Hammerson and Allianz Real Estate have jointly bought NAMA’s Project Jewel loans portfolio for €1.85bn.
The UK REIT and the German investor, part of insurance giant Allianz, have formed a 50:50 joint venture to buy the portfolio valued at around €2.6bn.
The portfolio includes loans secured against Ireland’s largest shopping centre, Dundrum Town Centre in Dublin, as well as Ilac and Pavilions shopping centres, also both in Dublin.
The sale is NAMA’s, Ireland’s bad bank, biggest transaction to date and attracted strong competition for the assets, said NAMA chief executive, Brendan McDonagh.
“The competitive tension throughout the loan sales process is continuing evidence of the strong investor appetite for property-related loans in Ireland,” said McDonagh.
David Atkins, chief executive of Hammerson, said: “The transaction provides a unique opportunity to increase our exposure to Europe’s fastest growing economy, creating a platform for significant investment and employment opportunities going forward.”
The deal is Allianz’s second in Ireland after financing a Dublin city office block deal earlier this month when it took a €150m participation in a €300m Morgan Stanley acquisition loan to Starwood Property Trust.
“Our investment into Project Jewel is an important step to a further diversification of Allianz´s real estate portfolio,” said Annette Kröger, chief executive of Allianz Real Estate Germany.
“It is a very attractive opportunity to get exposure to the dynamic Irish market. We are pleased to cooperate again with Hammerson as our joint ventre partner. ”