Blackstone has entered into exclusive talks to buy Ireland’s largest shopping destination, Blanchardstown Centre, for around €920m (£716.5m) –a circa 5.4% yield.
It fought off competition from Chartered Land with Morgan Stanley Real Estate Investing and CPPIB, which were both in the running for the 1.2m sq ft investment opportunity.
Green Property Group decided to sell the shopping centre to capitalise on the weight of international interest in the shopping centre investment market as well as the shopping centre’s scope for development.
JLL and Eastdil were instructed to market the property on behalf of Green Property Group at the beginning of the year.
The scheme has 176 shops, 20 restaurants, two retail parks and a multiplex cinema.
It is anchored by Debenhams and Marks & Spencer, and the existing development covers 85 acres.
There is scope to extend the development to double its size, with an additional 1.6m sq ft of retail, offices, leisure and 600 flats.
Planning is already in place for a 272,000 sq ft extension to the main shopping centre, which would include a three-storey department store with scope for 17 shops, eight external restaurants or shops and a two-storey foodcourt, as well as two levels of underground carparking to capacitate 749 spaces.
The current rent roll is €50m per annum, with scope to increase this through asset management and development initiatives.