Green REIT completes deal for Central Park

Friday 28 March 2014 18.53
Green REIT says Central Park deal represents further progress for the company
Green REIT says Central Park deal represents further progress for the company

Green REIT said this evening it has completed a deal to buy a portfolio of commercial properties known as Central Park, located in Leopardstown in south Dublin.

Central Park comprises six modern buildings covering approximately 691,000 square feet in Leopardstown.

It has 87% occupancy and its main tenants include Vodafone, Merrill Lynch, Ulster Bank, Tullow Oil, Leaseplan and Salesforce. 

Green REIT said that discussions are underway with a number of tenants to take up the vacant space in the site.

There is also a further approximately 7.4 acres of development land with planning permission for about another 700,000 square feet of development.

Green REIT chairman Gary Kennedy said the acquisition represents significant further progress towards its stated objective of assembling 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," he stated.

Earlier it emerged that Green REIT financed the €229.5m deal for Central Park with a senior loan from Bank of Ireland.

According to UK property website Co-Star News, the €150m five year senior loan price was priced at a low cost of debt. It said this was the strongest sign yet of the rapidly normalising domestic senior lending market.

The remaining residential part of Central Park was purchased by Kennedy Wilson for €82m in an undisclosed mix of equity and debt capital.

Analysts said the deal - announced at the end of January - was a major coup for both Green REIT, the country's first real estate investment trust, and Kennedy Wilson, in what has one of the most competitively fought portfolio deals in Ireland since the economic recovery has begun.