HSBC, Hines buy 72.8% Liffey Valley stake for €250m

HSBC Alternative Investments has teamed up with Hines to acquire a 72.8% stake in Dublin’s landmark Liffey Valley shopping centre from vendor Aviva Investors.

The price tag was put at over €250 mln. Hines has taken a minority equity stake alongside HAIL, and will assume the role of asset manager. The remaining 27.2% is currently owned by Grosvenor Britain & Ireland, who will continue to hold their investment in the property.

Liffey Valley is one Dublin’s major shopping centres and has a total floor area of 46,500 m2. The centre is anchored by Marks & Spencer, Next, Dunnes Stores and Boots. In addition to the four anchors there are 63 stores, four restaurants, a 14-screen, 2,500-seat cinema and a dedicated food court with fast food restaurants and cafés. There are also 3,150 free car spaces.

The transaction marks the second attempt by Aviva Investors to divest its stake in the iconic mall. In early 2011, the company said negotiations to sell the 44,000-m2 scheme to F&C REIT and Area Property Partners were halted after failing to reach an agreement. The deal reportedly valued the entire scheme at the time at €350 mln.

Brian Moran, managing director of Hines Ireland said, 'We believe that it is a good time to invest in major retail assets in Ireland and have a number of very exciting plans to expand and enhance this shopping destination over the coming years.'

'The Liffey Valley shopping centre is a landmark asset with considerable upside potential thanks to an improving Irish commercial real estate sector, strong tenant demand and significant development opportunities,' added Paul Forshaw, head of Real Estate Fund Management at HSBC Alternative Investments.

'Liffey Valley Shopping Centre represents a significant transaction in the Irish property market and highlights the continuing recovery of the sector and the wider economy,' stated Paul McDonnell, head of Property Finance at Bank of Ireland Corporate Banking which supported the buyers.

Aviva Investors has been retained and appointed to act as transitional asset manager and was represented by DTZ. HAIL and Hines were advised by both HWBC, Dublin and Savills, London.