Hammerson plc (Hammerson) and PIMCO Prime Real Estate arranged a €350m non-recourse term loan of up to seven years (Hammerson's share €175m) secured on Ireland's leading retail, leisure and lifestyle destination, Dundrum Town Centre (Dundrum) with lenders Rothesay, BNP Paribas and Deka.
To securethe best pricing and flexibility, Hammerson and its JV partner Allianz funded a total €220m at equal share, from existing cash in the JV and new equity, which together with the new facility, will be used to refinance the existing net €570m facility maturing in September 2024. The new term-loan is repayable on or before the maturity in September 2031 at an all-in interest cost expected to be c.5.5%. Hammerson's reported LTV at 30 June will be unchanged and average maturity extends from 2.2 to 2.9 years.
Dundrum is located in the affluent and densely populated southern Dublin catchment. Recent investment to re-anchor and reposition the destination has seen the introduction of high-profile international brands, market-first occupiers and new uses including leisure, entertainment and workspace; driving footfall and sales year-on-year. Dundrum today offers over 150 brands including restaurants, a 12-screen cinema and 3,400 car park spaces. The 125,000m2 destination is 95% occupied and generates a total passing rent of circa €62m per annum.
Dundrum was recently rated A++ by Green Street, putting it amongst a handful of super-prime European assets that carry this rating and the only asset in Ireland.
Eastdil acted as lead arrangers and PIMCO Prime Real Estate acted on behalf of Allianz, Hammerson's 50/50 joint venture partner on Dundrum. Rothesay, BNP Paribas, London Branch and Deka acted as mandated lead arrangers, bookrunners and lenders.
Image source - Pexels.
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