Allianz Real Estate Invests One Billion in Irish Retail Property Loan Portfolio

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Allianz Real Estate together with its joint venture partner, Hammerson plc, has signed an agreement with Ireland's National Asset Management Agency ("NAMA") to acquire the Project Jewel portfolio of loans secured against market-leading retail assets in Dublin, Ireland, including Dundrum Town Centre ("Dundrum"), Ireland's pre-eminent shopping and leisure destination. The investment of Allianz amounts to $1 billion (€900 million).
 
"Our investment into Project Jewel is an important step to a further diversification of Allianz´ real estate portfolio," said Annette Kröger, CEO of Allianz Real Estate Germany. "It is a very attractive opportunity to get exposure to the dynamic Irish market. We are pleased to cooperate again with Hammerson as our JV partner."
 
Jeremy Eddy, Head of European Retail Capital Markets JLL says, "This landmark transaction represents a marriage of "equity and expertise" whereby long term institutional equity has partnered with a sector specialist who is best suited to managing high quality international shopping centres. In a European context the ability to indirectly secure 100% ownership of quality assets such as Dundrum within a high quality portfolio is increasingly rare."

"This transaction and the international attention it has commanded is testament to the quality of the assets that underlie the loan sale and the confidence international investors have in the Irish economy. In the past 3 years international investors have committed €9 billion to the Irish market, driven by repriced rental income and the economic growth prospects.  This loan sale is the largest sale from NAMA to date and we view the sale to long term investors with international experience in this sector as a very successful outcome to the process", said John Moran, Managing Director JLL Ireland.
 
Opened in 2005, Dundrum is Ireland's premier retail and leisure destination. The centre extends to approximately 1.5 million sq ft (126,000 square meters). It has one of Ireland´s highest footfalls with approx. 18 million visitors p.a. Dundrum is anchored by four department and flagship stores (House of Fraser, M&S, Harvey Nichols and Penney's) alongside a Tesco superstore and more than thirty 'first to Ireland' international tenants, including Hollister, Aldo, Starbucks, Jamie's Italian, H&M, Hugo Boss and Bershka. Overall the centre comprises 120 retail shops, 38 restaurants, a 12 screen VIP cinema and a 3,000 space customer car park.
 
Dundrum is located 5 kilometers south of Dublin City Centre, and is well connected through excellent public transport access serviced by the light rail Luas service and is adjacent to exit 13 of the M50 Motorway.
 
Dundrum has won over 30 industry awards. The centre benefits from one of the most affluent and densely populated catchment areas and has created a unique retail and leisure leasing proposition in Ireland. It is rated as one of the Top 20 European retail destinations.
 
In the transaction Allianz was advised by JLL, Savills, Clifford Chance and PwC.