US investor Colony Capital has confirmed the sale of its 74% controlling interest in two high-quality office properties located in Dublin’s city center for a total of $351 mln (€292 mln) to Blackstone Property Partners Europe Holdings.
The sale is in line with carrying values and generates $102 mln in net equity proceeds, the vendor said. It is part of the group’s strategy to exit real estate and monetize its Other Equity and Debt portfolio to provide capital for digital investments.
The interests were held in the company’s ‘Tolka Irish NPL Portfolio’, which will continue to own several Irish assets on a debt-free basis.
The assets are Burlington Plaza, a 238,000 sq ft office complex located in central Dublin, and The Three Building, a 157,000 sq ft office property located in the South Docks. Colony acquired the stakes in 2017 when it was the successful bidder for Nama’s €1.5 bn Project Tolka loan book.
PropertyEU first reported that Colony was close to sell the assets to Blackstone in January this year. Colony had appointed Eastdil Secured last year to sell the stakes along with other Irish property investments.
Los Angeles-based Colony, founded by Tom Barrack, has said it is moving out of traditional real estate in favour of digital infrastructure like data centres and phone masts.
Last May, the investment firm defaulted on $3.2 bn of debt secured on what was then about three-quarters of its portfolio, comprising 157 hotels and hospitality assets and 357 nursing home and healthcare properties.
In September it agreed to sell six hotel portfolios including 197 properties for $67.5 mln to US hospitality management firm Highgate - with Highgate assuming $2.7 bn of debt. Barrack has stepped back from the CEO role.
Other income-producing Dublin offices in which Colony still has stakes are Donnybrook House, 23 Shelbourne Road and Carrisbrook House.
