Shopping centre giant Hammerson arranged a €350m (£300m) loan for one of Ireland’s leading retail destinations, Dundrum Town Centre.
The deal has been agreed with Pimco Real Estate, with its existing loan due to mature next month.
Hammerson’s share of the new loan, which is repayable by September 2031, was €175m (£150m) with lenders for the deal being Rothesay, BNP Paribas and Deka.
Hammerson and Pimco secured ownership of Dundrum in 2016, with the shopping centre being one of Ireland’s most popular retail and leisure destinations, with an annual footfall of about 15.1 million.
The value of Hammerson’s assets in Ireland have fallen by £320 million since the start of 2020 as the pandemic accelerated online shopping and costs rose on everything from interest rates to wages.
However, there have been signs of life in high streets and shopping centres: which footfall dipped again in July, analysts have suggested a spending surge in on the horizon.
Hammerson were positive about the future of Dundrum: “Recent investment to re-anchor and reposition the destination has seen the introduction of high-profile international brands, market-first occupiers and new uses including leisure, entertainment and workspace; driving footfall and sales year-on-year,” the company said.
Dundrum has over 150 brands including restaurants, a 12-screen cinema and 3,400 car park spaces.
The 1.35m sq ft destination is 95 per cent occupied and generates total passing rent of around £53m per annum, Hammerson said.
In July, Hammerson sold its stake in Bicester Village owner Value Retail in a £1.5bn deal.
Its stake was bought by L Catterton, a private equity firm backed by LVMH, the luxury fashion group that owns the Louis Vuitton brand.
Hammerson said it generated £600m in cash by disposing of Value Retail.
The company’s shares have risen by nearly seven per cent in the last six months.