A US investor has launched a counter-bid to the proposed sale of 16 properties, owned by Johnny Ronan and Richard Barrett, to California-based Kennedy Wilson for €306 million.
Kennedy Wilson last month emerged as the leading candidate to buy the properties, which include Stillorgan Shopping Centre and KPMG’s Dublin HQ on Stephen’s Green. The latter’s purchase was financed by €425 million in bonds issued by listed vehicle, Opera House Finance (CMH) plc.
However, Northwood Investors, one of Opera House’s creditors and an under bidder in the sale process, has said it will offer €311 million following requests from other bondholders unhappy with Kennedy Wilson’s terms.
Northwood has submitted details of its proposal to Eurohypo, which services the Opera House loans, and to the other bondholders, who are due to vote on Kennedy Wilson's offer later this month.
Northwood says owners of junior debt will fare better under its bid than under Kennedy Wilson’s. It also claims its plan is structured to mitigate a possible €52 million capital gains tax bill on the sale.
Both Northwood and Kennedy Wilson will pay the most well-secured, class A, bondholders the €243 million due to them. However, Northwood says it will repay class B creditors 100 per cent of their €50 million debt, while Kennedy Wilson is offering €48.25 million.
