Green REIT, Ireland’s maiden real estate investment trust with up to €465m of leveraged firepower to deploy, heads a 15-strong list of second round bidders for Danske Bank’s Project Arc distressed property portfolio with a bid of around €135m.
Project Arc comprises 15 secondary properties predominantly in Dublin. It has drawn the keenest bids on a full portfolio acquisition basis, led by Green REIT and Apollo Global Management, although bids for sub pools and individual assets were also received.
Second round bidders have been surprised by an email sent round to all 15 bidders still in the process by solicitor Matheson, according to a report today in the Irish Times.
Along with Green REIT, represented by JLL, the rest of the bidders comprise: Apollo Global Management, Starwood Capital, Patron Capital, HT Meagher O’Reilly, Pears Global, Brehon Capital, Davy, IPUT, Crownway, O’Flynn Group, Kimptonvale, Genesis Homes, Stargime and Valpar.
The 15-strong second round bidders, reduced from an initial 160 offers in total, must submit final bids by Friday.
CoStar News reported that Danske Bank was set to appoint DTZ to sell the portfolio at the end of June, and outlined a number of the assets within Project Arc, including the two prized assets: 25-26 Fitzwilliam Place in Dublin, Horizon Logistics Park and The Globe Retail Park in Naas.
Fitzwilliam Place, a 60-strong executive service office property currently let to Regus, delivers an annual rent of €800,000 pa.
In addition, Project Arc also includes retail parks in Tallaght, Dublin 24, County Kildare and Limerick city, and a greenfield site at Thorndale in Delgany, Co Wicklow, South of Dublin, a development site within the wider Horizon Logistics Park in Dublin and Arthur House, an office block in Belfast.
Green REIT is bidding completively to win the Project Arc portfolio to put to work part of the €310m equity raised on 12 July, which can be leveraged up to 50%.
But the Irish REIT is unlikely to be interested in the pure greenfield development plays or the Northern Irish office block and would be secure backbids if its bid proves succesful.
Last Friday, CoStar News revealed that NAMA had appointed Jones Lang LaSalle to sell Central Park, the suburban office park on the outskirts of Dublin City centre formerly owned by Treasury Holdings, which is expected to fetch around €200m and draw interest from public and private equity investors as well as sovereign wealth funds.
All parties declined to comment.