HSBC Alternative Investments Limited – or HAIL – has acquired almost three quarters (72.8 per cent) of a stake, at over €250 million ($343.6 million), in an Irish shopping centre, as part of a club programme of real estate offerings aimed at investors such as high net worth individuals.

HSBC Alternative Investments Limited – or HAIL – has acquired almost three quarters (72.8 per cent) of a stake, at over €250 million ($343.6 million), in an Irish shopping centre, as part of a club programme of real estate offerings aimed at investors such as high net worth individuals.

The firm, which is investment advisor to HSBC Management (Guernsey), has bought the stake in Dublin’s Liffey Valley shopping centre, buying it from Aviva Investors.  

The investment management firm is understood to have bought a property that was priced at a discount of 36 per cent of the pre-2008 financial crisis price - demonstrating the dramatic shift in values in Ireland; it is understood that HAIL is targeting a net return of 6 per cent or more on such deals.

Hines, an international real estate firm, has taken a minority equity stake alongside HAIL and will act as asset manager. The remaining 27.2 per cent is owned by Grosvenor Britain & Ireland who will continue to hold their investment in the property, according to a statement from HAIL.

Liffey Valley is one of Ireland’s largest regional shopping centres and one of three prime out of town centres in Dublin; it comprises a 500,000 square foot site, with a 17.3 adjacent parcel of development land.

Aviva Investors has been retained and appointed to act as transitional asset manager and was represented by DTZ. HAIL and Hines were advised by both HWBC, Dublin and Savills, London. Bank of Ireland provided the debt facilities to HAIL and Hines. HAIL’s club deal for this transaction is now closed for investment.

Operating since 1989, HSBC’s alternative investment business today manages and advises on more than $28 billion of client assets.