€603 million invested in the Irish market during First Half of 2013
CONTACT: Marie Hunt – 00 353 1 6185543 / 00 353 87 2727115 or e-mail:firstname.lastname@example.org
Dublin, 2nd July 2013 – Commercial property consultants CBRE today released final investment spend data for the Irish market for the first half 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 €603 million of investment properties of more than €1 million in value traded in the Irish market during the first six months of the year, which is higher than the volume of transactions recorded in the market during the entire year last year. In total, 34 investment transactions of more than €1 million were completed in the Irish market during the first half of 2013 compared to 35 transactions of greater than €1 million completed during the full year last year.
Notable investment transactions completed in the second quarter of 2013 include the sale of the Clancy Barracks multi-family investment and adjoining 8.5 acre site to Kennedy Wilson for approximately €82 million; the off-market sale to new market entrant Credit Suisse of the La Touche House office investment in the IFSC for €35 million, reflecting a yield of 12%; the sale to an Israeli investor of an apartment investment off Baggot Street, Dublin 4 for €6.1 million, reflecting a yield of 8%; the sale of Findlater House on O’Connell Street, Dublin for €6.1 million, reflecting a yield of close to 7% and the sale of an AIB bank branch at Rathgar, Dublin 6 for €4 million, reflecting a yield of 7.5%.
As reported in their July bi-monthly report earlier this week, there has been very strong demand for prime commercial real estate during the first half of this year with some new investors adding to the weight of money already chasing assets in the Irish market. As a result, prime yields have strenghened faster than most was anticipated with prime office yields in Dublin in the order of 6.25% and prime high street retail yields in the order of 5.75% at the mid-year point and likely to strenghen further.
According to Marie Hunt, Executive Director, CBRE Ireland “There is strong demand for prime Irish real estate, particularly in Dublin, as has been evidenced by the volume of transactions and the pricing achieved for some trophy assets over the first six months of 2013. Prime yields have contracted faster than was anticipated during the first six months of this year. The focus for the next few months will be to finalise the many transactions that are currently in negotiations and in legals with a lot of new properties expected to be released for sale in the early Autumn. This is clearly necessary with more buyers than sellers in some parts of the market. The ending of the Capital Gains Tax waiver at the end of 2013 will undoubtedly boost transactional volumes in the latter half of the year as buyers vie to get transactions closed by year-end”.
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