Savills, the international real estate advisor, has today announced the sale of the National Portfolio to Davidson Kempner. The estimated sale price, in excess of €175 million, equates to an initial yield of approximately 6.5%.
The National Portfolio comprised 5 well-located retail parks and, at over 1.1 million sq. ft. , represented the largest Irish real estate asset opportunity to come to the market in terms of its overall floor area.
The portfolio was available in 3 lots; Lot 1 included the highly successful Nutgrove Retail Park in Rathfarnham, South Dublin. Lot 2 included four major regional schemes namely Letterkenny Retail Park, Sligo Retail Park, Tullamore Retail Park and Deerpark Shopping Park in Killarney, while Lot 3 comprised the entire National Portfolio.
Domhnaill O’Sullivan commented; “There was an extremely positive response to the sale of the National Portfolio and we are very pleased with how the process went. We are witnessing continued demand from a mix of Irish and international purchasers who are seeking to acquire retail in scale while rental levels are recovering on the back of improving consumer sentiment. As a retail park portfolio, there were significant synergies in terms of dealing with existing tenants across multiple schemes and more importantly new tenants looking to access the market.”
According to Savills, the sale attracted significant levels of interest from both domestic and international investors with the cumulative Phase 1 bids exceeding €1.22 billion from 7 portfolio bidders and 2 individual lot bidders.