The owners of one of Dublin's best-known pubs are set to receive almost €52 million in a commercial property deal involving IIB Bank and two stockbroking firms.
Mr Frank Smith and Mr John Smith, owners of the Submarine Bar at Crumlin Cross, Dublin, have agreed to sell the shopping centre adjacent to the pub in a deal valued at €51.75 million.
In 2003, the duo made tax settlements with the Revenue Commissioners of more than €5 million arising out of the bogus non-resident accounts inquiry. Mr John Smith made a settlement of €3.7 million and Mr Frank Smith made a settlement of €1.6 million.
They developed the Ashleaf Shopping Centre, next to the pub, several years ago for around €25 million. The brothers are selling all the complex, except the pub and the unit occupied by anchor tenant, Dunnes Stores.
IIB is providing €33.75 million of the purchase price in senior debt, repayable at 1.25 per cent. The bank intends syndicating the loan.
Merrion Stockbrokers in Dublin and Cork firm Axiom are putting together private investors for the property. They will provide the remaining €18 million of the purchase price.
A number of the bank's private clients are understood to be on board.
The shopping centre has 23 retail units and seven offices. The rent roll delivers an annual yield of 5.45 per cent, which property sources say compares favourably with the 4.5-5 per cent average yield in Dublin.
The two broking firms are seeking high-net-worth individuals to back the purchase. The minimum investment required will be €150,000.
The deal is one of a number of similar transactions done by IIB in the UK and Brussels over the past year. These were valued at between €50-€300 million.
IIB's head of private clients, Mr Olan Cremin, put the deal together.
IIB is owned by Belgian group KBC and has around 12 per cent of the State's residential mortgage market. In mid 2004, its book was worth €4.4 billion.
