NAMA has selected a five-strong shortlist to progress through to the second and final round for Dublin’s coveted Central Park business park, multi-family and development portfolio with a pricing spread of €14.5m on first round bids.
CoStar News can reveal the five-strong shortlist comprises Blackstone, Lone Star, Oaktree Capital Management and Patrizia, Apollo Global Management and Clancourt Group as well as a three-strong consortium bid by Green REIT, PIMCO and Kennedy Wilson.
First round bids ranged between €262m and €247.5m, which the average pricing thought to be in the low €250m-range, with second and final bids due in just under three weeks, on 29 January.
Northwood Investors was understood to have separately bid in the first round, but is no longer in the process, CoStar News understands.
Blackstone, which has already raised €4.1bn of a targeted €5bn for its next European-focused real estate fund Blackstone Real Estate Partners (BREP) Europe IV, is thought to be among the early favourites to win the prime office and multi-family complex in South Dublin.
On Monday, CoStar News revealed that Blackstone beat Hibernia REIT and Irish Life to win three of the four Dublin offices with formed part of NAMA’s Platinum portfolio for €100m: Hume House on Pembroke Road; Bloodstone Building on Sir John Rogerson’s Quay and Riverside IV’s Block B on Britain Quay.
Lone Star, the second solo bidder, is keen to deploy capital in Ireland after missing out on the 25-strong majority Dublin office Ulysses portfolio, Liam Carroll’s former €2bn-valued property empire, which traded to PIMCO and Brehon Capital for €155m – more than 10% above the €140m asking price.
Oaktree Capital Management and Patrizia are through to the second round on Central Park, having together acquired Reading’s 1.27m sq ft IQ Winnersh business park for £225m from SEGRO, the UK industrial REIT, financed by £175m senior and mezzanine package from Barclays Bank and Europa Capital.
Oaktree is the majority equity investor in the JV bid with Patrizia, with at least 90% sourced from the private equity firm.
Green REIT and PIMCO established a joint venture partnership agreement ahead of the Irish REIT’s listing for big ticket Dublin office investment opportunities, with PIMCO also a cornerstone investor in Green REITs with a 10% stake.
Green REIT and PIMCO are expected look to invest on a 50-50 basis for the office component of Central Park, with the tie-up with Kennedy Wilson to enable the listed real estate investment manager take the multi-family residential blocks and development sites.
Apollo, which has acquired two major Irish non-performing loan portfolios – Lloyds’ Project Lane and Project Pheonix which span distressed commercial and residential properties throughout Ireland – but is thought to have teamed up with Clancourt Group for its local pedigree in prime office scheme development and office, such as the 290,334 sq ft Park Place in Dublin 2.
CoStar News reported on the first round process one month ago, which can be seen here.
Jones Lang LaSalle and Savills are jointly selling Central Park on behalf of NAMA seeking offers in excess of €250m for the entire complex, the majority of which was formerly owned by Treasury Holdings.
Central Park is comprised of:
- five completed office building over 695,168 sq ft, which capture an approximate proportionate €180m of the estate’s value and derives €13.87m of rental income from tenants including Vodafone, First Active, Merrill Lynch, Tullow Oil and Salesforce;
- 272 apartments in Vantage, an upmarket 281-unit multi-family block approximately valued at €60m, for which nine units have been sold privately, which derive €3.81m in annual income. Within Vantage is 30,711 sq ft of commercial space, of which, 28,755 sq ft or 93.6% remains vacant;
- block K is a fractionally started 166-unit multi-family building, approximately valued at €5m;
- three final unstarted development sites, valued at €8m, for which planning permission has been approved for 166 multi-family units over 706,943 sq ft, including 14,800 sq ft commercial space and basement car parking;
Based on a proportionate value of €180m attributed to the five completed office blocks, this part of the investment would reflect a net initial yield of 7.5%.
The total income for Central Park is €17.98m per annum, although this will increase to €19.33m post rent-free periods.
All parties declined to comment.