In a joint venture with Allianz Real Estate, Hammerson (HMSO) is buying a portfolio of loans from Ireland's National Asset Management Agency, which will see it take ownership of Dublin's largest shopping centre. Hammerson's share of the deal will cost £910m.
The shopping centre is located in the south part of Dublin, and includes 120 shops, 38 restaurants, a 12-screen cinema and 3,400 car parking spaces. The acquisition comes at an initial yield of 4 per cent, but Hammerson believes there is 15 per cent rental reversion if rents can close the 30 per cent discount to Grafton Street, Dublin's equivalent of London's Bond Street. The centre has 98 per cent occupancy, with a 15-year average unexpired lease term.
The deal will be financed from existing financial resources, a new revolving credit facility and further asset sales. Following the acquisition Hammerson will have a loan-to-value ratio of around 40 per cent and gearing of 59 per cent, although planned disposals are expected to reduce the LTV to mid 30 per cent.
