Allied Irish Banks is assembling a €100m (£80m) collection of shopping centres to bring to market in what will be the bank’s first direct Irish retail sale.
The five-strong portfolio is understood to include the 300,000 sq ft Athlone Town Centre in Westmeath and the 270,174 sq ft Macdonagh Junction shopping centre in Kilkenny.
Athlone Town Centre, the largest asset in the portfolio, opened at the height of the property boom in 2007 and is anchored by Marks & Spencer. The mall was owned by ATC Holdings, but Grant Thornton was appointed as receiver by mutual consent in December last year.
AIB has yet to appoint agents on the portfolio.
The sales plan comes just weeks after Varde Partners bought Nama’s Project Acorn, a collection of three regional shopping centres, for €170m – 30% above the asking price.
There has been an uptick in the pace of Irish retail properties coming to market since Q2, as a result of international investor interest in the asset class.
Aidan McDonnell, head of retail at Colliers International’s Dublin office, said “Strong investor interest in Irish offices is now starting to filter through into retail. There is a lot of money chasing good-quality assets.”
Irish retail values increased by 4.2% in Q2, according to the IPD/SCSI Index, but rental growth remained static as consumer spending remained “sluggish”.
A further €325m of retail assets are either on the market or due to be released shortly from Nama and various other banks.
sophia.furber@estatesgazette.com
