Sunday 19 January 2020

Investment deals top €1bn in first nine months of year

Tara Fitzsimons

INVESTMENT property deals topped €1bn in the first nine months of this year, a new report has found.

The study from Savills claimed the value of transactions in the sector reached €1.09bn after the first three quarters of 2013.

Between July and September, about €480m changed hands in 22 investment property sales.

That is well up on a year ago, when turnover was only €110m.

Savills said the figures showed a significant increase in activity and confidence in the Irish investment market.

Fergus O'Farrell, director of investments at Savills commented: "The attractiveness of Ireland as an investment location for domestic and international core and opportunistic buyers continues to improve, on the back of improving economic data and Ireland's impending exit from the bailout program at the end of this year.

"In addition, we are now seeing scale returning to the market, with significant demand for lot sizes from €100m to €400m.

"Kennedy Wilson bought the Opera portfolio, the first deal of this scale in the current cycle for €306m, which was competitively bid. Several other portfolios of scale are on the market or coming to the market in the short to medium term and are keenly anticipated by investors," he said.

Savills say it sees a trend where investors are increasingly looking to deploy large equity cheques. This is driving competitive bidding for large scale assets and portfolios leading to premium prices being achieved, they added.

The majority of demand is for offices, with 31pc of turnover in the first three quarters of the year in this sector.

PRIME

Investors are apparently chasing well located third generation offices, where it is expected prime rents will increase in the next few years due to a shortage of new office developments in the planning pipeline. There is increasing demand for apartment block sales as well.

Larger lot sizes so far this year have attracted both institutional and private equity investors.

There were six transactions worth more than €50m, making up 57pc of turnover. Three of these were purchased by US investors, two by Irish institutional investors and the other by a private Irish investor.

Deals are expected to exceed €1.5bn in value by year end.

Irish Independent

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