Billionaire Zara founder and German funds vie for prime Dublin offices

Henderson Park Capital seeking €400m for portfolio acquired in Green Reit buyout

One Molesworth Street, Dublin 2: part of the Henderson Park Capital office portfolio

One Molesworth Street, Dublin 2: part of the Henderson Park Capital office portfolio

 

The Spanish billionaire and founder of Zara, Amancio Ortega, and German real estate investment groups, Deka Immobolien, Commerz Real and Union Investment are understood to be among the parties vying to secure ownership of five prime Dublin offices.

All four parties are understood to have made offers and proposals for at least one or all of the assets within the “Capital Collection” in the first round of bidding last Thursday afternoon.

The portfolio, which is owned by UK property company Henderson Park Capital, comprises some of the best office properties in Dublin’s core central business district including One Molesworth Street, 2 Burlington Road, 5 Harcourt Road, 30 to 33 Molesworth Street, and Fitzwilliam Hall. Henderson Park acquired the properties as part of its recent €1.34 billion buyout of Green Reit.

Assets

It is understood the company intends to deploy some €300 million of the Capital Collection’s expected €400 million proceeds on the development and optimisation of the other properties it acquired as part of its purchase of Green Reit. Horizon Logistics Park, close to Dublin Airport and the M50, and the Central Park office campus at Sandyford in south Dublin, are among the assets expected to benefit from investment.

A spokesman for Henderson Park Capital declined to comment on the outcome of last Thursday’s bidding when contacted by The Irish Times.

While the participation of investment groups such as Deka Immobolien, Commerz Real and Union Investment in the process is unsurprising, the suggested involvement of Amancio Ortega is an interesting development.

There has been intense speculation within property circles in recent weeks that the Spanish billionaire has a particular interest in acquiring One Molesworth Street.

Asked for comment on the matter by The Irish Times last month, a spokesman for Mr Ortega said: “We never comment about potential investment opportunities.”

Henderson Park made its initial foray into the Irish market last year when it paid €222 million to acquire the landmark Heuston South Quarter scheme in Dublin from US property giant Marathon Asset Management. The mixed-use scheme comprises 266 apartments, 9,877sq m (106,315sq ft) of grade A office space, 4,463sq m (48,039sq ft) of commercial space, and a 1.4 hectare (3.63 acre) development site.