Cerberus sells strategic 11-acre Belfast site to London group

A strategic 11-acre site earmarked for redevelopment in Belfast city which had been acquired by Cerberus as part of a loan portfolio has been purchased by a London property group.

Castlebrooke Investments successfully bid for the Royal Exchange site which is located in the north east quarter of Belfast city centre.

No price was disclosed.

The site has been the subject of various proposed projects for more than 16 years and at one stage had secured planning permission for an ambitious £360 million (€465m) mixed use retail and development scheme which had promised to create 3,000 jobs.

But last December the North's Department for Social Development rescinded a development agreement it had with Leaside Investments - which had originally been a consortium of two local firms, William Ewart and Snoddons.

The DSD said the company had not provided sufficient information to show it could complete the scheme.

Non-performing loans

When Ulster Bank sold its non-performing portfolio of property loans in the North to Cerberus last May the Royal Exchange site transferred to the US investment group as part of the deal.

Cerberus is also known for its controversial acquisition of Nama’s loans in the North.

The Royal Exchange site has been identified as one of six strategic projects by Belfast City Council in its city master plan because of its of location as a "critical link" between Royal Avenue and the Cathedral Quarter.

Belfast City Council said it welcomes the fact that the Royal Exchange has a new owner.

A spokeswoman said: “We understand a revised project is being drawn up for this key city centre site and we hope to see some proposals come forward by early summer.

“There has never been a better time to invest in Belfast and the council is keen to work in partnership and provide support and assistance with investors who wants to play a part in the development of our city centre and deliver jobs and economic benefits.”

The sale of the city centre site is, according to Brian Lavery, managing director, CBRE Belfast, a positive sign.

Mr Lavery said: “the transaction underlines confidence in Belfast as a location at the start of a new development cycle. Rising rental values in most sectors mean that new building is again a financially rewarding possibility in what was historically an important and thriving area of Belfast City centre”.