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Hammerson Seeks Refinancing For Dundrum Town Centre

Shopping centre
Interior Of Dundrum Town Centre

UK-based real estate investment trust Hammerson is looking to refinance the £266M debt secured against its 50% stake in Dundrum Town Centre in Dublin.

Hammerson has brought in adviser Eastdil Secured to consult on the new financing deal, according to CoStar.

The REIT said in its annual report, published in March, that it is aiming to refinance the debt against Ireland’s biggest shopping centre, which matures in September 2024, at a 40% loan-to-value ratio and 5% all-in interest costs.

That would equate to £220M of debt, as the whole shopping centre is valued at £1.1B, with Allianz owning the other 50% stake in the flagship mall.

Dundrum Town Centre has 169 tenants across 1.2M SF and is Ireland’s biggest shopping centre. Dundrum produces £48.1M in annual rent, according to Hammerson’s 2022 report, and footfall is up 3% compared with 2019.

Hammerson has been asset managing the mall, and in June it confirmed a string of retail lettings across its portfolio, including the opening of a new €16M Penneys store that occupies the former House of Fraser site, featuring 60K SF of retail space, an increase of almost two-thirds over the previous store.

Brown Thomas has also taken space at the former House of Fraser, and Dunnes Stores has agreed to open at the former Penneys location at the centre.

Nike Live also opened at the mall in June, marking a debut of the concept in the country.

The company has also submitted a planning application that will see the construction of 900 homes in Dundrum, plus additional retail space, extra food and beverage units, and a new daycare.

A Hammerson-Allianz joint venture last October commenced construction on a 122-unit residential development at The Ironworks in the Dublin suburb that will also include a coworking space.

Hammerson reports its latest financial results on 27 July and has prioritised the development and mixed-use regeneration of its urban centres such as Dundrum.

Hammerson also co-owns the Swords Pavilions shopping centre and Dublin’s Ilac Centre.

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