Oxley Holdings has entered into a memorandum of agreement to sell the last of five Dublin office buildings developed by the Singapore company over the last five years for €115 million ($128 million), according to a stock exchange filing.
The impending off-market sale of 3 Dublin Landings to Dublin’s largest landlord, Iput PLC, comes less than two months after Oxley had sold a previous pair of buildings within the project for a combined €205 million.
With the Singapore-listed developer having sold the first two buildings in Dublin Landings in April and November of 2018, Oxley has now divested all of the assets developed under a partnership with troubled Irish Ballymore and a government-controlled bad asset bank which had been forced to bail out the troubled local developer.
Selling to Dublin’s Biggest Landlord
Based on the 120,000 square feet of net leasable area spread across the 3 Dublin Landings’ five storeys, Dublin-based Iput is paying €958 per square foot for the LEED Platinum certified property, which is due to be completed in the coming weeks.
“In line with our ambition to own the best office buildings in Dublin, 3 Dublin Landings is an excellent addition to our estate and supports the ongoing modernisation of our extensive office portfolio,” said Niall Gaffney, Iput CEO.
Oxley is to receive 77.8 percent of the consideration paid to the joint venture for the grade A building at 72 – 80 North Wall Quay, while its partner, Ireland’s state-owned National Asset Management Agency will be due the balance paid for the 297-year leasehold interest.
The Irish “bad bank” is getting the 22.2 percent share as part of a financial rescue package set up with Ballymore in 2010, after NAMA had bailed out the company following the financial crisis in Ireland. Although the developer exited the relationship in 2017, after reportedly clearing €3.2 billion in debt, the developer is still nominally involved with NAMA on the Dublin Landings project.
Anchored by Government Agencies
For Oxley Holdings, the divestment marks the conclusion of partnership for the dockside project, and brings the joint venture’s haul from the Dublin redevelopment effort to €745.4 million, of which Oxley’s share is €591.5 million.
The Singaporean developer had won the right to develop the one million square foot (92,903 square metre) Dublin Landings site in 2014 in partnership with Ballymore.
The mixed-use scheme is now anchored by the National Treasury Management Agency of Ireland (NTMA) and other government agencies and comprises 750,000 square feet of office space, in addition to apartments, retail, leisure offerings and a hotel.
The Luas red line runs along the northern boundary of Dublin Landings, while the IFSC and the Convention Centre are within a ten-minute walk.
Institutional Investors Snap Up Dublin Landings
Oxley’s sale this month brings to a close its divestment from the five commercial buildings in the project as well as from Dublin Landings’ residential element.
Just less than two months ago, Oxley confirmed that it had completed the sale of 4 and 5 Dublin Landings to the Central Bank of Ireland for a combined €205 million, with the bank having agreed to pay €98.6 million for the 8,678 square metre 4 Dublin Landings, and €106.5 for the 9,594 square metre 5 Dublin Landings.
That October sale came after US-headquartered Greystar Capital Partners had agreed in January to buy 268 apartments in Blocks B and E of the quayside development for €175.5 million.
In November 2018, South Korean real estate investment trust JR AMC paid €106.5 million for 2 Dublin Landings, after the 100,000 square foot office block had been let to WeWork for €4.87 million per annum.
In April last year, Oxley sold 1 Dublin Landings to German real estate fund manager PATRIZIA, which acted on behalf of a German pension fund to buy the 13,375 square metre building at an undisclosed price.
Tying Up with Ballymore to Develop London Dockside
The Singapore-listed developer, which has a business presence in 11 geographical markets and a market capitalisation of S$1.5 billion ($1.1 billion), is also partnering with Ballymore on London’s Royal Wharf development.
Located on the former docks of East London, the regeneration scheme, which was initiated in 2014, is due to deliver 3,400 homes by the end of next year.