Thursday 29 September 2016

238 sales see €2.95bn total spent in first half of 2016

Published 14/07/2016 | 02:30

The €950m paid for Blanchardstown Shopping Centre represented 32pc of the €2.95bn spent
The €950m paid for Blanchardstown Shopping Centre represented 32pc of the €2.95bn spent

A total of 238 income-producing commercial property investment transactions carrying a combined value of €2.95bn were conducted in the first half of this year, a new report shows.

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The detail of the transactions, which ranged in value from just €29,000 to €950m, are included in the findings of the first bi-annual investment digest prepared by CBRE in collaboration with auction specialists Allsop Ireland.

The report, which is due to be released today, combines Allsop's substantial database of commercial transactions with CBRE capabilities in the areas of data and research.

The US private equity giant Blackstone's recent €950m purchase of the Blanchardstown shopping centre from Stephen Vernon's Green Property Group is recorded as the single most valuable deal to have taken place up to the end of June, accounting for just over 32pc of the total monies spent.

However, it represents less than 0.5pc of the total number of commercial transactions to have taken place in the period.

In contrast to the Blanchardstown sale, the report shows that almost half of the total number of income-producing transactions between January and June carried values of less than €1m. When combined, these sub-€1m sales amounted to less than 1pc of the total spend of €2.95bn.

In a finding which will serve to reinforce evidence that Ireland's economic recovery has to date been strongest in Dublin, its surrounding counties and in major cities such as Cork, the report shows there were no sales of income-producing properties valued at more than €5m in counties in either Connacht or Ulster in the first half of this year.

Unsurprisingly, institutional funds accounted for the purchase of over 70pc of income, producing asset sales where the price exceeded €1m. In terms of transactions valued at less than €1m, private buyers accounted for the biggest cohort at 63pc.

A closer examination of properties sold for less than €1m shows that 82pc of these were acquired by Irish buyers. The percentage of sales accounted for by the Irish dropped significantly to just 20pc for sales above the €1m mark. US buyers were the most active buyers of properties sold for more than €1m. There were no European buyers or Irish REIT buyers for income-producing properties where the values were less than €1m.

Commenting on the report, CBRE managing director Enda Luddy said: "The availability of data in any market is hugely important, none more than the property market. We hope this aggregated data provided in this report brings a measure of clarity with the detailed information now available."

Allsop Ireland managing director Stephen McCarthy said: "Reliable, real-time information is the cornerstone of every commercial investment decision, whether strategic or modest in nature, helping to mitigate risk and promote better-informed decision making.

"For our part, as a data rich business, we aim to contribute to an otherwise opaque market and we are delighted to partner with CBRE, the global leader in the field of property research."

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