Friday 23 March 2018

CBRE on way back after 'difficult' 2012

Optimistic: Enda Luddy
Optimistic: Enda Luddy

Peter Flanagan, Commercial Property Editor

LOSSES at the Irish arm of CBRE widened last year, as the company dealt with a slump in turnover.

According to accounts just filed, for the year to the end of 2012 the company posted an operating loss of €2m, much worse than the 2011 loss of €300,000.

The loss was due in the main to a slump in turnover at the firm, which plunged by more than a third to €7.5m.

Despite the loss last year, company managing director Enda Luddy was optimistic about the way forward, and the company is projecting to be profitable for 2013.

CBRE took a €2.6m hit on provisions against surplus office space, the accounts show, but it is believed that space has since been sub-let.

Mr Luddy commented: "2012 was a very difficult year for Irish commercial property due to a combination of factors including a lack of transactional activity, a weak domestic economy, and difficult international trading conditions.

"Despite this, with the support of our parent company, we continued to invest in our people and in our business during the year which has served us well as the market starts to recover," he added.

Mr Luddy said there had been a "notable" improvement in the commercial property market this year, and that has been reflected in an increased number of deals throughout the sector.

For 2013, CBRE is forecasting commercial property deals worth €1.5bn to be completed. That is almost three times higher than all of 2012, and is the highest level since the peak of the boom.

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Also in Business