22 Irish Investment Sales Totalling £545 Million
84% of the proceeds were generated from Central London properties.
Dublin, August 2nd 2012 – Property consultants CBRE today released new data confirming that the Irish remained net sellers of commercial property in the UK in the first six months of 2012. According to CBRE, Irish investors disposed of £545 million of commercial real estate in the UK in the first half of this year.
According to Marie Hunt, Executive Director and Head of Research at CBRE in Ireland, “There were 22 individual investment sale transactions completed by Irish vendors in the UK in the first six months of 2012. 56% of the £545 million proceeds were accounted for by the sale of office buildings, with 9 office investments sold by Irish vendors in the period. A further 18% of the total proceeds from Irish vendors were accounted for by the sale of 7 retail properties. Some of the most high profile assets to change hands in the period include the sale of the 107 Cheapside office building in London City for over £124 million; the sale of an office building on Queen Victoria Street in London for £70 million and the sale of a leisure/retail building at Leicester Square in the city for £55 million”.
84% of the Irish sales in H1 2012 occurred in Central London. According to Caroline McCarthy, Executive Director in the Investment Department at CBRE “Irish investors continue to sell assets in the UK although this market has certainly become thinner. Irish investors accounted for £545 million of sales in 22 transactions in the first half of this year compared with 26 transactions totalling over £1 billion in the same period last year. (There were 54 Irish sales completed in the UK in 2011 with a total value of over £2.24 billion). However, there have been a number of significant sales of Irish assets completed recently including the sale of Battersea Power Station, which will be included in statistics for the second half of the year. In one of the largest transactions in London this year, the German fund RREEF recently purchased Drapers Gardens in the City on behalf of Chinese investors from an Irish investor for £285 million. Although the UK economic situation has deteriorated somewhat in recent months and this in turn has had implications for the real estate sector, there has been no discernible let up in demand or change in sentiment towards investment in Central London, which high-net-worth investors still percieve as a safe haven. Although the London market continues to hold up well, there are less bidders for some assets than would have been the case even 12 months ago. The most dominant investors are Middle and Far Eastern investors and sovereign wealth funds. However, outside of London, there has been a notable shift in sentiment which has manifested itself in some yield softening over recent months with this effect particularly noticeable in regional markets. Indeed, yields on secondary and provincial properties in the UK have weakened by between 10 and 25 basis points over the last few months alone ”.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2011 revenue). The Company has approximately 34,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
In Ireland, with offices in Dublin and Belfast, CBRE is the country’s largest commercial real estate services company, now employing over 110 employees and offering a full range of property services including property sales and acquisitions, leasing and management, investment, corporate services, debt advisory, project management, consultancy, valuations and research. Please visit our website at www.cbre.ie or www.cbre.ie/ni.