US investment firm Colony Capital has reportedly initiated a process with a view to disposing of its interests in Irish real estate, which it holds directly and indirectly.
According to a news report by the Irish Times, the Los Angeles-headquartered private equity group is making targeted approaches to potential suitors regarding the sale of its Irish assets, which consist of interests in a number of Dublin office properties either directly or indirectly, and as part of a joint venture with the British property group, U+I.
Colony’s most significant assets in the country include a 75% stake in the Burlington Plaza office complex and a 72% share in the headquarters of Three Ireland, with an estimated value of up to €204 mln and €120 mln respectively.
Colony’s Irish portfolio also includes shares in a number of Dublin office buildings with U+I. Located mainly in Dublin 4, these include Donnybrook House, 23 Shelbourne Road and Carrisbrook House.
The news comes just days after Colony disclosed that its portfolio companies had defaulted on $3.2 bn of debt secured by hotels and healthcare-related properties. Its defaults come from a portfolio of 157 hotels and 357 healthcare properties, including 154 senior housing properties.
Colony also said that it is suspending dividend payments and has drawn $600 mln from its revolving credit facility in an effort to lessen the financial impact of the coronavirus pandemic.
