Allied Irish Bank (AIB) has provided a €32 million loan to Marathon Asset Management to finance a retail park owned by the US investor in Dublin’s southern suburbs, Real Estate Capital has learned.
AIB Real Estate Finance provided the loan to finance the Belgard Retail Park in the Tallaght area of the Irish capital.
The five-year senior loan is secured against the 12,000 square metre shopping park, which is understood to be valued at around €46 million, suggesting a loan-to-value ratio for the financing of just less than 70 percent.
Marathon is understood to have acquired the legacy debt secured by the retail park from Apollo Global Management before taking ownership of the asset itself.
Belgard Retail Park is a popular shopping scheme in southern Dublin, with tenants including B&Q, Mothercare and Carpetright. The scheme was originally developed by Irish firm Komady Ltd and Michael O’Reilly. It was completed in 2004.
The financing deal with AIB Real Estate Finance is believed to have closed in the last week of December.
New York-based Marathon Asset Management was among the first wave of foreign investors to invest in the Irish real estate market following the downturn. The firm has been a frequent investor since around 2013, with other retail acquisitions including the 32,515 square metres Manor West Retail Park in Tralee, County Kerry, for €59 million in June 2015.