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Total investment volumes for the first half of the year are €613 million across 47 transactions
This is already higher than the total volume recorded for 2012 which was €557m. The first half of 2013 has sustained the significant uplift in activity continuing the trend of the second half of 2012.
Hannah Dwyer, Head of Research said that ‘it is positive to see the momentum in the investment market that we saw towards the end of last year continue into 2013. We expect this to pick up further pace over the next 2 quarters with an increase in supply mostly coming from NAMA and non-NAMA banks. There remains significant interest in the Irish investment market from both domestic and overseas buyers and we expect this spectrum to widen, both in terms of investor type and country. We are in contact with investors who have up to €6bn of capital looking to invest in Ireland who are looking to avail of the country’s economic recovery and better-than-average European returns. With activity already exceeding €600m this year-to-date, we expect to see year-end investment volumes reach between €1.2 and €1.5bn for the whole of 2013”.Investment activity remains driven by large-scale prime Dublin office and residential buildings. The largest deal this quarter was the sale of the Clancy Quay residential block which was purchased by Kennedy Wilson for €84m. The largest office transaction in the quarter was the sale of La Touche House in the IFSC to Credit Suisse for €35m. JLL acted as agents for the vendor, Warrens Private Clients for the sale. The top 5 transactions this quarter totalled €250m and accounted for 93% of investment volumes, highlighting the investor appetite for large investment lots.
Hannah also explained that “with continued interest and competitive bidding, we expect to see some uplift in values for prime assets, with the first signs of increases expected for large Dublin 2 office blocks. We have already started to see a tightening of yields for prime offices, and we expect to see yields for prime retail assets follow”.
John Moran, Managing Director of JLL Dublin and Head of Investment added that “there continues to be a strengthening of overseas interest in the market with new entrants from the Middle East and Asia. The recent announcement by Green of the first Irish REIT is also another considerable endorsement of the market and more importantly will provide longer-term liquidity into the future”.