US investor Kennedy Wilson and its equity partner Fairfax have sourced a €45 million debt package to refinance the existing development loan on the second phase of the Clancy Quay residential scheme in Dublin.
The new financing carries fixed-rate pricing of 2.03 percent, maturing in 2025. The cash-out financing generates €7 million in cash proceeds, the firm said. The loan was secured following full delivery of Phase II, which is expected to be fully leased by Q1 2018.
When complete, Clancy Quay will include 845 high-end multifamily units on the southern banks of the River Liffey in Dublin, Ireland at the historic site of Clancy Barracks.
“With over 230 basis points in cost savings, the new loan will enable us to maximise property cash flow as we work to complete the largest apartment community in Ireland,” said Mary Ricks, president and CEO of Kennedy Wilson Europe.
“Kennedy Wilson’s multifamily portfolio now includes 2,000 units in Ireland and we remain committed to investing and growing that portfolio for the long-term.”
Clancy Quay, which was acquired by Kennedy Wilson in 2013, consists of three phases. The first phase is comprised of 423 fully furnished units and Phase II includes an additional 163 new apartments, townhouses and courtyard houses.
The firm secured planning approval for the project’s 2.8-acre Phase III that will consist of a total 259 new units expected to be complete in 2020.
Back in 2015, US life insurance group MetLife provided Kennedy Wilson and Fairfax with €131 million of senior debt to refinance a collection of Dublin assets.
MetLife issued a 10-year, fixed-rate loan on three multifamily residential properties in Dublin – The Alliance, Sandford Lodge and Clancy Quay – totalling 751 units. It also provided a five-year, floating-rate loan secured against the Brooklawn House office building in Ballsbridge, also in the Irish capital. The loans reflected loan-to-values in the region of 60 percent.