Herbert Smith Freehills has advised long standing client Hammerson plc in connection with the formation of a new joint venture with Allianz Real Estate Germany. The joint venture has exchanged contracts with the Irish National Asset Management Agency, following a competitive bidding process, to acquire a €2.6bn portfolio of loans for €1.85 bn. The loans are secured against market-leading retail property assets in Dublin, Ireland, which includes Dundrum Town Centre, Ireland’s pre-eminent shopping and leisure destination.

The acquisition represents access for Hammerson to a major new business platform of high quality Irish retail property assets and an opportunity to become one of Ireland’s leading retail property owners.

The portfolio is anchored by Dundrum Town Centre, a 1.5 million sq ft super-prime European shopping centre situated in Dundrum, Dublin which has four department and flagship stores (House of Fraser, M&S, Harvey Nichols and Penney’s), a Tesco superstore, 120 retail shops, 38 restaurants, a 12 screen VIP cinema and a 3,400 space customer car park. The portfolio also includes a 50 per cent. ownership interest in each of the Ilac Shopping Centre in central Dublin and the Pavilions Shopping Centre in Swords. The remaining part of the portfolio consists of the "Dundrum Phase 2" and "Dublin Central" development sites.

Under the long term ownership structure, the joint venture will acquire Dundrum Town Centre and the Dundrum Phase 2 development site and Hammerson will be appointed to act as asset and development manager in respect of those assets. Hammerson will separately acquire the 50 per cent. ownership interests in each of The Ilac Shopping Centre and The Pavilions Shopping Centre, together with the Dublin Central development site.

Hammerson will fund its €1.2 billion share of the transaction from existing financial resources and a new €1 billion revolving credit facility, on which Herbert Smith Freehills also acted.

The Herbert Smith Freehills team was led by Hammerson Relationship Partner and Head of Real Estate Don Rowlands and Corporate Partner Alex Kay, who were supported by Finance Partner Simon Chadney, Iain Carruthers (real estate) and Liam Diggins, Hester Cooper, Emily Naylor and Alex Cunningham (corporate). Specialist input was provided by Susan Black, Alberto Martinazzi and Alexandra Long (competition).

Commenting on the transaction, Don Rowlands said: "We are delighted to have advised Hammerson on what is a milestone transaction for them in a new market.  The transaction played to our strengths as a leading City real estate practice, combining real estate, corporate and finance expertise".

The joint venture was advised by William Fry (with a team led by Andrew Muckian) on all Irish law aspects and Clifford Chance Frankfurt (Christian Keilich) advised Allianz on its entry into of the joint venture and related aspects.