The Square goes into receivership in sign of property market strain
One of Ireland’s biggest shopping centres, The Square in Tallaght, has been placed into receivership by key lender AIB in a deal that highlights the scale of the decline in commercial property values.
High profile accountants Kieran Wallace, and Eamonn Richardson of Interpath Advisory have been appointed by the bank as joint receivers and managers with the consent and co-operation of owner Oaktree Capital Management.
The move by the bank follows a stalled sales process.
The day to day operations of the shopping centre, Ireland’s biggest when it was opened in 1990, will not be affected. Owners of the independently owned units at the centre will not be impacted by the receivership.
In a statement, Interpath said all parties are committed to working together to complete an orderly sale of The Square to a new owner in early course.
"The appointments of the receivers and managers will not impact any tenants or the continued operation and trading at The Square," they said.
The appointments of the receivers and managers will not impact any tenants or the continued operation and trading at The Square.
The move by AIB comes after Oaktree put The Square on the market last year seeking €170m but failed to land a deal at that price. The Irish Times reported earlier this year that offers in the region of €125m had been made. That would be just half the €250m Oaktree paid Nama for the shopping centre in 2018.
That in turn was less than half the €640m valuation the scheme carried in 2007 when financier Derek Quinlan's Quinlan Private sold a stake of around 51pc to developer Noel Smyth for €320m.
Oaktree's 2018 was backed by AIB as senior lender with additional lending from UK lender M&G Investments. The 2018 acquisition included control of 118 of the Square's 160 shop units, a cinema with 13 digital screens and more than 2,400 car spaces.
The centre is anchored by Dunnes Stores, Tesco and Penneys opened a large shop in the centre two years ago.
Extending to 53,603 sq m (577,500sq ft) the Square is located on a site of 27 acres.
Prior to the Oaktree sale Nama had acquired and amalgamated various borrower's interests in what had bene a highly fractured ownership in order to execute a single, large scale, disposal.
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