Sovereign wealth funds are expected to turn their attention to Ireland this month as Irish bad bank Nama begins the process to sell off the €2.4 bn Project Jewel shopping centre loan portfolio.
Sovereign wealth funds are expected to turn their attention to Ireland this month as Irish bad bank Nama begins the process to sell off the €2.4 bn Project Jewel shopping centre loan portfolio.
Nama has hired real estate investment banking advisory firm Eastdil Secured, part of the Wells Fargo Group, to manage the sales process.
The first bids scheduled for August. A sale is expected to generate a price in the region of €1.5 bn, which would mark a 33% discount to the face value of the portfolio.
Project Jewel comprises three shopping centres held by Irish developer Joe O’Reilly. The portfolio owes its title to the €1 bn-plus Dundrum Town Centre. The 125,000 m2 shopping centre is the largest retail property asset in Ireland and the 'crown jewel' in Nama's sale portfolio. The shopping centre's 100 retail units generate €55 mln in annual rent and market watchers expect the asset will attract interest from a range of international investors, including sovereign wealth funds.
The other assets in the portfolio are a half share in both the Pavillions shopping centre in Swords, north Dublin and the Ilac Centre in Dublin city centre. Irish insurer Irish Life and domestic investment vehicle Iput each own 25% of the Pavillions, while Irish Life holds a 50% stake in the Ilac Centre. The two assets generate a total of €10 mln in annual rent.
Two land plots, one next to the Ilac Centre and the other in Dundrum, also form part of the loan portfolio.
