€336 million invested in the Irish market during Q1 2013
More prime property assets needed to satisfy current volumes of demand
Dublin, 9th April 2013 – Commercial property consultants CBRE today released final investment spend data for the Irish market for the first quarter of 2013, which shows that the momentum experienced in the commercial property sector during the latter half of 2012 has continued this year. According to CBRE, more than €336 million of investment properties of more than €1 million in value traded in the Irish market during the first three months of the year, which is higher than provisional estimates produced by CBRE in advance of the quarter end. In total, 21 investment transactions of more than €1 million were completed in the Irish market during Q1 2013. This quarterly spend compares with €545 million invested in Irish commercial real estate in the entire year last year and is significantly higher than that invested in each of the previous three years.
Notable investment transactions completed in the first quarter of 2013 include the sale of the Bishop’s Square office building in Dublin 2 to US investor King Street for €65 million, reflecting an initial yield of 9.8%; the sale of a portfolio of four office buildings in the Irish Airlines Pension Fund and the sale to German fund GLL of two adjoining buildings on Grafton Street for a reported €40 million. More than 50% of Irish investment transactions of greater than €1 million that signed in the first three months of 2013 comprised office properties.
The weight of demand for prime properties in the Irish market is continuing to impact positively on yields with CBRE intending to adjust their prime yield series again in April to reflect the prevailing appetite for prime real estate. CBRE say that prime office yields in Dublin are now in the order of 6.5% while prime high street retail properties are yielding approximately 5.75%.
According to Caroline McCarthy, Executive Director and Head of the Capital Markets team at CBRE, Ireland “Improving economic conditions coupled with the availability of attractively priced real estate in Ireland is continuing to attract significant overseas appetite and this is fuelling the investment sector and leading to some price rises for prime properties. A number of the assets that signed during Q1 were brought to the market several months ago so at this juncture, we need to see more prime property assets being released for sale to satisfy current volumes of demand”.
Marie Hunt – 00 353 1 6185543 / 00 353 87 2727115 or email@example.com
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 and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 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