The 691,000 square foot office campus includes 700,000 square feet of zoned development land on a 7.4-acre site and is 87% occupied.
Developed by Treasury Holdings, Central Park is the largest single Irish property asset to be offered for sale by Nama.
Bidding competition was stiff as the commercial property market edged towards recovery, with major players like Blackstone — the underbidder, at a sub €310m offer; and Lone Star, at under €300m — in the fray.
Green REIT, headed up by Gary Kennedy, (who was a government appointed director of Irish Bank Resolution Corporation Limited until February 2013), became a preferred bidder in February, with confirmation this week of a €311.5m sale in a 50:50 venture with PIMCO, [Pacific Investment Management Company] part funded with a €150m senior loan from Bank of Ireland.
This is one of the largest commercial property loans made by an indigenous bank since the market crash. The portfolio generates €14.45m per annum of passing rent, which is expected to rise to €15.46m per annum, once rent-free periods expire.
The remaining, residential element of Central Park was purchased by Kennedy Wilson, for €82m, in an undisclosed mix of equity and debt capital.
“We are very pleased to announce the completion of the Central Park acquisition, which represents significant further progress towards our stated objective to assemble a portfolio of commercial property assets, which require active asset management and will deliver targeted shareholder returns. Our total invested capital, following this transaction, including debt and equity, will exceed €334m,” said chairman, Gary Kennedy.
The Central Park Limited Partnership is a 50:50 venture owned by Green REIT and LVS II. Green Property REIT Ventures Limited will act as investment manager. Green REIT paid €23m for four, adjoining buildings on Dublin’s Molesworth Street earlier this year; properties which have a combined rent role of €1.4m.