Irish financiers First Equity seals €220m LA property deal

AN IRISH company is financing a $300 million (€220m) property deal in Beverly Hills in Los Angeles.

First Equity Group, which finances property deals worldwide, has acquired two sites in Beverly Hills in a deal with American real estate firm HDS Group.

First Equity said the sites are located at 9200 Wilshire Boulevard and 450-460 North Palm Drive and are premium residential and mixed-use developments on some of the last remaining undeveloped sites in downtown Beverly Hills.

First Equity Group is now raising $60m (€44m) in mezzanine finance from its investor group to underwrite the deal.

This investment will offer investors a return of 30% a year over a maximum period of three years.

The likely investment time horizon is two years.

First Equity managing director Alan Barry said that the company has been active in the property market in the US for a number of years and the latest deal brings the value of its developments to more than $600m (€440m).

He added: “First Equity Group has a proven track record of delivering attractive returns and we believe that this unique development will again deliver superior returns for our investor group.”

HDS said new construction in Beverly Hills is limited and the two acquired sites have full planning permission for development.

First Equity Group was established by Tom Dowling in 1995 and provides equity finance and mezzanine funding for property development worldwide.

The total gross development value of deals completed since 1999 is in excess of €2 billion.