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Buy-to-rent sales dominate €680m of Irish commercial property transactions in Q3

 

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As much as 69pc of spend in the most recent quarter was institutional investment in buy-to-rent units compared to just 29pc was on office buildings. (Stock photo)

As much as 69pc of spend in the most recent quarter was institutional investment in buy-to-rent units compared to just 29pc was on office buildings. (Stock photo)

As much as 69pc of spend in the most recent quarter was institutional investment in buy-to-rent units compared to just 29pc was on office buildings. (Stock photo)

Commercial property investors spent more than €680m on 14 Irish deals during the three months to the end of September bringing total spend this year to almost €2.4bn according to figures compiled by CBRE.

As much as 69pc of spend in the most recent quarter was institutional investment in buy-to-rent units compared to just 29pc was on office buildings.

Kyle Rothwell, head of capital markets at CBRE described the figures as "a decent result considering the underlying backdrop and the inability of investors to travel to inspect buildings at present.

"It represents a 59pc uplift on Q2 volumes, which we define as a 'lost quarter' for the market," said Mr Rothwell.

Stephen Conway of Colliers said the investment spend for the quarter was broadly in line with the five year Q3 average of about €700m.

"There is still optimism for a strong end to the year," he said.

"There is currently region €1.4bn of investment property available for sale with about €430m of this either sale agreed or under offer," he added.

Among the active buyers were Deutsche Bank subsidiary DWS which forward funded 368 apartments at Halliday House and Cheevers Court, Dún Laoghaire developed by Cosgrave Property Group.

Agents Hooke and MacDonald had guided €195m for these and it is believed they sold for around €200m, making it the biggest deal of the quarter.

DWS also bought the Prestige Portfolio of 317 residential units across four Dublin northside schemes from the McKeon family's MKN for €145m in a deal jointly brokered by Hooke and MacDonald and Savills.

Another major residential deal saw Michael Cotter's Park Developments forward sell 192 units in the Laurel and Rowan Hall blocks at its Clay Farm development in Ballyogan, South Dublin for around €75m to Irish residential rental firm Urbeo.

German investors were also active with office deals. KGAL bought 2 Burlington Road, Dublin 4 from Henderson Park for about €94m and KanAm Grund purchased 30-33 Molesworth Street, Dublin 2 also from Henderson Park for €60m.

Irish Independent