Liffey Valley sale collapses
Published: 21 February, 2011
Aviva Investors and Grosvenor have pulled their €350m sale of the 44,000-sq m Liffey Valley shopping centre in Dublin
Liffey Valley has been on the market for over a year, and terms were reportedly agreed with Area Property Partners last year. But the collapse of Ireland's governing coalition, led buy Fianna Fail, caused the deal to unravel.
Both opposition parties – Fine Gael and Labour – are pledged to the retrospective abolition of upwards-only rent reviews, bringing with it the prospect of a collapse in commercial property values as rents fall to market levels. A victory by a coalition of the two looks to be a racing certainty, according to the opinion polls.
In a statement Aviva said: “Aviva Investors and its partner Grosvenor have withdrawn Liffey Valley Shopping Centre Dublin from the market having failed to reach an agreement on acceptable terms with potential purchasers. The centre will be retained, with Aviva Investors continuing to perform the role of asset manager”
