London-based property developer Hammerson, in partnership with Pimco Prime Real Estate, has refinanced the debt on an Irish retail and leisure asset.
The duo secured a €350 mln, seven-year non-recourse term loan from lenders Rothesay, BNP Paribas, and Deka for Dundrum Town Centre, in southern Dublin.
To optimize terms, Hammerson and its joint venture partner Allianz contributed €220 mln in equity and cash to the refinancing. This, combined with the new loan, replaces the existing €570 mln debt maturing in September 2024.
The new loan, repayable by September 2031, carries an estimated interest rate of 5.5% and extends the average debt maturity from 2.2 to 2.9 years. Hammerson’s financial position remains unaffected by this refinancing.
Spread over 125,000 m2, Dundrum Town Centre is a thriving commercial hub nestled in the heart of affluent South Dublin. Recent strategic investments have transformed the centre into a sought-after destination, attracting high-end international retailers, unique brands, and a diverse mix of leisure, entertainment, and workspace options.
With over 150 stores, including a 12-screen cinema, and 3,400 parking spaces, Dundrum boasts a 95% occupancy rate and generates approximately €62 mln in annual rental income.
Dundrum Town Centre has achieved the highest rating of A++ from Green Street, making it the sole Irish asset in this category.
Eastdil spearheaded the loan arrangement process, while Pimco Prime Real Estate represented Allianz, Hammerson’s equal partner in the Dundrum venture. Rothesay, BNP Paribas, and Deka served as key organizers and lenders for the transaction.
