Green REIT and Kennedy Wilson edge out Blackstone to win NAMA’s Central Park for c.€310m

Green REIT and Kennedy Wilson have edged out Blackstone to win the fiercely-competitive bidding process for NAMA’s Central Park paying just over €310m for the coveted business park south of Dublin city centre, CoStar News can reveal.

Green reit logoGreen REIT will take the office component and Kennedy Wilson will acquire the multi-family blocks and development, with Green REIT to be financed by PIMCO, CoStar News understands.

Blackstone was the underbidder at below €310m, while Lone Star was just under €300m. Also in the five final was Oaktree Capital Management and Patrizia, as well as Northwood Investors who bid with a client of Eastdil Secured.

This is a major coup for both Green REIT, Ireland’s first-ever real estate investment trust, and Kennedy Wilson, in what has one of the most competitively fought portfolio deals in Ireland since the recovery has begun.

At nearly a 25% premium to the asking price for the office and residential complex in Leopardstown, the sale price underscores the appetite for this specific real estate portfolio above and beyond the broader rush to invest in the recovering Dublin property markets.

Central Park represents likely the only portfolio sale for grade A offices and multi-family on the scale of this portfolio – at nearly 700,000 sq ft in offices over five buildings and planning approval for another 700,000 sq ft of multi-family blocks, in addition to the built 272 apartments within the Vantage block.

Green REIT and PIMCO established a joint venture partnership agreement ahead of the Irish REIT’s listing for big ticket Dublin office investment opportunities, but PIMCO’s interest in the deal is purely now understood to be a financing backer to Green REIT. PIMCO is also a cornerstone investor in Green REITs with a 10% stake

First round bids ranged between €247.5m and €262m.

Jones Lang LaSalle and Savills were jointly mandated to sell 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.

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.

jwallace@costar.co.uk

About CoStar News

Finance Editor, CoStar News
Gallery | This entry was posted in Lenders, Market Trends, NAMA, Private equity real estate, Real estate advisors and tagged , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s