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News Release

Dublin

Continued strong Investment volumes in Q1 2013

It is the first quarter since Q3 2007 that investment volumes have exceeded €340m in a single quarter.


Q1 has sustained the significant uplift in activity witnessed in the second half of 2013. Total take up for the first 3 months of the year is approximately €342 million from 32 transactions. This is significantly higher than the €17m recorded in Q1 2012 and is a 32% increase on Q4 2012 (€259m transacted). It is the first quarter since Q3 2007 that investment volumes have exceeded €340m in a single quarter.

Prime city centre offices continue to be the core focus for the majority of investors, which is driven by an expectation of rental growth in the short-to-medium term.  Offices accounted for 50% of all investment volumes followed by mixed-use (16%) and retail (14%). The largest transaction of the quarter was the office building Bishop’s Square in Dublin 2, which was sold to King Street Capital for €65m.

There is strong interest in the Irish investment market at the moment, mainly coming from overseas. This demand is split with some focusing on loan sale portfolios, some in direct assets and some for both loans and assets. John Moran, Managing Director and Director of Investments stated that “We have identified over €6bn of investor demand with approximately 80% of this from overseas investors seeking to place capital in Ireland. A number of international players are establishing platforms in Ireland, indicating they are not just here for the short term”.
A key issue for the investment market is the slowness of supply which is not meeting the level of current demand. Supply is expected to increase over the course of 2013 which will be driven by loan sales and direct asset sales. These are expected to pick up pace in the next 9 months, especially through the IBRC liquidation process.
John added that “At the end of Q1 there is approximately €416m of investment on the market across 100 properties. €215m (52%) is already under offer or sale agreed and therefore we expect another strong level of investment transactions in Q2 2013”. John added that “Assuming that an adequate supply of investments come to the market over the next 9 months, total investment volumes for 2013 could exceed €1 billion”.