Refinancing of Dundrum Town Centre loan unlikely to boost wider retail market

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Hammerson,Dundrum,Dundrum-Town-Centre

Deal is good news for Hammerson, but offers limited read-across for bricks-and-mortar retail in general

Hammerson and Pimco have refinanced a €570m loan secured against Dundrum Town Centre. Photograph: Tom Honan for The Irish Times

The two firms, which together control the centre through a joint venture, arranged a €350 million non-recourse term loan of up to seven years with lenders Rothesay, BNP Paribas and Deka. Hammerson accounts for about €175 million of that loan, the company said on Wednesday. The two firms are funding the remaining €220 million from existing cash held in the joint venture and newly issued equity, it added.

Getting the refinancing away is a boon to Hammerson – its shares rose 1.2 per cent on Wednesday – but will also be welcomed by the retail industry here. Hammerson cut the carrying value of its shopping centre interests here by 7.7 per cent in June. All told, it has reduced the value of its Irish interests, which include 50 per cent stakes in the Pavilions in Swords and the Irish Life Mall by about £320 million since 2020.

 

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