Israel’s leased embassy building in Dublin and a nearby property that served as the base for Germany’s mission during the second World War are among dozens of properties that could be sold after receivers were appointed last week to certain assets in an Irish real-estate fund.
Property investor Mel Sutcliffe’s Quanta Capital has confirmed that receivers have been appointed by alternate lender Relm Finance over 27 properties owned by a sub-fund of Goldstein Property ICAV, an investment vehicle it manages. Relm is backed by funding from US investment group Avenue Capital.
“Quanta Capital, which manages the assets on behalf of Goldstein Property ICAV and its sub-funds, is disappointed by this development as we were working with the lender to secure an extension of the loan facilities,” said a company spokesman
“We will continue to seek a resolution. Goldstein ICAV is still active in the market and Quanta, on behalf of Goldstein, manages over 500 properties. It is important to note that the tenants of these 27 properties are unaffected.”
The Sunday Times initially reported over the weekend that Ken Fennell and Brendan O’Reilly of Interpath Advisory had been appointed as receivers over assets in the Goldstein Property vehicle. The move follows a sharp fall in office values in the past two years as a result of a spike in interest rates and the impact of post-pandemic work practices.
[ Has Fingal County Council found a solution to Ireland’s housing crisis?Opens in new window ]
The Irish Times has established the list of properties subject to the receivership including 23 Shelbourne Road, in Ballsbridge, Dublin 4, home to the Israeli embassy. Israel recalled its ambassador to Ireland in May after the Government announced its decision to recognise the state of Palestine.
The list also includes 58 Northumberland Road, where a dental clinic is based. The red-bricked Victorian building served as the headquarters of the German legation, or embassy, in Ireland during the second World War.
Other affected properties include some Georgian office buildings in Dublin 2, residential accommodation units and business park units.
Representatives for Relm Finance and Interpath Advisors declined to comment, while property consultants Bannon, which is managing the properties on behalf of the receivers, did not respond to a request for comment.
It is believed this is the first ICAV, or Irish Collective Asset-management Vehicle, to have had a receiver appointed to assets since the establishment of this type of Central Bank-authorised investment structure under legislation enacted in 2015.
Relm Finance, established in 2017, is among a wave of firms, typically backed by overseas capital, to enter the Republic’s commercial property financing market after mainstream banks reined in their exposure in the wake of the property crash.
Relm Finance has issued over €1.2 billion of loans over the past seven years, according to its website. It restricts itself to providing loans of no more than 75 per cent of the value of a property asset.
Quanta Capital, which has been an active buyer in the Irish property market in recent years, set up Goldstein Property ICAV in 2018. It has used different lenders to fund various assets.
Quanta Capital had weighed putting in a counter bid for then Dublin-listed office and industrial property company Yew Grove in late 2021 on behalf of the ICAV, after the business had accepted a €127.8 million takeover from Canadian property group Slate Office Reit. Goldstein Property ICAV owned a 4.5 per cent stake in Yew Grove at the time. It ultimately decided against making an offer.
More recently, Quanta Capital paid about €22 million in total for three prime properties on Grafton Street and South Frederick Street in Dublin city centre during the summer on behalf of the ICAV. These properties are not part of the receivership process.
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
