FINANCE: MetLife has closed its first real estate loan in Ireland, a €131m (£94m) facility secured by four Kennedy Wilson-owned properties.
The properties were three class A multi-family properties and a single office asset, all in Dublin.
The properties contain 751 units spread among the Alliance, Sandford Lodge and Clancy Quay residential properties.
The loans were split between a five-year floating note and a 10-year fixed rate facility.
MetLife’s entry into the Irish debt market reflects the increasing levels of investment interest in Ireland as its economy recovers.
Paul Wilson, managing director and head of MetLife Real Estate Investors’ office in London, said: “We are very pleased to be able to enter a new market with a strong, experienced international player like Kennedy Wilson. These loans are the first for us in Ireland and we look forward to expanding our portfolio in that market.”
Starwood Capital also recently entered the Irish market for the first time by purchasing four properties from Lone Star for £266m.
Lone Star’s purchased the four assets, part of Project Holly portfolio, 13 months previously for £155m, realising a projected £111m profit.
Competition in the market has driven down margins substantially for lenders in Ireland as the health of assets improves and competition increases.
In December 2014 Kennedy Wilson was able to refinance its Dublin-based Opera portfolio for 212.5bps over libor, shaving 178bps from the previous facility inherited at purchase.
