Marathon Asset Management is in talks to flip on the prize property in the €155m (£122m) Project Parks portfolio it has agreed to buy from Nama.
The New York-based fund manager emerged as preferred bidder for the five-strong retail portfolio earlier this week after bidding 40% over the guide price.
It has now lined up Irish property fund IPUT to buy the 200,000 sq ft Park shopping centre in Carrickmines, suburban Dublin, for ¤90m. The mall accounts for close to 60% of the portfolio’s value.
The Park commands an annual rent roll of €4.4m, is let to tenants including Woodies, PC World, Next and Halfords, and has a vacancy rate of 7.6%.
The other four properties in the portfolio are the M1 Retail Park in Drogheda; Lakepoint retail park, Mullingar; Poppyfields shopping centre in Clonmel; and Four Lakes retail park in Carlow.
The portfolio’s overall yield is 8.4%, but would be considerably higher if the Carrickmines
property were removed, according to Dublin agents.
“Carrickmines doesn’t fit with Marathon’s return profile, so it is eager to get the property off its hands quickly,” said one.
IPUT is understood to have participated in the first round of bids for Project Parks with an offer for only Carrickmines, but did not progress to the second round.
Nama is currently preparing its third retail-only portfolio, the €50m Project Harvest, for sale.
The five-strong collection of regional shopping centres is due to come to market within the next six weeks. Assets include Cashel Town and Thurles shopping centres, Co Tipperary; Harbour Place, Mullingar; Dangarvan shopping centre, Co Waterford; and Johnston Court, Sligo.
Nama sold its first retail-only portfolio, Project Acorn, to Varde Partners in August for more than €170m – 30% above the asking price.
A €120m Lloyds Banking Group retail portfolio, Project Spectrum, is currently on the market, with second-round bids expected on 7 November.
CBRE and DTZ Sherry Fitzgerald advised Nama on the sale of Project Parks.
