Preferred bidder for Project Jewel to be announced

An announcement is likely to be imminent on the selection of a preferred bidder by the National Asset Management Agency for Project Jewel, a portfolio of loans which includes the Dundrum shopping centre and other prime assets.

A consortium including Allianz Real Estate and UK firm Hammerson is thought to have submitted the highest bid, but weekend contacts were continuing with another consortium including US real estate group Hines and the Kuwaiti Investment Authority.

An announcement is expected shortly, possibly as earlier as today, with the Allianz/ Hammerson consortium seeming to have edged ahead and now looking likely to be confirmed as preferred bidder.

Shopping centres

The loans being sold are associated with developer Joe O’Reilly and his company Chartered Land. As well as the Dundrum centre, the portfolio also includes an interest in the Pavilions shopping centre in Swords and Ilac shopping centre in Dublin’s city centre, as well as a substantial site between O’Connell Street and Moore Street assembled by Mr O’Reilly. The purchaser of the loans is expected to work with Mr O’Reilly and Chartered Land to develop the assets attached to the loans.

A third bidder, Colony Capital, in partnership with Irish developer Paddy McKillen, also lodged a bid by Thursday’s deadline, but subsequently dropped out.

The Dundrum Town Centre – which opened in 2005 – is the key asset associated with Project Jewel, with a rent roll of €58 million. The portfolio also includes a 50 per cent stake in the Pavilions and Ilac shopping centres. Nama would make no comment last night on the ongoing sale process.

Eastdil Securities is selling Project Jewel on behalf of Nama.There were originally five bidders for the loan book, with Allianz and Hammerson, a listed UK company, teaming up at the final stage to put in a joint offer.