Allianz and Hammerson bid together against a joint bid by Hines and Kuwait Investment Authority, and Colony Capital.
Project Jewel is expected to trade for in excess of €1.6bn.
In addition to the Dundrum Town Centre, Ireland’s largest shopping centre, is valued at around €1.1bn, which would equate to a net initial yield of circa 4.75%, Project Jewel also includes:
- a 50% stake in the Pavilions shopping centre in Swords, Irish Life and I-PUT each own a 25% stake;
- a 50% stake in the Ilac shopping centre in Dublin city centre, Irish Life owns the remaining 50% stake;
- a land site near Ilac shopping centre in central Dublin, which prior to the crash was earmarked for a large scale retail scheme anchored by John Lewis;
- a land site adjacent to Dundrum, which previously was slated as Dundrum shopping centre Phase II. The existing planning permission may need to be re-secured if the eventual winner sees value in a residential component to any future scheme.
NAMA will select a preferred bidder imminently, with the winner expected to seek a consensual partnership arrangement with the underlying borrower, Chartered Land, to manage the potential execution risks associated with loan-to-own strategies, London-based sources suggested.
The finalists will be seeking to avoid the kind of litigation which Blackstone faced when the private equity firm acquired Irish developer and investor Micheal O’Flynn’s loan book from NAMA, known as Project Tower.
First round bids were also received from Abu Dhabi Investment Authority (ADIA), in the sovereign wealth fund’s first major bid to acquire commercial real estate in Ireland, and JP Morgan.
Eastdil Secured is selling Project Jewel on behalf of NAMA.
NAMA declined to comment.