Hammerson has hired Eastdil Secured to advise on the refinancing of the £266 million debt it has secured against its 50% stake in Dundrum Town Centre in Dublin, CoStar News understands.
The UK real estate investment trust expects to refinance the debt against Ireland’s biggest shopping centre, which matures in September 2024, at 40% loan-to-value at 5% all-in interest costs, according to its 2022 annual report published in March. That would mean £220 million of debt as the whole shopping centre is valued at £1.1 billion, with Allianz owning the other 50%. Dundrum produces £48.1 million in annual rent, according to the 2022 report.
Last month, Hammerson announced a string of lettings across its portfolio, including a new €16 million Penneys store at Dundrum. With 169 tenants and 1.2 million square feet of floor space, Dundrum is Ireland’s biggest shopping centre.
Penneys, the Irish retailer, which trades as Primark in the UK, has opened an 80,000-square-foot store, of which 60,000 square feet is prime retail space. This increases its retail space by 64% as part of a relocation in Dundrum Town Centre. It is now one of the largest fashion retailers in the mall and the storebecomes the third largest Penneys in Ireland.
Hammerson, which reports its latest financial results next week, has made the development and mixed-use regeneration of its urban centres such as Dundrum a primary strategic focus of the business.
The REIT declined to comment.