The National Asset Management Agency (Nama) has sold its 15 per cent stake in Dublin's Capital Dock residential and office scheme with US property investor Kennedy Wilson and an arm of French insurer Axa becoming the two sole shareholders in the project.
Canadian group Fairfax Financial Holdings has also sold its shareholding in the docklands scheme. Led by Prem Watsa, Fairfax is a shareholder in Kennedy Wilson and has previously benefitted from selling property assets here.
In his annual letter to shareholders in March, Mr Watsa said Kennedy Wilson sold three of its joint venture properties in Dublin last year for a gain of $74 million, “an average annual return of 21 per cent on our original investment, and returned $107 million of the proceeds to Fairfax”.
Financial details for the share sales were not disclosed but Kennedy Wilson has increased its stake in the development to 50 per cent from 42.5 per cent. Capital Dock cost €280 million to construct.
In addition, AXA Investment Managers bought shares from Nama and Fairfax, including the adjoining State Street building in which Kennedy Wilson will retain a 50 per cent stake. The JP Morgan office building in the complex did not form part of the deal as it was sold to the US bank in May 2015.
"Capital Dock is a cornerstone development in Kennedy Wilson's portfolio and demonstrates our long-term commitment to Dublin and our determination to play our part in bringing much-needed commercial and residential accommodation to the Docklands," said president of Kennedy Wilson Europe, Peter Collins.
Public space
The mixed use campus includes two class A office buildings totalling 216,000sq ft, the 175,000 class A State Street building, about 26,0000 sq ft of retail and restaurants and 1.5 acres of public space.
Additionally, the site has a 190-unit residential building which includes 24-hour security, a gym, cinema room, business suite , a chef’s kitchen, and a gamesroom. Rents for two-bedroom apartments in the facility range from €3,500 to €4,000 a month.
Kennedy Wilson said it will sign up new retailers in the coming year, “including a flagship restaurant and bar with a terrace, a gourmet grocer and additional artisanal food and beverage offerings”.
Aside from JP Morgan and State Street, jobs website Indeed is the other corporate tenant having fully occupied numbers 100 and 300 Capital Dock on a 20-year lease with the first break at year 13.
The joint venture with Axa will be managed by Kennedy Wilson and it will receive an asset management fee, development fee, acquisition fee and performance fee from the arrangement, the company said in a filing to the US Securities and Exchange Commission.
The company also recently completed the refinancing of a €261 million construction loan on the property with a five-year floating rate interest only loan that bears an effective interest rate of 1.56 per cent.
