong consumer backdrop in Dublin,” he added.

Dundrum Town Centre has 120 shops, 38 restaurants, a 12-screen cinema as well as 3,400 car park spaces. The centre is currently at 99 per cent occupancy with total passing rent of €60 million per annum.

The Pavilions centre in Swords is anchored by Dunnes Stores, and includes a strong tenant line up including international brands such as Zara, H&M, Next and Tommy Hilfiger. The centre is currently 99 per cent let with contracted rent of €14 million per annum.

The Ilac Centre is currently operating at 98 per cent occupancy with contracted rent of €10 million per annum.