Kennedy Wilson Europe Real Estate (KWERE) is to acquire Ulster Bank’s Elliott loan portfolio, secured by a 13 properties in Ireland, and separately the Marshes Shopping Centre in Dundalk for a combined cash price of €120m.
The Elliot loan portfolio, from bad bank RBS Capital Resolution, is comprised of 13 offices, industrial, retail and residential properties.
KWERE paid €75m for the loan portfolio, for which circa 90% of loan portfolio by acquisition value, is comprised of three assets:
- The Times Building, a 67,000 sq ft, Grade A office building in Dublin City Centre with a 12 year WAULT to the Irish Aviation Authority, a semi-state body of the Irish Government;
- Herberton, a multi-family housing asset in Dublin 8 situated near St James’s Hospital, comprising over 150 apartments located across three blocks, which are currently 100% let; and
- Lakeland Retail Park, a 83,052 sq ft bulky goods retail park on the outskirts of Cavan Town, comprising six retail units and a drive through restaurant. The retail park is currently c. 91% let to a range of established tenants including Halfords, Heatons and Toymaster, with a c.12 year WAULT.
KWERE said in a statement that the underlying ssets within the Elliott loan portfolio have significant asset management opportunities to lease up vacant space, stabilise income through tenant re-gears, and re-position assets to maximize income.
Separately, KWERE is to acquire the Marshes Shopping Centre in Dundalk for €44.5m from Marshes Shopping Centre Limited, which in turn was owned by Abbey Centre Ltd.
Ulster Bank was the lender, with the matured debt repayable on demand. The main shareholders understood to be Ken Cheevers, who owns the construction firm McLaughlin and Harvey, and John B McGuckian, the former chairman of UTV, according to a BBC report.
Completed in 2005, the Marshes Shopping Centre comprises 39 retail units and a food court, and is currently c. 93% let to a range of national multiple retailers including River Island, New Look, Clarks, Dorothy Perkins and Boots, with a WAULT of circa 6.8 years.
The shopping centre provides a number of asset management opportunities across the existing scheme as well potential for further enhancement through development.
The acquisition is expected to complete at the end of August 2014.
In a prepared statement, Mary Ricks, president and CEO of Kennedy Wilson Europe, said: “The Elliott loan portfolio is secured against a good quality mix of Irish properties strongly weighted towards the office, residential and retail sectors.
“These assets, along with the Marshes Shopping Centre, also provide for strong upside potential through interesting asset management plays and a relatively long WAULT.”
The acquisitions are expected to complete in early September 2014.