Hammerson joint venture buys Dublin loan portfolio

LONDON (ShareCast) - (ShareCast News) - Property development and investment company Hammerson (Other OTC: HMSNF - news) and its joint venture partner Allianz Real Estate have signed an agreement with Ireland (Other OTC: IRLD - news) 's National Asset Management Agency to acquire the Project Jewel portfolio of loans secured against retail assets in Dublin for €1.85bn or £1.37bn. The portfolio includes loans secured against Dundrum Town Centre, which Hammerson said was Ireland's "pre-eminent" shopping and leisure destination, and 50% stakes in Ilac Centre and The Pavilions shopping centres in Dublin.

Hammerson said the deal will create a major new platform of high quality retail property in Ireland and give the company an opportunity to become Ireland's leading property owner.

It (Other OTC: ITGL - news) said the loans were secured against a portfolio of established, well-let shopping centres and core retail development opportunities.

Hammerson, whose share of the acquisition is €1.23bn, or £0.91bn, said the transaction is in line with its strategy of owning and managing high-quality European assets. In addition, it said there are significant synergies with its existing UK portfolio, such as tenant overlap and a similar legal and commercial environment.

Chief executive officer David Atkins said: "This agreement provides Hammerson with exposure to a significant new platform of high quality, well-let retail property as well as strategically located development opportunities in Ireland, Europe's fastest growing economy.

"The transaction fulfils our strategy to focus on growing a portfolio of high-quality retail destinations in prime locations, which stand to benefit from high footfall, attractive catchments and positive consumer trends. In partnership with Allianz, I believe we are well positioned to maximise the future potential of these properties and deliver consistent returns for our shareholders (Other OTC: UBGXF - news) ."