Morgan Stanley has financed Strategic Value Partners' circa €560 million purchase of Blanchardstown Centre in Dublin with a circa €400 million loan, CoStar News understands.
The US investment bank originally financed the 1.2 million-square-foot shopping centre with a €767 million whole loan for Blackstone, which paid €930 million in the summer 2016. The US investment firm handed back the keys to the lenders in 2020 as rent collections slowed during the COVID-19 pandemic, as reported by Debtwire at the time. Morgan Stanley sold most of the senior debt to AIG and Allied Irish Bank and a €150 million mezzanine piece to Goldman Sachs. The mezzanine lender took control of the property and put it up for sale.
Blanchardstown Centre is a major retail complex in north-west Dublin, covering 1.2 million-square-foot and housing over 180 shops and restaurants. With an annual footfall of approximately 17 million visitors and 5,500 parking spaces, it is one of Ireland’s biggest shopping centres. Connected to the major motorways, Blanchardstown Centre is well-positioned to continue serving as a premier retail hub for Dublin and beyond.
SVP said it plans to make significant investments in Blanchardstown Centre, including enhancements to its food and beverage offerings. It will work closely with Fingal County Council, existing tenants and Falcon Asset Management to elevate the centre’s appeal and strengthen its position as a premier retail destination for visitors and tenants, it said.
“As a centrepiece in Dublin’s retail sector, we’re excited by the opportunities Blanchardstown Centre presents,” said Mike Ungari, global head of real estate at SVP. “Our goal is to build on the facility’s strengths, and we are committed to ensuring Blanchardstown continues to set the benchmark for retail and leisure excellence in the region.”
In 2023, SVP became the largest investor in Intu SGS, a portfolio of four large UK shopping centres, and played a leading role in its restructuring earlier this year. SVP said it is actively seeking to invest in European real estate during this part of the cycle.
The acquisition is expected to complete prior to year-end, subject to regulatory approvals.
Eastdil Secured advised Goldman Sachs on the sale.
SVP declined to comment on the price and the financing.
(Updated on 21 November to include Eastdil Secured as adviser)