Stephen’s Green Shopping Centre bought by Davy for €175m
A fund managed by Davy Real Estate has paid a total of about €175 million for Stephen’s Green Shopping Centre in Dublin.
The completion of the transaction in recent days gives the Davy investors full control of the shopping centre, following a period of nearly 13 years in which it had been owned jointly by several shareholders.
Davy Real Estate’s acquisition of the property involved the purchases of three separate shareholdings held by Madison International Realty (35.4%), businessman Pierce Molony (27%) and Irish Life (37.6%).
While the combined 62.4% stake of Madison International and Mr Molony was offered for sale quietly in a targeted process by HWBC in June, it is understood Irish Life had, until recently, intended to retain its interest in the centre.
Unsolicited approach
That position is said to have changed, however, after an unsolicited approach from Davy in early November. Having agreed a deal for the purchase of the majority of the St Stephen’s Green retail scheme, Davy informed Irish Life of its interest in taking full control of the property. Following a period of discussions between the parties, Irish Life agreed to sell its stake.
While Irish Life’s decision to dispose of its shareholding brings to an end its longstanding association with Stephen’s Green shopping centre, it continues to hold significant retail interests within its immediate vicinity, with 23 shops under its ownership in the Grafton Street area.
Stephen’s Green Shopping Centre was developed in 1988 by British Land. It has more than 90 shops over three levels with an overall floor area of 29,728 sq.m (320,000 sq.ft), and is currently producing rental income of about €8 million.
