UK REIT Hammerson and its 50/50 joint venture partner Allianz have secured a €625 mln seven-year term loan for Ireland’s biggest shopping and leisure destination, Dundrum Town Centre.
BNP Paribas and DekaBank acted as lead arrangers and Allianz Real Estate acted on behalf of a number of Allianz companies.
The facility is secured on Dundrum at an LTV below 40%. The non-recourse facility is repayable in full at maturity in September 2024 and the interest cost is expected to be less than 2% following fixing of the underlying reference swap rate.
Dundrum, valued at more than €1.5 bn, is the largest asset in a portfolio which Hammerson and Allianz acquired in October 2015 as part of the purchase of the Project Jewel loan package for €1.85 bn.
Located in the southern Dublin catchment, Dundrum provides over 120 shops, 38 restaurants, a 12-screen cinema and 3,400 car park spaces. The 123,800 m2 centre is 99% occupied and generates a total passing rent of €66 mln per annum.
Commenting on the transaction, Richard Sharp, Hammerson's group treasurer said: 'Given the high calibre of the underlying asset of Dundrum Town Centre we saw strong demand for this loan and hence have secured attractive pricing at a historically low coupon.'
Hammerson said its share of net proceeds will be used to reduce drawings under its revolving credit facilities. The bulk of Hammerson’s financing continues to be on an unsecured basis, with only 8% of secured debt post completion of this facility.
Allianz is a major financier of Irish retail real estate. Over the summer it also provided €290 mln of long-term debt for BVK's Liffey Valley, a major shopping and leisure centre in Dublin.
