Irish Bank Resolution Corp. and Bank of Ireland will sell debts tied to the Shelbourne Hotel in Dublin to Kennedy-Wilson Holdings on 17 January, Bloomberg reported this afternoon.
The Beverly Hills, California-based investment firm said last week that it was under contract to pay about about €111 million for the “potential purchase” of loans secured against the Shelbourne.
“We anticipate financing this acquisition with approximately 50% debt and potentially in part with third party equity,” Kennedy-Wilson said in a filing dated 6 January, without disclosing the sellers.
Shelbourne Hotel, the Marriott-branded hotel on St Stephen’s Green in Dublin, was bought for €140 million in 2004 by five of Ireland’s best-known property developers; Bernard McNamara, John Sweeney, Bernard Doyle, Jerry O’Reilly and David Courtney, and then expensively renovated in the years prior to the market collapse.
Bank of Ireland and Anglo Irish Bank funded the acquisition and upmarket refurbishment, with each retaining an equal €103 million of the remaining senior loan. Kennedy Wilson was part of a consortium of five North American investors rescued Bank of Ireland in July 2011 with a capital injection.
© 2014 - Hospitality Ireland Magazine by Enda Dowling
