Letterkenny Shopping Centre bought as part of €74 million deal

Letterkenny Shopping Centre has been bought as part of a €74 million deal for a six-mall portfolio across the country.

A Davy Real Estate-managed fund has completed the acquisition of a vast portfolio that includes the 105,000 square foot Letterkenny complex.

A lengthy process to sell the Hexagon portfolio, six centres built by Harcourt Developments, the company of Buncrana developer Pat Doherty.

A guide price of €100 million was initially set for the portfolio. JLL Ireland had offered the extensive portfolio for sale on the instructions of joint receivers from KPMG, Shane McCarthy and Cormac O’Connor.

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Apollo Global Management, an asset management firm, appointed a receiver over the six shopping centres earlier this year to pave the way for the sale. Mr McCarthy and Mr O’Connor were appointed as joint receivers over the assets of Lindat, a company controlled by the Harcourt Development Group.

The Harcourt group agreed a consensual sale of the centres with its lender.

The Hexagon portfolio also includes: Donaghmede Shopping Centre in Dublin; Galway Shopping Centre; Laois Shopping Centre, Parkway Shopping Centre in Limerick; and Longwalk Shopping Centre in Dundalk.

A prolonged sales process saw two prospective buyers in the form of Lupus Capital and Camgill Conway enter discussions and were in periods of exclusivity but failed to complete a deal owning to adverse conditions in the debt funding market.

The Letterkenny Shopping Centre was built in 1984 and was the first complex of its kind in the town.

Major retailers Tesco and Penneys are anchor stores in a complex that also includes Costa, DV8 and the Oasis Bar in over 40 retail units.