Bank of Scotland has completed the sale of a loan backed by Belfast’s The Obel development just a month after putting the asset on the market.
Bank of Scotland has completed the sale of a loan backed by Belfast’s The Obel development just a month after putting the asset on the market.
The lender, advised by agent Savills, has sold the asset - Ireland’s highest building - to an unnamed international investor.
Although financial details were not disclosed, the asset is believed to have traded for just over the asking price of €20 mln.
Situated on Donegall Quay, the 85 metre tower and surrounding buildings comprise 4,873 m2 of Grade A office space and 282 luxury apartments, within walking distance of Belfast City Centre.
The property, which was launched to the market at the beginning of March, is expected to produce a gross income of £2.2 mln per annum once fully let. It comprises three separate blocks. Obel 62, the tallest building in Ireland, is a 28-storey residential tower including 233 apartments, Obel 64 is an eight-storey residential block with 49 apartments, and Obel 68 is a seven-floor commercial block comprising 4,873 m2 of primarily grade A office accommodation.
The complex was repossessed in November 2012 as the developers, Donegall Quay Limited, owed Bank of Scotland almost £48 mln.
'We expected the Obel to generate significant interest when we brought it to the market and that is exactly what transpired,' said Ben Turtle, investment director at Savills Northern Ireland. 'Investment turnover in Northern Ireland reached £175 mln in 2013, which is more than the combined total of transactions since the start of the downturn. However, with economic conditions improving, and investor confidence in Northern Ireland rising, we expect the figure to be much higher this year.'
International real estate advisor Savills and law firm Tughans advised the Bank of Scotland on the sale.