Kennedy Wilson buys Nama Dockland flats in €45m deal
US-HEADQUARTERED real estate giant Kennedy Wilson has paid €45m for a portfolio of 124 apartments in the Dublin Docklands.
The units at North Bank were brought to the market along with 85 parking spaces and a ground floor commercial unit in October for a guide price of €33m.
Kennedy Wilson’s acquisition of the scheme, which is located just 200m from the Central Bank’s new headquarters, increases its presence in the docklands area significantly.
North Bank is almost opposite the company’s massive office development at Capital Dock on the south bank of the River Liffey.
Kennedy Wilson recently completed the letting of all three of that scheme’s office buildings when it signed up global recruitment group Indeed for the entirety of buildings 100 and 300 Capital Dock on a 20-year lease.
The deal with Indeed followed the announcement earlier this year of Kennedy Wilson’s forward-funding sale agreement of the 130,000 sq ft 200 Capital Dock building to US investment bank JP Morgan.
Selling agents Hooke & MacDonald said the combined rent, licence fees and estimated rental value of the entire North Bank investment when fully-let would be around €2.63m a year.
Based on that figure, Kennedy Wilson stands to secure a gross yield of 5.6pc, based on the VAT-inclusive quoting price and before purchaser’s costs.
The decision by Nama-appointed receiver David Carson of Deloitte to dispose of the North Bank apartments had caused some disquiet initially among tenants.
Meanwhile, the managing director of developer Johnny Ronan’s main financial backer, Colony NorthStar, has spoken of the post-Brexit prospects for Ronan Group’s €1bn development at Spencer Place.
In an interview with Bloomberg, Stefan Jaeger said: “Even if you have very minor Brexit moves of 500 or 1,000 people from individual banks, that has a huge impact in Dublin because there currently is a shortage of space.
“Dublin will be a major beneficiary and this development is in a prime position to take advantage of that.”
Also in the docklands, a dispute between two companies linked over the ownership of sections of Dublin’s south docks waterfront district has opened before the Commercial Court and continues next week.
It relates to a row between Balark Investments and Chambury Investment, which is connected to Johnny Ronan.
Balark is part of Pat Crean’s Marlet Group, which plans a €100m development on the site.
Balark claims its project is being delayed by Chambury’s claim to an interest in part of the land.