Central Park deal contracts exchanged
Green REIT plc, (“Green REIT” or the “Company”), the Irish property investment company, is pleased to announce that The Central Park Limited Partnership, a joint venture between Green REIT and LVS II CP Investor Ltd. (“LVS II”), an entity sub-advised, advised or managed by Pacific Investment Management Company LLC or its affiliates, has exchanged contracts to acquire a portfolio of commercial and residential real estate known as Central Park, located in Dublin, for €311.5 million from receivers appointed by the National Asset Management Agency (NAMA) and Devano Developments Limited. Completion is expected to occur in March 2014.
The Central Park Limited Partnership is a 50:50 joint venture owned by Green REIT and LVS II , and will own the commercial component of the portfolio (691,000 square feet of high quality office space) and 7.5 acres of development land. The residential component of the portfolio is to be acquired by an unrelated entity.
Green Property REIT Ventures Limited will act as investment manager for the joint venture.
The total investment by Green REIT will be approximately €120 million inclusive of costs. LVS II SPE IV LLC, an entity sub-advised, advised or managed by Pacific Investment Management Company LLC or its affiliates, will provide debt financing to The Central Park Limited Partnership, which plans to procure bank financing of approximately €150 million post completion.
The commercial property portfolio in Central Park comprises 6 high quality, modern buildings covering approximately 691,000 square feet in Leopardstown, South Dublin. The portfolio currently generates €14.45 million per annum of passing rent, rising to €15.46 million per annum once rent free periods expire.
The commercial property portfolio has 87% occupancy and main tenants include Vodafone, Merrill Lynch, Ulster Bank, Tullow Oil, Leaseplan and Salesforce. Discussions are underway with a number of tenants on the vacant space.
There is a further 7.5 acres of development land with various planning permissions for approximately a further 700,000 square feet of development.
Mr Gary Kennedy, Chairman of Green REIT plc, commented: “We are very pleased to announce the acquisition of Central Park, Dublin’s most prestigious Business Park, along with our partners. The acquisition of Central Park represents further progress towards our stated objective to assemble a portfolio of commercial property assets which require active asset management and deliver targeted shareholder returns. Our total invested capital following this transaction will exceed €334 million.”