The Irish Times yesterday reported that US investment firm Quadrant Real Estate Advisors is planning to raise as much as €500 million for a Dublin-based fund aimed at financing Irish and UK commercial property deals as banks largely eschew the market following the crash.
The fund would be financing office, hotels and apartment deals, offering finance of up to 75% of total costs at typical rates between 7.5% and 9%.
The establishment of the fund, which will target investors including pension funds in Ireland and overseas, is still subject to Central Bank of Ireland authorisation.
Quadrant is lining up Gerry Keenan, Chief Executive of Irish Life Investment Managers between 2005 and 2013 and current Chairman of stockbrokers Merrion Capital, and Alan Broxon, former Director of the Irish Pensions Trust, as Directors of the fund.
Last year, Quadrant entered a deal with the Irish Strategic Investment Fund, committing up to €100 million to finance office development and other construction projects in Ireland.
It also part funded the €29 million purchase of Clerys department store in Dublin last summer by Irish investment group D2 Private, led by Deirdre Foley, and Cheyne Capital Management in the UK.
The store was subsequently closed, pending redevelopment.
Furthermore, the US firm also gave finance to the new owners of Clerys to buy a portfolio of property adjacent to the former department store, which will feature in a broader redevelopment of the area.
Head of European operations at Quadrant, Linda Nel said, "We’re very optimistic about the outlook for Ireland. The country has terrific fundamentals and the outlook for economic growth is excellent. We look at a lot of markets around the world and in Ireland we really like what we see."
Source: www.businessworld.ie