The dispute at Stillorgan Village Shopping Centre between retailers and the centre’s ownership, Kennedy Wilson, rumbles on.
After the US development giant imposed parking fees at Ireland’soldest shopping centre, some tenants threatened to withhold rent due to their footfall dropping by up to 20 per cent, they say.
The current situation, Cantillon understands, is that no meaningful progress has been made since what seemed like half of Fine Gael visited the shopping centre, with its management having curtailed engagement with retailers.
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However, shortly after the radios went silent, Kennedy Wilson announced it will be acquired by a consortium led by its chief executive William McMorrow and Fairfax Financial for about $1.5 billion (€1.27 billion).
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The stated goal is to ditch the cost and administrative burden of being publicly listed, with the deal expected to close in the second quarter of 2026. McMorrow will remain in operational control.
The question has been raised whether the sale is causing gridlock on the issue, with managers unwilling to rock a boat whose ownership is in flux.
Anyone thinking that the goings on in Ireland would not be affected by the wider group would do well to consider that Kennedy Wilson’s Irish interests represent a big portion of its holdings.
As of September 30th last, its investments here stood at $488.6 million with mortgage debt of $215.7 million. Some 20 per cent of Kennedy Wilson’s annual net operating income of $434 million was generated in Ireland, according to third-quarter results.
What is more, of Kennedy Wilson’s 4.3 million sq ft of commercial properties, more than one million is in Ireland.
Locals are hoping the sale might be the change needed to resolve the dispute, with local Fine Gael Cllr Eoin O’Driscoll “urging the shopping centre’s new owners to prioritise constructively engaging with tenants and the local community and reconsider the imposition of these parking charges”.
Unfortunately, it seems unlikely that an insurance company, which already owns the third largest number of Kennedy Wilson’s shares (9.66 per cent), will change the company’s trajectory in a significant manner once in the majority position.
