Day-to-day operations will not be affected as AIB works to secure loans
The square in Tallaght
One of Ireland's largest shopping centres, The Square in Tallaght, has gone into administration by major lender AIB.
The deal highlights the extent of the decline in commercial real estate values.
High-profile accountants Kieran Wallace and Eamonn Richardson of Interpath Advisory have been appointed by the bank as joint administrators and managers, with the consent and cooperation of owner Oaktree Capital Management.
The bank's move follows a stalled sales process.
It was reported that bids worth €125 million had been made
The daily operations of the shopping center – which was Ireland's largest shopping center when it opened in 1990 – will not be affected. And owners of the independent units downtown will not be affected by the receivership.
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In a statement, Interpath said all parties are committed to working together to complete an orderly sale of The Square to a new owner.
AIB's move comes after Oaktree launched The Square last year, with a price tag of €170 million. However, they were unable to strike a deal at that price.
Earlier this year the Irish times reported that bids in the region of €125 million had been made.
That would be just half of the €250 million Oaktree paid Nama for the shopping center in 2018.
And that, in turn, would be less than half the €640 million valuation the scheme fetched in 2007 – when financier Derek Quinlan's Quinlan Private sold a roughly 51% stake to developer Noel Smyth for €320 million.
The 2018 purchase of Oaktree was supported by AIB as senior lender, with additional loans sourced from UK lender M&G Investments.
The acquisition included control of 118 of The Square's 160 retail units, a cinema with 13 digital screens and more than 2,400 parking spaces.
The center is anchored by Dunnes Stores and Tesco. Penneys opened a large store downtown two years ago.
The Square extends to 53,603 m2 and is located on a site of 27 hectares.
Prior to the sale of Oaktree, Nama had acquired the interests of several borrowers in a highly divided property and combined them to conduct a single large-scale sale.