Hammerson refinances debt on large Dublin shopping centre

14th Aug 2024 07:17

(Sharecast News) - Hammerson, in partnership with PIMCO Prime Real Estate, has successfully secured a €350m non-recourse term loan to refinance the existing debt on Dundrum Town Centre in Dublin.

The FTSE 250 company said the loan, with its share at €175m, has a maturity of up to seven years and was arranged with lenders Rothesay, BNP Paribas, and Deka.

It said the refinancing strategy also involved a €220m contribution from joint venture partners Hammerson and Allianz, funded equally from existing cash reserves and new equity.

The combined funding would replace the €570m facility that was due to mature in September this year.

Hammerson said the new loan, with an all-in interest rate of about 5.5%, extended the average debt maturity from 2.2 to 2.9 years.

It said Dundrum Town Centre in southern Dublin is nearly fully occupied, with 95% of its 125,000 square metres leased to over 150 brands, including restaurants, a 12-screen cinema, and 3,400 parking spaces.

The centre generates an annual rental income of around €62m, and was recently rated A++ by Green Street.

Eastdil served as the lead arranger for the transaction, while PIMCO Prime Real Estate acted on behalf of Allianz, Hammerson's joint venture partner in Dundrum.

Rothesay, BNP Paribas, and Deka fulfilled roles as lead arrangers, bookrunners, and lenders.

Reporting by Josh White for Sharecast.com.