Nama gains full control over future of Dundrum Town Centre

The National Asset Management Agency has acquired the 30 per cent of loans connected with the Dundrum Town Centre that it does not hold.

In a first for the agency, it has acquired this combined holding from Ulster Bank and KBC Bank Ireland, which had 16 per cent and 14 per cent respectively.

No figures have been released but Bloomberg reported Nama paid face value to Ulster Bank and KBC to acquire these loans. UIster Bank is currently seeking to work through £9 billion of non-core loans under a strategy drafted by its parent company Royal Bank of Scotland.

This gives Nama full control over the future of the towncentre, Ireland’s biggest retail complex, and could lead to it being sold in the near future.

The loans were associated with Joe O’Reilly’s Castlethorn Construction, an associate of Chartered Land. Mr O’Reilly has been reported to have €2.8 billion worth of loans with Nama, making him one of the agency’s biggest debtors. These loans relate to both Castlethorn and Chartered Land, which undertook a number of high profile developments.

Dundrum Town Centre opened in 2005 and its 150-plus traders have combined annual sales of more than €600 million. The centre covers 1.25 million square feet and has an annual footfall of 19 million people.

It attracted a number of high-end British and foreign retailers including House of Fraser, Harvey Nichols, Hamleys and Hollister.

No comment was available from Ulster Bank or KBC.