Hammerson secures portfolio of Irish retail assets

8th Jul 2016 07:15

(ShareCast News) - Hammerson and joint venture partner Allianz Real Estate have secured the ownership of Dundrum Town Centre in Ireland, a shopping and leisure destination as part of a portfolio of market-leading retail assets in Dublin..The two partners acquired loans secured against a portfolio of retail assets in September 2015 from the National Asset Management Agency for €1.85bn (£1.53bn), a discount to the face value of the loans. Hammerson's share of the purchase is €1.23bn (£1.01bn).The company said it has reached a consensual agreement with the borrowers to transfer the underlying properties delivering immediate ownership of Dundrum, the Dublin Central development site and land adjoining the Pavilions shopping centre, Swords.Hammerson and Allianz will take over direction of the Ilac Centre, Dublin and the Pavilions shopping centre, Swords pending a pre-emption process with the co-owners and regulatory approvals.The company said the deal would be accretive to 2016 EPS and with opportunities for valuation growth, the portfolio provides a projected five year ungeared IRR of 7%-8%, excluding development returns.Hammerson's share of the total contracted rent on the underlying properties of the portfolio will be €45m (£38m). The initial yield on the property portfolio (excluding development properties) is 4.0% with a reversionary yield of 4.6%.Dundrum encompasses 140,000 square metres of retail and leisure space and becomes the largest of Hammerson's assets by lettable area. The centre provides 120 shops, 38 restaurants, a 12-screen cinema as well as 3,400 car park spaces. Hammerson has acquired 50% of Dundrum and the adjoining development site and will asset manage the centre on behalf of the Allianz joint venture.Hammerson's consideration will be funded by available debt facilities and disposal proceeds. Since September 2015, it has raised almost £1.2bn from two bond issues and a new five-year revolving credit facility. A disposal programme of £300m was announced in February 2016.